Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 26, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | MB FINANCIAL INC /MD | ||
Entity Central Index Key | 1139812 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,446,208,206 | ||
Entity Common Stock, Shares Outstanding | 75,193,005 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $256,804 | $205,193 |
Interest earning deposits with banks | 55,277 | 268,266 |
Total cash and cash equivalents | 312,081 | 473,459 |
Federal funds sold | 0 | 42,950 |
Investment securities: | ||
Securities available for sale, at fair value | 1,654,752 | 1,118,912 |
Securities held to maturity, at amortized cost ($1,035,061 and $1,198,929 fair value at December 31, 2014 and 2013, respectively) | 993,380 | 1,182,533 |
Non-marketable securities - FHLB and FRB stock | 75,569 | 51,417 |
Total investment securities | 2,723,701 | 2,352,862 |
Loans held for sale | 737,209 | 629 |
Loans: | ||
Total loans, excluding purchased credit impaired and covered loans | 8,831,572 | 5,476,831 |
Purchased credit impaired and covered loans | 251,645 | 235,720 |
Total loans | 9,083,217 | 5,712,551 |
Less: Allowance for loan and lease losses | 110,026 | 111,746 |
Net loans | 8,973,191 | 5,600,805 |
Lease investment, net | 162,833 | 131,089 |
Premises and equipment, net | 238,377 | 221,065 |
Cash surrender value of life insurance | 133,562 | 130,181 |
Goodwill | 711,521 | 423,369 |
Other intangibles | 38,006 | 23,428 |
Mortgage servicing rights, at fair value | 235,402 | 413 |
Other real estate owned, net | 19,198 | 23,289 |
Other real estate owned related to FDIC-assisted transactions | 19,328 | 20,472 |
Other assets | 297,690 | 197,416 |
Total assets | 14,602,099 | 9,641,427 |
Deposits: | ||
Non-interest bearing | 4,118,256 | 2,375,863 |
Interest bearing | 6,872,686 | 5,005,396 |
Total deposits | 10,990,942 | 7,381,259 |
Short-term borrowings | 931,415 | 493,389 |
Long-term borrowings | 82,916 | 62,159 |
Junior subordinated notes issued to capital trusts | 185,778 | 152,065 |
Accrued expenses and other liabilities | 382,762 | 225,873 |
Total liabilities | 12,573,813 | 8,314,745 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at December 31, 2014 and 1,000,000 at December 31, 2013; Series A, 8% perpetual non-cumulative, 4,000,000 shares issued and outstanding at December 31, 2014 and no shares outstanding at December 31, 2013, $25 liquidation value) | 115,280 | 0 |
Common stock, ($0.01 par value; authorized 100,000,000 shares at December 31, 2014 and 70,000,000 at December 31, 2013; issued 75,067,482 shares at December 31, 2014 and 55,148,409 shares at December 31, 2013) | 751 | 551 |
Additional paid-in capital | 1,267,761 | 738,053 |
Retained earnings | 629,677 | 581,998 |
Accumulated other comprehensive income | 20,356 | 8,383 |
Less: 296,715 and 184,173 shares of treasury stock, at cost, at December 31, 2014 and 2013, respectively | -6,974 | -3,747 |
Controlling interest stockholders’ equity | 2,026,851 | 1,325,238 |
Noncontrolling interest | 1,435 | 1,444 |
Total stockholders’ equity | 2,028,286 | 1,326,682 |
Total liabilities and stockholders’ equity | $14,602,099 | $9,641,427 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, at amortized cost, fair value (in dollars) | $1,035,061 | $1,198,929 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 1,000,000 |
Preferred stock, dividend rate | 8.00% | |
Preferred stock, shares issued | 4,000,000 | 0 |
Preferred stock, shares outstanding | 4,000,000 | 0 |
Preferred stock, liquidation preference per share | $25 | $0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 100,000,000 | 70,000,000 |
Common stock, issued shares | 75,067,482 | 55,148,409 |
Treasury stock, shares | 296,715 | 184,173 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Loans: | |||||
Taxable | $292,028 | $228,931 | $263,079 | ||
Nontaxable | 9,022 | 9,611 | 8,629 | ||
Investment securities: | |||||
Taxable | 38,619 | 26,084 | 33,424 | ||
Nontaxable | 34,791 | 32,564 | 29,311 | ||
Federal funds sold | 25 | 15 | |||
Other interest earning accounts | 663 | 690 | 867 | ||
Total interest income | 375,148 | 297,895 | 335,310 | ||
Interest expense: | |||||
Deposits | 17,027 | 19,240 | 30,258 | ||
Short-term borrowings | 780 | 622 | 1,204 | ||
Long-term borrowings and junior subordinated notes | 6,518 | 5,697 | 11,060 | ||
Total interest expense | 24,325 | 25,559 | 42,522 | ||
Net interest income | 350,823 | 272,336 | 292,788 | ||
Provision for credit losses | 12,052 | -5,804 | -8,900 | ||
Net interest income after provision for credit losses | 338,771 | 278,140 | 301,688 | ||
Non-interest income: | |||||
Lease financing, net | 64,310 | 61,243 | 36,382 | ||
Mortgage banking revenue | 46,149 | 1,664 | 2,325 | ||
Commercial deposit and treasury management fees | 34,315 | 24,867 | 23,636 | ||
Trust and asset management fees | 21,839 | 19,142 | 17,990 | ||
Card fees | 13,741 | 11,013 | 9,368 | ||
Capital markets and international banking fees | 5,458 | 3,560 | 5,086 | ||
Consumer and other deposit service fees | 12,788 | 13,968 | 14,428 | ||
Brokerage fees | 5,176 | 4,907 | 4,792 | ||
Loan service fees | 4,814 | 5,563 | 5,845 | ||
Increase in cash surrender value of life insurance | 3,381 | 3,385 | 3,570 | ||
Net (loss) gain on investment securities | -2,525 | -1 | 555 | ||
Net gain (loss) on sale of assets | 3,452 | -323 | -942 | ||
Gain on extinguishment of debt | 1,895 | 0 | 0 | ||
Other operating income | 6,512 | 5,406 | 6,158 | ||
Total non-interest income | 221,305 | 154,394 | 129,193 | ||
Non-interest expenses: | |||||
Salaries and employee benefits | 255,974 | 177,858 | 165,696 | ||
Occupancy and equipment expense | 44,910 | 36,878 | 35,806 | ||
Computer services and telecommunication expense | 31,678 | 18,883 | 15,499 | ||
Advertising and marketing expense | 8,854 | 8,272 | 8,183 | ||
Professional and legal expense | 14,652 | 8,807 | 6,110 | ||
Other intangibles amortization expense | 5,501 | 6,084 | 5,010 | ||
Facilities impairment charges | 2,270 | 2,190 | |||
Net loss (gain) recognized on other real estate owned and other related expense | 3,575 | -781 | 20,584 | ||
Prepayment fees on interest bearing liabilities | 12,682 | ||||
Other operating expenses | 69,368 | 38,587 | 32,270 | ||
Total non-interest expenses | 436,782 | [1] | 294,588 | [1] | 304,030 |
Income before income taxes | 123,294 | 137,946 | 126,851 | ||
Income tax expense | 37,193 | 39,491 | 36,477 | ||
Net income | 86,101 | 98,455 | 90,374 | ||
Dividends and discount accretion on preferred shares | 4,000 | 3,269 | |||
Net income available to common stockholders | $82,101 | $98,455 | $87,105 | ||
Common share data: | |||||
Basic earnings per common share (dollars per share) | $1.32 | $1.81 | $1.61 | ||
Diluted earnings per common share (dollars per share) | $1.31 | $1.79 | $1.60 | ||
Weighted average common shares outstanding for basic earnings per common share (in shares) | 62,012,196 | 54,509,612 | 54,270,297 | ||
Diluted weighted average common shares outstanding for diluted earnings per common share (in shares) | 62,573,406 | 54,993,865 | 54,505,976 | ||
[1] | Includes merger related expenses of $34.8 million and $2.5 million in the banking segment for the years ended December 31, 2014 and 2013, respectively. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $86,101 | $98,455 | $90,374 |
Unrealized holding gains (losses) on investment securities, net of reclassification adjustments | 20,933 | -43,543 | -4,097 |
Reclassification adjustment for amortization of unrealized gains on investment securities transferred to held to maturity from available for sale | -3,700 | -2,478 | 0 |
Reclassification adjustments for losses (gains) included in net income | 2,525 | 1 | -555 |
Other comprehensive income (loss), before tax | 19,758 | -46,020 | -4,652 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | -7,785 | 18,077 | 1,828 |
Other comprehensive income (loss), net of tax | 11,973 | -27,943 | -2,824 |
Comprehensive income | $98,074 | $70,512 | $87,550 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Treasury Stock | Noncontrolling Interest |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $1,393,027 | $194,719 | $548 | $731,248 | $427,956 | $39,150 | ($3,044) | $2,450 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 90,604 | 90,374 | 230 | |||||
Other comprehensive income (loss), net of tax | -2,824 | -2,824 | ||||||
Cash dividends declared on common stock | -7,149 | -7,149 | ||||||
Dividends and discount accretion on preferred shares | -1,988 | 1,281 | -3,269 | |||||
Repurchase of preferred shares and warrant | -197,518 | -196,000 | -1,518 | |||||
Restricted common stock activity, net of tax | 1,090 | 2 | -704 | 18 | 1,774 | |||
Stock option activity, net of tax | -346 | -694 | 3 | 345 | ||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan | -1,999 | 369 | -2,368 | |||||
Stock-based compensation expense | 4,806 | 4,806 | ||||||
Additional investment in subsidiary | -1,640 | -736 | -904 | |||||
Distributions to noncontrolling interest | -293 | -293 | ||||||
Balance at Dec. 31, 2012 | 1,275,770 | 0 | 550 | 732,771 | 507,933 | 36,326 | -3,293 | 1,483 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 98,641 | 98,455 | 186 | |||||
Other comprehensive income (loss), net of tax | -27,943 | -27,943 | ||||||
Cash dividends declared on common stock | -24,290 | -24,290 | ||||||
Restricted common stock activity, net of tax | 887 | 1 | -739 | -100 | 1,725 | |||
Stock option activity, net of tax | 557 | 58 | 499 | |||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan | -2,171 | 507 | -2,678 | |||||
Stock-based compensation expense | 5,456 | 5,456 | ||||||
Distributions to noncontrolling interest | -225 | -225 | ||||||
Balance at Dec. 31, 2013 | 1,326,682 | 0 | 551 | 738,053 | 581,998 | 8,383 | -3,747 | 1,444 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 86,392 | 86,101 | 291 | |||||
Other comprehensive income (loss), net of tax | 11,973 | 11,973 | ||||||
Issuance of preferred stock | 115,280 | 115,280 | ||||||
Issuance of common stock due to business combination | 518,992 | 196 | 518,796 | |||||
Cash dividends declared on preferred shares | -4,000 | -4,000 | ||||||
Cash dividends declared on common stock | -34,422 | -34,422 | ||||||
Restricted common stock activity, net of tax | 874 | 2 | 812 | 60 | ||||
Stock option activity, net of tax | 531 | 2 | 529 | |||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan | -2,690 | 597 | -3,287 | |||||
Stock-based compensation expense | 8,974 | 8,974 | ||||||
Distributions to noncontrolling interest | -300 | -300 | ||||||
Balance at Dec. 31, 2014 | $2,028,286 | $115,280 | $751 | $1,267,761 | $629,677 | $20,356 | ($6,974) | $1,435 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared | $0.52 | $0.44 | $0.13 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities | |||
Net income | $86,101 | $98,455 | $90,374 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of premises and equipment and leased equipment | 60,067 | 51,893 | 52,419 |
Facilities impairment charges | 2,270 | 2,190 | |
Compensation expense for share-based payment plans | 8,974 | 5,456 | 4,806 |
(Gain) loss on sales of premises and equipment and leased equipment | -5,817 | 362 | -2,204 |
Amortization of other intangibles | 5,501 | 6,084 | 5,010 |
Provision for credit losses | 12,052 | -5,804 | -8,900 |
Deferred income tax expense | -48 | 21,681 | 15,177 |
Amortization of premiums and discounts on investment securities, net | 45,413 | 47,771 | 44,543 |
Accretion of premiums and discounts on loans, net | -21,262 | -7,122 | -13,797 |
Accretion of FDIC indemnification asset | -112 | -342 | -1,055 |
Net loss (gain) on investment securities | 2,525 | 1 | -555 |
Proceeds from sale of loans held for sale | 2,213,914 | 86,505 | 96,243 |
Origination of loans held for sale | -2,266,636 | -77,935 | -96,480 |
Net gain on sale of loans held for sale | -12,022 | -1,664 | -2,325 |
Change in fair value of mortgage servicing rights | 11,777 | 0 | 0 |
Net loss (gain) on other real estate owned | 1,554 | -1,888 | 14,503 |
Net loss on other real estate owned related to FDIC-assisted transactions | 446 | 360 | 3,091 |
Increase in cash surrender value of life insurance | -3,381 | -3,385 | -3,570 |
Gain on extinguishment of debt | -1,895 | 0 | 0 |
Decrease (increase) in other assets, net | 9,988 | 17,485 | -67,511 |
Increase (decrease) in other liabilities, net | 18,038 | -45,155 | 49,861 |
Net cash provided by operating activities | 167,447 | 192,758 | 181,820 |
Cash Flows From Investing Activities | |||
Decrease (increase) in federal funds sold | 42,950 | -42,950 | 0 |
Proceeds from sales of investment securities available for sale | 512,878 | 989 | 15,416 |
Proceeds from maturities and calls of investment securities available for sale | 259,694 | 496,258 | 608,665 |
Purchase of investment securities available for sale | -216,777 | -484,113 | -605,098 |
Proceeds from maturities and calls of investment securities held to maturity | 41,654 | 17,087 | 2,134 |
Purchase of investment securities held to maturity | -122,859 | -61,073 | -2,187 |
Purchase of non-marketable securities - FHLB and FRB stock | -15 | -547 | -44 |
Redemption of non-marketable securities - FHLB and FRB stock | 26,483 | 4,515 | 25,491 |
Net decrease in loans | 155,399 | 38,725 | 219,125 |
Purchases in mortgage servicing rights | -1,096 | 0 | 0 |
Purchases of premises and equipment and leased equipment | -94,667 | -65,453 | -76,675 |
Proceeds from sales of premises and equipment and leased equipment | 22,924 | 8,532 | 14,587 |
Capital improvements on other real estate owned | 0 | -74 | -2,809 |
Proceeds from sale of other real estate owned | 9,390 | 21,814 | 34,316 |
Proceeds from sale of other real estate owned related to FDIC-assisted transactions | 17,049 | 15,194 | 40,298 |
Life insurance death benefit | 2,083 | ||
Net cash acquired (paid) in business acquisition | 25,174 | 0 | -27,010 |
Net (payments for) proceeds from FDIC related covered assets | -3,620 | 9,766 | 83,954 |
Net cash provided by (used in) investing activities | 674,561 | -39,247 | 330,163 |
Cash Flows From Financing Activities | |||
Net decrease in deposits | -343,530 | -161,438 | -104,910 |
Net (decrease) increase in short-term borrowings | -597,774 | 272,787 | 648 |
Proceeds from long-term borrowings | 33,816 | 7,725 | 6,742 |
Principal paid on long-term borrowings | -13,059 | -61,616 | -156,956 |
Redemption of junior subordinated notes issued to capital trusts | -45,369 | 0 | -6,186 |
Repurchase of preferred stock and warrant | 0 | 0 | -197,518 |
Treasury stock transactions, net | -2,690 | -1,672 | -249 |
Stock options exercised | 1,034 | 1,014 | 154 |
Excess tax benefits from share-based payment arrangements | 396 | -325 | -390 |
Dividends paid on preferred stock | -2,000 | -3,239 | |
Dividends paid on common stock | -34,210 | -24,070 | -7,101 |
Net cash (used in) provided by financing activities | -1,003,386 | 32,405 | -469,005 |
Net (decrease) increase in cash and cash equivalents | -161,378 | 185,916 | 42,978 |
Cash and cash equivalents: | |||
Beginning of year | 473,459 | 287,543 | 244,565 |
End of year | 312,081 | 473,459 | 287,543 |
Cash payments for: | |||
Interest paid to depositors and other borrowed funds | 25,258 | 26,345 | 44,212 |
Net income tax payments, net | 23,040 | 35,375 | 9,883 |
Supplemental Schedule of Noncash Investing Activities: | |||
Investment securities held to maturity purchased not settled | 0 | 321 | 0 |
Transfer of investment securities available for sale to investment securities held to maturity | 0 | 656,617 | 0 |
Transfer of investment securities held to maturity to investment securities available for sale | 0 | 0 | |
Loans transferred to other real estate owned | 2,133 | 6,164 | 4,535 |
Loans transferred to other real estate owned related to FDIC-assisted transactions | 16,337 | 16,023 | 19,705 |
Loans transferred to repossessed vehicles | 1,019 | 871 | 1,496 |
Operating leases rewritten as direct finance leases included as loans | 5,853 | 6,936 | 7,760 |
Noncash assets acquired: | |||
Investment securities available for sale | 826,691 | 635 | |
Investment securities held to maturity | 22,599 | 0 | 0 |
Non-marketable securities -FHLB and FRB stock | 50,620 | 0 | 0 |
Loans held for sale | 670,671 | 0 | 0 |
Loans | 3,532,211 | 32,933 | |
Lease investments | 11,885 | 0 | 0 |
Premises and equipment | 19,701 | 81 | |
Goodwill | 288,152 | 36,300 | |
Other intangibles | 20,079 | 5,028 | |
Mortgage servicing rights | 224,453 | 0 | 0 |
Other real estate owned | 4,720 | 0 | 0 |
Other assets | 130,478 | 27,323 | |
Total noncash assets acquired | 5,802,260 | 0 | 102,300 |
Liabilities assumed: | |||
Deposits | 3,953,213 | 0 | 0 |
Short-term borrowings | 1,035,800 | 0 | 0 |
Junior subordinated notes issued to capital trusts | 80,843 | 0 | 0 |
Other liabilities | 123,028 | 75,290 | |
Total liabilities assumed | $5,192,884 | $0 | $75,290 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies | Significant Accounting Policies | ||||||||||||
MB Financial, Inc. (the "Company," "we," "us," "our") is a financial holding company that provides a full range of financial services to individuals and corporate customers through its banking subsidiary, MB Financial Bank, N.A. ("MB Financial Bank"). | |||||||||||||
The Company’s primary market is the Chicago, Illinois metropolitan area, in which MB Financial Bank operates 86 banking offices through MB Financial Bank. | |||||||||||||
MB Financial Bank, our largest subsidiary, has three wholly owned subsidiaries with significant operating activities: LaSalle Systems Leasing, Inc., Celtic Leasing Corp. Cole Taylor Equipment Finance, LLC. MB Financial Bank also has a majority owned subsidiary with significant operating activities, Cedar Hill Associates, LLC. Vision Investment Services, Inc., a subsidiary of MB Financial Bank, was dissolved in the fourth quarter of 2012. | |||||||||||||
Basis of Financial Statement Presentation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany items and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and general practices within the financial services industry. In accordance with applicable accounting standards, the Company does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. See Note 12 below for more detail. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the year. Actual results could differ from those estimates. Areas involving the use of management’s estimates and assumptions, which are more susceptible to change in the near term include the allowance for loan and lease losses; residual value of direct finance, leveraged, and operating leases; valuation of mortgage servicing rights; income tax accounting; fair value measurements for assets and liabilities; and goodwill. | |||||||||||||
Cash and cash equivalents: For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), interest-bearing deposits with banks, with original maturities of 90 days or less. | |||||||||||||
Investment securities: Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale is based on various factors, including movements in interest rates, changes in the maturity mix of assets and liabilities, liquidity needs, regulatory capital considerations, and other factors. Securities available for sale are reported at fair value with unrealized gains or losses reported as accumulated other comprehensive income, net of the related deferred tax effect. Securities classified as held to maturity are those securities that the Company intends to hold until maturity and are reported at amortized cost. | |||||||||||||
The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security, using the level-yield method. In determining the estimated life of a mortgage-related security, certain judgments are required as to the timing and amount of future principal prepayments. These judgments are made based upon the actual performance of the underlying security and the general market consensus regarding changes in mortgage interest rates and underlying prepayment estimates. Amortization of premium and accretion of discount is included in interest income from the related security. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. | |||||||||||||
The Company evaluates the portfolio for impairment each quarter. In estimating other-than-temporary losses, the Company considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company is more likely than not to sell the security before recovery of its cost basis. If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired, but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. | |||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock: The Company owns investments in the stock of the Federal Reserve Bank of Chicago (“FRB”) and the Federal Home Loan Bank of Chicago (“FHLB”). No ready market exists for these stocks, and they have no quoted market values. The Bank, as a member of the Federal Reserve System and the FHLB, is required to maintain an investment in the capital stock of the FRB and FHLB. The stock is redeemable at par by the FRB and FHLB, respectively, and is, therefore, carried at cost and periodically evaluated for impairment. | |||||||||||||
Loans held for sale: Mortgage loans originated and intended for sale in the secondary market are reflected at fair value. Changes in the fair value are recognized in mortgage banking revenue on the Company's Consolidated Statements of Operations. | |||||||||||||
Mortgage Loan Representation and Warranty Reserve: The Company originates and sells residential mortgage loans in the secondary market. When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan, such as the ownership of the loan, the validity of the lien securing the loan, the nature and extent of underwriting standards applied and the types of documentation being provided. These representations and warranties are generally enforceable over the life of the loan. If a defect in the origination process is identified, the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. If there are no such defects, the Company has no liability to the purchaser for losses it may incur on such loans. | |||||||||||||
The Company maintains a representation and warranty reserve to account for the expected losses related to loans it might be required to repurchase or the indemnity payments it may have to make to purchasers. The representation and warranty reserve reflects management's best estimate of probable lifetime loss. The reserve considers both the estimate of expected losses on loans sold during the current accounting period as well as adjustments to the Company's previous estimate of expected losses on loans sold. Factors considered include borrower performance, repurchase demand behavior, and historical loan defect experience. Management monitors the adequacy of the overall reserve and makes adjustments to the level of reserve, as necessary, after consideration of other qualitative factors. | |||||||||||||
At the time a loan is funded, the representation and warranty reserve is recorded as a decrease in mortgage banking revenue on the Consolidated Statements of Operations and recorded in accrued interest, taxes and other liabilities on the Company's Consolidated Balance Sheets. Changes to the reserve are recorded as an increase or decrease to mortgage banking revenue on the Consolidated Statements of Operations. | |||||||||||||
Loans and leases: Loans are stated at the amount of unpaid principal reduced by the allowance for loan and lease losses and unearned income. Direct finance and leveraged leases are included as lease loans for financial statement purposes. Direct finance leases are stated as the sum of remaining minimum lease payments from lessees plus estimated residual values less unearned lease income. Leveraged leases are stated at the sum of remaining minimum lease payments from lessees (less nonrecourse debt payments) plus estimated residual values less unearned lease income. On a quarterly basis, management reviews the lease residuals for potential impairment. Unearned lease income on direct finance and leveraged leases is recognized over the lives of the leases using the level-yield method. | |||||||||||||
Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of the related loan’s yield. The Company is amortizing these amounts over the contractual life of the loan. Commitment fees based upon a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. | |||||||||||||
Interest income is accrued daily on the Company’s outstanding loan balances. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of renewal or collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged-off is reversed against interest income. | |||||||||||||
For impaired loans, accrual of interest is discontinued on a loan when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that collection of interest is doubtful. Cash collections on impaired loans are generally credited to the loan balance, and no interest income is recognized on those loans until the principal balance has been determined to be collectible. Loans, other than those included in large groups of smaller-balance homogeneous loans, are considered impaired when it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans include non-accrual loans and loans classified as a troubled debt restructuring. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any and any subsequent changes are charged against the allowance for loan and lease losses. | |||||||||||||
Troubled debt restructurings: A loan is classified as a troubled debt restructuring when a borrower is experiencing financial difficulties that leads to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, deferral of past due interest or principal, extension of maturity date, modification of amortization schedules, redemption of past due taxes and other actions intended to minimize potential losses. | |||||||||||||
In determining whether a debtor is experiencing financial difficulties, the Company considers if the debtor is in payment default or would be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor has securities that have been or are in the process of being delisted, the debtor’s entity-specific projected cash flows will not be sufficient to service any of its debt, or the debtor cannot obtain funds from sources other than the existing creditors at a market rate for debt with similar risk characteristics. | |||||||||||||
In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the debtor will serve as adequate compensation for other terms of the restructuring, and whether the debtor otherwise has access to funds at a market rate for debt with similar risk characteristics. | |||||||||||||
A loan that is modified at a market rate of interest will not be classified as troubled debt restructuring in the calendar year subsequent to the restructuring if it is in compliance with the modified terms. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. Under certain circumstances, a loan may be returned to accrual at the time of restructuring. A period of sustained repayment for at least six months generally is required for return to accrual status. | |||||||||||||
Periodically, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. | |||||||||||||
Allowance for loan and lease losses: The allowance for loan and lease losses (ALLL) is established through a provision for credit losses charged to expense. Loans are charged against the ALLL when management believes that collectability of the principal is unlikely. The allowance is an amount that management believes will be appropriate to absorb probable losses on existing loans, based on an evaluation of the collectability of loans and prior loss and recovery experience as appropriate under GAAP. The ALLL is based on management’s evaluation of the loan portfolio giving consideration to the nature and volume of the loan portfolio, the value of underlying collateral, overall portfolio quality, review of specific problem loans, and prevailing economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review MB Financial Bank’s ALLL, and may require it to recognize adjustments to its allowance based on their judgments of information available to them at the time of their examinations. | |||||||||||||
The ALLL is comprised of three elements: a commercial related general loss reserve; a commercial related specific reserve for impaired loans; and a consumer related reserve for smaller-balance homogenous loans. Each element is discussed below. | |||||||||||||
Commercial Related General Loss Reserve - We maintain a general loan loss reserve for the four categories of commercial related loans in our portfolio - commercial loans, commercial loans collateralized by the assignment of lease payments (lease loans), commercial real estate loans and construction real estate loans. | |||||||||||||
Under our loan risk rating system, each loan, with the exception of those included in large groups of smaller-balance homogeneous consumer related loans, is risk rated between one and nine by the originating loan officer, Senior Credit Management, Loan Review or loan committee. Loans rated "one" represent those loans least likely to default and a loan rated "nine" represents a loss. The probability of loans defaulting for each risk rating, sometimes referred to as default factors, are estimated based on the frequency with which loans migrate from one risk rating to another and to default status over time. We use a loan loss reserve model that incorporates the migration of loan risk ratings and historical default data over a multi-year period to develop our estimated default factors (EDFs). The model tracks annual loan rating migrations by loan type and currently uses loan risk rating migrations for 14 years. The migration data is adjusted by using average losses for an economic cycle (approximately 13 years) to develop EDFs by loan type, risk rating and maturity. EDFs are updated annually in December. | |||||||||||||
Estimated loan default factors are multiplied by individual loan balances in each risk-rating category and again multiplied by an historical loss given default estimate for each loan type (which incorporates estimated recoveries) to determine the appropriate allowance by loan type. This approach is applied to the commercial, lease, commercial real estate, and construction real estate components of the portfolio. | |||||||||||||
To account for current economic conditions, the general allowance for loan and lease losses also includes adjustments for macroeconomic factors. Macroeconomic factors adjust the ALLL upward or downward based on the current point in the economic cycle using predictive economic data and are applied to the loan loss model through a separate allowance element for the commercial, commercial real estate, construction real estate and lease loan components. To determine our macroeconomic factors, we use specific economic data that has shown to be a statistically reliable predictor of our credit losses relative to our long term average credit losses. We tested over 20 economic variables (U.S. manufacturing index, unemployment rate, U.S. GDP growth, etc.). We annually review this data to determine that such a relationship continues to exist. We currently use the following macroeconomic indicators in our macroeconomic factor computation: | |||||||||||||
Commercial loans and lease loans: initial unemployment insurance claims in Illinois, our prior period charge-off rates and crude oil prices. | |||||||||||||
Commercial real estate loans and construction loans: M2 Money stock, our prior period charge-off rates and the U.S. commercial real estate index. | |||||||||||||
Using the indicators noted above, a predicted charge-off percentage is calculated. The predicted charge-off percentage is then compared to the cycle average charge-off percentage, and a macroeconomic adjustment factor is calculated. The macroeconomic adjustment factor is applied to each commercial loan type. Each year, we review the predictive nature of the macroeconomic factors by comparing actual charge-offs to the predicted model charge-offs, re-run our regression analysis and re-calibrate the macroeconomic factors as appropriate. | |||||||||||||
Commercial Related Specific Reserves - The ALLL also includes specific reserves on impaired commercial related loans. A loan is considered to be impaired when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that the collection of all contractual principal and interest payments due is doubtful. | |||||||||||||
At each quarter-end, impaired loans are reviewed individually, with adjustments made to the general calculated reserve for each loan as deemed necessary. Specific adjustments are made depending on expected cash flows and/or the value of the collateral securing each loan. Generally, the Company obtains a current external appraisal (within 12 months) on real estate secured impaired loans. Our appraisal policy is designed to comply with the Interagency Appraisal and Evaluation Guidelines, most recently updated in December 2010. As part of our compliance with these guidelines, we maintain an internal Appraisal Review Department that engages and reviews all third party appraisals. | |||||||||||||
In addition, each impaired commercial loan with real estate collateral is reviewed quarterly by our appraisal department to determine that the most recent valuation remains appropriate during subsequent quarters until the next appraisal is received. If considered necessary by our appraisal department, the appraised value may be further discounted to reflect current values. | |||||||||||||
Other valuation techniques are also used to value non-real estate assets. Discounts may be applied in the impairment analysis used for general business assets (GBA). Examples of GBA include accounts receivable, inventory, and any marketable securities pledged. The discount is used to reflect collection risk in the event of default that may not have been included in the valuation of the asset. | |||||||||||||
Consumer Related Reserves - Pools of homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include consumer, residential real estate, home equity, credit cards and indirect vehicle loans. Migration probabilities obtained from past due roll rate analyses and historical loss rates are applied to current balances to forecast charge-offs over a one-year time horizon. | |||||||||||||
We consistently apply our methodology for determining the appropriateness of the allowance for loan and lease losses but may adjust our methodologies and assumptions based on historical information related to charge-offs and management's evaluation of the loan portfolio. In this regard, we periodically review the following to validate our allowance for loan and lease losses: historical net charge-offs as they relate to prior periods' allowance for loan and lease loss, comparison of historical loan migration in past years compared to the current year, overall credit trends and ratios and any significant changes in loan concentrations. In reviewing this data, we adjust qualitative factors within our allowance methodology to appropriately reflect any changes warranted by the validation process. | |||||||||||||
Acquired loans: Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. These acquired loans are segregated into three types: pass rated loans with no discount attributable to credit quality, non-impaired loans with a discount attributable at least in part to credit quality and impaired loans with evidence of significant credit deterioration. | |||||||||||||
• | Pass rated loans (typically performing loans) are accounted for in accordance with ASC 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. | ||||||||||||
• | Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC 310-30 if they display at least some level of credit deterioration since origination. | ||||||||||||
• | Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC 310-30 as they display significant credit deterioration since origination. | ||||||||||||
For pass rated loans (non-purchased credit-impaired loans), the difference between the estimated fair value of the loans (computed on a loan by loan basis) and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor loans which will largely offset the accretion from the pass rated loans. | |||||||||||||
In accordance with ASC 310-30, for both purchased non-impaired loans and purchased impaired loans ("PCI loans"), the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. | |||||||||||||
Substantially all of the loans acquired in transactions with the FDIC displayed at least some level of credit deterioration and as such are included as non-impaired and impaired loans as described immediately above. | |||||||||||||
Lease investments: The Company’s investment in operating leases is reported as lease investments, net. Rental income on operating leases is recognized as income over the lease term according to the provisions of the lease, which is generally on a straight-line basis. The investment in equipment in operating leases is stated at cost less depreciation using the straight-line method generally over a life of five years or less. | |||||||||||||
Premises and equipment: Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization is computed by the straight-line method over the estimated useful lives of the assets. Useful lives generally range from three to seven years for computer equipment and software, five to 10 years for furniture and equipment, and five to 39 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the term of the related lease or the estimated useful lives of the improvements, whichever is shorter. Land is not subject to depreciation. Maintenance and repairs are charged to expense as incurred, while major improvements are capitalized and amortized to operating expense over their identified useful lives. Premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Assets acquired through a business acquisition are recorded at fair value as of the acquisition date. | |||||||||||||
Other real estate owned: Other real estate owned includes real estate assets that have been received in satisfaction of debt. Other real estate owned is initially recorded at fair value less estimated selling costs, which establishes the cost basis. Subsequently, other real estate owned is carried at the lower of the cost basis or fair value less estimated selling costs. Any valuation adjustments required at the date of transfer are charged to the allowance for loan and lease losses. Subsequently, unrealized losses and realized gains and losses on sale are included in net loss recognized on other real estate owned. | |||||||||||||
Cash surrender value of life insurance: The Company has purchased bank-owned life insurance policies on certain executives. Bank-owned life insurance is recorded at its cash surrender value. Changes in the cash surrender values are included in non-interest income. | |||||||||||||
Goodwill: The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit and client relationship intangibles, consists of goodwill. Under the provisions of ASC Topic 350, goodwill is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill and other intangible assets to determine potential impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired, by comparing the carrying value of the asset with the anticipated future cash flows. The Company's annual assessment is done at the unit level. As of December 31, 2014, the annual assessment date, the Company had three reporting units: banking, leasing and mortgage banking. The Company did not recognize impairment losses during the year ended December 31, 2014. | |||||||||||||
Other intangibles: The Company’s other intangible assets consist of core deposit and customer intangibles obtained through acquisitions. Core deposit intangibles (the portion of an acquisition purchase price which represents value assigned to the existing deposit base) have finite lives and are amortized by the declining balance method over four to 15 years. Other intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |||||||||||||
Mortgage Servicing Rights: The Company originates and sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities. Purchased mortgage servicing rights are recorded at the purchase price at the date of purchase and at fair value thereafter. | |||||||||||||
Mortgage servicing rights do not trade in an active market with readily observable prices. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies and cost to service. The assumptions used in the valuation model are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party. | |||||||||||||
The Company has elected to account for mortgage servicing rights using the fair value option. Changes in the fair value are recognized in mortgage banking revenue on the Company's Consolidated Statements of Operations. | |||||||||||||
FDIC indemnification asset: As part of the Heritage Community Bank ("Heritage"), Benchmark Bank ("Benchmark"), Broadway Bank ("Broadway"), and New Century Bank ("New Century") transactions, MB Financial Bank entered into loss-share agreements with the FDIC. These agreements cover realized losses on loans and foreclosed real estate for specified periods. See Note 5 below for more information on these agreements, including the duration of MB Financial Bank’s loss-share coverage. These loss-share assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should MB Financial Bank choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss-share based on the credit adjustments estimated for each loan pool and the loss-share percentages. The loss-share assets are also separately measured from the related loans and foreclosed real estate and recorded within other assets on the balance sheet. The corresponding accretion is recorded in other income on the statement of operations. Although these assets are contractual receivables from the FDIC, there are no contractual interest rates. | |||||||||||||
When cash flow estimates are adjusted downward for a particular loan pool, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. | |||||||||||||
When cash flow estimates are adjusted upward for a particular loan pool, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the loan pool. | |||||||||||||
When cash flow estimates are adjusted downward for covered foreclosed real estate, the FDIC indemnification asset is increased. A charge is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. | |||||||||||||
When cash flow estimates are adjusted upward for covered foreclosed real estate, the FDIC indemnification asset is decreased. Any write-down after the transfer to covered foreclosed real estate is reversed. | |||||||||||||
In both scenarios, the claw-back liability for amounts owed to the FDIC for better than expected performance will increase or decrease accordingly. | |||||||||||||
Preferred stock: Preferred stock issued in connection with the Taylor Capital Group, Inc. merger was initially recorded at fair value. Preferred dividends declared are deducted from net income for computing income available to common stockholders and earnings per common share computations. | |||||||||||||
Treasury stock: Treasury stock is recorded at acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. | |||||||||||||
Derivative financial instruments and hedging activities: ASC Topic 815 establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. ASC Topic 815 requires that changes in the derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Accounting for qualifying hedges allows a derivative’s gains and losses to offset related results on the hedged item in the statement of operations, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. | |||||||||||||
All derivatives are recognized on the consolidated balance sheet at their fair value. On the date the derivative contract is entered into, the Company designates the derivative as either a fair value hedge (i.e. a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e. a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a non-designated derivative (i.e. an instrument with no hedging designation). For a derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income and are recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. Changes in the fair value of derivatives that are not designated as fair value or cash flow are reported currently in earnings, as noninterest income. | |||||||||||||
The Company formally documents all relationships between hedging instruments and hedging items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges or cash flow hedges to specific assets or liabilities on the balance sheet. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. | |||||||||||||
The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item; the derivative expires or is sold, terminated, or exercised; or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair value hedge, the Company continues to carry the derivative on the balance sheet at its fair value, and no longer adjusts the hedged asset or liability for changes in fair value. The adjustment of the carrying amount of the hedged asset or liability is accounted for in the same manner as other components of the carrying amount of that asset or liability. | |||||||||||||
Transfers of financial assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||
Sale of maintenance contracts: LaSalle Business Solutions, LLC (LBS), a subsidiary of LaSalle Systems Leasing, Inc., sells third party maintenance contracts to customers. The maintenance is serviced by third party providers, with LBS maintaining no legal obligation under the contract to perform additional services. Revenues are recorded net of cost of sales, as LBS is viewed as an agent under ASC Topic 605, accepting minimal credit risk, maintaining no obligation to perform maintenance under the contracts and having no control over selection of the maintenance supplier. | |||||||||||||
Asset management and trust assets: Assets of the asset management and trust department, other than trust cash on deposit at MB Financial Bank, are not included in these consolidated financial statements because they are not assets of the bank. | |||||||||||||
Stock-based compensation: The Company accounts for its equity awards in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize compensation expense related to equity awards in their statement of operations. See Note 19 below for more information. | |||||||||||||
Income taxes: Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences, operating loss carryforwards and tax credit carryforwards, while deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||||||
Basic and diluted earnings per common share: Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company's common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. | |||||||||||||
The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (amounts in thousands, except common share data): | |||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Distributed earnings allocated to common stock | $ | 34,422 | $ | 24,290 | $ | 7,149 | |||||||
Undistributed earnings | 51,679 | 74,165 | 83,225 | ||||||||||
Net income | 86,101 | 98,455 | 90,374 | ||||||||||
Less: preferred stock dividends and discount accretion | 4,000 | — | 3,269 | ||||||||||
Net income available to common stockholders | 82,101 | 98,455 | 87,105 | ||||||||||
Less: earnings and dividends allocated to participating securities | 2 | 2 | 3 | ||||||||||
Earnings allocated to common stockholders | $ | 82,099 | $ | 98,453 | $ | 87,102 | |||||||
Weighted average shares outstanding for basic earnings per common share | 62,012,196 | 54,509,612 | 54,270,297 | ||||||||||
Dilutive effect of equity awards | 561,210 | 484,253 | 235,679 | ||||||||||
Weighted average shares outstanding for diluted earnings per common share | 62,573,406 | 54,993,865 | 54,505,976 | ||||||||||
Basic earnings per common share | $ | 1.32 | $ | 1.81 | $ | 1.61 | |||||||
Diluted earnings per common share | 1.31 | 1.79 | 1.6 | ||||||||||
Comprehensive income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale, net of deferred taxes, which are reported as a separate component of stockholders’ equity on the consolidated balance sheet. | |||||||||||||
Segment Reporting: An operating segment is a component of an entity that: (i) engages in business activities from which it may earn revenues and incur expenses; (ii) has operating results that are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and (iii) has discrete financial information available. As of December 31, 2014, the Company had three reportable operating segments: banking, leasing and mortgage banking. | |||||||||||||
New authoritative accounting guidance: | |||||||||||||
ASC Topic 740 “Income Taxes.” New authoritative accounting guidance under ASC Topic 740, “Income Taxes” amended prior guidance to include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The Company adopted this new authoritative guidance on January 1, 2014, and it did not have an impact on the Company's statements of operations or financial condition. | |||||||||||||
ASC Topic 310 “Receivables.” New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical | |||||||||||||
possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosures. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have a significant impact on the Company's statements of operations or financial condition. | |||||||||||||
ASC Topic 323 “Investments - Equity Method and Joint Ventures.” New authoritative accounting guidance under ASC Topic 323, “Investments - Equity Method and Joint Ventures” amended prior guidance to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operation as a component of income tax expense. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have a significant impact on the Company's statements of operations or financial condition. | |||||||||||||
ASC Topics 205 “Presentation of Financial Statements” and 360 “Property, Plant, and Equipment.” New authoritative accounting guidance under ASC Topic 205, “Presentation of Financial Statements” and ASC Topic 360 “Property, Plant, and Equipment” amended prior guidance to change the requirements for reporting discontinued operations. The disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The new authoritative guidance also requires additional disclosures about discontinued operations. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have an impact on the Company's statements of operations or financial condition. | |||||||||||||
ASC Topic 860 “Transfers and Servicing.” New authoritative accounting guidance under ASC Topic 860, “Transfers and Servicing” amended prior guidance to change the accounting for repurchase-to-maturity transactions to secured borrowing accounting and to require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The new authoritative guidance also requires disclosures for a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. The new authoritative guidance will be effective for reporting periods after January 1, 2015, and the Company is assessing the impact on the statements of operations and financial condition. | |||||||||||||
ASC Topic 718 “Compensation - Stock Compensation.” New authoritative accounting guidance under ASC Topic 718, “Compensation - Stock Compensation” amended prior guidance to require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have an impact on the Company's statements of operations or financial condition. | |||||||||||||
Reclassifications: Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or stockholders’ equity. |
Business_Combinations
Business Combinations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Business Combinations | Business Combinations | ||||||||
On August 18, 2014, the Company acquired Taylor Capital Group, Inc. (“Taylor Capital”), a bank holding company and the parent company of Cole Taylor Bank, a commercial bank headquartered in Chicago, through the merger (the “Merger”) of Taylor Capital with and into the Company, followed immediately by the merger of Cole Taylor Bank with and into MB Financial Bank. This transaction solidifies the Company's market position in Chicago and diversifies its revenue streams. At the effective time of the Merger (the “Effective Time”), each share of the common stock of Taylor Capital and each share of nonvoting convertible preferred stock of Taylor Capital converted into the right to receive (1) 0.64318 of a share of the common stock of the Company, and (2) $4.08 in cash. All “in-the-money” Taylor Capital stock options and warrants outstanding immediately prior to the Effective Time were canceled in exchange for the right to receive a cash payment as provided in the merger agreement, as were the outstanding unvested restricted stock awards of Taylor Capital; however, the cash consideration payable for such restricted stock awards will remain subject to vesting or other lapse restrictions. Each share of Taylor Capital’s perpetual non-cumulative preferred stock, Series A, converted into the right to receive one share of the Company’s perpetual non-cumulative preferred stock, Series A. | |||||||||
The Company issued approximately 19.6 million shares of common stock and paid approximately $129.5 million in cash in the Merger. For the “in-the-money” Taylor Capital stock options and warrants, the Company paid in the aggregate approximately $4.4 million in cash. For the outstanding unvested Taylor Capital restricted stock awards, the Company will pay or has paid in the aggregate up to approximately $3.7 million in cash, as and to the extent such awards vest. The $129.5 million cash consideration includes payments for the Taylor Capital stock options, warrants and restricted stock awards. | |||||||||
This business combination was accounted for under the acquisition method of accounting. Accordingly, the results of operations of the acquired company have been included in the Company’s results of operations since the date of acquisition. Under this method of accounting, the assets acquired, liabilities assumed and consideration paid are recorded at their estimated fair values. The excess cost over fair value of net assets acquired is recorded as goodwill. In the event that the fair value of net assets acquired exceeds the cost, the Company will record a gain on the acquisition. As the consideration paid for Taylor Capital exceeded the net assets acquired, goodwill of $288.2 million was recorded on the acquisition and allocated to the banking segment. Goodwill recorded in the transaction, which reflects the increased Chicago market share and related synergies expected from the combined operations, is not tax deductible. The amounts recognized for the business combination in the financial statements as of December 31, 2014 have been determined only provisionally for loans, as loan risk ratings continue to be assessed. | |||||||||
Estimated fair values of the assets acquired and liabilities assumed in the Taylor Capital transaction, as of the closing date of the transaction were as follows (in thousands): | |||||||||
August 18, | |||||||||
2014 | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 154,684 | |||||||
Investment securities available for sale | 826,691 | ||||||||
Investment securities held to maturity | 22,599 | ||||||||
Non-marketable securities - FRB and FHLB Stock | 50,620 | ||||||||
Loans held for sale | 670,671 | ||||||||
Loans | 3,532,211 | ||||||||
Leases investments, net | 11,885 | ||||||||
Premises and equipment | 19,701 | ||||||||
Goodwill | 288,152 | ||||||||
Core deposit intangible | 20,079 | ||||||||
Mortgage servicing rights | 224,453 | ||||||||
Other real estate owned | 4,720 | ||||||||
Other assets | 130,478 | ||||||||
Total assets | $ | 5,956,944 | |||||||
LIABILITIES | |||||||||
Deposits | $ | 3,953,213 | |||||||
Short-term borrowings | 1,035,800 | ||||||||
Junior subordinated notes issued to capital trusts | 80,843 | ||||||||
Accrued expenses and other liabilities | 123,028 | ||||||||
Total liabilities | $ | 5,192,884 | |||||||
Series A preferred stock at $28.82 per share at August 15, 2014 | $ | 115,280 | |||||||
Total identifiable net assets less Series A preferred stock | $ | 648,780 | |||||||
Consideration excluding Series A preferred stock: | |||||||||
Market value of common stock at $26.49 per share at August 15, 2014 (19,602,482 shares of common stock issued) | $ | 519,270 | |||||||
Cash paid | 129,510 | ||||||||
Total fair value of consideration, excluding Series A preferred stock | $ | 648,780 | |||||||
The Company's Series A preferred stock was valued based upon the closing price of Taylor Capital's Series A preferred stock on August 15, 2014, the last trading day before the merger date. | |||||||||
Fair value estimates for loans, premises and equipment, goodwill, core deposit intangible, mortgage servicing rights, other real estate owned, other assets and total consideration have been revised compared to previously reported balances. These adjustments made during the measurement period were recorded as of the closing date of the transaction. The most significant changes were made to the fair value estimates of loans, core deposit intangibles and mortgage servicing rights as a result of additional information that was received that allowed us to refine our initial estimates. The fair value estimates of loans, core deposit intangibles and mortgage servicing rights decreased by $7.1 million, $4.9 million and $8.0 million, respectively, compared to previously reported balances. | |||||||||
Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. These acquired loans are segregated into three types: pass rated loans with no discount attributable to credit quality, non-impaired loans with a discount attributable at least in part to credit quality and impaired loans with evidence of significant credit deterioration. | |||||||||
• | Pass rated loans (typically performing loans) are accounted for in accordance with ASC 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. | ||||||||
• | Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC 310-30 if they display at least some level of credit deterioration since origination. | ||||||||
• | Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC 310-30 as they display significant credit deterioration since origination. | ||||||||
For pass rated loans (non-purchased credit-impaired loans), the difference between the estimated fair value of the loans (computed on a loan by loan basis) and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor Capital loans which will largely offset the accretion from the pass rated loans. | |||||||||
In accordance with ASC 310-30, for both purchased non-impaired loans and purchased impaired loans ("PCI loans"), the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. | |||||||||
The following table presents the acquired loans as of the acquisition date (in thousands): | |||||||||
PCI Loans | Non-PCI Loans | ||||||||
Contractually required principal and interest payments | $ | 244,650 | $ | 3,707,463 | |||||
Contractually required interest payments not expected to be collected due to estimated prepayments | — | (302,329 | ) | ||||||
Nonaccretable difference | (34,219 | ) | — | ||||||
Cash flows expected to be collected | 210,431 | 3,405,134 | |||||||
Accretable difference | (5,626 | ) | (77,728 | ) | |||||
Fair value of acquired loans | $ | 204,805 | $ | 3,327,406 | |||||
The Company incurred costs of $7.1 million and $2.4 million to directly consummate the merger for the years ended December 31, 2014 and 2013, respectively, which is recorded in professional and legal fees on the statement of operations. The Company recorded $34.8 million and $2.5 million in pre-tax merger related expenses for the years ended December 31, 2014 and 2013, respectively. The remainder of the merger related expenses primarily relate to retention and severance compensation costs and service contract termination costs. The data processing systems were converted in September 2014. | |||||||||
The following table provides the unaudited pro forma information for the results of operations for the years ended December 31, 2014 and 2013, as if the acquisition had occurred January 1, 2013. The pro forma results combine the historical results of Taylor Capital into the Company's consolidated statement of income including the impact of certain purchase accounting adjustments including loan discount accretion, investment securities discount accretion, intangible assets amortization, deposit premium accretion and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The merger related expenses that have been recognized are included in net income in the table below. | |||||||||
For Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Total revenues (net interest income plus non-interest income) | $ | 774,778 | $ | 790,655 | |||||
Net income | 112,220 | 180,085 | |||||||
Revenues and earnings of the acquired company since the acquisition date have not been disclosed as it is not practicable as Taylor Capital was merged into the Company and separate financial information is not readily available. |
Restrictions_on_Cash_and_Due_F
Restrictions on Cash and Due From Banks | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions on Cash and Due from Banks [Abstract] | |
Restrictions on Cash and Due From Banks | Restrictions on Cash and Due From Banks |
MB Financial Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based on a percentage of deposits. The total of those required reserve balances was approximately $127.2 million and $75.1 million at December 31, 2014 and 2013, respectively. | |
The nature of the Company’s business requires that it maintain amounts with banks and federal funds sold which, at times, may exceed federally insured limits. Management monitors these correspondent relationships and the Company has not experienced any losses in such accounts. |
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investment Securities | Investment Securities | ||||||||||||||||||||||||
Amortized costs and fair values of investment securities were as follows (in thousands): | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 64,612 | $ | 1,281 | $ | (20 | ) | $ | 65,873 | ||||||||||||||||
States and political subdivisions | 390,076 | 20,846 | (68 | ) | 410,854 | ||||||||||||||||||||
Residential mortgage-backed securities | 713,413 | 8,977 | (1,827 | ) | 720,563 | ||||||||||||||||||||
Commercial mortgage-backed securities | 186,110 | 1,772 | (220 | ) | 187,662 | ||||||||||||||||||||
Corporate bonds | 259,526 | 2,428 | (2,751 | ) | 259,203 | ||||||||||||||||||||
Equity securities | 10,531 | 66 | — | 10,597 | |||||||||||||||||||||
1,624,268 | 35,370 | (4,886 | ) | 1,654,752 | |||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 752,558 | 30,089 | (382 | ) | 782,265 | ||||||||||||||||||||
Residential mortgage-backed securities | 240,822 | 11,974 | — | 252,796 | |||||||||||||||||||||
993,380 | 42,063 | (382 | ) | 1,035,061 | |||||||||||||||||||||
Total | $ | 2,617,648 | $ | 77,433 | $ | (5,268 | ) | $ | 2,689,813 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 50,486 | $ | 1,704 | $ | (122 | ) | $ | 52,068 | ||||||||||||||||
States and political subdivisions | 19,398 | 22 | (277 | ) | 19,143 | ||||||||||||||||||||
Residential mortgage-backed securities | 696,415 | 8,555 | (3,737 | ) | 701,233 | ||||||||||||||||||||
Commercial mortgage-backed securities | 50,891 | 2,050 | — | 52,941 | |||||||||||||||||||||
Corporate bonds | 284,083 | 1,597 | (2,610 | ) | 283,070 | ||||||||||||||||||||
Equity securities | 10,649 | — | (192 | ) | 10,457 | ||||||||||||||||||||
1,111,922 | 13,928 | (6,938 | ) | 1,118,912 | |||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 932,955 | 7,584 | (4,366 | ) | 936,173 | ||||||||||||||||||||
Residential mortgage-backed securities | 249,578 | 13,178 | — | 262,756 | |||||||||||||||||||||
1,182,533 | 20,762 | (4,366 | ) | 1,198,929 | |||||||||||||||||||||
Total | $ | 2,294,455 | $ | 34,690 | $ | (11,304 | ) | $ | 2,317,841 | ||||||||||||||||
The Company has no direct exposure to the State of Illinois, but approximately 27% of the state and political subdivisions portfolio consists of securities issued by municipalities located in Illinois as of December 31, 2014. Approximately 93% of such securities were general obligation issues as of December 31, 2014. | |||||||||||||||||||||||||
During the third quarter of 2014, the Company repositioned its balance sheet subsequent to the Taylor Capital merger and sold certain longer-term and lower-coupon investment securities with an approximate carrying amount of $451.6 million. These investment security sales shortened the overall duration of the investment securities portfolio to pre-merger levels. Also as a part of the balance sheet repositioning, securities of states and political subdivisions with an approximate fair value of $291.2 million and amortized cost of $273.5 million were transferred from held to maturity to available for sale during the third quarter of 2014. As a result of the repositioning, the Company recognized a net loss of $3.2 million in the third quarter of 2014. | |||||||||||||||||||||||||
Unrealized losses on investment securities and the fair value of the related securities at December 31, 2014 were as follows (in thousands): | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 9,644 | $ | (20 | ) | $ | — | $ | — | $ | 9,644 | $ | (20 | ) | |||||||||||
States and political subdivisions | 7,784 | (21 | ) | 3,558 | (47 | ) | 11,342 | (68 | ) | ||||||||||||||||
Residential mortgage-backed securities | 235,818 | (1,336 | ) | 29,373 | (491 | ) | 265,191 | (1,827 | ) | ||||||||||||||||
Commercial mortgage-backed securities | 89,509 | (220 | ) | — | — | 89,509 | (220 | ) | |||||||||||||||||
Corporate bonds | 62,693 | (1,159 | ) | 9,675 | (1,592 | ) | 72,368 | (2,751 | ) | ||||||||||||||||
405,448 | (2,756 | ) | 42,606 | (2,130 | ) | 448,054 | (4,886 | ) | |||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 28,786 | (130 | ) | 14,238 | (252 | ) | 43,024 | (382 | ) | ||||||||||||||||
Totals | $ | 434,234 | $ | (2,886 | ) | $ | 56,844 | $ | (2,382 | ) | $ | 491,078 | $ | (5,268 | ) | ||||||||||
Unrealized losses on investment securities and the fair value of the related securities at December 31, 2013 were as follows (in thousands): | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 18,598 | $ | (122 | ) | $ | — | $ | — | $ | 18,598 | $ | (122 | ) | |||||||||||
States and political subdivisions | 2,275 | (166 | ) | 4,748 | (111 | ) | 7,023 | (277 | ) | ||||||||||||||||
Residential mortgage-backed securities | 232,807 | (2,905 | ) | 44,182 | (832 | ) | 276,989 | (3,737 | ) | ||||||||||||||||
Corporate bonds | 122,344 | (2,606 | ) | 705 | (4 | ) | 123,049 | (2,610 | ) | ||||||||||||||||
Equity securities | 10,457 | (192 | ) | — | — | 10,457 | (192 | ) | |||||||||||||||||
386,481 | (5,991 | ) | 49,635 | (947 | ) | 436,116 | (6,938 | ) | |||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 235,016 | (4,330 | ) | 1,301 | (36 | ) | 236,317 | (4,366 | ) | ||||||||||||||||
Totals | $ | 621,497 | $ | (10,321 | ) | $ | 50,936 | $ | (983 | ) | $ | 672,433 | $ | (11,304 | ) | ||||||||||
The total number of security positions in the investment portfolio in an unrealized loss position at December 31, 2014 was 168 compared to 345 at December 31, 2013. Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) whether or not the Company is more likely than not to sell the security before recovery of its cost basis. | |||||||||||||||||||||||||
As of December 31, 2014, management does not have the intent to sell any of the securities in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of December 31, 2014, management believes the impairments detailed in the table above are temporary. | |||||||||||||||||||||||||
Changes in market interest rates can significantly influence the fair value of securities, and the fair value of our municipal securities portfolio would decline substantially if interest rates increase materially. | |||||||||||||||||||||||||
Net (losses) gains recognized on investment securities available for sale were as follows (in thousands): | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Realized gains | $ | 2,045 | $ | 15 | $ | 787 | |||||||||||||||||||
Realized losses | (4,478 | ) | (2 | ) | (8 | ) | |||||||||||||||||||
Impairment charges | (92 | ) | (14 | ) | (224 | ) | |||||||||||||||||||
Net (losses) gains | $ | (2,525 | ) | $ | (1 | ) | $ | 555 | |||||||||||||||||
The amortized cost and fair value of investment securities as of December 31, 2014 by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
(In thousands) | Cost | Value | |||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 13,752 | $ | 13,792 | |||||||||||||||||||||
Due after one year through five years | 305,172 | 306,103 | |||||||||||||||||||||||
Due after five years through ten years | 39,903 | 40,823 | |||||||||||||||||||||||
Due after ten years | 355,387 | 375,212 | |||||||||||||||||||||||
Equity securities | 10,531 | 10,597 | |||||||||||||||||||||||
Residential and commercial mortgage-backed securities | 899,523 | 908,225 | |||||||||||||||||||||||
1,624,268 | 1,654,752 | ||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||
Due in one year or less | 29,060 | 29,114 | |||||||||||||||||||||||
Due after one year through five years | 247,683 | 249,058 | |||||||||||||||||||||||
Due after five years through ten years | 102,901 | 106,556 | |||||||||||||||||||||||
Due after ten years | 372,914 | 397,537 | |||||||||||||||||||||||
Residential mortgage-backed securities | 240,822 | 252,796 | |||||||||||||||||||||||
993,380 | 1,035,061 | ||||||||||||||||||||||||
Total | $ | 2,617,648 | $ | 2,689,813 | |||||||||||||||||||||
Investment securities with carrying amounts of $1.5 billion and $1.2 billion at December 31, 2014 and 2013, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law, while only $980.4 million and $908.4 million were required to be pledged at December 31, 2014 and 2013, respectively. Of those pledged, the Company had investment securities available for sale pledged as collateral for advances from the Federal Home Loan Bank of $226.9 million and $29.0 million at December 31, 2014 and 2013, respectively. |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||||||||||||||
Loans consist of the following at (in thousands): | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,245,206 | $ | 1,281,377 | |||||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,692,258 | 1,494,188 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | 2,544,867 | 1,647,700 | |||||||||||||||||||||||||||||||||||||||
Residential real estate | 503,287 | 314,440 | |||||||||||||||||||||||||||||||||||||||
Construction real estate | 247,068 | 141,253 | |||||||||||||||||||||||||||||||||||||||
Indirect vehicle | 268,840 | 262,632 | |||||||||||||||||||||||||||||||||||||||
Home equity | 251,909 | 268,289 | |||||||||||||||||||||||||||||||||||||||
Other consumer | 78,137 | 66,952 | |||||||||||||||||||||||||||||||||||||||
Gross loans, excluding purchased credit-impaired and covered loans | 8,831,572 | 5,476,831 | |||||||||||||||||||||||||||||||||||||||
Purchased credit-impaired and covered loans | 251,645 | 235,720 | |||||||||||||||||||||||||||||||||||||||
Total loans | $ | 9,083,217 | $ | 5,712,551 | |||||||||||||||||||||||||||||||||||||
Loans are made to individuals as well as commercial and tax exempt entities. Specific loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower. Except for commercial loans collateralized by assignment of lease payments and asset-based loans, credit risk tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by MB Financial Bank. | |||||||||||||||||||||||||||||||||||||||||
The Company's extension of credit is governed by its Credit Risk Policy which was established to control the quality of the Company's loans. This policy is reviewed and approved by the Company's Board of Directors on a regular basis. | |||||||||||||||||||||||||||||||||||||||||
Commercial Loans. Commercial credit is extended primarily to middle market customers. Such credits are typically comprised of working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a significant amount by the businesses' principal owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. Asset-based loans, also included in commercial loans, are made to businesses with the primary source of repayment derived from payments on the related assets securing the loan. Collateral for these loans may include accounts receivable, inventory and equipment, and is monitored regularly to ensure ongoing sufficiency of collateral coverage and quality. The primary risk for these loans is a significant decline in collateral values due to general market conditions. Loan terms that mitigate these risks include typical industry amortization schedules, percentage of collateral advances, maintenance of cash collateral accounts and regular asset monitoring. Because of the national scope of our asset-based lending, the risk of these loans is also diversified by geography. | |||||||||||||||||||||||||||||||||||||||||
Commercial Loans Collateralized by Assignment of Lease Payments ("Lease Loans"). The Company makes lease loans to lessors where the underlying leases are with both investment grade and non-investment grade companies. Investment grade lessees are companies rated in one of the four highest categories by Moody's Investor Services or Standard & Poor's Rating Services or, in the event the related lessee has not received any such rating, where the related lessee would be viewed under the underwriting policies of the Company as an investment grade company. Whether or not companies fall into this category, each lease loan is considered on its individual merit based on the financial wherewithal of the lessee using financial information available at the time of underwriting. | |||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate Loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. | |||||||||||||||||||||||||||||||||||||||||
Construction Real Estate Loans. The Company defines construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company's Credit Risk Policy. | |||||||||||||||||||||||||||||||||||||||||
Consumer Related Loans. The Company originates direct and indirect consumer loans, including primarily residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans (motorcycle, powersports, recreational and marine vehicles). Each loan type is underwritten based upon several factors including debt to income, type of collateral and loan to collateral value, credit history and Company relationship with the borrower. Indirect loan and credit card underwriting involves the use of risk-based pricing in the underwriting process. | |||||||||||||||||||||||||||||||||||||||||
Loans outstanding to executive officers and directors of the Company and MB Financial Bank, including companies in which they have management control or controlling beneficial ownership, at December 31, 2014 and 2013, were approximately $63.1 million and $24.0 million, respectively. Total advances on loans outstanding to executive officers and directors, including companies in which they have management control or controlling beneficial ownership, were $7.9 million, and total repayments were $14.9 million during the year ended December 31, 2014. Most of the increase in such loans is attributable to lending relationships held by Taylor Capital prior to its merger with the Company. In the opinion of management, these loans have similar terms to other customer loans and do not present more than normal risk of collection. | |||||||||||||||||||||||||||||||||||||||||
A collateral pledge agreement exists whereby at all times, the Company must keep on hand, free of all other pledges, liens, and encumbrances, first mortgage loans and home equity loans with unpaid principal balances aggregating no less than 133% for first mortgage loans and 250% for home equity loans of the outstanding advances from the Federal Home Loan Bank. As of December 31, 2014 and 2013, the Company had $2.0 billion and $518.4 million, respectively, of loans pledged as collateral for Federal Home Loan Bank advances. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Current | 30-59 Days | 60-89 Days | Loans Past Due | Total | Total | ||||||||||||||||||||||||||||||||||||
Past Due | Past Due | 90 Days or More | Past Due | ||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,231,571 | $ | 8,222 | $ | — | $ | 5,413 | $ | 13,635 | $ | 3,245,206 | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,679,991 | 2,025 | 6,095 | 4,147 | 12,267 | 1,692,258 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 342,984 | — | — | — | — | 342,984 | |||||||||||||||||||||||||||||||||||
Industrial | 333,907 | 944 | — | 3,182 | 4,126 | 338,033 | |||||||||||||||||||||||||||||||||||
Multifamily | 417,504 | 1,377 | — | 1,517 | 2,894 | 420,398 | |||||||||||||||||||||||||||||||||||
Retail | 432,718 | 2,481 | 652 | 2,325 | 5,458 | 438,176 | |||||||||||||||||||||||||||||||||||
Office | 244,166 | — | — | 2,127 | 2,127 | 246,293 | |||||||||||||||||||||||||||||||||||
Other | 754,031 | 307 | 2,421 | 2,224 | 4,952 | 758,983 | |||||||||||||||||||||||||||||||||||
Residential real estate | 485,492 | 8,038 | 2,319 | 7,438 | 17,795 | 503,287 | |||||||||||||||||||||||||||||||||||
Construction real estate | 246,731 | — | — | 337 | 337 | 247,068 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 265,296 | 2,516 | 702 | 326 | 3,544 | 268,840 | |||||||||||||||||||||||||||||||||||
Home equity | 242,756 | 2,717 | 1,039 | 5,397 | 9,153 | 251,909 | |||||||||||||||||||||||||||||||||||
Other consumer | 78,106 | 16 | 12 | 3 | 31 | 78,137 | |||||||||||||||||||||||||||||||||||
Gross loans, excluding purchased credit-impaired and covered loans | 8,755,253 | 28,643 | 13,240 | 34,436 | 76,319 | 8,831,572 | |||||||||||||||||||||||||||||||||||
Purchased credit-impaired and covered loans | 158,215 | 4,432 | 585 | 88,413 | 93,430 | 251,645 | |||||||||||||||||||||||||||||||||||
Total loans | $ | 8,913,468 | $ | 33,075 | $ | 13,825 | $ | 122,849 | $ | 169,749 | $ | 9,083,217 | |||||||||||||||||||||||||||||
Non-performing loan aging | $ | 46,149 | $ | 5,764 | $ | 1,099 | $ | 34,075 | $ | 40,938 | $ | 87,087 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,273,302 | $ | 5,952 | $ | 626 | $ | 1,497 | $ | 8,075 | $ | 1,281,377 | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,489,391 | 3,841 | 656 | 300 | 4,797 | 1,494,188 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 213,665 | — | — | 3,064 | 3,064 | 216,729 | |||||||||||||||||||||||||||||||||||
Industrial | 372,975 | 5,465 | — | 1,404 | 6,869 | 379,844 | |||||||||||||||||||||||||||||||||||
Multifamily | 302,456 | 3,078 | 181 | 2,226 | 5,485 | 307,941 | |||||||||||||||||||||||||||||||||||
Retail | 334,198 | 328 | 2,816 | 7,258 | 10,402 | 344,600 | |||||||||||||||||||||||||||||||||||
Office | 155,936 | — | — | 2,066 | 2,066 | 158,002 | |||||||||||||||||||||||||||||||||||
Other | 233,464 | 4,898 | 259 | 1,963 | 7,120 | 240,584 | |||||||||||||||||||||||||||||||||||
Residential real estate | 302,362 | 1,422 | 1,030 | 9,626 | 12,078 | 314,440 | |||||||||||||||||||||||||||||||||||
Construction real estate | 138,563 | 391 | — | 2,299 | 2,690 | 141,253 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 259,488 | 2,210 | 657 | 277 | 3,144 | 262,632 | |||||||||||||||||||||||||||||||||||
Home equity | 257,219 | 1,725 | 2,165 | 7,180 | 11,070 | 268,289 | |||||||||||||||||||||||||||||||||||
Other consumer | 66,866 | 81 | 1 | 4 | 86 | 66,952 | |||||||||||||||||||||||||||||||||||
Gross loans, excluding covered loans | 5,399,885 | 29,391 | 8,391 | 39,164 | 76,946 | 5,476,831 | |||||||||||||||||||||||||||||||||||
Covered loans | 135,717 | 902 | 3,346 | 95,755 | 100,003 | 235,720 | |||||||||||||||||||||||||||||||||||
Total loans | $ | 5,535,602 | $ | 30,293 | $ | 11,737 | $ | 134,919 | $ | 176,949 | $ | 5,712,551 | |||||||||||||||||||||||||||||
Non-performing loan aging | $ | 56,339 | $ | 14,325 | $ | 3,283 | $ | 32,614 | $ | 50,222 | $ | 106,561 | |||||||||||||||||||||||||||||
The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing by class of loans, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Loans past due | Loans past due | ||||||||||||||||||||||||||||||||||||||||
Non-accrual | 90 days or more | Non-accrual | 90 days or more | ||||||||||||||||||||||||||||||||||||||
and still accruing | and still accruing | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 14,088 | $ | — | $ | 17,781 | $ | — | |||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 2,404 | 3,566 | 4,276 | 291 | |||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | 3,064 | — | |||||||||||||||||||||||||||||||||||||
Industrial | 6,371 | — | 15,265 | 155 | |||||||||||||||||||||||||||||||||||||
Multifamily | 5,333 | — | 5,145 | — | |||||||||||||||||||||||||||||||||||||
Office | 3,644 | 464 | 11,703 | — | |||||||||||||||||||||||||||||||||||||
Retail | 2,986 | — | 2,969 | — | |||||||||||||||||||||||||||||||||||||
Other | 13,541 | 324 | 19,991 | — | |||||||||||||||||||||||||||||||||||||
Residential real estate | 17,311 | — | 13,009 | — | |||||||||||||||||||||||||||||||||||||
Construction real estate | 337 | — | 475 | — | |||||||||||||||||||||||||||||||||||||
Indirect vehicle | 1,542 | — | 1,459 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 15,171 | — | 10,969 | — | |||||||||||||||||||||||||||||||||||||
Other consumer | 5 | — | 9 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 82,733 | $ | 4,354 | $ | 106,115 | $ | 446 | |||||||||||||||||||||||||||||||||
The reduction in interest income associated with loans on non-accrual status was approximately $4.3 million, $4.7 million, and $5.6 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||||
The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company's risk rating system, the Company classifies watch list loans as “Special Mention,” “Substandard,” and “Doubtful.” Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses that deserve management's close attention are deemed to be Special Mention. Risk ratings are updated at least annually and any time the situation warrants. | |||||||||||||||||||||||||||||||||||||||||
Loans listed as not rated are included in groups of homogeneous loans with similar risk and loss characteristics and are not included in the table below. The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,036,069 | $ | 178,984 | $ | 30,153 | $ | — | $ | 3,245,206 | |||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,680,736 | 6,853 | 4,669 | — | 1,692,258 | ||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 338,622 | 4,362 | — | — | 342,984 | ||||||||||||||||||||||||||||||||||||
Industrial | 314,225 | 8,817 | 14,991 | — | 338,033 | ||||||||||||||||||||||||||||||||||||
Multifamily | 412,824 | 920 | 6,654 | — | 420,398 | ||||||||||||||||||||||||||||||||||||
Retail | 423,842 | 2,740 | 11,594 | — | 438,176 | ||||||||||||||||||||||||||||||||||||
Office | 229,947 | 8,524 | 7,822 | — | 246,293 | ||||||||||||||||||||||||||||||||||||
Other | 708,447 | 22,013 | 28,523 | — | 758,983 | ||||||||||||||||||||||||||||||||||||
Construction real estate | 246,204 | 527 | 337 | — | 247,068 | ||||||||||||||||||||||||||||||||||||
Total | $ | 7,390,916 | $ | 233,740 | $ | 104,743 | $ | — | $ | 7,729,399 | |||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,193,114 | $ | 26,637 | $ | 61,000 | $ | 626 | $ | 1,281,377 | |||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,486,899 | 553 | 6,736 | — | 1,494,188 | ||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 189,705 | 21,186 | 2,774 | 3,064 | 216,729 | ||||||||||||||||||||||||||||||||||||
Industrial | 345,236 | 5,328 | 29,280 | — | 379,844 | ||||||||||||||||||||||||||||||||||||
Multifamily | 296,179 | 342 | 11,420 | — | 307,941 | ||||||||||||||||||||||||||||||||||||
Retail | 316,420 | 10,660 | 17,520 | — | 344,600 | ||||||||||||||||||||||||||||||||||||
Office | 151,393 | 2,682 | 3,927 | — | 158,002 | ||||||||||||||||||||||||||||||||||||
Other | 217,188 | 349 | 23,047 | — | 240,584 | ||||||||||||||||||||||||||||||||||||
Construction real estate | 139,847 | 540 | 866 | — | 141,253 | ||||||||||||||||||||||||||||||||||||
Total | $ | 4,335,981 | $ | 68,277 | $ | 156,570 | $ | 3,690 | $ | 4,564,518 | |||||||||||||||||||||||||||||||
Special mention loans increased as of December 31, 2014 compared to December 31, 2013 primarily due to special mention loans acquired in the Taylor Capital merger. Approximately $49.1 million and $80.7 million of the substandard and doubtful loans were non-performing as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||||
For residential real estate, home equity, indirect vehicle and other consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Performing | Non-performing | Total | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 485,976 | $ | 17,311 | $ | 503,287 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 267,297 | 1,543 | 268,840 | ||||||||||||||||||||||||||||||||||||||
Home equity | 236,739 | 15,170 | 251,909 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 78,132 | 5 | 78,137 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 1,068,144 | $ | 34,029 | $ | 1,102,173 | |||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 301,431 | $ | 13,009 | $ | 314,440 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 261,173 | 1,459 | 262,632 | ||||||||||||||||||||||||||||||||||||||
Home equity | 257,320 | 10,969 | 268,289 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 66,943 | 9 | 66,952 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 886,867 | $ | 25,446 | $ | 912,313 | |||||||||||||||||||||||||||||||||||
Non-performing loans increased as of December 31, 2014 compared to December 31, 2013 primarily due to a group of restructured loans that were less than 90 days past due at time of migration to non-performing during the third quarter of 2014. | |||||||||||||||||||||||||||||||||||||||||
The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Partial | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||||||||
Principal | Investment | Charge-offs | Loan and Lease Losses | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Balance | Allocated | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 9,752 | $ | 8,992 | $ | 760 | $ | — | $ | 10,324 | $ | — | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 2,316 | 2,316 | — | — | 2,569 | 121 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 9,115 | 5,858 | 3,257 | — | 7,870 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 1,733 | 1,733 | — | — | 1,928 | 52 | |||||||||||||||||||||||||||||||||||
Retail | 2,025 | 813 | 1,212 | — | 3,465 | — | |||||||||||||||||||||||||||||||||||
Office | — | — | — | — | 1,127 | — | |||||||||||||||||||||||||||||||||||
Other | 1,479 | 1,465 | 14 | — | 5,249 | — | |||||||||||||||||||||||||||||||||||
Residential real estate | 1,941 | 1,941 | — | — | 2,740 | — | |||||||||||||||||||||||||||||||||||
Construction real estate | — | — | — | — | 34 | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity | 577 | 577 | — | — | 762 | — | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 7,987 | 7,987 | — | 2,395 | 14,227 | — | |||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 715 | 715 | — | 105 | 1,515 | 91 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 517 | 513 | 4 | 130 | 4,982 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 5,680 | 4,709 | 971 | 996 | 6,354 | 131 | |||||||||||||||||||||||||||||||||||
Retail | 9,264 | 7,897 | 1,367 | 720 | 8,547 | — | |||||||||||||||||||||||||||||||||||
Office | 4,528 | 2,986 | 1,542 | 545 | 2,833 | — | |||||||||||||||||||||||||||||||||||
Other | 12,612 | 12,527 | 85 | 136 | 11,022 | 12 | |||||||||||||||||||||||||||||||||||
Residential real estate | 14,234 | 14,234 | — | 3,126 | 14,632 | — | |||||||||||||||||||||||||||||||||||
Construction real estate | 2,707 | 337 | 2,370 | 162 | 455 | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 227 | 227 | — | 14 | 358 | — | |||||||||||||||||||||||||||||||||||
Home equity | 25,927 | 25,705 | 222 | 2,153 | 25,672 | — | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 113,336 | $ | 101,532 | $ | 11,804 | $ | 10,482 | $ | 126,665 | $ | 407 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Partial | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||||||||
Principal | Investment | Charge-offs | Loan and Lease Losses | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Balance | Allocated | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 8,903 | $ | 8,903 | $ | — | $ | — | $ | 8,259 | $ | — | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 3,401 | 3,401 | — | — | 1,030 | 6 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | — | — | 2,698 | — | |||||||||||||||||||||||||||||||||||
Industrial | 7,560 | 7,560 | — | — | 8,900 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 1,166 | 1,166 | — | — | 758 | 11 | |||||||||||||||||||||||||||||||||||
Retail | 4,466 | 4,466 | — | — | 3,628 | — | |||||||||||||||||||||||||||||||||||
Office | 559 | 527 | 32 | — | 922 | — | |||||||||||||||||||||||||||||||||||
Other | 2,963 | 2,963 | — | — | 4,380 | — | |||||||||||||||||||||||||||||||||||
Residential real estate | 4,234 | 4,234 | — | — | 3,260 | — | |||||||||||||||||||||||||||||||||||
Construction real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity | 577 | 577 | — | — | 797 | — | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 8,923 | 8,919 | 4 | 4,284 | 13,476 | 4 | |||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,060 | 1,060 | — | 144 | 1,279 | 192 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 3,186 | 3,064 | 122 | 382 | 8,189 | — | |||||||||||||||||||||||||||||||||||
Industrial | 7,707 | 7,705 | 2 | 3,038 | 3,699 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 5,374 | 5,374 | — | 1,661 | 6,443 | 340 | |||||||||||||||||||||||||||||||||||
Retail | 14,169 | 12,428 | 1,741 | 1,511 | 12,885 | 280 | |||||||||||||||||||||||||||||||||||
Office | 2,442 | 2,442 | — | 791 | 4,045 | — | |||||||||||||||||||||||||||||||||||
Other | 20,367 | 17,029 | 3,338 | 796 | 12,868 | 20 | |||||||||||||||||||||||||||||||||||
Residential real estate | 13,496 | 12,710 | 786 | 3,119 | 12,966 | 245 | |||||||||||||||||||||||||||||||||||
Construction real estate | 475 | 475 | — | 227 | 1,603 | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 173 | 123 | 50 | 57 | 86 | — | |||||||||||||||||||||||||||||||||||
Home equity | 23,840 | 23,395 | 445 | 1,358 | 24,283 | 772 | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 135,041 | $ | 128,521 | $ | 6,520 | $ | 17,368 | $ | 136,454 | $ | 1,870 | |||||||||||||||||||||||||||||
Average impaired loans for the years ended December 31, 2014, 2013 and 2012 were $126.7 million, $136.5 million and $119.3 million, respectively. Interest income recognized on impaired loans was $407 thousand, $1.9 million and $1.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||||
Impaired loans included accruing restructured loans of $15.6 million and $29.4 million that have been modified and are performing in accordance with those modified terms as of December 31, 2014 and 2013, respectively. In addition, impaired loans included $25.8 million and $25.0 million of non-performing, restructured loans as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||||
Loans may be restructured in an effort to maximize collections from financially distressed borrowers. We use various restructuring techniques, including, but not limited to, deferral of past due interest or principal, implementing an A/B note structure, redeeming past due taxes, reduction of interest rates, extending maturities and modification of amortization schedules. Residential real estate loans are restructured in an effort to minimize losses while allowing borrowers to remain in their primary residences when possible. Programs that we offer to residential real estate borrowers include the Home Affordable Refinance Program (“HARP”) and a restructuring program similar to the Home Affordable Modification Program (“HAMP”) for first mortgage borrowers as well as the Second Lien Modification Program (“2MP”) and similar programs for home equity borrowers in keeping with the restructuring techniques discussed above. | |||||||||||||||||||||||||||||||||||||||||
Occasionally, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. As of December 31, 2014 and 2013, there was one A/B structure with a recorded investment of $1.0 million and $1.1 million, respectively, which is included above as an accruing restructured loans. | |||||||||||||||||||||||||||||||||||||||||
A loan classified as a troubled debt restructuring will no longer be included in the troubled debt restructuring disclosures in the years after the restructuring if the loan performs in accordance with the terms specified by the restructuring agreement and the interest rate specified in the restructuring agreement represents a market rate at the time of modification. The specified interest rate is considered a market rate when the interest rate is equal or greater than the rate the Company is willing to accept at the time of restructuring for a new loan with comparable risk. If there are concerns that the borrower would not be able to meet the modified terms of the loan, the loan would continue to be included in the troubled debt restructuring disclosures. | |||||||||||||||||||||||||||||||||||||||||
Impairment analyses on commercial-related loans classified as troubled debt restructurings are performed in conjunction with the normal allowance for loan and lease loss process. See Note 1 for additional information. Consumer loans classified as troubled debt restructurings are aggregated in two pools that share common risk characteristics, home equity and residential real estate loans, with impairment measured on a quarterly basis based on the present value of expected future cash flows discounted at the loan's effective interest rate. | |||||||||||||||||||||||||||||||||||||||||
The following table presents loans that have been restructured during the year ended December 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Number of | Pre-Modification Recorded | Post-Modification Recorded | Charge-offs and | ||||||||||||||||||||||||||||||||||||||
Loans | Investment | Investment | Specific Reserves | ||||||||||||||||||||||||||||||||||||||
Performing: | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | 3 | $ | 588 | $ | 588 | $ | — | ||||||||||||||||||||||||||||||||||
Indirect vehicle | 2 | 26 | 26 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 9 | 2,251 | 2,251 | — | |||||||||||||||||||||||||||||||||||||
Total | 14 | $ | 2,865 | $ | 2,865 | $ | — | ||||||||||||||||||||||||||||||||||
Non-Performing: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 1 | $ | 263 | $ | 263 | $ | 85 | ||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Multifamily | 1 | 158 | 158 | 40 | |||||||||||||||||||||||||||||||||||||
Residential real estate | 6 | 1,850 | 1,850 | 246 | |||||||||||||||||||||||||||||||||||||
Indirect vehicle | 53 | 320 | 320 | 88 | |||||||||||||||||||||||||||||||||||||
Home equity | 27 | 3,813 | 3,813 | 335 | |||||||||||||||||||||||||||||||||||||
Total | 88 | $ | 6,404 | $ | 6,404 | $ | 794 | ||||||||||||||||||||||||||||||||||
The following table presents loans that have been restructured during the year ended December 31, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Number of | Pre-Modification Recorded | Post-Modification Recorded | Charge-offs and | ||||||||||||||||||||||||||||||||||||||
Loans | Investment | Investment | Specific Reserves | ||||||||||||||||||||||||||||||||||||||
Performing: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Multifamily | 1 | $ | 601 | $ | 601 | $ | — | ||||||||||||||||||||||||||||||||||
Residential real estate | 6 | 910 | 910 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 14 | 2,204 | 2,204 | — | |||||||||||||||||||||||||||||||||||||
Total | 21 | $ | 3,715 | $ | 3,715 | $ | — | ||||||||||||||||||||||||||||||||||
Non-Performing: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 2 | $ | 1,251 | $ | 1,251 | $ | 673 | ||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1 | 3,401 | 3,401 | — | |||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 1 | 3,164 | 3,164 | 496 | |||||||||||||||||||||||||||||||||||||
Industrial | 4 | 2,570 | 2,570 | 1,425 | |||||||||||||||||||||||||||||||||||||
Multifamily | 2 | 623 | 623 | 169 | |||||||||||||||||||||||||||||||||||||
Retail | 3 | 862 | 862 | 235 | |||||||||||||||||||||||||||||||||||||
Other | 1 | 84 | 84 | 23 | |||||||||||||||||||||||||||||||||||||
Residential real estate | 9 | 1,803 | 1,682 | 121 | |||||||||||||||||||||||||||||||||||||
Indirect vehicle | 26 | 171 | 129 | 42 | |||||||||||||||||||||||||||||||||||||
Home equity | 26 | 3,430 | 3,430 | — | |||||||||||||||||||||||||||||||||||||
Total | 75 | $ | 17,359 | $ | 17,196 | $ | 3,184 | ||||||||||||||||||||||||||||||||||
Of the troubled debt restructurings entered into during the past twelve months, $188 thousand subsequently defaulted during the year ended December 31, 2014. Performing troubled debt restructurings are considered to have defaulted when they become 90 days or more past due post-restructuring or are placed on non-accrual status. | |||||||||||||||||||||||||||||||||||||||||
The following tables present the troubled debt restructurings activity during the year ended December 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
Performing | Non-performing | ||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 29,430 | $ | 24,952 | |||||||||||||||||||||||||||||||||||||
Additions | 2,865 | 6,404 | |||||||||||||||||||||||||||||||||||||||
Charge-offs | (451 | ) | (2,840 | ) | |||||||||||||||||||||||||||||||||||||
Principal payments, net | (2,650 | ) | (3,965 | ) | |||||||||||||||||||||||||||||||||||||
Removals | (8,574 | ) | (3,576 | ) | |||||||||||||||||||||||||||||||||||||
Transfer to other real estate owned | — | (221 | ) | ||||||||||||||||||||||||||||||||||||||
Transfer from non-performing/performing | 6,407 | 11,424 | |||||||||||||||||||||||||||||||||||||||
Transfer to non-performing/performing | (11,424 | ) | (6,407 | ) | |||||||||||||||||||||||||||||||||||||
Ending balance | $ | 15,603 | $ | 25,771 | |||||||||||||||||||||||||||||||||||||
Approximately $6.4 million of non-performing troubled debt restructurings were transferred to performing status. A majority of these loans were identified as non-performing troubled debt restructurings during the first half of 2013 and have performed in accordance with the modified terms. The loans continue to be reported as performing troubled debt restructurings. Loans removed from troubled debt restructuring status are those that were restructured in a previous calendar year at a market rate of interest and have performed in compliance with the modified terms. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the type of modification for loans that have been restructured and the post-modification recorded investment during the year ended December 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Extended | Extended Maturity | Extended | |||||||||||||||||||||||||||||||||||||||
Maturity, | and Amortization, | Maturity and | Delay in | ||||||||||||||||||||||||||||||||||||||
Amortization | Delay in Payments | Delay in Payments | Payments or | ||||||||||||||||||||||||||||||||||||||
and Reduction | and Reduction of | or Reduction of | Reduction of | ||||||||||||||||||||||||||||||||||||||
of Interest Rate | Interest Rate | Interest Rate | Interest Rate | Total | |||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 263 | $ | — | $ | 263 | |||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Multifamily | — | — | 158 | — | 158 | ||||||||||||||||||||||||||||||||||||
Residential real estate | 411 | — | 1,268 | 759 | 2,438 | ||||||||||||||||||||||||||||||||||||
Indirect vehicle | — | — | — | 346 | 346 | ||||||||||||||||||||||||||||||||||||
Home equity | 2,384 | 878 | 1,211 | 1,591 | 6,064 | ||||||||||||||||||||||||||||||||||||
Total | $ | 2,795 | $ | 878 | $ | 2,900 | $ | 2,696 | $ | 9,269 | |||||||||||||||||||||||||||||||
Activity in the allowance for loan and lease losses was as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 113,462 | $ | 128,279 | $ | 135,975 | |||||||||||||||||||||||||||||||||||
Allowance for unfunded credit commitments acquired through business combination | 1,261 | — | — | ||||||||||||||||||||||||||||||||||||||
Utilization of allowance for unfunded credit commitments | (637 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Provision for credit losses | 12,052 | (5,804 | ) | (8,900 | ) | ||||||||||||||||||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 1,339 | 3,706 | 2,408 | ||||||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 586 | — | 1,721 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 11,438 | 7,517 | 11,377 | ||||||||||||||||||||||||||||||||||||||
Residential real estate | 1,718 | 2,796 | 2,944 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 79 | 980 | 4,007 | ||||||||||||||||||||||||||||||||||||||
Indirect vehicle | 3,735 | 2,911 | 2,259 | ||||||||||||||||||||||||||||||||||||||
Home equity | 3,383 | 3,692 | 4,551 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 2,467 | 2,073 | 1,349 | ||||||||||||||||||||||||||||||||||||||
Total charge-offs | 24,745 | 23,675 | 30,616 | ||||||||||||||||||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 3,757 | 3,156 | 3,475 | ||||||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 939 | 1,131 | 6,720 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,020 | 6,025 | 16,987 | ||||||||||||||||||||||||||||||||||||||
Residential real estate | 1,190 | 479 | 501 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 252 | 1,616 | 2,019 | ||||||||||||||||||||||||||||||||||||||
Indirect vehicle | 1,736 | 1,411 | 1,096 | ||||||||||||||||||||||||||||||||||||||
Home equity | 482 | 594 | 671 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 288 | 250 | 351 | ||||||||||||||||||||||||||||||||||||||
Total recoveries | 12,664 | 14,662 | 31,820 | ||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | 12,081 | 9,013 | (1,204 | ) | |||||||||||||||||||||||||||||||||||||
Allowance for credit losses | 114,057 | 113,462 | 128,279 | ||||||||||||||||||||||||||||||||||||||
Allowance for unfunded credit commitments | (4,031 | ) | (1,716 | ) | (4,075 | ) | |||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 110,026 | $ | 111,746 | $ | 124,204 | |||||||||||||||||||||||||||||||||||
The following table presents the activity in the allowance for credit losses, balance in allowance for credit losses and recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Construction | Indirect | Home | Other Consumer | Unfunded | Total | ||||||||||||||||||||||||||||||||
collateralized by | real estate | real estate | real estate | vehicle | equity | Commitments | |||||||||||||||||||||||||||||||||||
assignment of | |||||||||||||||||||||||||||||||||||||||||
lease payments | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 23,461 | $ | 9,159 | $ | 51,628 | $ | 8,872 | $ | 6,856 | $ | 1,662 | $ | 8,478 | $ | 1,630 | $ | 1,716 | $ | 113,462 | |||||||||||||||||||||
Allowance for unfunded credit commitments acquired through business combination | — | — | — | — | — | — | — | — | 1,261 | 1,261 | |||||||||||||||||||||||||||||||
Utilization of allowance for unfunded credit commitments | — | — | — | — | — | — | — | — | (637 | ) | (637 | ) | |||||||||||||||||||||||||||||
Charge-offs | 1,339 | 586 | 11,438 | 1,718 | 79 | 3,735 | 3,383 | 2,467 | — | 24,745 | |||||||||||||||||||||||||||||||
Recoveries | 3,757 | 939 | 4,020 | 1,190 | 252 | 1,736 | 482 | 288 | — | 12,664 | |||||||||||||||||||||||||||||||
Provision | 3,692 | 450 | (2,384 | ) | (1,698 | ) | 1,889 | 2,024 | 3,879 | 2,509 | 1,691 | 12,052 | |||||||||||||||||||||||||||||
Ending balance | $ | 29,571 | $ | 9,962 | $ | 41,826 | $ | 6,646 | $ | 8,918 | $ | 1,687 | $ | 9,456 | $ | 1,960 | $ | 4,031 | $ | 114,057 | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,395 | $ | 105 | $ | 2,527 | $ | 3,126 | $ | 162 | $ | 14 | $ | 2,153 | $ | — | $ | 1,348 | $ | 11,830 | |||||||||||||||||||||
Collectively evaluated for impairment | 26,684 | 9,857 | 38,517 | 3,520 | 8,747 | 1,673 | 7,303 | 1,960 | 2,683 | 100,944 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 492 | — | 782 | — | 9 | — | — | — | — | 1,283 | |||||||||||||||||||||||||||||||
Total ending allowance balance | $ | 29,571 | $ | 9,962 | $ | 41,826 | $ | 6,646 | $ | 8,918 | $ | 1,687 | $ | 9,456 | $ | 1,960 | $ | 4,031 | $ | 114,057 | |||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 16,979 | $ | 3,031 | $ | 38,501 | $ | 16,175 | $ | 337 | $ | 227 | $ | 26,282 | $ | — | $ | — | $ | 101,532 | |||||||||||||||||||||
Collectively evaluated for impairment | 3,228,227 | 1,689,227 | 2,506,366 | 487,112 | 246,731 | 268,613 | 225,627 | 78,137 | — | 8,730,040 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 103,582 | — | 80,378 | 14,138 | 31,068 | — | 138 | 22,341 | — | 251,645 | |||||||||||||||||||||||||||||||
Total ending loans balance | $ | 3,348,788 | $ | 1,692,258 | $ | 2,625,245 | $ | 517,425 | $ | 278,136 | $ | 268,840 | $ | 252,047 | $ | 100,478 | $ | — | $ | 9,083,217 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 24,943 | $ | 7,755 | $ | 61,056 | $ | 6,941 | $ | 11,222 | $ | 1,324 | $ | 9,401 | $ | 1,562 | $ | 4,075 | $ | 128,279 | |||||||||||||||||||||
Transfer to (from) allowance for unfunded credit commitments | — | — | — | — | 500 | — | — | — | (500 | ) | — | ||||||||||||||||||||||||||||||
Charge-offs | 3,706 | — | 7,517 | 2,796 | 980 | 2,911 | 3,692 | 2,073 | — | 23,675 | |||||||||||||||||||||||||||||||
Recoveries | 3,156 | 1,131 | 6,025 | 479 | 1,616 | 1,411 | 594 | 250 | — | 14,662 | |||||||||||||||||||||||||||||||
Provision | (932 | ) | 273 | (7,936 | ) | 4,248 | (5,502 | ) | 1,838 | 2,175 | 1,891 | (1,859 | ) | (5,804 | ) | ||||||||||||||||||||||||||
Ending balance | $ | 23,461 | $ | 9,159 | $ | 51,628 | $ | 8,872 | $ | 6,856 | $ | 1,662 | $ | 8,478 | $ | 1,630 | $ | 1,716 | $ | 113,462 | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,284 | $ | 144 | $ | 8,179 | $ | 3,119 | $ | 227 | $ | 57 | $ | 1,358 | $ | — | $ | 689 | $ | 18,057 | |||||||||||||||||||||
Collectively evaluated for impairment | 18,693 | 9,015 | 41,763 | 5,753 | 6,567 | 1,605 | 7,120 | 1,630 | 1,027 | 93,173 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 484 | — | 1,686 | — | 62 | — | — | — | — | 2,232 | |||||||||||||||||||||||||||||||
Total ending allowance balance | $ | 23,461 | $ | 9,159 | $ | 51,628 | $ | 8,872 | $ | 6,856 | $ | 1,662 | $ | 8,478 | $ | 1,630 | $ | 1,716 | $ | 113,462 | |||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 17,822 | $ | 4,461 | $ | 64,724 | $ | 16,944 | $ | 475 | $ | 123 | $ | 23,972 | $ | — | $ | — | $ | 128,521 | |||||||||||||||||||||
Collectively evaluated for impairment | 1,246,523 | 1,489,727 | 1,582,976 | 293,883 | 140,778 | 262,509 | 244,317 | 66,952 | — | 5,327,665 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 35,673 | — | 140,504 | 5,448 | 48,313 | — | 107 | 26,320 | — | 256,365 | |||||||||||||||||||||||||||||||
Total ending loans balance | $ | 1,300,018 | $ | 1,494,188 | $ | 1,788,204 | $ | 316,275 | $ | 189,566 | $ | 262,632 | $ | 268,396 | $ | 93,272 | $ | — | $ | 5,712,551 | |||||||||||||||||||||
(1) Loans acquired in the Taylor Capital merger and FDIC-assisted transactions and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.” | |||||||||||||||||||||||||||||||||||||||||
Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. These acquired loans are segregated into three types: pass rated loans with no discount attributable to credit quality, non-impaired loans with a discount attributable at least in part to credit quality and impaired loans with evidence of significant credit deterioration. | |||||||||||||||||||||||||||||||||||||||||
• | Pass rated loans (typically performing loans) are accounted for in accordance with ASC 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. | ||||||||||||||||||||||||||||||||||||||||
• | Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC 310-30 if they display at least some level of credit deterioration since origination. | ||||||||||||||||||||||||||||||||||||||||
• | Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC 310-30 as they display significant credit deterioration since origination. | ||||||||||||||||||||||||||||||||||||||||
For pass rated loans (non-purchased credit impaired loans), the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor loans which will largely offset the accretion from the pass rated loans. | |||||||||||||||||||||||||||||||||||||||||
In accordance with ASC 310-30, for both purchased non-impaired loans and purchased impaired loans ("PCI loans"), the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. | |||||||||||||||||||||||||||||||||||||||||
Substantially all of the loans acquired in transactions with the FDIC displayed at least some level of credit deterioration and as such are included as non-impaired and impaired loans as described immediately above. | |||||||||||||||||||||||||||||||||||||||||
During the year ended December 31, 2014, there was a negative provision for credit losses of $1.3 million and net recoveries of $323 thousand, respectively, in relation to 16 pools of purchased loans with a total carrying amount of $71.7 million as of December 31, 2014. During the year ended December 31, 2013, there was a provision for credit losses of $2.5 million and net recoveries of $218 thousand in relation to 15 pools of purchased loans with a total carrying amount of $195.5 million as of December 31, 2013. There was $1.3 million in allowance for loan and lease losses related to these purchased loans at December 31, 2014 and $2.2 million at December 31, 2013. The provision for credit losses and accompanying charge-offs are included in the table above. | |||||||||||||||||||||||||||||||||||||||||
Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,337 | $ | 5,685 | |||||||||||||||||||||||||||||||||||||
Purchases | 5,626 | — | |||||||||||||||||||||||||||||||||||||||
Accretion | (2,098 | ) | (4,456 | ) | |||||||||||||||||||||||||||||||||||||
Other | 1,569 | 1,108 | |||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 7,434 | $ | 2,337 | |||||||||||||||||||||||||||||||||||||
In our FDIC-assisted transactions, the fair value of purchased impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. Due to the loss-share agreements with the FDIC, we recorded a receivable (FDIC indemnification asset) from the FDIC equal to the present value of the corresponding reimbursement percentages on the estimated losses embedded in the loan portfolio. | |||||||||||||||||||||||||||||||||||||||||
When cash flow estimates are adjusted downward for a particular loan pool, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. | |||||||||||||||||||||||||||||||||||||||||
When cash flow estimates are adjusted upward for a particular loan pool, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the loan pool. | |||||||||||||||||||||||||||||||||||||||||
When cash flow estimates are adjusted downward for covered foreclosed real estate, the FDIC indemnification asset is increased. A charge is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. | |||||||||||||||||||||||||||||||||||||||||
When cash flow estimates are adjusted upward for covered foreclosed real estate, the FDIC indemnification asset is decreased. Any write-down after the transfer to covered foreclosed real estate is reversed. | |||||||||||||||||||||||||||||||||||||||||
In both scenarios, the clawback liability (the amount the FDIC requires us to pay back if certain thresholds are met) will increase or decrease accordingly. | |||||||||||||||||||||||||||||||||||||||||
For other loans acquired through business combinations, the fair value of purchased impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. | |||||||||||||||||||||||||||||||||||||||||
The carrying amount of covered loans and other purchased non-covered loans at December 31, 2014 consisted of purchased credit-impaired loans and non-credit-impaired loans as shown in the following table (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Purchased | Purchased Non-Impaired | Total | ||||||||||||||||||||||||||||||||||||||
Impaired | Loans | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial related (1) | $ | 706 | $ | 2,099 | $ | 2,805 | |||||||||||||||||||||||||||||||||||
Commercial | 830 | 309 | 1,139 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 20,489 | 16,528 | 37,017 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 2,512 | 2,085 | 4,597 | ||||||||||||||||||||||||||||||||||||||
Other | 1,877 | 21,622 | 23,499 | ||||||||||||||||||||||||||||||||||||||
Total covered loans | $ | 26,414 | $ | 42,643 | $ | 69,057 | |||||||||||||||||||||||||||||||||||
Estimated (payable) receivable amount from the FDIC under the loss-share agreement (2) | $ | (1,850 | ) | $ | 4,513 | $ | 2,663 | ||||||||||||||||||||||||||||||||||
Non covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial related (3) | $ | 4,288 | $ | 13,370 | $ | 17,658 | |||||||||||||||||||||||||||||||||||
Commercial loans | 95,350 | 1,681,908 | 1,777,258 | ||||||||||||||||||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments | — | 160,299 | 160,299 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 43,361 | 926,184 | 969,545 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 26,471 | 146,567 | 173,038 | ||||||||||||||||||||||||||||||||||||||
Other | 13,118 | 231,921 | 245,039 | ||||||||||||||||||||||||||||||||||||||
Total non-covered loans | $ | 182,588 | $ | 3,160,249 | $ | 3,342,837 | |||||||||||||||||||||||||||||||||||
-1 | Covered commercial related loans include commercial, commercial real estate and construction real estate loans acquired in connection with the Benchmark FDIC-assisted transactions. | ||||||||||||||||||||||||||||||||||||||||
-2 | Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $303 thousand in reimbursable amounts related to covered other real estate owned. | ||||||||||||||||||||||||||||||||||||||||
-3 | Non-covered commercial related loans include commercial, commercial real estate and construction real estate for InBank and Heritage. | ||||||||||||||||||||||||||||||||||||||||
Outstanding balances on purchased loans from the FDIC were $95.1 million and $273.5 million as of December 31, 2014 and 2013, respectively. The related carrying amount on loans purchased from the FDIC was $91.4 million and $261.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||||
Effective April 1, 2014, the losses on commercial related loans (commercial, commercial real estate and construction real estate) acquired in connection with the Heritage FDIC-assisted transaction ceased being covered under the loss-share agreement for that transaction. The carrying amount of those loans was $2.8 million as of December 31, 2014. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to April 1, 2014 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreement) through March 31, 2017. The losses on consumer related loans acquired in connection with the Heritage FDIC-assisted transaction will continue to be covered under the loss-share agreement through March 31, 2019. | |||||||||||||||||||||||||||||||||||||||||
The losses on commercial related loans acquired in connection with the Benchmark FDIC-assisted transaction ceased to be covered under the loss-share agreement for that transaction effective January 1, 2015. Effective July 1, 2015, the losses on commercial related loans acquired in connection with Broadway and New Century FDIC-assisted transactions will cease to be covered under the loss-share agreements for those transactions. Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to January 1, 2015 and July 1, 2015, for the respective transactions, will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreements) through December 31, 2017 and June 30, 2018 for the Benchmark FDIC-assisted transaction and Broadway and New Century FDIC-assisted transactions, respectively. The losses on consumer related loans acquired in connection with the Benchmark FDIC-assisted transaction and Broadway and New Century FDIC-assisted transactions will continue to be covered under the loss-share agreements through December 31, 2019 and June 30, 2020, respectively. |
Lease_Investments
Lease Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Lease Investments | |||||||||||||||||
Lease Investments | Lease Investments | ||||||||||||||||
The lease portfolio is comprised of various types of equipment, generally technology related, including computer systems and satellite equipment, material handling and general manufacturing equipment. | |||||||||||||||||
Lease investments by categories follow (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Direct finance leases: | |||||||||||||||||
Minimum lease payments | $ | 340,602 | $ | 155,945 | |||||||||||||
Estimated unguaranteed residual values | 70,469 | 31,272 | |||||||||||||||
Less: unearned income | (31,229 | ) | (14,473 | ) | |||||||||||||
Direct finance leases (1) | $ | 379,842 | $ | 172,744 | |||||||||||||
Leveraged leases: | |||||||||||||||||
Minimum lease payments | $ | 10,689 | $ | 24,320 | |||||||||||||
Estimated unguaranteed residual values | 1,586 | 2,508 | |||||||||||||||
Less: unearned income | (540 | ) | (1,644 | ) | |||||||||||||
Less: related non-recourse debt | (10,330 | ) | (23,243 | ) | |||||||||||||
Leveraged leases (1) | $ | 1,405 | $ | 1,941 | |||||||||||||
Operating leases: | |||||||||||||||||
Equipment, at cost | $ | 257,495 | $ | 218,473 | |||||||||||||
Less accumulated depreciation | (94,662 | ) | (87,384 | ) | |||||||||||||
Lease investments, net | $ | 162,833 | $ | 131,089 | |||||||||||||
(1)Direct finance and leveraged leases are included as commercial loans collateralized by assignment of lease payments for financial | |||||||||||||||||
statement purposes. | |||||||||||||||||
Leases that transfer substantially all of the benefits and risk related to the equipment ownership are classified as direct finance leases. If these direct finance leases have non-recourse debt associated with them and meet the additional requirements for a leveraged lease, they are further classified as leveraged leases, and the associated debt is netted with the outstanding balance in the consolidated financial statements. Interest income on direct finance and leveraged leases is recognized using methods which approximate a level yield over the term of the lease. Operating leases are investments in equipment leased to other companies, where the residual component makes up more than 10% of the investment. The Company funds most of the lease equipment purchases internally, but has some loans at other banks which totaled $38.5 million at December 31, 2014 and $17.5 million at December 31, 2013. | |||||||||||||||||
The minimum lease payments receivable for the various categories of leases are due as follows (in thousands) for the years ending December 31, | |||||||||||||||||
Direct | Leveraged | Operating | |||||||||||||||
Finance | |||||||||||||||||
Year | Leases | Leases | Leases | Total | |||||||||||||
2015 | $ | 122,353 | $ | 7,386 | $ | 40,624 | $ | 170,363 | |||||||||
2016 | 97,324 | 2,482 | 29,802 | 129,608 | |||||||||||||
2017 | 66,223 | 642 | 20,461 | 87,326 | |||||||||||||
2018 | 37,231 | 179 | 9,475 | 46,885 | |||||||||||||
2019 | 13,457 | — | 5,143 | 18,600 | |||||||||||||
Thereafter | 4,014 | — | 3,205 | 7,219 | |||||||||||||
$ | 340,602 | $ | 10,689 | $ | 108,710 | $ | 460,001 | ||||||||||
At December 31, 2014, the following reflects the residual values for leases by category in the year the initial lease term ends (in thousands): | |||||||||||||||||
Residual Values | |||||||||||||||||
Direct | |||||||||||||||||
End of initial lease term | Finance | Leveraged | Operating | ||||||||||||||
December 31, | Leases | Leases | Leases | Total | |||||||||||||
2015 | $ | 8,827 | $ | 856 | $ | 2,818 | $ | 12,501 | |||||||||
2016 | 7,597 | 606 | 7,926 | 16,129 | |||||||||||||
2017 | 19,448 | 105 | 10,332 | 29,885 | |||||||||||||
2018 | 14,544 | 19 | 9,265 | 23,828 | |||||||||||||
2019 | 10,551 | — | 7,857 | 18,408 | |||||||||||||
Thereafter | 9,502 | — | 19,050 | 28,552 | |||||||||||||
$ | 70,469 | $ | 1,586 | $ | 57,248 | $ | 129,303 | ||||||||||
The lease residual value represents the present value of the estimated fair value of the leased equipment at the termination of the lease. Lease residual values are generally reviewed quarterly, and any write-downs or charge-offs deemed necessary are recorded in the period in which they become known. To mitigate this risk of loss, we usually limit individual leased equipment residuals to approximately $1.0 million per transaction and seek to diversify both the type of equipment leased and the industries in which the lessees participate. Often times, there are several individual lease schedules under one master lease. There were 3,793 leases at December 31, 2014 compared to 3,590 at December 31, 2013. The average residual value per lease schedule was approximately $34 thousand at December 31, 2014 and $21 thousand at December 31, 2013. The average residual value per master lease schedule was approximately $155 thousand at December 31, 2014 and $82 thousand at December 31, 2013. | |||||||||||||||||
Income from lease financing, net was composed of (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Rental income | $ | 64,017 | $ | 62,629 | $ | 49,473 | |||||||||||
Equipment maintenance contracts revenue, net of cost of sales | 16,441 | 11,071 | 14,129 | ||||||||||||||
Vendor promotional income | 8,382 | 7,587 | 4,051 | ||||||||||||||
Other lease related revenue | 2,121 | 1,796 | 167 | ||||||||||||||
Gain on sale of lease payments and leased equipment, net of residual write downs | 12,899 | 12,002 | 4,708 | ||||||||||||||
Income on lease investments, gross | 103,860 | 95,085 | 72,528 | ||||||||||||||
Less: depreciation on operating leases | (39,550 | ) | (33,842 | ) | (36,146 | ) | |||||||||||
Lease financing, net | $ | 64,310 | $ | 61,243 | $ | 36,382 | |||||||||||
Extension rents received in excess of residual values are reflected in rental income. Equipment maintenance contracts revenue represents the gross amount of revenue paid for maintenance contracts and other services brokered to customers. The maintenance contracts are serviced by third parties, with the Company maintaining no obligation under the contracts. The cost of sales is the amount paid by the Company to the third party maintenance provider. From time to time, the Company sells minimum lease payments to third parties. | |||||||||||||||||
Gains on leased equipment periodically result when a lessee renews a lease or purchases the equipment at the end of a lease or the equipment is sold to a third party at a profit. Individual lease transactions can, however, result in a loss. This generally happens when, at the end of a lease, the lessee does not renew the lease or purchase the equipment. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and Equipment | Premises and Equipment | ||||||||
Premises and equipment consisted of (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land and land improvements | $ | 67,630 | $ | 67,389 | |||||
Buildings | 100,505 | 98,675 | |||||||
Furniture and equipment | 124,490 | 97,766 | |||||||
Buildings and leasehold improvements | 59,733 | 55,639 | |||||||
352,358 | 319,469 | ||||||||
Accumulated depreciation | (113,981 | ) | (98,404 | ) | |||||
Premises and equipment, net | $ | 238,377 | $ | 221,065 | |||||
Depreciation on premises and equipment totaled $20.4 million, $18.1 million, and $16.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Goodwill_and_Intangibles
Goodwill and Intangibles | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Goodwill and Intangibles | Goodwill and Intangibles | ||||||||
The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit and client relationship intangibles, consists of goodwill. Under ASC Topic 350, goodwill is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill to determine potential impairment annually, or more frequently if events and circumstances indicate that goodwill might be impaired, by comparing the carrying value of the reporting units with the fair value of the reporting units. | |||||||||
The Company's annual assessment date is as of December 31. Goodwill is tested for impairment at the reporting unit level. The Company had three reporting units: banking, leasing and mortgage banking. Based on the Company's 2014 goodwill impairment testing, the fair values of the three reporting units were in excess of their carrying value. No impairment losses were recognized during the years ended December 31, 2014, 2013, or 2012. The carrying amount of goodwill was $711.5 million at December 31, 2014 and $423.4 million December 31, 2013. The increase of $288.2 million in goodwill was due to the Taylor Capital merger. The carrying amount of goodwill at the banking and leasing segments was $670.9 million and $40.6 million, respectively, and none was allocated to the mortgage banking segment at December 31, 2014. | |||||||||
The Company has other intangible assets consisting of core deposit and client relationship intangibles that had a remaining weighted average amortization period of approximately five years as of December 31, 2014. The Company recognized a $20.1 million core deposit intangible in 2014 due to the Taylor Capital merger, which is being amortized over 15 years using the declining balance method. | |||||||||
The following table presents the changes in the carrying amount of core deposit and client relationship intangibles, gross carrying amount, accumulated amortization, and net book value as of December 31, 2014 and 2013 (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 23,428 | $ | 29,512 | |||||
Amortization expense | (5,501 | ) | (6,084 | ) | |||||
Other intangibles from business combinations | 20,079 | — | |||||||
Balance at end of period | $ | 38,006 | $ | 23,428 | |||||
Gross carrying amount | $ | 80,371 | $ | 60,292 | |||||
Accumulated amortization | (42,365 | ) | (36,864 | ) | |||||
Net book value | $ | 38,006 | $ | 23,428 | |||||
The following presents the estimated amortization expense of other intangible assets (in thousands): | |||||||||
Years ending December 31, | Amount | ||||||||
2015 | $ | 5,963 | |||||||
2016 | 5,157 | ||||||||
2017 | 4,637 | ||||||||
2018 | 4,221 | ||||||||
2019 | 2,743 | ||||||||
Thereafter | 15,285 | ||||||||
$ | 38,006 | ||||||||
Deposits
Deposits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposits [Abstract] | |||||||||
Deposits | Deposits | ||||||||
The composition of deposits was as follows (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Demand deposit accounts, noninterest bearing | $ | 4,118,256 | $ | 2,375,863 | |||||
NOW and money market accounts | 3,913,765 | 2,682,419 | |||||||
Savings accounts | 940,345 | 855,394 | |||||||
Certificates of deposit, $250,000 or more | 838,928 | 522,094 | |||||||
Other certificates of deposit | 1,179,648 | 945,489 | |||||||
Total | $ | 10,990,942 | $ | 7,381,259 | |||||
Certificates of deposit of $250,000 or more included $485.3 million and $224.2 million of brokered deposits at December 31, 2014 and 2013, respectively. Brokered deposits typically consist of smaller individual time certificates that have the same liquidity characteristics and yields consistent with time certificates of $250,000 or more. | |||||||||
At December 31, 2014, the scheduled maturities of certificates of deposit were as follows (in thousands): | |||||||||
2015 | $ | 1,595,106 | |||||||
2016 | 204,649 | ||||||||
2017 | 96,043 | ||||||||
2018 | 29,585 | ||||||||
2019 | 38,858 | ||||||||
Thereafter | 54,335 | ||||||||
$ | 2,018,576 | ||||||||
ShortTerm_Borrowings
Short-Term Borrowings | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||
Short-Term Borrowings | Short-Term Borrowings | ||||||||||||||
Short-term borrowings were as follows as of December 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Average | Average | ||||||||||||||
Cost | Amount | Cost | Amount | ||||||||||||
Customer repurchase agreements | 0.21 | % | $ | 219,824 | 0.2 | % | $ | 193,389 | |||||||
Federal Home Loan Bank advances | 0.13 | 700,000 | 0.17 | 300,000 | |||||||||||
Federal funds purchased | 0.14 | 11,591 | — | — | |||||||||||
0.15 | % | $ | 931,415 | 0.18 | % | $ | 493,389 | ||||||||
Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date. The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements. All securities sold under agreements to repurchase are recorded on the face of the balance sheet. | |||||||||||||||
The Company had fixed rate Federal Home Loan Bank ("FHLB") advances with a maturity date less than one year of $700.0 million at December 31, 2014 and $300.0 million at December 31, 2013. At December 31, 2014, the interest rate on the advances outstanding on that date was 0.13% with maturities from January 2, 2015 to December 11, 2015. The Company has investment securities available for sale and loans pledged as collateral on these FHLB advances. See Note 4. Investment Securities and Note 5. Loans of the notes to the consolidated financial statements. | |||||||||||||||
On March 9, 2012, the Company entered into a $35.0 million unsecured line of credit with a correspondent bank. Interest is payable at a rate of one month LIBOR + 1.85%. As of December 31, 2014, no amount was outstanding and the line of credit is scheduled to mature on September 7, 2015. |
Longterm_Borrowings
Long-term Borrowings | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Long-term Debt, Unclassified [Abstract] | ||||
Long-term Borrowings | Long-term Borrowings | |||
The Company had FHLB advances with original contractual maturities greater than one year of $4.2 million and $4.3 million at December 31, 2014 and 2013, respectively. As of December 31, 2014, the advances had fixed terms with effective interest rates, net of discounts, ranging from 3.23% to 5.87% and maturities ranging from April 2021 to April 2035. The Company has investment securities available for sale and loans pledged as collateral on these FHLB advances. See Note 4. Investment Securities and Note 5. Loans of the notes to the consolidated financial statements. | ||||
The Company had notes payable to banks totaling $38.5 million and $17.5 million at December 31, 2014 and 2013, respectively, which as of December 31, 2014, were accruing interest at rates ranging from 2.25% to 12.00%. Lease investments include equipment with an amortized cost of $48.8 million and $25.7 million at December 31, 2014 and 2013, respectively, that is pledged as collateral on these notes. | ||||
The Company had a $40.0 million 10-year structured repurchase agreement as of December 31, 2014 and 2013, which bears interest at a fixed rate borrowing of 4.75% and expires in 2016. | ||||
The principal payments on long-term borrowings are due as follows (in thousands): | ||||
Amount | ||||
Years ending December 31, | ||||
2015 | $ | 17,589 | ||
2016 | 53,147 | |||
2017 | 6,018 | |||
2018 | 1,917 | |||
2019 | 680 | |||
Thereafter | 3,565 | |||
$ | 82,916 | |||
Junior_Subordinated_Notes_Issu
Junior Subordinated Notes Issued to Capital Trusts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
JUNIOR SUBORDINATED NOTES ISSUED TO CAPITAL TRUSTS | |||||||||||||||||
Junior Subordinated Notes Issued to Capital Trusts | Junior Subordinated Notes Issued to Capital Trusts | ||||||||||||||||
The Company has established statutory trusts for the sole purpose of issuing trust preferred securities and related trust common securities. The proceeds from such issuances were used by the trusts to purchase junior subordinated notes of the Company, which are the sole assets of each trust. Concurrently with the issuance of the trust preferred securities, the Company issued guarantees for the benefit of the holders of the trust preferred securities. The Company’s outstanding trust preferred securities qualify, and are treated by the Company, as Tier 1 regulatory capital. The Company owns all of the common securities of each trust. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. | |||||||||||||||||
The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of December 31, 2014 (in thousands): | |||||||||||||||||
Coal City | MB Financial | MB Financial | MB Financial | ||||||||||||||
Capital Trust I | Capital Trust II | Capital Trust III | Capital Trust IV | ||||||||||||||
Junior Subordinated Notes: | |||||||||||||||||
Principal balance | $ | 25,774 | $ | 36,083 | $ | 10,310 | $ | 20,619 | |||||||||
Annual interest rate | 3-mo LIBOR + 1.80% | 3-mo LIBOR + 1.40% | 3-mo LIBOR + 1.50% | 3-mo LIBOR + 1.52% | |||||||||||||
Stated maturity date | September 1, 2028 | September 15, 2035 | September 23, 2036 | September 15, 2036 | |||||||||||||
Call date | September 1, 2008 | December 15, 2010 | September 23, 2011 | September 15, 2011 | |||||||||||||
Trust Preferred Securities: | |||||||||||||||||
Face Value | $ | 25,000 | $ | 35,000 | $ | 10,000 | $ | 20,000 | |||||||||
Annual distribution rate | 3-mo LIBOR + 1.80% | 3-mo LIBOR + 1.40% | 3-mo LIBOR + 1.50% | 3-mo LIBOR + 1.52% | |||||||||||||
Issuance date | July 1998 | August 2005 | July 2006 | August 2006 | |||||||||||||
Distribution dates (1) | Quarterly | Quarterly | Quarterly | Quarterly | |||||||||||||
MB Financial | MB Financial | FOBB | TAYC | ||||||||||||||
Capital Trust V | Capital Trust VI | Statutory Trust III (2) | Capital Trust II (3) | ||||||||||||||
Junior Subordinated Notes: | |||||||||||||||||
Principal balance | $ | 30,928 | $ | 23,196 | $ | 5,155 | $ | 41,238 | |||||||||
Annual interest rate | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 2.80% | 3-mo LIBOR + 2.68% | |||||||||||||
Stated maturity date | December 15, 2037 | October 30, 2037 | January 23, 2034 | June 17, 2034 | |||||||||||||
Call date | December 15, 2012 | October 30, 2012 | January 23, 2009 | June 17, 2009 | |||||||||||||
Trust Preferred Securities: | |||||||||||||||||
Face Value | $ | 30,000 | $ | 22,500 | $ | 5,000 | $ | 40,000 | |||||||||
Annual distribution rate | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 2.80% | 3-mo LIBOR + 2.68% | |||||||||||||
Issuance date | September 2007 | October 2007 | December 2003 | June 2004 | |||||||||||||
Distribution dates (1) | Quarterly | Quarterly | Quarterly | Quarterly | |||||||||||||
(1) | All distributions are cumulative and paid in cash. | ||||||||||||||||
(2) | FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBB”) prior to the Company's acquisition of FOBB, and the junior subordinated notes issued by FOBB to FOBB Statutory Trust III were assumed by the Company upon completion of the acquisition. | ||||||||||||||||
(3) | TAYC Capital Trust II was established by Taylor Capital prior to the Company's acquisition of Taylor Capital, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with TAYC Capital Trust II do not include purchase accounting adjustments to such amounts, which in each case resulted in a discount of $7.5 million. | ||||||||||||||||
The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities, for up to five years, but not beyond the stated maturity date in the table above. During any such deferral period, the Company may not pay cash dividends on its common or preferred stock and generally may not repurchase its common or preferred stock. | |||||||||||||||||
On September 22, 2014, the Company redeemed the junior subordinated notes held by Taylor Capital Trust I and concurrently redeemed all of the issued and outstanding 9.75% TAYC Capital Trust I Preferred Securities. The aggregate liquidation amount of the trust preferred securities was $45.4 million. TAYC Capital Trust I was established by Taylor Capital prior to the Company's acquisition of Taylor Capital, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust I were assumed by the Company upon completion of the acquisition. As a result, a $1.9 million gain on early extinguishment of this debt was recognized in the third quarter of 2014. |
Lease_Commitments_and_Rental_E
Lease Commitments and Rental Expense | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Lease Commitments and Rental Expense | Lease Commitments and Rental Expense | ||||||||||||
The Company leases office space for certain branch offices. At December 31, 2014, the future minimum annual rental commitments for these noncancelable leases and subleases of such space were as follows (in thousands): | |||||||||||||
Gross | Sublease | Net | |||||||||||
Years ending December 31, | Rents | Rents | Rents | ||||||||||
2015 | $ | 10,272 | $ | 797 | $ | 9,475 | |||||||
2016 | 8,329 | 484 | 7,845 | ||||||||||
2017 | 7,398 | 439 | 6,959 | ||||||||||
2018 | 5,296 | 414 | 4,882 | ||||||||||
2019 | 4,680 | 424 | 4,256 | ||||||||||
Thereafter | 17,310 | 581 | 16,729 | ||||||||||
$ | 53,285 | $ | 3,139 | $ | 50,146 | ||||||||
Under the terms of these leases, the Company is required to pay its pro rata share of the cost of maintenance and real estate taxes. Certain leases also provide for increased rental payments based on increases in the Consumer Price Index. | |||||||||||||
Net rental expense for the years ended December 31, 2014, 2013, and 2012 amounted to $7.4 million, $4.7 million, and $5.4 million, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plans | |
Employee Benefit Plans | Employee Benefit Plans |
The Company has a defined contribution 401(k) profit sharing plan that covers most full-time employees who have completed three months of service. Each participant under the plan may contribute up to 75% of his/her eligible compensation on a pretax basis. The Company’s contributions consist of a discretionary profit-sharing contribution and a matching contribution of the amounts contributed by the participants. The board of directors determines the Company’s contributions on an annual basis. | |
During 2014, each participant was eligible for a maximum total Company matching contribution of 3.5% of their eligible compensation. Additionally, the Company may make annual discretionary profit sharing contributions. The Company’s total contribution to the plan for the year ended December 31, 2014 was estimated to be $8.6 million and was $7.0 million and $6.9 million for the years ended December 31, 2013 and 2012, respectively. | |
The Company has deferred compensation plans that allow certain executives, senior officers, directors and other employees to defer payment of up 100% of their base salary and bonus in the case of employees and board fees in the case of directors. Discretionary Company contributions to these plans for the year ended December 31, 2014 were estimated to be approximately $563 thousand. Contributions to these plans were $643 thousand and $464 thousand for the years ended December 31, 2013 and 2012, respectively. In addition, pursuant to the Company’s agreement entered into with the Company’s Chief Executive Officer, he is entitled to receive on each December 31st while he is employed by the Company (starting December 31, 2007) a fully vested employer contribution to his account under the Company's non-stock deferred compensation plan in amount equal to 20% of his base salary then in effect. The amounts deferred can be invested in MB Financial stock (under the Company’s stock deferred compensation plan) or publicly traded mutual funds (under the Company’s non-stock deferred compensation plan) at the discretion of the participant. The cost of the MB Financial common stock held by MB Financial’s deferred compensation plans is reported separately in a manner similar to treasury stock (that is, changes in fair value are not recognized) with a corresponding deferred compensation obligation reflected in additional paid-in capital. The amounts of the assets that are not invested in MB Financial common stock are recorded at their fair market value in other assets on the consolidated balance sheet. As of December 31, 2014, the fair value of the assets held in other publicly traded funds totaled $16.8 million. A liability is established, in other liabilities, on the consolidated balance sheet, for the fair value of the obligation to the participants. Any increase or decrease in the fair market value of plan assets is recorded in other non-interest income on the consolidated statement of operations. Any increase or decrease in the fair value of the deferred compensation obligation to participants is recorded as additional compensation expense or a reduction of compensation expense on the consolidated statement of operations. The increase in fair market value of the assets and the obligation related to the deferred compensation plan was $829 thousand for the year ended December 31, 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The deferred taxes consist of (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax asset: | |||||||||||||
Allowance for credit losses | $ | 43,853 | $ | 44,418 | |||||||||
Federal net operating loss carryforwards | 12,234 | — | |||||||||||
State net operating loss carryforwards | 26,582 | 24,354 | |||||||||||
Other real estate owned | 14,229 | 7,878 | |||||||||||
Stock options and restricted stock | 5,904 | 5,816 | |||||||||||
Loans | 47,668 | 6,833 | |||||||||||
Deferred compensation | 10,620 | 8,423 | |||||||||||
Tax credit carryforwards | 25,244 | 13,233 | |||||||||||
Bonus accrual | 5,595 | 4,739 | |||||||||||
Merger and non-compete accrual | — | 623 | |||||||||||
Other items | 3,390 | 1,222 | |||||||||||
Total deferred tax asset | 195,319 | 117,539 | |||||||||||
Valuation allowance | — | — | |||||||||||
Total deferred tax asset, net of valuation allowance | 195,319 | 117,539 | |||||||||||
Deferred tax liability: | |||||||||||||
Equipment leasing | (112,524 | ) | (90,941 | ) | |||||||||
Premises and equipment | (18,817 | ) | (27,059 | ) | |||||||||
Mortgage servicing rights | (64,486 | ) | (7 | ) | |||||||||
Deferred income from FDIC-assisted transactions | (45,999 | ) | (48,272 | ) | |||||||||
Investment securities | (1,802 | ) | (5,030 | ) | |||||||||
FHLB stock dividends | (2,652 | ) | (2,441 | ) | |||||||||
Core deposit intangible | (9,118 | ) | (2,918 | ) | |||||||||
Other items | (2,794 | ) | (3,792 | ) | |||||||||
Total deferred tax liability | (258,192 | ) | (180,460 | ) | |||||||||
Net deferred tax liability | (62,873 | ) | (62,921 | ) | |||||||||
Net unrealized holding gain on investment securities available for sale | (13,099 | ) | (5,354 | ) | |||||||||
Net deferred tax liability | $ | (75,972 | ) | $ | (68,275 | ) | |||||||
The Company's federal net operating loss carryforwards totaled $35.0 million at December 31, 2014 and begin to expire in 2031 through 2034. The Company’s Illinois net operating loss carryforwards totaled $509.2 million at December 31, 2014 and begin to expire in 2021 through 2029. In January of 2011, the State of Illinois enacted legislation suspending the utilization of net operating loss carryforwards. For Illinois purposes, no carryover deduction was allowed for any taxable year ending after December 31, 2010 and prior to December 31, 2012, and no carryover deduction could exceed $100,000 for any taxable year ending on or after December 31, 2012 and prior to December 31, 2014. Further, the legislation extended the carryover period for Illinois net operating losses by the number of taxable years in which carryover deductions are disallowed or limited. The Company's tax credit carryforwards include federal alternative minimum tax credits of $21.4 million with an indefinite carryforward period and general business credits of $3.7 million with expiration dates occurring in 2028 through 2034. Management has determined that is more likely than not that the deferred tax assets, including the net operating loss carryforwards, as of December 31, 2014, will be realized and that no valuation allowance is required. The Company also had other state net operating loss carryforwards totaling $12.7 million at December 31, 2014, the majority of which do not begin to expire until after 2021. | |||||||||||||
Income taxes attributable to continuing operations consist of (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current expense (benefit): | |||||||||||||
Federal | $ | 25,270 | $ | 12,234 | $ | 15,075 | |||||||
State | 11,971 | 5,576 | 6,225 | ||||||||||
Foreign | — | — | — | ||||||||||
37,241 | 17,810 | 21,300 | |||||||||||
Deferred expense (benefit): | |||||||||||||
Federal | 3,122 | 17,245 | 13,688 | ||||||||||
State | (3,170 | ) | 4,436 | 1,489 | |||||||||
Foreign | — | — | — | ||||||||||
(48 | ) | 21,681 | 15,177 | ||||||||||
$ | 37,193 | $ | 39,491 | $ | 36,477 | ||||||||
The reconciliation between the statutory federal income tax rate of 35% and the effective tax rate on income from continuing operations follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax expense at expected statutory rate | $ | 43,153 | $ | 48,281 | $ | 44,398 | |||||||
Increase (decrease) due to: | |||||||||||||
Tax exempt income, net | (14,848 | ) | (14,200 | ) | (12,539 | ) | |||||||
State tax expense net of federal impact | 5,721 | 6,508 | 5,014 | ||||||||||
Non-deductible contingent consideration | 3,738 | — | — | ||||||||||
Non-includable increase in cash surrender value of life insurance | (1,120 | ) | (1,111 | ) | (1,177 | ) | |||||||
Non-deductible merger expense | 988 | 591 | — | ||||||||||
Adjustment of tax contingency reserves | (31 | ) | (24 | ) | 14 | ||||||||
Other items, net | (408 | ) | (554 | ) | 767 | ||||||||
Income tax expense | $ | 37,193 | $ | 39,491 | $ | 36,477 | |||||||
ASC Topic 740, "Accounting for Uncertainty in Income Taxes" provides guidance on financial statement recognition and measurement of tax positions taken, or expected to be taken, in tax returns. | |||||||||||||
A reconciliation of the change in unrecognized tax benefits from January 1, 2014 to December 31, 2014 is as follows (in thousands): | |||||||||||||
Unrecognized Tax Benefit | Interest on unrecognized | Total Unrecognized Tax | |||||||||||
Without Interest | Tax Benefit | Benefit Including Interest | |||||||||||
Balance at January 1, 2014 | $ | 73 | $ | 7 | $ | 80 | |||||||
Increases for tax positions of prior years | — | 6 | 6 | ||||||||||
Acquisition related increases | 939 | — | 939 | ||||||||||
Benefits recognized | (31 | ) | (6 | ) | (37 | ) | |||||||
Balance at December 31, 2014 | $ | 981 | $ | 7 | $ | 988 | |||||||
The whole amount of unrecognized tax benefits would affect the tax provision and the effective income tax rate if recognized in future periods. The Company elects to treat interest and penalties recognized for the underpayment of income taxes as income tax expense, to the extent not included in unrecognized tax benefits. | |||||||||||||
The Company’s federal income tax returns are open and subject to examination for the 2011 tax return year and forward. The Company’s various state income tax returns are generally open for the 2010 tax return year and forward based on individual state statutes of limitation. The Company is currently under examination by multiple state taxing authorities. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||
Commitments: The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. | |||||||||
The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. | |||||||||
At December 31, 2014 and 2013, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands): | |||||||||
Contractual Amount | |||||||||
2014 | 2013 | ||||||||
Commitments to extend credit: | |||||||||
Home equity lines | $ | 221,102 | $ | 208,581 | |||||
Other commitments | 2,643,220 | 1,214,391 | |||||||
Letters of credit: | |||||||||
Standby | 131,810 | 69,556 | |||||||
Commercial | 2,401 | 708 | |||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. The commitments for home equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. | |||||||||
The Company, in the normal course of its business, regularly offers standby and commercial letters of credit to its bank customers. Standby and commercial letters of credit are a conditional but irrevocable form of guarantee. Under letters of credit, the Company typically guarantees payment to a third party beneficiary upon the default of payment or nonperformance by the bank customer and upon receipt of complying documentation from that beneficiary. | |||||||||
Both standby and commercial letters of credit may be issued for any length of time, but normally do not exceed a period of five years. These letters of credit may also be extended or amended from time to time depending on the bank customer’s needs. As of December 31, 2014, the maximum remaining term for any standby letters of credit matures on September 30, 2030. A fee is charged to the bank customer and is recognized as income over the life of the letter of credit, unless considered non-rebatable under the terms of a letter of credit application. | |||||||||
At December 31, 2014, the aggregate contractual amount of these letters of credit, which represents the maximum potential amount of future payments that the Company would be obligated to pay, increased $63.9 million to $134.2 million from $70.3 million at December 31, 2013. Of the $134.2 million in commitments outstanding at December 31, 2014, approximately $121.8 million of the letters of credit have been issued or renewed since December 31, 2013. | |||||||||
Letters of credit issued on behalf of bank customers may be done on either a secured, partially secured or an unsecured basis. If a letter credit is secured or partially secured, the collateral can take various forms including bank accounts, investments, fixed assets, inventory, accounts receivable or real estate. The Company takes the same care in making credit decisions and obtaining collateral when it issues letters of credit on behalf of its customers as it does when making other types of loans. | |||||||||
As of December 31, 2014, the Company had approximately $1.4 million in capital expenditure commitments outstanding which relate to various projects to renovate existing branches. | |||||||||
Concentrations of credit risk: The majority of the loans, commitments to extend credit and standby letters of credit have been granted to customers in the Company’s market area. As of December 31, 2014, approximately 27% of our investments in securities issued by states and political subdivisions were within the state of Illinois. We did not hold any direct exposure to the state of Illinois as of December 31, 2014. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers. Our asset-based loans are made to borrowers located throughout the United States. Lease banking provides banking services to lessors located throughout the United States. Our leasing subsidiaries originate leases to companies located through the United States. | |||||||||
Contingencies: In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company’s consolidated financial statements. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||
Regulatory Matters | Regulatory Matters | |||||||||||||||||||||
The Company’s primary source of cash is dividends from its bank subsidiary. The bank subsidiary is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. In addition, the dividends declared cannot be in excess of the amount which would cause the bank subsidiary to fall below the minimum required for capital adequacy purposes. | ||||||||||||||||||||||
The Company and its bank subsidiary are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and additional discretionary — actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company’s and its bank subsidiary’s assets, liabilities, and certain off-balance-sheet items are calculated under regulatory accounting practices. The Company’s and its bank subsidiary’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | ||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and its bank subsidiary to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes the Company and its bank subsidiary met all capital adequacy requirements to which they are subject as of December 31, 2014 and 2013. | ||||||||||||||||||||||
As of December 31, 2014, the most recent regulatory notification categorized the bank subsidiary as “well capitalized” under the regulatory framework then in effect for prompt corrective action. To be categorized as “well capitalized” as of December 31, 2014, the bank subsidiary must have maintained the total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the well-capitalized column in the table below. There are no conditions or events since that notification that management believes have changed the bank subsidiary’s categories. | ||||||||||||||||||||||
The required and actual amounts and ratios for the Company and its bank subsidiary are presented below as of the dates indicated (dollars in thousands): | ||||||||||||||||||||||
To Be Well | ||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | $ | 1,544,759 | 13.62 | % | $ | 907,369 | 8 | % | N/A | N/A | ||||||||||||
MB Financial Bank | 1,473,928 | 13.03 | 904,917 | 8 | $ | 1,131,146 | 10 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | 1,430,702 | 12.61 | % | 453,684 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 1,359,871 | 12.02 | 452,459 | 4 | 678,688 | 6 | % | |||||||||||||||
Tier 1 capital (to average assets): | ||||||||||||||||||||||
Consolidated | 1,430,702 | 10.47 | % | 546,766 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 1,359,871 | 9.96 | 545,943 | 4 | 682,429 | 5 | % | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | $ | 1,106,541 | 16.53 | % | $ | 535,430 | 8 | % | N/A | N/A | ||||||||||||
MB Financial Bank | 974,189 | 14.59 | 534,004 | 8 | $ | 667,505 | 10 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | 1,022,512 | 15.28 | % | 267,715 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 890,380 | 13.34 | 267,002 | 4 | 400,503 | 6 | % | |||||||||||||||
Tier 1 capital (to average assets): | ||||||||||||||||||||||
Consolidated | 1,022,512 | 11.22 | % | 364,587 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 890,380 | 9.79 | 363,904 | 4 | 454,880 | 5 | % | |||||||||||||||
N/A — not applicable |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||
ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. | |||||||||||||||||||||||||
ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert expected future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | |||||||||||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. | |||||||||||||||||||||||||
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarterly valuation process. | |||||||||||||||||||||||||
Financial Instruments Recorded at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
Securities Available for Sale. The fair values of securities available for sale are determined by quoted prices in active markets, when available, and classified as Level 1. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level 2. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3. | |||||||||||||||||||||||||
Loans Held for Sale. Mortgage loans originated and held for sale in the secondary market are carried at fair value. The fair value of loans held for sale is determined using quoted secondary market prices and classified as level 2. | |||||||||||||||||||||||||
Mortgage Servicing Rights. The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies and cost to service. The assumptions used in the model are validated on a regular basis. The fair value is validated on a quarterly basis with an independent third party. Any discrepancies between the internal model and the third party validation are investigated and resolved by an internal committee. Due to the nature of the valuation inputs, mortgage servicing rights are classified in Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Assets Held in Trust for Deferred Compensation and Associated Liabilities. Assets held in trust for deferred compensation are recorded at fair value and included in “Other Assets” on the consolidated balance sheets. These assets are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets. | |||||||||||||||||||||||||
Derivatives. Currently, we use interest rate swaps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative and classified as Level 2. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including LIBOR rate curves. We also obtain dealer quotations for these derivatives for comparative purposes to assess the reasonableness of the model valuations. In addition, we use forward commitments to buy to-be-announced mortgage securities for which we do not intend to take delivery of the security and will enter into an offsetting position before physical delivery to lessen the price volatility of the mortgage servicing rights asset. Dealer quotations are used for these derivatives and are classified as Level 1. We also offer other derivatives, including foreign currency forward contracts and interest rate lock commitments, to our customers and offset our exposure from such contracts by purchasing other financial contracts, which are valued using market consensus prices. For certain interest rate lock commitments, the Company uses an external valuation model that relies on internally developed inputs to estimate the fair value of its interest rate lock commitments which is based on unobservable inputs that reflect management’s assumptions and specific information about each borrower transaction and is classified in Level 3 of the hierarchy. | |||||||||||||||||||||||||
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): | |||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 65,873 | $ | — | $ | 65,873 | $ | — | |||||||||||||||||
States and political subdivisions | 410,854 | — | 410,391 | 463 | |||||||||||||||||||||
Residential mortgage-backed securities | 720,563 | — | 720,053 | 510 | |||||||||||||||||||||
Commercial mortgage-backed securities | 187,662 | — | 187,662 | — | |||||||||||||||||||||
Corporate bonds | 259,203 | — | 259,203 | — | |||||||||||||||||||||
Equity securities | 10,597 | 10,597 | — | — | |||||||||||||||||||||
Loans held for sale | 737,209 | — | 737,209 | — | |||||||||||||||||||||
Mortgage servicing rights | 235,402 | — | — | 235,402 | |||||||||||||||||||||
Assets held in trust for deferred compensation | 16,829 | 16,829 | — | — | |||||||||||||||||||||
Derivative financial instruments | 46,388 | 1,607 | 39,707 | 5,074 | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Other liabilities (1) | 16,483 | 16,483 | — | — | |||||||||||||||||||||
Derivative financial instruments | 40,499 | 7,209 | 33,290 | — | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 52,068 | $ | — | $ | 52,068 | $ | — | |||||||||||||||||
States and political subdivisions | 19,143 | — | 19,143 | — | |||||||||||||||||||||
Residential mortgage-backed securities | 701,233 | — | 700,542 | 691 | |||||||||||||||||||||
Commercial mortgage-backed securities | 52,941 | — | 52,941 | — | |||||||||||||||||||||
Corporate bonds | 283,070 | — | 277,905 | 5,165 | |||||||||||||||||||||
Equity securities | 10,457 | 10,457 | — | — | |||||||||||||||||||||
Loans held for sale | 629 | — | 629 | — | |||||||||||||||||||||
Assets held in trust for deferred compensation | 10,679 | 10,679 | — | — | |||||||||||||||||||||
Derivative financial instruments | 18,645 | — | 18,645 | — | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Other liabilities (1) | 10,569 | 10,569 | — | — | |||||||||||||||||||||
Derivative financial instruments | 18,632 | — | 18,632 | — | |||||||||||||||||||||
(1) Liabilities associated with assets held in trust for deferred compensation | |||||||||||||||||||||||||
The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a recurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands): | |||||||||||||||||||||||||
Fair Value at | |||||||||||||||||||||||||
December 31, 2014 | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
States and political subdivisions | $ | 463 | Discounted cash flows | Credit assumption | 45% Loss | ||||||||||||||||||||
Residential mortgage-backed securities | 510 | Discounted cash flows | Constant pre-payment rates (CPR) | 1% - 3% | |||||||||||||||||||||
Mortgage servicing rights | 235,402 | Discounted cash flows | CPR | 4.9% - 26.9% | |||||||||||||||||||||
Discount rate | 9.25 - 16.00 | ||||||||||||||||||||||||
Maturity (months) | 36 - 460 | ||||||||||||||||||||||||
Delinquencies | 0.00 - 28.57 | ||||||||||||||||||||||||
Costs to service | $ 60 - $ 356 | ||||||||||||||||||||||||
Derivative financial instruments (mortgage | 5,074 | Sales cash flows | Expected closing ratio | 16.90% - 94.00% | |||||||||||||||||||||
interest rate lock commitments) | Expected delivery price | 98.89 bps - 110.01 bps | |||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights include prepayment speeds, discount rates, maturities, delinquencies and cost to service. Significant increases in prepayment speeds, discount rates, delinquencies or cost to service would result in a significantly lower fair value measurement. Conversely, significant decreases in prepayment speeds, discount rates, delinquencies or costs to service would result in a significantly higher fair value measurement. With the exception of changes in delinquencies, which can change the cost to service, the unobservable inputs move independently of each other. | |||||||||||||||||||||||||
Key economic assumptions used in the measuring of the fair value of the mortgage servicing rights and the sensitivity of the fair value to immediate adverse changes in those assumptions at December 31, 2014 are presented in the following table. This table does not take into account the derivatives used to economically hedge the mortgage servicing rights. | |||||||||||||||||||||||||
(dollars in thousands, except for weighted average cost to service) | December 31, 2014 | ||||||||||||||||||||||||
Weighted average prepayment speed (CPR) | 11.5 | % | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | $ | (9,650 | ) | ||||||||||||||||||||||
Impact on fair value of 20% adverse change | (18,574 | ) | |||||||||||||||||||||||
Weighted average discount rate | 9.41 | % | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | $ | (8,998 | ) | ||||||||||||||||||||||
Impact on fair value of 20% adverse change | (17,356 | ) | |||||||||||||||||||||||
Weighted average delinquency rate | 1.25 | % | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | $ | (1,520 | ) | ||||||||||||||||||||||
Impact on fair value of 20% adverse change | (2,196 | ) | |||||||||||||||||||||||
Weighted average costs to service | $ | 70 | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | (3,325 | ) | |||||||||||||||||||||||
Impact on fair value of 20% adverse change | (6,651 | ) | |||||||||||||||||||||||
The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2014. The Company's policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. | |||||||||||||||||||||||||
The following table presents additional information about financial assets measured at fair value on a recurring basis for which the Company used significant unobservable inputs (Level 3) (in thousands): | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Investment Securities | Mortgage Servicing Rights | Derivatives | |||||||||||||||||||||||
Balance, beginning of period | $ | 5,856 | $ | 6,071 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Acquired through business combination | 507 | — | 224,798 | — | 5,922 | — | |||||||||||||||||||
Purchases | — | — | 1,096 | — | — | — | |||||||||||||||||||
Originations | — | — | 21,285 | — | — | — | |||||||||||||||||||
Other comprehensive income | 128 | (44 | ) | (11,777 | ) | — | (848 | ) | — | ||||||||||||||||
Principal payments | (363 | ) | (157 | ) | — | — | — | — | |||||||||||||||||
Impairment charge | (92 | ) | (14 | ) | — | — | — | — | |||||||||||||||||
Sales | (498 | ) | — | — | — | — | — | ||||||||||||||||||
Transferred out of level 3 | (4,565 | ) | — | — | — | — | — | ||||||||||||||||||
Balance, ending of period | $ | 973 | $ | 5,856 | $ | 235,402 | $ | — | $ | 5,074 | $ | — | |||||||||||||
Financial Instruments Recorded at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||
The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. | |||||||||||||||||||||||||
Impaired Loans. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with ASC Topic 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Collateral values are estimated using Level 3 inputs based on customized discounting criteria. For a majority of impaired real estate loans where an allowance is established based on the fair value of collateral (90% at December 31, 2014), the Company obtains a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information. | |||||||||||||||||||||||||
Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value | |||||||||||||||||||||||||
The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include foreclosed assets and non-financial long-lived assets. | |||||||||||||||||||||||||
Other Real Estate and Repossessed Vehicles Owned (Foreclosed Assets). Foreclosed assets, upon initial recognition, are measured and reported at fair value through a charge-off to the allowance for loan and lease losses based upon the fair value of the foreclosed asset. The fair value of foreclosed assets, upon initial recognition, are estimated using Level 3 inputs based on customized discounting criteria. | |||||||||||||||||||||||||
Non-Financial Long-Lived Assets. Non-financial long-lived assets, when determined to be impaired, are measured and reported at fair value using Level 3 inputs based on customized discounting criteria. | |||||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis as of December 31, 2014 and 2013 are included in the table below (in thousands): | |||||||||||||||||||||||||
Total | Quoted Prices in Active | Significant Other | Significant | ||||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Impaired loans | $ | 61,717 | $ | — | $ | — | $ | 61,717 | |||||||||||||||||
Non-financial assets: | |||||||||||||||||||||||||
Foreclosed assets | 38,619 | — | — | 38,619 | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Impaired loans | $ | 77,497 | $ | — | $ | — | $ | 77,497 | |||||||||||||||||
Non-financial assets: | |||||||||||||||||||||||||
Foreclosed assets | 44,601 | — | — | 44,601 | |||||||||||||||||||||
The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands): | |||||||||||||||||||||||||
Fair Value at | Valuation | ||||||||||||||||||||||||
December 31, 2014 | Technique | Unobservable Input | Range | ||||||||||||||||||||||
Impaired loans | $ | 61,717 | Appraisal of collateral | Appraisal adjustments - sales costs | 5% - 10% | ||||||||||||||||||||
Foreclosed assets | 38,619 | Appraisal of collateral | Appraisal adjustments - sales costs | 5% - 10% | |||||||||||||||||||||
ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The estimated fair value approximates carrying value for cash and cash equivalents, accrued interest and the cash surrender value of life insurance policies. The methodologies for other financial assets and financial liabilities are discussed below: | |||||||||||||||||||||||||
The following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments: | |||||||||||||||||||||||||
Cash and due from banks, interest earning deposits with banks and federal funds sold: The carrying amounts reported in the balance sheet approximate fair value. | |||||||||||||||||||||||||
Securities held to maturity: The fair values of securities held to maturity are determined by quoted prices in active markets, when available, and classified as Level 1. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level 2. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level 3. | |||||||||||||||||||||||||
Non-marketable securities - FHLB and FRB Stock: The carrying amounts reported in the balance sheet approximate fair value. | |||||||||||||||||||||||||
Loans: The fair values for loans are estimated using discounted cash flow analyses, using the corporate bond curve adjusted for liquidity for commercial loans and the swap curve adjusted for liquidity for retail loans. | |||||||||||||||||||||||||
Non-interest bearing deposits: The fair values disclosed are equal to their balance sheet carrying amounts, which represent the amount payable on demand. | |||||||||||||||||||||||||
Interest bearing deposits: The fair values disclosed for deposits with no defined maturities are equal to their carrying amounts, which represent the amounts payable on demand. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies the Company's current incremental borrowing rates for similar terms. | |||||||||||||||||||||||||
Short-term borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements and other short-term borrowings with maturities of 90 days or less approximate their fair values. The fair value of short-term borrowings greater than 90 days is based on the discounted value of contractual cash flows. | |||||||||||||||||||||||||
Long-term borrowings: The fair values of the Company's long-term borrowings (other than deposits) are estimated using discounted cash flow analyses, based on the Company's current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts: The fair values of the Company's junior subordinated notes issued to capital trusts are estimated based on the quoted market prices, when available, of the related trust preferred security instruments, or are estimated based on the quoted market prices of comparable trust preferred securities. | |||||||||||||||||||||||||
Accrued interest: The carrying amount of accrued interest receivable and payable approximate their fair values. | |||||||||||||||||||||||||
Off-balance-sheet instruments: Fair values for the Company’s off-balance-sheet lending commitments (guarantees, letters of credit and commitments to extend credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. | |||||||||||||||||||||||||
The estimated fair values of financial instruments are as follows (in thousands): | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active | Significant Other | Significant | |||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||
Cash and due from banks | $ | 256,804 | $ | 256,804 | $ | 256,804 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits with banks | 55,277 | 55,277 | 55,277 | — | — | ||||||||||||||||||||
Investment securities available for sale | 1,654,752 | 1,654,752 | 10,597 | 1,643,182 | 973 | ||||||||||||||||||||
Investment securities held to maturity | 993,380 | 1,035,061 | — | 1,035,061 | — | ||||||||||||||||||||
Non-marketable securities - FHLB and FRB stock | 75,569 | 75,569 | — | — | 75,569 | ||||||||||||||||||||
Loans held for sale | 737,209 | 737,209 | — | 737,209 | — | ||||||||||||||||||||
Loans, net | 8,973,191 | 8,956,494 | — | — | 8,956,494 | ||||||||||||||||||||
Accrued interest receivable | 49,065 | 49,065 | 49,065 | — | — | ||||||||||||||||||||
Derivative financial instruments | 46,388 | 46,388 | 1,607 | 39,707 | 5,074 | ||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Non-interest bearing deposits | $ | 4,118,256 | $ | 4,118,256 | $ | 4,118,256 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits | 6,872,686 | 6,877,349 | — | — | 6,877,349 | ||||||||||||||||||||
Short-term borrowings | 931,415 | 931,416 | — | — | 931,416 | ||||||||||||||||||||
Long-term borrowings | 82,916 | 86,025 | — | — | 86,025 | ||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 185,778 | 122,408 | — | — | 122,408 | ||||||||||||||||||||
Accrued interest payable | 3,709 | 3,709 | 3,709 | — | — | ||||||||||||||||||||
Derivative financial instruments | 40,499 | 40,499 | 7,209 | 33,290 | — | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active | Significant Other | Significant | |||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||
Cash and due from banks | $ | 205,193 | $ | 205,193 | $ | 205,193 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits with banks | 268,266 | 268,266 | 268,266 | — | — | ||||||||||||||||||||
Federal funds sold | 42,950 | 42,950 | 42,950 | — | — | ||||||||||||||||||||
Investment securities available for sale | 1,118,912 | 1,118,912 | 10,457 | 1,102,599 | 5,856 | ||||||||||||||||||||
Investment securities held to maturity | 1,182,533 | 1,198,929 | — | 1,198,929 | — | ||||||||||||||||||||
Non-marketable securities - FHLB and FRB stock | 51,417 | 51,417 | — | — | 51,417 | ||||||||||||||||||||
Loans held for sale | 629 | 629 | — | 629 | — | ||||||||||||||||||||
Loans, net | 5,600,805 | 5,583,759 | — | — | 5,583,759 | ||||||||||||||||||||
Accrued interest receivable | 36,593 | 36,593 | 36,593 | — | — | ||||||||||||||||||||
Derivative financial instruments | 18,645 | 18,645 | — | 18,645 | — | ||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Non-interest bearing deposits | $ | 2,375,863 | $ | 2,375,863 | $ | 2,375,863 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits | 5,005,396 | 5,012,928 | — | — | 5,012,928 | ||||||||||||||||||||
Short-term borrowings | 493,389 | 493,384 | — | — | 493,384 | ||||||||||||||||||||
Long-term borrowings | 62,159 | 66,301 | — | — | 66,301 | ||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 152,065 | 101,247 | — | — | 101,247 | ||||||||||||||||||||
Accrued interest payable | 2,042 | 2,042 | 2,042 | — | — | ||||||||||||||||||||
Derivative financial instruments | 18,632 | 18,632 | — | 18,632 | — | ||||||||||||||||||||
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock Incentive Plans | Stock Incentive Plans | |||||||||||||
ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such award. | ||||||||||||||
The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the periods shown (in thousands): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Total cost of share-based payment plans during the year | $ | 8,974 | $ | 5,456 | $ | 4,806 | ||||||||
Amount of related income tax benefit recognized in income | $ | 3,528 | $ | 2,159 | $ | 1,918 | ||||||||
The Company adopted the Omnibus Incentive Plan (the “Omnibus Plan”) in 1997. On May 28, 2014, the Company’s stockholders approved the third amendment and restatement of the Omnibus Plan to add 3,100,000 authorized shares for a total of 11,400,000 shares of common stock authorized to be utilized in connection with awards under the Omnibus Plan to directors, officers, and employees of the Company or any of its subsidiaries. The number of shares authorized increased by 2,400,000 to 13,800,000 upon completion of the Taylor Capital merger. Equity grants under the Omnibus Plan can be in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, and other stock-based awards. Shares awarded in the form of restricted stock, restricted stock units, performance shares, performance units, or other stock-based awards generally will reduce the shares available under the Omnibus Plan on a 2-for-1 basis. Following May 28, 2014, no more than 10% of the total number of authorized shares may be issued with respect to awards granted after that date, other than stock appreciation rights, stock options and performance-based awards, which at the date of grant are not scheduled to fully vest prior to three years from the date of grant (although such awards may provide scheduled vesting earlier with respect to some of such shares and for acceleration of vesting as provided in the Omnibus Plan). As of December 31, 2014, there were 6,243,194 shares available for future grants. | ||||||||||||||
Prior to 2014, annual equity-based incentive awards were typically granted to selected officers and employees mid-year. In 2014, these awards began being granted in the first quarter of the year. Options are granted with an exercise price equal to no less than the market price of the Company’s shares at the date of grant; those option awards generally vest over four years of service and have 10-year contractual terms. Restricted shares and units typically vest over a two to four year period. Equity awards may also be granted at other times throughout the year in connection with the recruitment and retention of officers and employees. Directors currently may elect, in lieu of cash, to receive up to 70% of their fees in stock options with a five year term, which are fully vested on the grant date (provided that the director may not sell the underlying shares for at least six months after the grant date), and up to 100% of their fees in restricted shares, which vest one year after the grant date. | ||||||||||||||
The following table summarizes stock options outstanding for the year ended December 31, 2014: | ||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||
Options | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in thousands) | ||||||||||||
Term | ||||||||||||||
(in years) | ||||||||||||||
Options outstanding as of December 31, 2013 | 2,443,752 | $ | 27.57 | 4.71 | ||||||||||
Granted | 231,977 | 29.63 | ||||||||||||
Exercised | (211,339 | ) | 19.88 | |||||||||||
Expired or cancelled | (177,125 | ) | 35.78 | |||||||||||
Forfeited | (36,551 | ) | 22.33 | |||||||||||
Options outstanding as of December 31, 2014 | 2,250,714 | $ | 27.94 | 4.39 | $ | 13,820 | ||||||||
Options exercisable as of December 31, 2014 | 1,689,055 | $ | 29 | 3.2 | $ | 9,263 | ||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions. Expected volatility is based on historical volatility and the expectations of future volatility of Company shares. The risk free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options is estimated based on historical employee behavior and represents the period of time that options granted are expected to remain outstanding. | ||||||||||||||
The following assumptions were used for options granted during the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.82 | % | 1.92 | % | 1.02 | % | ||||||||
Expected volatility of Company’s stock | 23.16 | % | 25.18 | % | 27.17 | % | ||||||||
Expected dividend yield | 1.65 | % | 1.73 | % | 2 | % | ||||||||
Expected life of options (years) | 5.5 | 5.6 | 5.7 | |||||||||||
Weighted average fair value per option of options granted during the year | $ | 5.93 | $ | 5.88 | $ | 4.23 | ||||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013, and 2012 was $2.0 million, $1.3 million, and $203 thousand, respectively. | ||||||||||||||
The following is a summary of changes in restricted shares and units for the year ended December 31, 2014: | ||||||||||||||
Number of | Weighted | |||||||||||||
Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Shares and Units Outstanding at December 31, 2013 | 685,719 | $ | 22.59 | |||||||||||
Granted | 443,375 | 29.23 | ||||||||||||
Vested | (305,504 | ) | 20.53 | |||||||||||
Forfeited | (22,505 | ) | 24.92 | |||||||||||
Shares and Units Outstanding at December 31, 2014 | 801,085 | $ | 26.99 | |||||||||||
The total intrinsic value of restricted shares that vested during the years ended December 31, 2014, 2013, and 2012 was $8.6 million, $5.8 million, and $6.2 million, respectively. | ||||||||||||||
The Company issued 48,569, 56,752 and 65,333 market-based restricted stock units in 2014, 2013 and 2012, respectively, which entitle recipients to shares of common stock at the end of a three year vesting period. Recipients will earn shares, totaling between 0% and 175% of the number of units issued, based on the Company's total stockholder return relative to a specified peer group of financial institutions over the three year period. The market-based restricted stock units are included in the preceding table as if the recipients earned shares equal to 100% of the units issued. A Monte Carlo simulation model was used to value the market-based restricted stock units at the time of issuance. | ||||||||||||||
The Company issued 92,717 shares of market-based restricted stock in 2011. The market component of the vesting terms for the award requires that, for ten consecutive trading days, the closing price of the Company’s stock be at least $27.00. The market component for this award has been satisfied and vested in full in the third quarter of 2014, on the third anniversary of the grant date. A Monte Carlo simulation model was used to value the market-based restricted stock awards at the time of issuance. | ||||||||||||||
As of December 31, 2014, there was $17.4 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including share option and nonvested share awards) granted under the Omnibus Plan. At December 31, 2014, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 2.3 years. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||||||||||||||||||||
The Company offers various derivatives, including interest rate swaps and foreign currency forward contracts, to our customers which can mitigate our exposure to market risk through the execution of off-setting positions with inter-bank dealer counterparties. This also permits the Company to offer customized risk management solutions to our customers. These customer accommodations and any offsetting financial contracts are treated as non-designated derivative instruments and carried at fair value through an adjustment to the statement of operations. | |||||||||||||||||||||||||||||||||
Interest rate swap and foreign currency forward contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. The net amount payable or receivable under interest rate swaps is accrued as an adjustment to interest income. The net amount payable for December 31, 2014 was approximately $1.1 million, and the net amount payable for December 31, 2013 was approximately $25 thousand. The Company's credit exposure on interest rate swaps is limited to the Company's net favorable value and interest payments of all swaps to each counterparty. In such cases, collateral is generally required from the counterparties involved if the net value of the swaps exceeds a nominal amount. At December 31, 2014, the Company’s credit exposure relating to interest rate swaps was approximately $11.2 million, which is secured by the underlying collateral on customer loans. | |||||||||||||||||||||||||||||||||
The Company also enters into mortgage banking derivatives which are classified as non-designated derivatives. These derivatives include interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held-for-sale. | |||||||||||||||||||||||||||||||||
The Company had fair value commercial loan interest rate swaps, to hedge its interest rate risk, with an aggregate notional amount of $197 thousand at December 31, 2014. For fair value hedges, the changes in fair values of both the hedging derivative and the hedged item were recorded in current earnings as other income. | |||||||||||||||||||||||||||||||||
Interest rate swaps are used in order to lessen the price volatility of the mortgage servicing rights asset. The Company also uses forward commitments to buy to-be-announced mortgage securities for which the Company does not intend to take delivery of the security and will enter into an offsetting position before physical delivery to lessen the price volatility of the mortgage servicing rights asset. These derivatives are recorded at their fair value on the consolidated balance sheets in other assets with changes in fair value recorded on the consolidated statements of operations in mortgage banking revenue in non-interest income. | |||||||||||||||||||||||||||||||||
The Company’s derivative financial instruments are summarized below as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||
Notional | Estimated | Notional | Estimated | Notional | Estimated | Notional | Estimated | ||||||||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||||||||
Derivative instruments designated as hedges of fair value: | |||||||||||||||||||||||||||||||||
Interest rate swap contracts (1) | $ | — | $ | — | $ | — | $ | — | $ | 197 | $ | (15 | ) | $ | 238 | $ | (23 | ) | |||||||||||||||
Stand-alone derivative instruments: (2) | |||||||||||||||||||||||||||||||||
Interest rate swap contracts | 1,509,930 | 37,039 | 550,883 | 17,298 | 2,001,787 | (30,761 | ) | 551,798 | (17,350 | ) | |||||||||||||||||||||||
Interest rate options contracts | 55,830 | 283 | 83,907 | 323 | 55,830 | (283 | ) | 84,953 | (323 | ) | |||||||||||||||||||||||
Foreign exchange contracts | 27,402 | 2,276 | 31,361 | 1,006 | 27,002 | (2,109 | ) | 47,760 | (935 | ) | |||||||||||||||||||||||
Spot foreign exchange contracts | 512 | 5 | — | — | 304 | (18 | ) | — | — | ||||||||||||||||||||||||
Mortgage related derivatives | 871,446 | 6,785 | 1,783 | 18 | 879,841 | (7,313 | ) | 250 | (1 | ) | |||||||||||||||||||||||
Total non-hedging derivative instruments | 2,465,120 | 46,388 | 667,934 | 18,645 | 2,964,764 | (40,484 | ) | 684,761 | (18,609 | ) | |||||||||||||||||||||||
Total | $ | 2,465,120 | $ | 46,388 | $ | 667,934 | $ | 18,645 | $ | 2,964,961 | $ | (40,499 | ) | $ | 684,999 | $ | (18,632 | ) | |||||||||||||||
(1) Hedged fixed-rate commercial real estate loans | |||||||||||||||||||||||||||||||||
(2) These portfolio swaps are not designated as hedging instruments under ASC Topic 815. | |||||||||||||||||||||||||||||||||
Amounts included in the other income in the consolidated statements of operations related to derivative financial instruments were as follows (in thousands): | |||||||||||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Derivative instruments designated as hedges of fair value: | |||||||||||||||||||||||||||||||||
Interest rate swap contracts | $ | 8 | $ | 9 | $ | (15 | ) | ||||||||||||||||||||||||||
Stand-alone derivative instruments: | |||||||||||||||||||||||||||||||||
Interest rate swap contracts | 2,458 | 40 | 30 | ||||||||||||||||||||||||||||||
Interest rate options contracts | — | — | — | ||||||||||||||||||||||||||||||
Foreign exchange contracts | 96 | (30 | ) | 67 | |||||||||||||||||||||||||||||
Spot foreign exchange contracts | (14 | ) | — | — | |||||||||||||||||||||||||||||
Mortgage related derivatives | (965 | ) | (109 | ) | 96 | ||||||||||||||||||||||||||||
Total non-hedging derivative instruments | 1,575 | (99 | ) | 193 | |||||||||||||||||||||||||||||
Total | $ | 1,583 | $ | (90 | ) | $ | 178 | ||||||||||||||||||||||||||
Methods and assumptions used by the Company in estimating the fair value of its interest rate swaps are discussed in Note 18 to consolidated financial statements. | |||||||||||||||||||||||||||||||||
Certain instruments and transactions subject to an agreement similar to a master netting arrangement are eligible for offset in the consolidated balance sheet. The instruments and transactions would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The Company’s derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. Under these agreements, there is generally a legally enforceable right to offset recognized amounts, and there may be an intention to settle such amounts on a net basis. The Company, however, does not generally offset such financial instruments for financial reporting purposes. | |||||||||||||||||||||||||||||||||
Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2014 is summarized below (in thousands): | |||||||||||||||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | ||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Interest rate swaps, caps and floors | $ | 10,727 | $ | — | $ | 10,727 | $ | 29,916 | $ | — | $ | 29,916 | |||||||||||||||||||||
Foreign currency forward contracts | 1,525 | — | 1,525 | 709 | — | 709 | |||||||||||||||||||||||||||
Mortgage banking derivatives | 1,700 | — | 1,700 | 7,302 | — | 7,302 | |||||||||||||||||||||||||||
Total derivatives | 13,952 | — | 13,952 | 37,927 | — | 37,927 | |||||||||||||||||||||||||||
Repurchase agreements | — | — | — | 219,824 | — | 219,824 | |||||||||||||||||||||||||||
Total | $ | 13,952 | $ | — | $ | 13,952 | $ | 257,751 | $ | — | $ | 257,751 | |||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Net Amount Recognized | Financial Instruments | Collateral | Net Amount | Net Amount Recognized | Financial Instruments | Collateral | Net Amount | ||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Counterparty A | $ | 13 | $ | (13 | ) | $ | — | $ | — | $ | 9,556 | $ | (13 | ) | $ | (9,543 | ) | $ | — | ||||||||||||||
Counterparty B | 145 | (145 | ) | — | — | 3,736 | (145 | ) | (3,591 | ) | — | ||||||||||||||||||||||
Counterparty C | 6,123 | (6,123 | ) | — | — | 10,335 | (6,122 | ) | (4,213 | ) | — | ||||||||||||||||||||||
Other counterparties | 7,671 | (3,920 | ) | — | 3,751 | 14,300 | (3,920 | ) | (8,663 | ) | 1,717 | ||||||||||||||||||||||
Total derivatives | 13,952 | (10,201 | ) | — | 3,751 | 37,927 | (10,200 | ) | (26,010 | ) | 1,717 | ||||||||||||||||||||||
Repurchase agreements | — | — | — | — | 219,824 | — | (219,824 | ) | — | ||||||||||||||||||||||||
Total | $ | 13,952 | $ | (10,201 | ) | $ | — | $ | 3,751 | $ | 257,751 | $ | (10,200 | ) | $ | (245,834 | ) | $ | 1,717 | ||||||||||||||
Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2013 is summarized below (in thousands): | |||||||||||||||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | ||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Interest rate swaps, caps and floors | $ | 5,792 | $ | — | $ | 5,792 | $ | 11,904 | $ | — | $ | 11,904 | |||||||||||||||||||||
Foreign currency forward contracts | 80 | — | 80 | 848 | — | 848 | |||||||||||||||||||||||||||
Mortgage banking derivatives | 3 | — | 3 | 1 | — | 1 | |||||||||||||||||||||||||||
Total derivatives | 5,875 | — | 5,875 | 12,753 | — | 12,753 | |||||||||||||||||||||||||||
Repurchase agreements | — | — | — | 193,389 | — | 193,389 | |||||||||||||||||||||||||||
Total | $ | 5,875 | $ | — | $ | 5,875 | $ | 206,142 | $ | — | $ | 206,142 | |||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Net Amount Recognized | Financial Instruments | Collateral | Net Amount | Net Amount Recognized | Financial Instruments | Collateral | Net Amount | ||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Counterparty A | $ | 883 | $ | (883 | ) | $ | — | $ | — | $ | 10,669 | $ | (883 | ) | $ | (9,786 | ) | $ | — | ||||||||||||||
Counterparty B | 1,836 | (412 | ) | — | 1,424 | 412 | (412 | ) | — | — | |||||||||||||||||||||||
Counterparty C | 2,380 | (1,612 | ) | — | 768 | 1,612 | (1,612 | ) | — | — | |||||||||||||||||||||||
Other counterparties | 776 | (5 | ) | — | 771 | 60 | (5 | ) | — | 55 | |||||||||||||||||||||||
Total derivatives | 5,875 | (2,912 | ) | — | 2,963 | 12,753 | (2,912 | ) | (9,786 | ) | 55 | ||||||||||||||||||||||
Repurchase agreements | — | — | — | — | 193,389 | — | (193,389 | ) | — | ||||||||||||||||||||||||
Total | $ | 5,875 | $ | (2,912 | ) | $ | — | $ | 2,963 | $ | 206,142 | $ | (2,912 | ) | $ | (203,175 | ) | $ | 55 | ||||||||||||||
Operating_Segments_Notes
Operating Segments (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Operating Segments | Operating Segments | |||||||||||||||
The Company's operations consist of three reportable operating segments: banking, leasing and mortgage banking. The Company offers different products and services through its three segments. The accounting policies of the segments are generally the same as those of the consolidated company. | ||||||||||||||||
The banking segment generates its revenues primarily from its lending and deposit gathering activities. The profitability of this segment's operations depends primarily on its net interest income after provision for credit losses, which is the difference between interest earned on interest earning assets and interest paid on interest bearing liabilities less provision for credit losses. The provision for credit losses is dependent on changes in its loan portfolio and management’s assessment of the collectability of the loan portfolio as well as prevailing economic and market conditions. The banking segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of customers and depositors. These laws and regulations govern such areas as capital, permissible activities, allowance for loan and lease losses, loans and investments, and rates of interest that can be charged on loans. | ||||||||||||||||
The leasing segment generates its revenues through lease originations and related services offered through the Company's leasing subsidiaries, LaSalle Systems Leasing, Inc., Celtic Leasing Corp. and Cole Taylor Equipment Finance, LLC. The leasing subsidiaries invest directly in equipment that we lease (referred to as direct finance, leveraged or operating leases) to "Fortune 1000," large middle-market companies and healthcare providers located throughout the United States. The lease portfolio is made up of various kinds of equipment, generally technology related, such as computer systems, satellite equipment, medical equipment and general manufacturing, industrial, construction and transportation equipment. The leasing subsidiaries also specialize in selling third party equipment maintenance contracts to large companies. | ||||||||||||||||
The mortgage banking segment originates mortgage loans for sale to investors and for the Company's portfolio through its retail and broker channels. This segment also services residential mortgage loans for various investors and for loans owned by the Company. The mortgage banking segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of customers. | ||||||||||||||||
Net interest income for the leasing segment includes adjustments based on the Company's internal funds transfer pricing model as well as interest on loans originated for the sole purpose of funding equipment purchases related to leases at the Company's lease subsidiaries. The provision for credit losses and non-interest expense for the leasing segment includes adjustments for internal allocations of certain expenses. | ||||||||||||||||
The following table presents summary financial information for the reportable segments (in thousands): | ||||||||||||||||
Banking | Leasing | Mortgage Banking | Consolidated | |||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Net interest income | $ | 328,326 | $ | 12,783 | $ | 9,714 | $ | 350,823 | ||||||||
Provision for credit losses | 12,022 | 35 | (5 | ) | 12,052 | |||||||||||
Non-interest income | 115,411 | 59,806 | 46,088 | 221,305 | ||||||||||||
Non-interest expense (1) | 350,358 | 39,525 | 46,899 | 436,782 | ||||||||||||
Income tax expense | 21,106 | 12,524 | 3,563 | 37,193 | ||||||||||||
Net income | $ | 60,251 | $ | 20,505 | $ | 5,345 | $ | 86,101 | ||||||||
Total assets | $ | 12,698,740 | $ | 930,748 | $ | 972,611 | $ | 14,602,099 | ||||||||
Year ended December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Net interest income | $ | 267,131 | $ | 5,205 | $ | — | $ | 272,336 | ||||||||
Provision for credit losses | (6,167 | ) | 363 | — | (5,804 | ) | ||||||||||
Non-interest income | 92,936 | 59,794 | 1,664 | 154,394 | ||||||||||||
Non-interest expense (1) | 259,753 | 34,835 | — | 294,588 | ||||||||||||
Income tax expense | 28,201 | 11,290 | — | 39,491 | ||||||||||||
Net income | $ | 78,280 | $ | 18,511 | $ | 1,664 | $ | 98,455 | ||||||||
Total assets | $ | 9,167,127 | $ | 474,300 | $ | — | $ | 9,641,427 | ||||||||
Year ended December 31, | ||||||||||||||||
2012 | ||||||||||||||||
Net interest income | $ | 290,881 | $ | 1,907 | $ | — | $ | 292,788 | ||||||||
Provision for credit losses | (9,035 | ) | 135 | — | (8,900 | ) | ||||||||||
Non-interest income | 93,124 | 33,744 | 2,325 | 129,193 | ||||||||||||
Non-interest expense | 284,452 | 19,578 | — | 304,030 | ||||||||||||
Income tax expense | 30,780 | 5,697 | — | 36,477 | ||||||||||||
Net income | $ | 77,808 | $ | 10,241 | $ | 2,325 | $ | 90,374 | ||||||||
Total assets | $ | 9,187,480 | $ | 384,325 | $ | — | $ | 9,571,805 | ||||||||
(1) | Includes merger related expenses of $34.8 million and $2.5 million in the banking segment for the years ended December 31, 2014 and 2013, respectively. Also, includes contingent consideration expense related to our acquisition of Celtic Leasing Corp. in the banking segment for the year ended December 31, 2014. |
Condensed_Parent_Company_Finan
Condensed Parent Company Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Parent Company Financial Information | Condensed Parent Company Financial Information | ||||||||||||
The condensed financial statements of MB Financial, Inc. (parent company only) are presented below: | |||||||||||||
Balance Sheets | |||||||||||||
(In thousands) | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash | $ | 32,161 | $ | 122,001 | |||||||||
Investments in subsidiaries | 2,143,408 | 1,340,641 | |||||||||||
Other assets | 38,941 | 24,505 | |||||||||||
Total assets | $ | 2,214,510 | $ | 1,487,147 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Junior subordinated notes issued to capital trusts | $ | 185,778 | $ | 152,065 | |||||||||
Other liabilities | 446 | 8,400 | |||||||||||
Stockholders’ equity | 2,028,286 | 1,326,682 | |||||||||||
Total liabilities and stockholders’ equity | $ | 2,214,510 | $ | 1,487,147 | |||||||||
Statements of Operations | |||||||||||||
(In thousands) | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividends from subsidiaries | $ | 101,500 | $ | 80,500 | $ | 146,000 | |||||||
Interest and other income | 3,097 | 4,215 | 1,682 | ||||||||||
Interest and other expense | 14,636 | 7,143 | 7,117 | ||||||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | 89,961 | 77,572 | 140,565 | ||||||||||
Income tax benefit | (4,590 | ) | (1,223 | ) | (2,192 | ) | |||||||
Income before equity in undistributed net income of subsidiaries | 94,551 | 78,795 | 142,757 | ||||||||||
Equity in undistributed net (loss) income of subsidiaries | (8,450 | ) | 19,660 | (52,383 | ) | ||||||||
Net income | 86,101 | 98,455 | 90,374 | ||||||||||
Dividends and discount accretion on preferred shares | 4,000 | — | 3,269 | ||||||||||
Net income available to common stockholders | $ | 82,101 | $ | 98,455 | $ | 87,105 | |||||||
Statements of Cash Flows | |||||||||||||
(In thousands) | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash Flows From Operating Activities | |||||||||||||
Net income | $ | 86,101 | $ | 98,455 | $ | 90,374 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Compensation expense for share-based payment plans | 8,974 | 5,456 | 4,806 | ||||||||||
Equity in undistributed net income of subsidiaries | 8,450 | (19,660 | ) | 52,383 | |||||||||
Change in other assets and other liabilities | (8,980 | ) | (1,460 | ) | (5,064 | ) | |||||||
Net cash provided by operating activities | 94,545 | 82,791 | 142,499 | ||||||||||
Cash Flows From Investing Activities | |||||||||||||
Net decrease in loans | — | 6,960 | 21,010 | ||||||||||
Net cash paid in business acquisition | (101,546 | ) | — | — | |||||||||
Net cash (used in) provided by investing activities | (101,546 | ) | 6,960 | 21,010 | |||||||||
Cash Flows From Financing Activities | |||||||||||||
Treasury stock transactions, net | (2,690 | ) | (1,672 | ) | (249 | ) | |||||||
Stock options exercised | 1,034 | 1,014 | 154 | ||||||||||
Excess tax benefits from share-based payment arrangements | 396 | (325 | ) | (390 | ) | ||||||||
Dividends paid on common stock | (34,210 | ) | (24,070 | ) | (7,101 | ) | |||||||
Dividends paid on preferred stock | (2,000 | ) | — | (3,239 | ) | ||||||||
Repurchase of preferred stock and warrant | — | — | (197,518 | ) | |||||||||
Redemption of on junior subordinated notes issued to capital trusts | (45,369 | ) | — | (6,186 | ) | ||||||||
Net cash used in financing activities | (82,839 | ) | (25,053 | ) | (214,529 | ) | |||||||
Net (decrease) increase in cash | (89,840 | ) | 64,698 | (51,020 | ) | ||||||||
Cash: | |||||||||||||
Beginning of year | 122,001 | 57,303 | 108,323 | ||||||||||
End of year | $ | 32,161 | $ | 122,001 | $ | 57,303 | |||||||
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock |
On August 18, 2014, in connection with the Taylor Capital merger, the Company issued one share of its Perpetual Non-Cumulative Preferred Stock, Series A (“Company Series A Preferred Stock”), in exchange for each of the 4,000,000 outstanding shares of Taylor Capital’s Perpetual Non-Cumulative Preferred Stock, Series A. Holders of the Company Series A Preferred Stock are entitled to receive, when as and if declared by the Company’s board of directors, non-cumulative cash dividends on the liquidation preference, which is $25 per share, at a rate of 8.00% per annum, payable quarterly. The Company Series A Preferred Stock is included in Tier 1 capital for regulatory capital purposes. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany items and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and general practices within the financial services industry. In accordance with applicable accounting standards, the Company does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. See Note 12 below for more detail. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the year. Actual results could differ from those estimates. Areas involving the use of management’s estimates and assumptions, which are more susceptible to change in the near term include the allowance for loan and lease losses; residual value of direct finance, leveraged, and operating leases; valuation of mortgage servicing rights; income tax accounting; fair value measurements for assets and liabilities; and goodwill. | |
Cash and cash equivalents | Cash and cash equivalents: For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), interest-bearing deposits with banks, with original maturities of 90 days or less. | |
Investment securities | Investment securities: Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale is based on various factors, including movements in interest rates, changes in the maturity mix of assets and liabilities, liquidity needs, regulatory capital considerations, and other factors. Securities available for sale are reported at fair value with unrealized gains or losses reported as accumulated other comprehensive income, net of the related deferred tax effect. Securities classified as held to maturity are those securities that the Company intends to hold until maturity and are reported at amortized cost. | |
The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security, using the level-yield method. In determining the estimated life of a mortgage-related security, certain judgments are required as to the timing and amount of future principal prepayments. These judgments are made based upon the actual performance of the underlying security and the general market consensus regarding changes in mortgage interest rates and underlying prepayment estimates. Amortization of premium and accretion of discount is included in interest income from the related security. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. | ||
The Company evaluates the portfolio for impairment each quarter. In estimating other-than-temporary losses, the Company considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company is more likely than not to sell the security before recovery of its cost basis. If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired, but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. | ||
Federal Home Loan Bank and Federal Reserve Bank stock | Federal Home Loan Bank and Federal Reserve Bank stock: The Company owns investments in the stock of the Federal Reserve Bank of Chicago (“FRB”) and the Federal Home Loan Bank of Chicago (“FHLB”). No ready market exists for these stocks, and they have no quoted market values. The Bank, as a member of the Federal Reserve System and the FHLB, is required to maintain an investment in the capital stock of the FRB and FHLB. The stock is redeemable at par by the FRB and FHLB, respectively, and is, therefore, carried at cost and periodically evaluated for impairment. | |
Loans held for sale | Loans held for sale: Mortgage loans originated and intended for sale in the secondary market are reflected at fair value. Changes in the fair value are recognized in mortgage banking revenue on the Company's Consolidated Statements of Operations. | |
Mortgage Loan Representation and Warranty Reserve | Mortgage Loan Representation and Warranty Reserve: The Company originates and sells residential mortgage loans in the secondary market. When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan, such as the ownership of the loan, the validity of the lien securing the loan, the nature and extent of underwriting standards applied and the types of documentation being provided. These representations and warranties are generally enforceable over the life of the loan. If a defect in the origination process is identified, the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. If there are no such defects, the Company has no liability to the purchaser for losses it may incur on such loans. | |
The Company maintains a representation and warranty reserve to account for the expected losses related to loans it might be required to repurchase or the indemnity payments it may have to make to purchasers. The representation and warranty reserve reflects management's best estimate of probable lifetime loss. The reserve considers both the estimate of expected losses on loans sold during the current accounting period as well as adjustments to the Company's previous estimate of expected losses on loans sold. Factors considered include borrower performance, repurchase demand behavior, and historical loan defect experience. Management monitors the adequacy of the overall reserve and makes adjustments to the level of reserve, as necessary, after consideration of other qualitative factors. | ||
At the time a loan is funded, the representation and warranty reserve is recorded as a decrease in mortgage banking revenue on the Consolidated Statements of Operations and recorded in accrued interest, taxes and other liabilities on the Company's Consolidated Balance Sheets. Changes to the reserve are recorded as an increase or decrease to mortgage banking revenue on the Consolidated Statements of Operations. | ||
Loans and leases | Loans and leases: Loans are stated at the amount of unpaid principal reduced by the allowance for loan and lease losses and unearned income. Direct finance and leveraged leases are included as lease loans for financial statement purposes. Direct finance leases are stated as the sum of remaining minimum lease payments from lessees plus estimated residual values less unearned lease income. Leveraged leases are stated at the sum of remaining minimum lease payments from lessees (less nonrecourse debt payments) plus estimated residual values less unearned lease income. On a quarterly basis, management reviews the lease residuals for potential impairment. Unearned lease income on direct finance and leveraged leases is recognized over the lives of the leases using the level-yield method. | |
Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of the related loan’s yield. The Company is amortizing these amounts over the contractual life of the loan. Commitment fees based upon a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. | ||
Interest income is accrued daily on the Company’s outstanding loan balances. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of renewal or collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged-off is reversed against interest income. | ||
For impaired loans, accrual of interest is discontinued on a loan when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that collection of interest is doubtful. Cash collections on impaired loans are generally credited to the loan balance, and no interest income is recognized on those loans until the principal balance has been determined to be collectible. Loans, other than those included in large groups of smaller-balance homogeneous loans, are considered impaired when it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans include non-accrual loans and loans classified as a troubled debt restructuring. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any and any subsequent changes are charged against the allowance for loan and lease losses. | ||
Troubled debt restructurings | Troubled debt restructurings: A loan is classified as a troubled debt restructuring when a borrower is experiencing financial difficulties that leads to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, deferral of past due interest or principal, extension of maturity date, modification of amortization schedules, redemption of past due taxes and other actions intended to minimize potential losses. | |
In determining whether a debtor is experiencing financial difficulties, the Company considers if the debtor is in payment default or would be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor has securities that have been or are in the process of being delisted, the debtor’s entity-specific projected cash flows will not be sufficient to service any of its debt, or the debtor cannot obtain funds from sources other than the existing creditors at a market rate for debt with similar risk characteristics. | ||
In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the debtor will serve as adequate compensation for other terms of the restructuring, and whether the debtor otherwise has access to funds at a market rate for debt with similar risk characteristics. | ||
A loan that is modified at a market rate of interest will not be classified as troubled debt restructuring in the calendar year subsequent to the restructuring if it is in compliance with the modified terms. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. Under certain circumstances, a loan may be returned to accrual at the time of restructuring. A period of sustained repayment for at least six months generally is required for return to accrual status. | ||
Periodically, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. | ||
Allowance for loan and lease losses | Allowance for loan and lease losses: The allowance for loan and lease losses (ALLL) is established through a provision for credit losses charged to expense. Loans are charged against the ALLL when management believes that collectability of the principal is unlikely. The allowance is an amount that management believes will be appropriate to absorb probable losses on existing loans, based on an evaluation of the collectability of loans and prior loss and recovery experience as appropriate under GAAP. The ALLL is based on management’s evaluation of the loan portfolio giving consideration to the nature and volume of the loan portfolio, the value of underlying collateral, overall portfolio quality, review of specific problem loans, and prevailing economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review MB Financial Bank’s ALLL, and may require it to recognize adjustments to its allowance based on their judgments of information available to them at the time of their examinations. | |
The ALLL is comprised of three elements: a commercial related general loss reserve; a commercial related specific reserve for impaired loans; and a consumer related reserve for smaller-balance homogenous loans. Each element is discussed below. | ||
Commercial Related General Loss Reserve - We maintain a general loan loss reserve for the four categories of commercial related loans in our portfolio - commercial loans, commercial loans collateralized by the assignment of lease payments (lease loans), commercial real estate loans and construction real estate loans. | ||
Under our loan risk rating system, each loan, with the exception of those included in large groups of smaller-balance homogeneous consumer related loans, is risk rated between one and nine by the originating loan officer, Senior Credit Management, Loan Review or loan committee. Loans rated "one" represent those loans least likely to default and a loan rated "nine" represents a loss. The probability of loans defaulting for each risk rating, sometimes referred to as default factors, are estimated based on the frequency with which loans migrate from one risk rating to another and to default status over time. We use a loan loss reserve model that incorporates the migration of loan risk ratings and historical default data over a multi-year period to develop our estimated default factors (EDFs). The model tracks annual loan rating migrations by loan type and currently uses loan risk rating migrations for 14 years. The migration data is adjusted by using average losses for an economic cycle (approximately 13 years) to develop EDFs by loan type, risk rating and maturity. EDFs are updated annually in December. | ||
Estimated loan default factors are multiplied by individual loan balances in each risk-rating category and again multiplied by an historical loss given default estimate for each loan type (which incorporates estimated recoveries) to determine the appropriate allowance by loan type. This approach is applied to the commercial, lease, commercial real estate, and construction real estate components of the portfolio. | ||
To account for current economic conditions, the general allowance for loan and lease losses also includes adjustments for macroeconomic factors. Macroeconomic factors adjust the ALLL upward or downward based on the current point in the economic cycle using predictive economic data and are applied to the loan loss model through a separate allowance element for the commercial, commercial real estate, construction real estate and lease loan components. To determine our macroeconomic factors, we use specific economic data that has shown to be a statistically reliable predictor of our credit losses relative to our long term average credit losses. We tested over 20 economic variables (U.S. manufacturing index, unemployment rate, U.S. GDP growth, etc.). We annually review this data to determine that such a relationship continues to exist. We currently use the following macroeconomic indicators in our macroeconomic factor computation: | ||
Commercial loans and lease loans: initial unemployment insurance claims in Illinois, our prior period charge-off rates and crude oil prices. | ||
Commercial real estate loans and construction loans: M2 Money stock, our prior period charge-off rates and the U.S. commercial real estate index. | ||
Using the indicators noted above, a predicted charge-off percentage is calculated. The predicted charge-off percentage is then compared to the cycle average charge-off percentage, and a macroeconomic adjustment factor is calculated. The macroeconomic adjustment factor is applied to each commercial loan type. Each year, we review the predictive nature of the macroeconomic factors by comparing actual charge-offs to the predicted model charge-offs, re-run our regression analysis and re-calibrate the macroeconomic factors as appropriate. | ||
Commercial Related Specific Reserves - The ALLL also includes specific reserves on impaired commercial related loans. A loan is considered to be impaired when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that the collection of all contractual principal and interest payments due is doubtful. | ||
At each quarter-end, impaired loans are reviewed individually, with adjustments made to the general calculated reserve for each loan as deemed necessary. Specific adjustments are made depending on expected cash flows and/or the value of the collateral securing each loan. Generally, the Company obtains a current external appraisal (within 12 months) on real estate secured impaired loans. Our appraisal policy is designed to comply with the Interagency Appraisal and Evaluation Guidelines, most recently updated in December 2010. As part of our compliance with these guidelines, we maintain an internal Appraisal Review Department that engages and reviews all third party appraisals. | ||
In addition, each impaired commercial loan with real estate collateral is reviewed quarterly by our appraisal department to determine that the most recent valuation remains appropriate during subsequent quarters until the next appraisal is received. If considered necessary by our appraisal department, the appraised value may be further discounted to reflect current values. | ||
Other valuation techniques are also used to value non-real estate assets. Discounts may be applied in the impairment analysis used for general business assets (GBA). Examples of GBA include accounts receivable, inventory, and any marketable securities pledged. The discount is used to reflect collection risk in the event of default that may not have been included in the valuation of the asset. | ||
Consumer Related Reserves - Pools of homogeneous loans with similar risk and loss characteristics are also assessed for probable losses. These loan pools include consumer, residential real estate, home equity, credit cards and indirect vehicle loans. Migration probabilities obtained from past due roll rate analyses and historical loss rates are applied to current balances to forecast charge-offs over a one-year time horizon. | ||
We consistently apply our methodology for determining the appropriateness of the allowance for loan and lease losses but may adjust our methodologies and assumptions based on historical information related to charge-offs and management's evaluation of the loan portfolio. In this regard, we periodically review the following to validate our allowance for loan and lease losses: historical net charge-offs as they relate to prior periods' allowance for loan and lease loss, comparison of historical loan migration in past years compared to the current year, overall credit trends and ratios and any significant changes in loan concentrations. In reviewing this data, we adjust qualitative factors within our allowance methodology to appropriately reflect any changes warranted by the validation process. | ||
Loans acquired through transfer | Acquired loans: Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. These acquired loans are segregated into three types: pass rated loans with no discount attributable to credit quality, non-impaired loans with a discount attributable at least in part to credit quality and impaired loans with evidence of significant credit deterioration. | |
• | Pass rated loans (typically performing loans) are accounted for in accordance with ASC 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. | |
• | Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC 310-30 if they display at least some level of credit deterioration since origination. | |
• | Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC 310-30 as they display significant credit deterioration since origination. | |
For pass rated loans (non-purchased credit-impaired loans), the difference between the estimated fair value of the loans (computed on a loan by loan basis) and the principal outstanding is accreted over the remaining life of the loans. We anticipate recording a provision for the acquired portfolio in future quarters related to renewing Taylor loans which will largely offset the accretion from the pass rated loans. | ||
In accordance with ASC 310-30, for both purchased non-impaired loans and purchased impaired loans ("PCI loans"), the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. | ||
Substantially all of the loans acquired in transactions with the FDIC displayed at least some level of credit deterioration and as such are included as non-impaired and impaired loans as described immediately above. | ||
Lease investments | Lease investments: The Company’s investment in operating leases is reported as lease investments, net. Rental income on operating leases is recognized as income over the lease term according to the provisions of the lease, which is generally on a straight-line basis. The investment in equipment in operating leases is stated at cost less depreciation using the straight-line method generally over a life of five years or less. | |
Premises and equipment | Premises and equipment: Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization is computed by the straight-line method over the estimated useful lives of the assets. Useful lives generally range from three to seven years for computer equipment and software, five to 10 years for furniture and equipment, and five to 39 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the term of the related lease or the estimated useful lives of the improvements, whichever is shorter. Land is not subject to depreciation. Maintenance and repairs are charged to expense as incurred, while major improvements are capitalized and amortized to operating expense over their identified useful lives. Premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
Other real estate owned (OREO) | Other real estate owned: Other real estate owned includes real estate assets that have been received in satisfaction of debt. Other real estate owned is initially recorded at fair value less estimated selling costs, which establishes the cost basis. Subsequently, other real estate owned is carried at the lower of the cost basis or fair value less estimated selling costs. Any valuation adjustments required at the date of transfer are charged to the allowance for loan and lease losses. Subsequently, unrealized losses and realized gains and losses on sale are included in net loss recognized on other real estate owned. | |
Cash surrender value of life insurance | Cash surrender value of life insurance: The Company has purchased bank-owned life insurance policies on certain executives. Bank-owned life insurance is recorded at its cash surrender value. Changes in the cash surrender values are included in non-interest income. | |
Goodwill | Goodwill: The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit and client relationship intangibles, consists of goodwill. Under the provisions of ASC Topic 350, goodwill is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill and other intangible assets to determine potential impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired, by comparing the carrying value of the asset with the anticipated future cash flows. The Company's annual assessment is done at the unit level. As of December 31, 2014, the annual assessment date, the Company had three reporting units: banking, leasing and mortgage banking. | |
Other intangibles | Other intangibles: The Company’s other intangible assets consist of core deposit and customer intangibles obtained through acquisitions. Core deposit intangibles (the portion of an acquisition purchase price which represents value assigned to the existing deposit base) have finite lives and are amortized by the declining balance method over four to 15 years. Other intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
Mortgage Servicing Rights | Mortgage Servicing Rights: The Company originates and sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities. Purchased mortgage servicing rights are recorded at the purchase price at the date of purchase and at fair value thereafter. | |
Mortgage servicing rights do not trade in an active market with readily observable prices. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies and cost to service. The assumptions used in the valuation model are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party. | ||
The Company has elected to account for mortgage servicing rights using the fair value option. Changes in the fair value are recognized in mortgage banking revenue on the Company's Consolidated Statements of Operations. | ||
FDIC indemnification asset | FDIC indemnification asset: As part of the Heritage Community Bank ("Heritage"), Benchmark Bank ("Benchmark"), Broadway Bank ("Broadway"), and New Century Bank ("New Century") transactions, MB Financial Bank entered into loss-share agreements with the FDIC. These agreements cover realized losses on loans and foreclosed real estate for specified periods. See Note 5 below for more information on these agreements, including the duration of MB Financial Bank’s loss-share coverage. These loss-share assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should MB Financial Bank choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss-share based on the credit adjustments estimated for each loan pool and the loss-share percentages. The loss-share assets are also separately measured from the related loans and foreclosed real estate and recorded within other assets on the balance sheet. The corresponding accretion is recorded in other income on the statement of operations. Although these assets are contractual receivables from the FDIC, there are no contractual interest rates. | |
When cash flow estimates are adjusted downward for a particular loan pool, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. | ||
When cash flow estimates are adjusted upward for a particular loan pool, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the loan pool. | ||
When cash flow estimates are adjusted downward for covered foreclosed real estate, the FDIC indemnification asset is increased. A charge is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. | ||
When cash flow estimates are adjusted upward for covered foreclosed real estate, the FDIC indemnification asset is decreased. Any write-down after the transfer to covered foreclosed real estate is reversed. | ||
In both scenarios, the claw-back liability for amounts owed to the FDIC for better than expected performance will increase or decrease accordingly. | ||
Preferred stock | Preferred stock: Preferred stock issued in connection with the Taylor Capital Group, Inc. merger was initially recorded at fair value. Preferred dividends declared are deducted from net income for computing income available to common stockholders and earnings per common share computations. | |
Treasury stock | Treasury stock: Treasury stock is recorded at acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. | |
Derivative financial instruments and hedging activities | Derivative financial instruments and hedging activities: ASC Topic 815 establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. ASC Topic 815 requires that changes in the derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Accounting for qualifying hedges allows a derivative’s gains and losses to offset related results on the hedged item in the statement of operations, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. | |
All derivatives are recognized on the consolidated balance sheet at their fair value. On the date the derivative contract is entered into, the Company designates the derivative as either a fair value hedge (i.e. a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e. a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a non-designated derivative (i.e. an instrument with no hedging designation). For a derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income and are recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. Changes in the fair value of derivatives that are not designated as fair value or cash flow are reported currently in earnings, as noninterest income. | ||
The Company formally documents all relationships between hedging instruments and hedging items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges or cash flow hedges to specific assets or liabilities on the balance sheet. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. | ||
The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item; the derivative expires or is sold, terminated, or exercised; or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair value hedge, the Company continues to carry the derivative on the balance sheet at its fair value, and no longer adjusts the hedged asset or liability for changes in fair value. The adjustment of the carrying amount of the hedged asset or liability is accounted for in the same manner as other components of the carrying amount of that asset or liability. | ||
Transfers of financial assets | Transfers of financial assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Sale of maintenance contracts | Sale of maintenance contracts: LaSalle Business Solutions, LLC (LBS), a subsidiary of LaSalle Systems Leasing, Inc., sells third party maintenance contracts to customers. The maintenance is serviced by third party providers, with LBS maintaining no legal obligation under the contract to perform additional services. Revenues are recorded net of cost of sales, as LBS is viewed as an agent under ASC Topic 605, accepting minimal credit risk, maintaining no obligation to perform maintenance under the contracts and having no control over selection of the maintenance supplier. | |
Asset management and trust assets | Asset management and trust assets: Assets of the asset management and trust department, other than trust cash on deposit at MB Financial Bank, are not included in these consolidated financial statements because they are not assets of the bank. | |
Stock-based compensation | Stock-based compensation: The Company accounts for its equity awards in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize compensation expense related to equity awards in their statement of operations. See Note 19 below for more information. | |
Income taxes | Income taxes: Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences, operating loss carryforwards and tax credit carryforwards, while deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |
Basic and diluted earnings per common share | Basic and diluted earnings per common share: Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company's common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. | |
Comprehensive income | Comprehensive income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale, net of deferred taxes, which are reported as a separate component of stockholders’ equity on the consolidated balance sheet. | |
Segment Reporting | Segment Reporting: An operating segment is a component of an entity that: (i) engages in business activities from which it may earn revenues and incur expenses; (ii) has operating results that are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and (iii) has discrete financial information available. As of December 31, 2014, the Company had three reportable operating segments: banking, leasing and mortgage banking. | |
New authoritative accounting guidance | New authoritative accounting guidance: | |
ASC Topic 740 “Income Taxes.” New authoritative accounting guidance under ASC Topic 740, “Income Taxes” amended prior guidance to include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The Company adopted this new authoritative guidance on January 1, 2014, and it did not have an impact on the Company's statements of operations or financial condition. | ||
ASC Topic 310 “Receivables.” New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical | ||
possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosures. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have a significant impact on the Company's statements of operations or financial condition. | ||
ASC Topic 323 “Investments - Equity Method and Joint Ventures.” New authoritative accounting guidance under ASC Topic 323, “Investments - Equity Method and Joint Ventures” amended prior guidance to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statement of operation as a component of income tax expense. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have a significant impact on the Company's statements of operations or financial condition. | ||
ASC Topics 205 “Presentation of Financial Statements” and 360 “Property, Plant, and Equipment.” New authoritative accounting guidance under ASC Topic 205, “Presentation of Financial Statements” and ASC Topic 360 “Property, Plant, and Equipment” amended prior guidance to change the requirements for reporting discontinued operations. The disposal of a component of an entity or group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The new authoritative guidance also requires additional disclosures about discontinued operations. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have an impact on the Company's statements of operations or financial condition. | ||
ASC Topic 860 “Transfers and Servicing.” New authoritative accounting guidance under ASC Topic 860, “Transfers and Servicing” amended prior guidance to change the accounting for repurchase-to-maturity transactions to secured borrowing accounting and to require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The new authoritative guidance also requires disclosures for a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. The new authoritative guidance will be effective for reporting periods after January 1, 2015, and the Company is assessing the impact on the statements of operations and financial condition. | ||
ASC Topic 718 “Compensation - Stock Compensation.” New authoritative accounting guidance under ASC Topic 718, “Compensation - Stock Compensation” amended prior guidance to require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The new authoritative guidance will be effective for reporting periods after January 1, 2015 and is not expected to have an impact on the Company's statements of operations or financial condition. | ||
Reclassifications | Reclassifications: Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or stockholders’ equity. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Reconciliation of the number of shares used in the calculation of basic and diluted earnings (loss) per common share | The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (amounts in thousands, except common share data): | ||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Distributed earnings allocated to common stock | $ | 34,422 | $ | 24,290 | $ | 7,149 | |||||||
Undistributed earnings | 51,679 | 74,165 | 83,225 | ||||||||||
Net income | 86,101 | 98,455 | 90,374 | ||||||||||
Less: preferred stock dividends and discount accretion | 4,000 | — | 3,269 | ||||||||||
Net income available to common stockholders | 82,101 | 98,455 | 87,105 | ||||||||||
Less: earnings and dividends allocated to participating securities | 2 | 2 | 3 | ||||||||||
Earnings allocated to common stockholders | $ | 82,099 | $ | 98,453 | $ | 87,102 | |||||||
Weighted average shares outstanding for basic earnings per common share | 62,012,196 | 54,509,612 | 54,270,297 | ||||||||||
Dilutive effect of equity awards | 561,210 | 484,253 | 235,679 | ||||||||||
Weighted average shares outstanding for diluted earnings per common share | 62,573,406 | 54,993,865 | 54,505,976 | ||||||||||
Basic earnings per common share | $ | 1.32 | $ | 1.81 | $ | 1.61 | |||||||
Diluted earnings per common share | 1.31 | 1.79 | 1.6 | ||||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Assets Acquired and Liabilities Assumed | Estimated fair values of the assets acquired and liabilities assumed in the Taylor Capital transaction, as of the closing date of the transaction were as follows (in thousands): | ||||||||
August 18, | |||||||||
2014 | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 154,684 | |||||||
Investment securities available for sale | 826,691 | ||||||||
Investment securities held to maturity | 22,599 | ||||||||
Non-marketable securities - FRB and FHLB Stock | 50,620 | ||||||||
Loans held for sale | 670,671 | ||||||||
Loans | 3,532,211 | ||||||||
Leases investments, net | 11,885 | ||||||||
Premises and equipment | 19,701 | ||||||||
Goodwill | 288,152 | ||||||||
Core deposit intangible | 20,079 | ||||||||
Mortgage servicing rights | 224,453 | ||||||||
Other real estate owned | 4,720 | ||||||||
Other assets | 130,478 | ||||||||
Total assets | $ | 5,956,944 | |||||||
LIABILITIES | |||||||||
Deposits | $ | 3,953,213 | |||||||
Short-term borrowings | 1,035,800 | ||||||||
Junior subordinated notes issued to capital trusts | 80,843 | ||||||||
Accrued expenses and other liabilities | 123,028 | ||||||||
Total liabilities | $ | 5,192,884 | |||||||
Series A preferred stock at $28.82 per share at August 15, 2014 | $ | 115,280 | |||||||
Total identifiable net assets less Series A preferred stock | $ | 648,780 | |||||||
Consideration excluding Series A preferred stock: | |||||||||
Market value of common stock at $26.49 per share at August 15, 2014 (19,602,482 shares of common stock issued) | $ | 519,270 | |||||||
Cash paid | 129,510 | ||||||||
Total fair value of consideration, excluding Series A preferred stock | $ | 648,780 | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table presents the acquired loans as of the acquisition date (in thousands): | ||||||||
PCI Loans | Non-PCI Loans | ||||||||
Contractually required principal and interest payments | $ | 244,650 | $ | 3,707,463 | |||||
Contractually required interest payments not expected to be collected due to estimated prepayments | — | (302,329 | ) | ||||||
Nonaccretable difference | (34,219 | ) | — | ||||||
Cash flows expected to be collected | 210,431 | 3,405,134 | |||||||
Accretable difference | (5,626 | ) | (77,728 | ) | |||||
Fair value of acquired loans | $ | 204,805 | $ | 3,327,406 | |||||
Business Acquisition, Pro Forma Information | The following table provides the unaudited pro forma information for the results of operations for the years ended December 31, 2014 and 2013, as if the acquisition had occurred January 1, 2013. The pro forma results combine the historical results of Taylor Capital into the Company's consolidated statement of income including the impact of certain purchase accounting adjustments including loan discount accretion, investment securities discount accretion, intangible assets amortization, deposit premium accretion and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The merger related expenses that have been recognized are included in net income in the table below. | ||||||||
For Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Total revenues (net interest income plus non-interest income) | $ | 774,778 | $ | 790,655 | |||||
Net income | 112,220 | 180,085 | |||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Summary investment holdings | and fair values of investment securities were as follows (in thousands): | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 64,612 | $ | 1,281 | $ | (20 | ) | $ | 65,873 | ||||||||||||||||
States and political subdivisions | 390,076 | 20,846 | (68 | ) | 410,854 | ||||||||||||||||||||
Residential mortgage-backed securities | 713,413 | 8,977 | (1,827 | ) | 720,563 | ||||||||||||||||||||
Commercial mortgage-backed securities | 186,110 | 1,772 | (220 | ) | 187,662 | ||||||||||||||||||||
Corporate bonds | 259,526 | 2,428 | (2,751 | ) | 259,203 | ||||||||||||||||||||
Equity securities | 10,531 | 66 | — | 10,597 | |||||||||||||||||||||
1,624,268 | 35,370 | (4,886 | ) | 1,654,752 | |||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 752,558 | 30,089 | (382 | ) | 782,265 | ||||||||||||||||||||
Residential mortgage-backed securities | 240,822 | 11,974 | — | 252,796 | |||||||||||||||||||||
993,380 | 42,063 | (382 | ) | 1,035,061 | |||||||||||||||||||||
Total | $ | 2,617,648 | $ | 77,433 | $ | (5,268 | ) | $ | 2,689,813 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 50,486 | $ | 1,704 | $ | (122 | ) | $ | 52,068 | ||||||||||||||||
States and political subdivisions | 19,398 | 22 | (277 | ) | 19,143 | ||||||||||||||||||||
Residential mortgage-backed securities | 696,415 | 8,555 | (3,737 | ) | 701,233 | ||||||||||||||||||||
Commercial mortgage-backed securities | 50,891 | 2,050 | — | 52,941 | |||||||||||||||||||||
Corporate bonds | 284,083 | 1,597 | (2,610 | ) | 283,070 | ||||||||||||||||||||
Equity securities | 10,649 | — | (192 | ) | 10,457 | ||||||||||||||||||||
1,111,922 | 13,928 | (6,938 | ) | 1,118,912 | |||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 932,955 | 7,584 | (4,366 | ) | 936,173 | ||||||||||||||||||||
Residential mortgage-backed securities | 249,578 | 13,178 | — | 262,756 | |||||||||||||||||||||
1,182,533 | 20,762 | (4,366 | ) | 1,198,929 | |||||||||||||||||||||
Total | $ | 2,294,455 | $ | 34,690 | $ | (11,304 | ) | $ | 2,317,841 | ||||||||||||||||
Unrealized losses on investment securities and the fair value of the related securities | Unrealized losses on investment securities and the fair value of the related securities at December 31, 2014 were as follows (in thousands): | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 9,644 | $ | (20 | ) | $ | — | $ | — | $ | 9,644 | $ | (20 | ) | |||||||||||
States and political subdivisions | 7,784 | (21 | ) | 3,558 | (47 | ) | 11,342 | (68 | ) | ||||||||||||||||
Residential mortgage-backed securities | 235,818 | (1,336 | ) | 29,373 | (491 | ) | 265,191 | (1,827 | ) | ||||||||||||||||
Commercial mortgage-backed securities | 89,509 | (220 | ) | — | — | 89,509 | (220 | ) | |||||||||||||||||
Corporate bonds | 62,693 | (1,159 | ) | 9,675 | (1,592 | ) | 72,368 | (2,751 | ) | ||||||||||||||||
405,448 | (2,756 | ) | 42,606 | (2,130 | ) | 448,054 | (4,886 | ) | |||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 28,786 | (130 | ) | 14,238 | (252 | ) | 43,024 | (382 | ) | ||||||||||||||||
Totals | $ | 434,234 | $ | (2,886 | ) | $ | 56,844 | $ | (2,382 | ) | $ | 491,078 | $ | (5,268 | ) | ||||||||||
Unrealized losses on investment securities and the fair value of the related securities at December 31, 2013 were as follows (in thousands): | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 18,598 | $ | (122 | ) | $ | — | $ | — | $ | 18,598 | $ | (122 | ) | |||||||||||
States and political subdivisions | 2,275 | (166 | ) | 4,748 | (111 | ) | 7,023 | (277 | ) | ||||||||||||||||
Residential mortgage-backed securities | 232,807 | (2,905 | ) | 44,182 | (832 | ) | 276,989 | (3,737 | ) | ||||||||||||||||
Corporate bonds | 122,344 | (2,606 | ) | 705 | (4 | ) | 123,049 | (2,610 | ) | ||||||||||||||||
Equity securities | 10,457 | (192 | ) | — | — | 10,457 | (192 | ) | |||||||||||||||||
386,481 | (5,991 | ) | 49,635 | (947 | ) | 436,116 | (6,938 | ) | |||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
States and political subdivisions | 235,016 | (4,330 | ) | 1,301 | (36 | ) | 236,317 | (4,366 | ) | ||||||||||||||||
Totals | $ | 621,497 | $ | (10,321 | ) | $ | 50,936 | $ | (983 | ) | $ | 672,433 | $ | (11,304 | ) | ||||||||||
Summary of realized gains on the sale of investment securities available for sale | Net (losses) gains recognized on investment securities available for sale were as follows (in thousands): | ||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Realized gains | $ | 2,045 | $ | 15 | $ | 787 | |||||||||||||||||||
Realized losses | (4,478 | ) | (2 | ) | (8 | ) | |||||||||||||||||||
Impairment charges | (92 | ) | (14 | ) | (224 | ) | |||||||||||||||||||
Net (losses) gains | $ | (2,525 | ) | $ | (1 | ) | $ | 555 | |||||||||||||||||
Schedule of remaining contractual maturities of securities included in the securities portfolio | The amortized cost and fair value of investment securities as of December 31, 2014 by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. | ||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
(In thousands) | Cost | Value | |||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 13,752 | $ | 13,792 | |||||||||||||||||||||
Due after one year through five years | 305,172 | 306,103 | |||||||||||||||||||||||
Due after five years through ten years | 39,903 | 40,823 | |||||||||||||||||||||||
Due after ten years | 355,387 | 375,212 | |||||||||||||||||||||||
Equity securities | 10,531 | 10,597 | |||||||||||||||||||||||
Residential and commercial mortgage-backed securities | 899,523 | 908,225 | |||||||||||||||||||||||
1,624,268 | 1,654,752 | ||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||
Due in one year or less | 29,060 | 29,114 | |||||||||||||||||||||||
Due after one year through five years | 247,683 | 249,058 | |||||||||||||||||||||||
Due after five years through ten years | 102,901 | 106,556 | |||||||||||||||||||||||
Due after ten years | 372,914 | 397,537 | |||||||||||||||||||||||
Residential mortgage-backed securities | 240,822 | 252,796 | |||||||||||||||||||||||
993,380 | 1,035,061 | ||||||||||||||||||||||||
Total | $ | 2,617,648 | $ | 2,689,813 | |||||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of accounts notes financing receivable | Loans consist of the following at (in thousands): | ||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,245,206 | $ | 1,281,377 | |||||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,692,258 | 1,494,188 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | 2,544,867 | 1,647,700 | |||||||||||||||||||||||||||||||||||||||
Residential real estate | 503,287 | 314,440 | |||||||||||||||||||||||||||||||||||||||
Construction real estate | 247,068 | 141,253 | |||||||||||||||||||||||||||||||||||||||
Indirect vehicle | 268,840 | 262,632 | |||||||||||||||||||||||||||||||||||||||
Home equity | 251,909 | 268,289 | |||||||||||||||||||||||||||||||||||||||
Other consumer | 78,137 | 66,952 | |||||||||||||||||||||||||||||||||||||||
Gross loans, excluding purchased credit-impaired and covered loans | 8,831,572 | 5,476,831 | |||||||||||||||||||||||||||||||||||||||
Purchased credit-impaired and covered loans | 251,645 | 235,720 | |||||||||||||||||||||||||||||||||||||||
Total loans | $ | 9,083,217 | $ | 5,712,551 | |||||||||||||||||||||||||||||||||||||
Contractual aging of the recorded investment in past due loans by class of loans | The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Current | 30-59 Days | 60-89 Days | Loans Past Due | Total | Total | ||||||||||||||||||||||||||||||||||||
Past Due | Past Due | 90 Days or More | Past Due | ||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,231,571 | $ | 8,222 | $ | — | $ | 5,413 | $ | 13,635 | $ | 3,245,206 | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,679,991 | 2,025 | 6,095 | 4,147 | 12,267 | 1,692,258 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 342,984 | — | — | — | — | 342,984 | |||||||||||||||||||||||||||||||||||
Industrial | 333,907 | 944 | — | 3,182 | 4,126 | 338,033 | |||||||||||||||||||||||||||||||||||
Multifamily | 417,504 | 1,377 | — | 1,517 | 2,894 | 420,398 | |||||||||||||||||||||||||||||||||||
Retail | 432,718 | 2,481 | 652 | 2,325 | 5,458 | 438,176 | |||||||||||||||||||||||||||||||||||
Office | 244,166 | — | — | 2,127 | 2,127 | 246,293 | |||||||||||||||||||||||||||||||||||
Other | 754,031 | 307 | 2,421 | 2,224 | 4,952 | 758,983 | |||||||||||||||||||||||||||||||||||
Residential real estate | 485,492 | 8,038 | 2,319 | 7,438 | 17,795 | 503,287 | |||||||||||||||||||||||||||||||||||
Construction real estate | 246,731 | — | — | 337 | 337 | 247,068 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 265,296 | 2,516 | 702 | 326 | 3,544 | 268,840 | |||||||||||||||||||||||||||||||||||
Home equity | 242,756 | 2,717 | 1,039 | 5,397 | 9,153 | 251,909 | |||||||||||||||||||||||||||||||||||
Other consumer | 78,106 | 16 | 12 | 3 | 31 | 78,137 | |||||||||||||||||||||||||||||||||||
Gross loans, excluding purchased credit-impaired and covered loans | 8,755,253 | 28,643 | 13,240 | 34,436 | 76,319 | 8,831,572 | |||||||||||||||||||||||||||||||||||
Purchased credit-impaired and covered loans | 158,215 | 4,432 | 585 | 88,413 | 93,430 | 251,645 | |||||||||||||||||||||||||||||||||||
Total loans | $ | 8,913,468 | $ | 33,075 | $ | 13,825 | $ | 122,849 | $ | 169,749 | $ | 9,083,217 | |||||||||||||||||||||||||||||
Non-performing loan aging | $ | 46,149 | $ | 5,764 | $ | 1,099 | $ | 34,075 | $ | 40,938 | $ | 87,087 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,273,302 | $ | 5,952 | $ | 626 | $ | 1,497 | $ | 8,075 | $ | 1,281,377 | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,489,391 | 3,841 | 656 | 300 | 4,797 | 1,494,188 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 213,665 | — | — | 3,064 | 3,064 | 216,729 | |||||||||||||||||||||||||||||||||||
Industrial | 372,975 | 5,465 | — | 1,404 | 6,869 | 379,844 | |||||||||||||||||||||||||||||||||||
Multifamily | 302,456 | 3,078 | 181 | 2,226 | 5,485 | 307,941 | |||||||||||||||||||||||||||||||||||
Retail | 334,198 | 328 | 2,816 | 7,258 | 10,402 | 344,600 | |||||||||||||||||||||||||||||||||||
Office | 155,936 | — | — | 2,066 | 2,066 | 158,002 | |||||||||||||||||||||||||||||||||||
Other | 233,464 | 4,898 | 259 | 1,963 | 7,120 | 240,584 | |||||||||||||||||||||||||||||||||||
Residential real estate | 302,362 | 1,422 | 1,030 | 9,626 | 12,078 | 314,440 | |||||||||||||||||||||||||||||||||||
Construction real estate | 138,563 | 391 | — | 2,299 | 2,690 | 141,253 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 259,488 | 2,210 | 657 | 277 | 3,144 | 262,632 | |||||||||||||||||||||||||||||||||||
Home equity | 257,219 | 1,725 | 2,165 | 7,180 | 11,070 | 268,289 | |||||||||||||||||||||||||||||||||||
Other consumer | 66,866 | 81 | 1 | 4 | 86 | 66,952 | |||||||||||||||||||||||||||||||||||
Gross loans, excluding covered loans | 5,399,885 | 29,391 | 8,391 | 39,164 | 76,946 | 5,476,831 | |||||||||||||||||||||||||||||||||||
Covered loans | 135,717 | 902 | 3,346 | 95,755 | 100,003 | 235,720 | |||||||||||||||||||||||||||||||||||
Total loans | $ | 5,535,602 | $ | 30,293 | $ | 11,737 | $ | 134,919 | $ | 176,949 | $ | 5,712,551 | |||||||||||||||||||||||||||||
Non-performing loan aging | $ | 56,339 | $ | 14,325 | $ | 3,283 | $ | 32,614 | $ | 50,222 | $ | 106,561 | |||||||||||||||||||||||||||||
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing by class of loans | The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing by class of loans, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Loans past due | Loans past due | ||||||||||||||||||||||||||||||||||||||||
Non-accrual | 90 days or more | Non-accrual | 90 days or more | ||||||||||||||||||||||||||||||||||||||
and still accruing | and still accruing | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 14,088 | $ | — | $ | 17,781 | $ | — | |||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 2,404 | 3,566 | 4,276 | 291 | |||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | 3,064 | — | |||||||||||||||||||||||||||||||||||||
Industrial | 6,371 | — | 15,265 | 155 | |||||||||||||||||||||||||||||||||||||
Multifamily | 5,333 | — | 5,145 | — | |||||||||||||||||||||||||||||||||||||
Office | 3,644 | 464 | 11,703 | — | |||||||||||||||||||||||||||||||||||||
Retail | 2,986 | — | 2,969 | — | |||||||||||||||||||||||||||||||||||||
Other | 13,541 | 324 | 19,991 | — | |||||||||||||||||||||||||||||||||||||
Residential real estate | 17,311 | — | 13,009 | — | |||||||||||||||||||||||||||||||||||||
Construction real estate | 337 | — | 475 | — | |||||||||||||||||||||||||||||||||||||
Indirect vehicle | 1,542 | — | 1,459 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 15,171 | — | 10,969 | — | |||||||||||||||||||||||||||||||||||||
Other consumer | 5 | — | 9 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 82,733 | $ | 4,354 | $ | 106,115 | $ | 446 | |||||||||||||||||||||||||||||||||
Risk category of loans by class of loans | The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,036,069 | $ | 178,984 | $ | 30,153 | $ | — | $ | 3,245,206 | |||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,680,736 | 6,853 | 4,669 | — | 1,692,258 | ||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 338,622 | 4,362 | — | — | 342,984 | ||||||||||||||||||||||||||||||||||||
Industrial | 314,225 | 8,817 | 14,991 | — | 338,033 | ||||||||||||||||||||||||||||||||||||
Multifamily | 412,824 | 920 | 6,654 | — | 420,398 | ||||||||||||||||||||||||||||||||||||
Retail | 423,842 | 2,740 | 11,594 | — | 438,176 | ||||||||||||||||||||||||||||||||||||
Office | 229,947 | 8,524 | 7,822 | — | 246,293 | ||||||||||||||||||||||||||||||||||||
Other | 708,447 | 22,013 | 28,523 | — | 758,983 | ||||||||||||||||||||||||||||||||||||
Construction real estate | 246,204 | 527 | 337 | — | 247,068 | ||||||||||||||||||||||||||||||||||||
Total | $ | 7,390,916 | $ | 233,740 | $ | 104,743 | $ | — | $ | 7,729,399 | |||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,193,114 | $ | 26,637 | $ | 61,000 | $ | 626 | $ | 1,281,377 | |||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,486,899 | 553 | 6,736 | — | 1,494,188 | ||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 189,705 | 21,186 | 2,774 | 3,064 | 216,729 | ||||||||||||||||||||||||||||||||||||
Industrial | 345,236 | 5,328 | 29,280 | — | 379,844 | ||||||||||||||||||||||||||||||||||||
Multifamily | 296,179 | 342 | 11,420 | — | 307,941 | ||||||||||||||||||||||||||||||||||||
Retail | 316,420 | 10,660 | 17,520 | — | 344,600 | ||||||||||||||||||||||||||||||||||||
Office | 151,393 | 2,682 | 3,927 | — | 158,002 | ||||||||||||||||||||||||||||||||||||
Other | 217,188 | 349 | 23,047 | — | 240,584 | ||||||||||||||||||||||||||||||||||||
Construction real estate | 139,847 | 540 | 866 | — | 141,253 | ||||||||||||||||||||||||||||||||||||
Total | $ | 4,335,981 | $ | 68,277 | $ | 156,570 | $ | 3,690 | $ | 4,564,518 | |||||||||||||||||||||||||||||||
Recorded investment in loan classes based on payment activity | The following table presents the recorded investment in those loan classes based on payment activity, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Performing | Non-performing | Total | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 485,976 | $ | 17,311 | $ | 503,287 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 267,297 | 1,543 | 268,840 | ||||||||||||||||||||||||||||||||||||||
Home equity | 236,739 | 15,170 | 251,909 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 78,132 | 5 | 78,137 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 1,068,144 | $ | 34,029 | $ | 1,102,173 | |||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 301,431 | $ | 13,009 | $ | 314,440 | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 261,173 | 1,459 | 262,632 | ||||||||||||||||||||||||||||||||||||||
Home equity | 257,320 | 10,969 | 268,289 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 66,943 | 9 | 66,952 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 886,867 | $ | 25,446 | $ | 912,313 | |||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment by class of loans | The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired and covered loans, as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Partial | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||||||||
Principal | Investment | Charge-offs | Loan and Lease Losses | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Balance | Allocated | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 9,752 | $ | 8,992 | $ | 760 | $ | — | $ | 10,324 | $ | — | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 2,316 | 2,316 | — | — | 2,569 | 121 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 9,115 | 5,858 | 3,257 | — | 7,870 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 1,733 | 1,733 | — | — | 1,928 | 52 | |||||||||||||||||||||||||||||||||||
Retail | 2,025 | 813 | 1,212 | — | 3,465 | — | |||||||||||||||||||||||||||||||||||
Office | — | — | — | — | 1,127 | — | |||||||||||||||||||||||||||||||||||
Other | 1,479 | 1,465 | 14 | — | 5,249 | — | |||||||||||||||||||||||||||||||||||
Residential real estate | 1,941 | 1,941 | — | — | 2,740 | — | |||||||||||||||||||||||||||||||||||
Construction real estate | — | — | — | — | 34 | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity | 577 | 577 | — | — | 762 | — | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 7,987 | 7,987 | — | 2,395 | 14,227 | — | |||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 715 | 715 | — | 105 | 1,515 | 91 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Industrial | 517 | 513 | 4 | 130 | 4,982 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 5,680 | 4,709 | 971 | 996 | 6,354 | 131 | |||||||||||||||||||||||||||||||||||
Retail | 9,264 | 7,897 | 1,367 | 720 | 8,547 | — | |||||||||||||||||||||||||||||||||||
Office | 4,528 | 2,986 | 1,542 | 545 | 2,833 | — | |||||||||||||||||||||||||||||||||||
Other | 12,612 | 12,527 | 85 | 136 | 11,022 | 12 | |||||||||||||||||||||||||||||||||||
Residential real estate | 14,234 | 14,234 | — | 3,126 | 14,632 | — | |||||||||||||||||||||||||||||||||||
Construction real estate | 2,707 | 337 | 2,370 | 162 | 455 | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 227 | 227 | — | 14 | 358 | — | |||||||||||||||||||||||||||||||||||
Home equity | 25,927 | 25,705 | 222 | 2,153 | 25,672 | — | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 113,336 | $ | 101,532 | $ | 11,804 | $ | 10,482 | $ | 126,665 | $ | 407 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Partial | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||||||||
Principal | Investment | Charge-offs | Loan and Lease Losses | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Balance | Allocated | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 8,903 | $ | 8,903 | $ | — | $ | — | $ | 8,259 | $ | — | |||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 3,401 | 3,401 | — | — | 1,030 | 6 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | — | — | 2,698 | — | |||||||||||||||||||||||||||||||||||
Industrial | 7,560 | 7,560 | — | — | 8,900 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 1,166 | 1,166 | — | — | 758 | 11 | |||||||||||||||||||||||||||||||||||
Retail | 4,466 | 4,466 | — | — | 3,628 | — | |||||||||||||||||||||||||||||||||||
Office | 559 | 527 | 32 | — | 922 | — | |||||||||||||||||||||||||||||||||||
Other | 2,963 | 2,963 | — | — | 4,380 | — | |||||||||||||||||||||||||||||||||||
Residential real estate | 4,234 | 4,234 | — | — | 3,260 | — | |||||||||||||||||||||||||||||||||||
Construction real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity | 577 | 577 | — | — | 797 | — | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 8,923 | 8,919 | 4 | 4,284 | 13,476 | 4 | |||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1,060 | 1,060 | — | 144 | 1,279 | 192 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 3,186 | 3,064 | 122 | 382 | 8,189 | — | |||||||||||||||||||||||||||||||||||
Industrial | 7,707 | 7,705 | 2 | 3,038 | 3,699 | — | |||||||||||||||||||||||||||||||||||
Multifamily | 5,374 | 5,374 | — | 1,661 | 6,443 | 340 | |||||||||||||||||||||||||||||||||||
Retail | 14,169 | 12,428 | 1,741 | 1,511 | 12,885 | 280 | |||||||||||||||||||||||||||||||||||
Office | 2,442 | 2,442 | — | 791 | 4,045 | — | |||||||||||||||||||||||||||||||||||
Other | 20,367 | 17,029 | 3,338 | 796 | 12,868 | 20 | |||||||||||||||||||||||||||||||||||
Residential real estate | 13,496 | 12,710 | 786 | 3,119 | 12,966 | 245 | |||||||||||||||||||||||||||||||||||
Construction real estate | 475 | 475 | — | 227 | 1,603 | — | |||||||||||||||||||||||||||||||||||
Indirect vehicle | 173 | 123 | 50 | 57 | 86 | — | |||||||||||||||||||||||||||||||||||
Home equity | 23,840 | 23,395 | 445 | 1,358 | 24,283 | 772 | |||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 135,041 | $ | 128,521 | $ | 6,520 | $ | 17,368 | $ | 136,454 | $ | 1,870 | |||||||||||||||||||||||||||||
Schedule of loans that have been restructured classified as performing and non-performing | The following table presents loans that have been restructured during the year ended December 31, 2014 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Number of | Pre-Modification Recorded | Post-Modification Recorded | Charge-offs and | ||||||||||||||||||||||||||||||||||||||
Loans | Investment | Investment | Specific Reserves | ||||||||||||||||||||||||||||||||||||||
Performing: | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | 3 | $ | 588 | $ | 588 | $ | — | ||||||||||||||||||||||||||||||||||
Indirect vehicle | 2 | 26 | 26 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 9 | 2,251 | 2,251 | — | |||||||||||||||||||||||||||||||||||||
Total | 14 | $ | 2,865 | $ | 2,865 | $ | — | ||||||||||||||||||||||||||||||||||
Non-Performing: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 1 | $ | 263 | $ | 263 | $ | 85 | ||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Multifamily | 1 | 158 | 158 | 40 | |||||||||||||||||||||||||||||||||||||
Residential real estate | 6 | 1,850 | 1,850 | 246 | |||||||||||||||||||||||||||||||||||||
Indirect vehicle | 53 | 320 | 320 | 88 | |||||||||||||||||||||||||||||||||||||
Home equity | 27 | 3,813 | 3,813 | 335 | |||||||||||||||||||||||||||||||||||||
Total | 88 | $ | 6,404 | $ | 6,404 | $ | 794 | ||||||||||||||||||||||||||||||||||
The following table presents loans that have been restructured during the year ended December 31, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Number of | Pre-Modification Recorded | Post-Modification Recorded | Charge-offs and | ||||||||||||||||||||||||||||||||||||||
Loans | Investment | Investment | Specific Reserves | ||||||||||||||||||||||||||||||||||||||
Performing: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Multifamily | 1 | $ | 601 | $ | 601 | $ | — | ||||||||||||||||||||||||||||||||||
Residential real estate | 6 | 910 | 910 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 14 | 2,204 | 2,204 | — | |||||||||||||||||||||||||||||||||||||
Total | 21 | $ | 3,715 | $ | 3,715 | $ | — | ||||||||||||||||||||||||||||||||||
Non-Performing: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 2 | $ | 1,251 | $ | 1,251 | $ | 673 | ||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 1 | 3,401 | 3,401 | — | |||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Healthcare | 1 | 3,164 | 3,164 | 496 | |||||||||||||||||||||||||||||||||||||
Industrial | 4 | 2,570 | 2,570 | 1,425 | |||||||||||||||||||||||||||||||||||||
Multifamily | 2 | 623 | 623 | 169 | |||||||||||||||||||||||||||||||||||||
Retail | 3 | 862 | 862 | 235 | |||||||||||||||||||||||||||||||||||||
Other | 1 | 84 | 84 | 23 | |||||||||||||||||||||||||||||||||||||
Residential real estate | 9 | 1,803 | 1,682 | 121 | |||||||||||||||||||||||||||||||||||||
Indirect vehicle | 26 | 171 | 129 | 42 | |||||||||||||||||||||||||||||||||||||
Home equity | 26 | 3,430 | 3,430 | — | |||||||||||||||||||||||||||||||||||||
Total | 75 | $ | 17,359 | $ | 17,196 | $ | 3,184 | ||||||||||||||||||||||||||||||||||
Troubled debt restructuring activity rollforward | The following tables present the troubled debt restructurings activity during the year ended December 31, 2014 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
Performing | Non-performing | ||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 29,430 | $ | 24,952 | |||||||||||||||||||||||||||||||||||||
Additions | 2,865 | 6,404 | |||||||||||||||||||||||||||||||||||||||
Charge-offs | (451 | ) | (2,840 | ) | |||||||||||||||||||||||||||||||||||||
Principal payments, net | (2,650 | ) | (3,965 | ) | |||||||||||||||||||||||||||||||||||||
Removals | (8,574 | ) | (3,576 | ) | |||||||||||||||||||||||||||||||||||||
Transfer to other real estate owned | — | (221 | ) | ||||||||||||||||||||||||||||||||||||||
Transfer from non-performing/performing | 6,407 | 11,424 | |||||||||||||||||||||||||||||||||||||||
Transfer to non-performing/performing | (11,424 | ) | (6,407 | ) | |||||||||||||||||||||||||||||||||||||
Ending balance | $ | 15,603 | $ | 25,771 | |||||||||||||||||||||||||||||||||||||
Type of financing receivable modifications and restructuring | The following table presents the type of modification for loans that have been restructured and the post-modification recorded investment during the year ended December 31, 2014 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Extended | Extended Maturity | Extended | |||||||||||||||||||||||||||||||||||||||
Maturity, | and Amortization, | Maturity and | Delay in | ||||||||||||||||||||||||||||||||||||||
Amortization | Delay in Payments | Delay in Payments | Payments or | ||||||||||||||||||||||||||||||||||||||
and Reduction | and Reduction of | or Reduction of | Reduction of | ||||||||||||||||||||||||||||||||||||||
of Interest Rate | Interest Rate | Interest Rate | Interest Rate | Total | |||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 263 | $ | — | $ | 263 | |||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Multifamily | — | — | 158 | — | 158 | ||||||||||||||||||||||||||||||||||||
Residential real estate | 411 | — | 1,268 | 759 | 2,438 | ||||||||||||||||||||||||||||||||||||
Indirect vehicle | — | — | — | 346 | 346 | ||||||||||||||||||||||||||||||||||||
Home equity | 2,384 | 878 | 1,211 | 1,591 | 6,064 | ||||||||||||||||||||||||||||||||||||
Total | $ | 2,795 | $ | 878 | $ | 2,900 | $ | 2,696 | $ | 9,269 | |||||||||||||||||||||||||||||||
Activity in the allowance for loan losses | Activity in the allowance for loan and lease losses was as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 113,462 | $ | 128,279 | $ | 135,975 | |||||||||||||||||||||||||||||||||||
Allowance for unfunded credit commitments acquired through business combination | 1,261 | — | — | ||||||||||||||||||||||||||||||||||||||
Utilization of allowance for unfunded credit commitments | (637 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Provision for credit losses | 12,052 | (5,804 | ) | (8,900 | ) | ||||||||||||||||||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 1,339 | 3,706 | 2,408 | ||||||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 586 | — | 1,721 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 11,438 | 7,517 | 11,377 | ||||||||||||||||||||||||||||||||||||||
Residential real estate | 1,718 | 2,796 | 2,944 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 79 | 980 | 4,007 | ||||||||||||||||||||||||||||||||||||||
Indirect vehicle | 3,735 | 2,911 | 2,259 | ||||||||||||||||||||||||||||||||||||||
Home equity | 3,383 | 3,692 | 4,551 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 2,467 | 2,073 | 1,349 | ||||||||||||||||||||||||||||||||||||||
Total charge-offs | 24,745 | 23,675 | 30,616 | ||||||||||||||||||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||||||||||||||
Commercial | 3,757 | 3,156 | 3,475 | ||||||||||||||||||||||||||||||||||||||
Commercial collateralized by assignment of lease payments | 939 | 1,131 | 6,720 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,020 | 6,025 | 16,987 | ||||||||||||||||||||||||||||||||||||||
Residential real estate | 1,190 | 479 | 501 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 252 | 1,616 | 2,019 | ||||||||||||||||||||||||||||||||||||||
Indirect vehicle | 1,736 | 1,411 | 1,096 | ||||||||||||||||||||||||||||||||||||||
Home equity | 482 | 594 | 671 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 288 | 250 | 351 | ||||||||||||||||||||||||||||||||||||||
Total recoveries | 12,664 | 14,662 | 31,820 | ||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | 12,081 | 9,013 | (1,204 | ) | |||||||||||||||||||||||||||||||||||||
Allowance for credit losses | 114,057 | 113,462 | 128,279 | ||||||||||||||||||||||||||||||||||||||
Allowance for unfunded credit commitments | (4,031 | ) | (1,716 | ) | (4,075 | ) | |||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 110,026 | $ | 111,746 | $ | 124,204 | |||||||||||||||||||||||||||||||||||
Allowance activity for loan losses by portfolio segment based on impairment method | The following table presents the activity in the allowance for credit losses, balance in allowance for credit losses and recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Construction | Indirect | Home | Other Consumer | Unfunded | Total | ||||||||||||||||||||||||||||||||
collateralized by | real estate | real estate | real estate | vehicle | equity | Commitments | |||||||||||||||||||||||||||||||||||
assignment of | |||||||||||||||||||||||||||||||||||||||||
lease payments | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 23,461 | $ | 9,159 | $ | 51,628 | $ | 8,872 | $ | 6,856 | $ | 1,662 | $ | 8,478 | $ | 1,630 | $ | 1,716 | $ | 113,462 | |||||||||||||||||||||
Allowance for unfunded credit commitments acquired through business combination | — | — | — | — | — | — | — | — | 1,261 | 1,261 | |||||||||||||||||||||||||||||||
Utilization of allowance for unfunded credit commitments | — | — | — | — | — | — | — | — | (637 | ) | (637 | ) | |||||||||||||||||||||||||||||
Charge-offs | 1,339 | 586 | 11,438 | 1,718 | 79 | 3,735 | 3,383 | 2,467 | — | 24,745 | |||||||||||||||||||||||||||||||
Recoveries | 3,757 | 939 | 4,020 | 1,190 | 252 | 1,736 | 482 | 288 | — | 12,664 | |||||||||||||||||||||||||||||||
Provision | 3,692 | 450 | (2,384 | ) | (1,698 | ) | 1,889 | 2,024 | 3,879 | 2,509 | 1,691 | 12,052 | |||||||||||||||||||||||||||||
Ending balance | $ | 29,571 | $ | 9,962 | $ | 41,826 | $ | 6,646 | $ | 8,918 | $ | 1,687 | $ | 9,456 | $ | 1,960 | $ | 4,031 | $ | 114,057 | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,395 | $ | 105 | $ | 2,527 | $ | 3,126 | $ | 162 | $ | 14 | $ | 2,153 | $ | — | $ | 1,348 | $ | 11,830 | |||||||||||||||||||||
Collectively evaluated for impairment | 26,684 | 9,857 | 38,517 | 3,520 | 8,747 | 1,673 | 7,303 | 1,960 | 2,683 | 100,944 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 492 | — | 782 | — | 9 | — | — | — | — | 1,283 | |||||||||||||||||||||||||||||||
Total ending allowance balance | $ | 29,571 | $ | 9,962 | $ | 41,826 | $ | 6,646 | $ | 8,918 | $ | 1,687 | $ | 9,456 | $ | 1,960 | $ | 4,031 | $ | 114,057 | |||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 16,979 | $ | 3,031 | $ | 38,501 | $ | 16,175 | $ | 337 | $ | 227 | $ | 26,282 | $ | — | $ | — | $ | 101,532 | |||||||||||||||||||||
Collectively evaluated for impairment | 3,228,227 | 1,689,227 | 2,506,366 | 487,112 | 246,731 | 268,613 | 225,627 | 78,137 | — | 8,730,040 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 103,582 | — | 80,378 | 14,138 | 31,068 | — | 138 | 22,341 | — | 251,645 | |||||||||||||||||||||||||||||||
Total ending loans balance | $ | 3,348,788 | $ | 1,692,258 | $ | 2,625,245 | $ | 517,425 | $ | 278,136 | $ | 268,840 | $ | 252,047 | $ | 100,478 | $ | — | $ | 9,083,217 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 24,943 | $ | 7,755 | $ | 61,056 | $ | 6,941 | $ | 11,222 | $ | 1,324 | $ | 9,401 | $ | 1,562 | $ | 4,075 | $ | 128,279 | |||||||||||||||||||||
Transfer to (from) allowance for unfunded credit commitments | — | — | — | — | 500 | — | — | — | (500 | ) | — | ||||||||||||||||||||||||||||||
Charge-offs | 3,706 | — | 7,517 | 2,796 | 980 | 2,911 | 3,692 | 2,073 | — | 23,675 | |||||||||||||||||||||||||||||||
Recoveries | 3,156 | 1,131 | 6,025 | 479 | 1,616 | 1,411 | 594 | 250 | — | 14,662 | |||||||||||||||||||||||||||||||
Provision | (932 | ) | 273 | (7,936 | ) | 4,248 | (5,502 | ) | 1,838 | 2,175 | 1,891 | (1,859 | ) | (5,804 | ) | ||||||||||||||||||||||||||
Ending balance | $ | 23,461 | $ | 9,159 | $ | 51,628 | $ | 8,872 | $ | 6,856 | $ | 1,662 | $ | 8,478 | $ | 1,630 | $ | 1,716 | $ | 113,462 | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,284 | $ | 144 | $ | 8,179 | $ | 3,119 | $ | 227 | $ | 57 | $ | 1,358 | $ | — | $ | 689 | $ | 18,057 | |||||||||||||||||||||
Collectively evaluated for impairment | 18,693 | 9,015 | 41,763 | 5,753 | 6,567 | 1,605 | 7,120 | 1,630 | 1,027 | 93,173 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 484 | — | 1,686 | — | 62 | — | — | — | — | 2,232 | |||||||||||||||||||||||||||||||
Total ending allowance balance | $ | 23,461 | $ | 9,159 | $ | 51,628 | $ | 8,872 | $ | 6,856 | $ | 1,662 | $ | 8,478 | $ | 1,630 | $ | 1,716 | $ | 113,462 | |||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 17,822 | $ | 4,461 | $ | 64,724 | $ | 16,944 | $ | 475 | $ | 123 | $ | 23,972 | $ | — | $ | — | $ | 128,521 | |||||||||||||||||||||
Collectively evaluated for impairment | 1,246,523 | 1,489,727 | 1,582,976 | 293,883 | 140,778 | 262,509 | 244,317 | 66,952 | — | 5,327,665 | |||||||||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30 (1) | 35,673 | — | 140,504 | 5,448 | 48,313 | — | 107 | 26,320 | — | 256,365 | |||||||||||||||||||||||||||||||
Total ending loans balance | $ | 1,300,018 | $ | 1,494,188 | $ | 1,788,204 | $ | 316,275 | $ | 189,566 | $ | 262,632 | $ | 268,396 | $ | 93,272 | $ | — | $ | 5,712,551 | |||||||||||||||||||||
(1) Loans acquired in the Taylor Capital merger and FDIC-assisted transactions and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.” | |||||||||||||||||||||||||||||||||||||||||
Changes in the accretable yield for purchased credit-impaired loans | Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,337 | $ | 5,685 | |||||||||||||||||||||||||||||||||||||
Purchases | 5,626 | — | |||||||||||||||||||||||||||||||||||||||
Accretion | (2,098 | ) | (4,456 | ) | |||||||||||||||||||||||||||||||||||||
Other | 1,569 | 1,108 | |||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 7,434 | $ | 2,337 | |||||||||||||||||||||||||||||||||||||
Purchased loans disclosures | The carrying amount of covered loans and other purchased non-covered loans at December 31, 2014 consisted of purchased credit-impaired loans and non-credit-impaired loans as shown in the following table (in thousands): | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Purchased | Purchased Non-Impaired | Total | ||||||||||||||||||||||||||||||||||||||
Impaired | Loans | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial related (1) | $ | 706 | $ | 2,099 | $ | 2,805 | |||||||||||||||||||||||||||||||||||
Commercial | 830 | 309 | 1,139 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 20,489 | 16,528 | 37,017 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 2,512 | 2,085 | 4,597 | ||||||||||||||||||||||||||||||||||||||
Other | 1,877 | 21,622 | 23,499 | ||||||||||||||||||||||||||||||||||||||
Total covered loans | $ | 26,414 | $ | 42,643 | $ | 69,057 | |||||||||||||||||||||||||||||||||||
Estimated (payable) receivable amount from the FDIC under the loss-share agreement (2) | $ | (1,850 | ) | $ | 4,513 | $ | 2,663 | ||||||||||||||||||||||||||||||||||
Non covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial related (3) | $ | 4,288 | $ | 13,370 | $ | 17,658 | |||||||||||||||||||||||||||||||||||
Commercial loans | 95,350 | 1,681,908 | 1,777,258 | ||||||||||||||||||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments | — | 160,299 | 160,299 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 43,361 | 926,184 | 969,545 | ||||||||||||||||||||||||||||||||||||||
Construction real estate | 26,471 | 146,567 | 173,038 | ||||||||||||||||||||||||||||||||||||||
Other | 13,118 | 231,921 | 245,039 | ||||||||||||||||||||||||||||||||||||||
Total non-covered loans | $ | 182,588 | $ | 3,160,249 | $ | 3,342,837 | |||||||||||||||||||||||||||||||||||
-1 | Covered commercial related loans include commercial, commercial real estate and construction real estate loans acquired in connection with the Benchmark FDIC-assisted transactions. | ||||||||||||||||||||||||||||||||||||||||
-2 | Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $303 thousand in reimbursable amounts related to covered other real estate owned. | ||||||||||||||||||||||||||||||||||||||||
-3 | Non-covered commercial related loans include commercial, commercial real estate and construction real estate for InBank and Heritage. |
Lease_Investments_Tables
Lease Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Lease Investments | |||||||||||||||||
Schedule of lease investments by categories | Lease investments by categories follow (in thousands): | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Direct finance leases: | |||||||||||||||||
Minimum lease payments | $ | 340,602 | $ | 155,945 | |||||||||||||
Estimated unguaranteed residual values | 70,469 | 31,272 | |||||||||||||||
Less: unearned income | (31,229 | ) | (14,473 | ) | |||||||||||||
Direct finance leases (1) | $ | 379,842 | $ | 172,744 | |||||||||||||
Leveraged leases: | |||||||||||||||||
Minimum lease payments | $ | 10,689 | $ | 24,320 | |||||||||||||
Estimated unguaranteed residual values | 1,586 | 2,508 | |||||||||||||||
Less: unearned income | (540 | ) | (1,644 | ) | |||||||||||||
Less: related non-recourse debt | (10,330 | ) | (23,243 | ) | |||||||||||||
Leveraged leases (1) | $ | 1,405 | $ | 1,941 | |||||||||||||
Operating leases: | |||||||||||||||||
Equipment, at cost | $ | 257,495 | $ | 218,473 | |||||||||||||
Less accumulated depreciation | (94,662 | ) | (87,384 | ) | |||||||||||||
Lease investments, net | $ | 162,833 | $ | 131,089 | |||||||||||||
(1)Direct finance and leveraged leases are included as commercial loans collateralized by assignment of lease payments for financial | |||||||||||||||||
statement purposes. | |||||||||||||||||
Schedule of minimum lease payments receivable for the various categories of leases due | The minimum lease payments receivable for the various categories of leases are due as follows (in thousands) for the years ending December 31, | ||||||||||||||||
Direct | Leveraged | Operating | |||||||||||||||
Finance | |||||||||||||||||
Year | Leases | Leases | Leases | Total | |||||||||||||
2015 | $ | 122,353 | $ | 7,386 | $ | 40,624 | $ | 170,363 | |||||||||
2016 | 97,324 | 2,482 | 29,802 | 129,608 | |||||||||||||
2017 | 66,223 | 642 | 20,461 | 87,326 | |||||||||||||
2018 | 37,231 | 179 | 9,475 | 46,885 | |||||||||||||
2019 | 13,457 | — | 5,143 | 18,600 | |||||||||||||
Thereafter | 4,014 | — | 3,205 | 7,219 | |||||||||||||
$ | 340,602 | $ | 10,689 | $ | 108,710 | $ | 460,001 | ||||||||||
Schedule of residual values for leases by category in the year the initial lease term ends | At December 31, 2014, the following reflects the residual values for leases by category in the year the initial lease term ends (in thousands): | ||||||||||||||||
Residual Values | |||||||||||||||||
Direct | |||||||||||||||||
End of initial lease term | Finance | Leveraged | Operating | ||||||||||||||
December 31, | Leases | Leases | Leases | Total | |||||||||||||
2015 | $ | 8,827 | $ | 856 | $ | 2,818 | $ | 12,501 | |||||||||
2016 | 7,597 | 606 | 7,926 | 16,129 | |||||||||||||
2017 | 19,448 | 105 | 10,332 | 29,885 | |||||||||||||
2018 | 14,544 | 19 | 9,265 | 23,828 | |||||||||||||
2019 | 10,551 | — | 7,857 | 18,408 | |||||||||||||
Thereafter | 9,502 | — | 19,050 | 28,552 | |||||||||||||
$ | 70,469 | $ | 1,586 | $ | 57,248 | $ | 129,303 | ||||||||||
Income from lease investments | Income from lease financing, net was composed of (in thousands): | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Rental income | $ | 64,017 | $ | 62,629 | $ | 49,473 | |||||||||||
Equipment maintenance contracts revenue, net of cost of sales | 16,441 | 11,071 | 14,129 | ||||||||||||||
Vendor promotional income | 8,382 | 7,587 | 4,051 | ||||||||||||||
Other lease related revenue | 2,121 | 1,796 | 167 | ||||||||||||||
Gain on sale of lease payments and leased equipment, net of residual write downs | 12,899 | 12,002 | 4,708 | ||||||||||||||
Income on lease investments, gross | 103,860 | 95,085 | 72,528 | ||||||||||||||
Less: depreciation on operating leases | (39,550 | ) | (33,842 | ) | (36,146 | ) | |||||||||||
Lease financing, net | $ | 64,310 | $ | 61,243 | $ | 36,382 | |||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of premises and equipment | Premises and equipment consisted of (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land and land improvements | $ | 67,630 | $ | 67,389 | |||||
Buildings | 100,505 | 98,675 | |||||||
Furniture and equipment | 124,490 | 97,766 | |||||||
Buildings and leasehold improvements | 59,733 | 55,639 | |||||||
352,358 | 319,469 | ||||||||
Accumulated depreciation | (113,981 | ) | (98,404 | ) | |||||
Premises and equipment, net | $ | 238,377 | $ | 221,065 | |||||
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Changes in the carrying amount of core deposit and client relationship intangibles | The following table presents the changes in the carrying amount of core deposit and client relationship intangibles, gross carrying amount, accumulated amortization, and net book value as of December 31, 2014 and 2013 (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 23,428 | $ | 29,512 | |||||
Amortization expense | (5,501 | ) | (6,084 | ) | |||||
Other intangibles from business combinations | 20,079 | — | |||||||
Balance at end of period | $ | 38,006 | $ | 23,428 | |||||
Gross carrying amount | $ | 80,371 | $ | 60,292 | |||||
Accumulated amortization | (42,365 | ) | (36,864 | ) | |||||
Net book value | $ | 38,006 | $ | 23,428 | |||||
Estimated future amortization expense of other intangible assets | The following presents the estimated amortization expense of other intangible assets (in thousands): | ||||||||
Years ending December 31, | Amount | ||||||||
2015 | $ | 5,963 | |||||||
2016 | 5,157 | ||||||||
2017 | 4,637 | ||||||||
2018 | 4,221 | ||||||||
2019 | 2,743 | ||||||||
Thereafter | 15,285 | ||||||||
$ | 38,006 | ||||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposits [Abstract] | |||||||||
Schedule of composition of deposits | The composition of deposits was as follows (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Demand deposit accounts, noninterest bearing | $ | 4,118,256 | $ | 2,375,863 | |||||
NOW and money market accounts | 3,913,765 | 2,682,419 | |||||||
Savings accounts | 940,345 | 855,394 | |||||||
Certificates of deposit, $250,000 or more | 838,928 | 522,094 | |||||||
Other certificates of deposit | 1,179,648 | 945,489 | |||||||
Total | $ | 10,990,942 | $ | 7,381,259 | |||||
Schedule of maturities of time certificates | At December 31, 2014, the scheduled maturities of certificates of deposit were as follows (in thousands): | ||||||||
2015 | $ | 1,595,106 | |||||||
2016 | 204,649 | ||||||||
2017 | 96,043 | ||||||||
2018 | 29,585 | ||||||||
2019 | 38,858 | ||||||||
Thereafter | 54,335 | ||||||||
$ | 2,018,576 | ||||||||
ShortTerm_Borrowings_Tables
Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||
Summary of short-term borrowings | Short-term borrowings were as follows as of December 31, 2014 and 2013 (dollars in thousands): | ||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Average | Average | ||||||||||||||
Cost | Amount | Cost | Amount | ||||||||||||
Customer repurchase agreements | 0.21 | % | $ | 219,824 | 0.2 | % | $ | 193,389 | |||||||
Federal Home Loan Bank advances | 0.13 | 700,000 | 0.17 | 300,000 | |||||||||||
Federal funds purchased | 0.14 | 11,591 | — | — | |||||||||||
0.15 | % | $ | 931,415 | 0.18 | % | $ | 493,389 | ||||||||
Longterm_Borrowings_Tables
Long-term Borrowings (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Long-term Debt, Unclassified [Abstract] | ||||
Schedule of principal payments due on long-term borrowings | The principal payments on long-term borrowings are due as follows (in thousands): | |||
Amount | ||||
Years ending December 31, | ||||
2015 | $ | 17,589 | ||
2016 | 53,147 | |||
2017 | 6,018 | |||
2018 | 1,917 | |||
2019 | 680 | |||
Thereafter | 3,565 | |||
$ | 82,916 | |||
Junior_Subordinated_Notes_Issu1
Junior Subordinated Notes Issued to Capital Trusts (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
JUNIOR SUBORDINATED NOTES ISSUED TO CAPITAL TRUSTS | |||||||||||||||||
Outstanding junior subordinated notes and the related trust preferred securities issued by each trust | The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of December 31, 2014 (in thousands): | ||||||||||||||||
Coal City | MB Financial | MB Financial | MB Financial | ||||||||||||||
Capital Trust I | Capital Trust II | Capital Trust III | Capital Trust IV | ||||||||||||||
Junior Subordinated Notes: | |||||||||||||||||
Principal balance | $ | 25,774 | $ | 36,083 | $ | 10,310 | $ | 20,619 | |||||||||
Annual interest rate | 3-mo LIBOR + 1.80% | 3-mo LIBOR + 1.40% | 3-mo LIBOR + 1.50% | 3-mo LIBOR + 1.52% | |||||||||||||
Stated maturity date | September 1, 2028 | September 15, 2035 | September 23, 2036 | September 15, 2036 | |||||||||||||
Call date | September 1, 2008 | December 15, 2010 | September 23, 2011 | September 15, 2011 | |||||||||||||
Trust Preferred Securities: | |||||||||||||||||
Face Value | $ | 25,000 | $ | 35,000 | $ | 10,000 | $ | 20,000 | |||||||||
Annual distribution rate | 3-mo LIBOR + 1.80% | 3-mo LIBOR + 1.40% | 3-mo LIBOR + 1.50% | 3-mo LIBOR + 1.52% | |||||||||||||
Issuance date | July 1998 | August 2005 | July 2006 | August 2006 | |||||||||||||
Distribution dates (1) | Quarterly | Quarterly | Quarterly | Quarterly | |||||||||||||
MB Financial | MB Financial | FOBB | TAYC | ||||||||||||||
Capital Trust V | Capital Trust VI | Statutory Trust III (2) | Capital Trust II (3) | ||||||||||||||
Junior Subordinated Notes: | |||||||||||||||||
Principal balance | $ | 30,928 | $ | 23,196 | $ | 5,155 | $ | 41,238 | |||||||||
Annual interest rate | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 2.80% | 3-mo LIBOR + 2.68% | |||||||||||||
Stated maturity date | December 15, 2037 | October 30, 2037 | January 23, 2034 | June 17, 2034 | |||||||||||||
Call date | December 15, 2012 | October 30, 2012 | January 23, 2009 | June 17, 2009 | |||||||||||||
Trust Preferred Securities: | |||||||||||||||||
Face Value | $ | 30,000 | $ | 22,500 | $ | 5,000 | $ | 40,000 | |||||||||
Annual distribution rate | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 1.30% | 3-mo LIBOR + 2.80% | 3-mo LIBOR + 2.68% | |||||||||||||
Issuance date | September 2007 | October 2007 | December 2003 | June 2004 | |||||||||||||
Distribution dates (1) | Quarterly | Quarterly | Quarterly | Quarterly | |||||||||||||
(1) | All distributions are cumulative and paid in cash. | ||||||||||||||||
(2) | FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBB”) prior to the Company's acquisition of FOBB, and the junior subordinated notes issued by FOBB to FOBB Statutory Trust III were assumed by the Company upon completion of the acquisition. | ||||||||||||||||
(3) | TAYC Capital Trust II was established by Taylor Capital prior to the Company's acquisition of Taylor Capital, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with TAYC Capital Trust II do not include purchase accounting adjustments to such amounts, which in each case resulted in a discount of $7.5 million. |
Lease_Commitments_and_Rental_E1
Lease Commitments and Rental Expense (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Future minimum annual rental commitments for noncancelable leases and subleases | The Company leases office space for certain branch offices. At December 31, 2014, the future minimum annual rental commitments for these noncancelable leases and subleases of such space were as follows (in thousands): | ||||||||||||
Gross | Sublease | Net | |||||||||||
Years ending December 31, | Rents | Rents | Rents | ||||||||||
2015 | $ | 10,272 | $ | 797 | $ | 9,475 | |||||||
2016 | 8,329 | 484 | 7,845 | ||||||||||
2017 | 7,398 | 439 | 6,959 | ||||||||||
2018 | 5,296 | 414 | 4,882 | ||||||||||
2019 | 4,680 | 424 | 4,256 | ||||||||||
Thereafter | 17,310 | 581 | 16,729 | ||||||||||
$ | 53,285 | $ | 3,139 | $ | 50,146 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of deferred tax assets and liabilities | The deferred taxes consist of (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax asset: | |||||||||||||
Allowance for credit losses | $ | 43,853 | $ | 44,418 | |||||||||
Federal net operating loss carryforwards | 12,234 | — | |||||||||||
State net operating loss carryforwards | 26,582 | 24,354 | |||||||||||
Other real estate owned | 14,229 | 7,878 | |||||||||||
Stock options and restricted stock | 5,904 | 5,816 | |||||||||||
Loans | 47,668 | 6,833 | |||||||||||
Deferred compensation | 10,620 | 8,423 | |||||||||||
Tax credit carryforwards | 25,244 | 13,233 | |||||||||||
Bonus accrual | 5,595 | 4,739 | |||||||||||
Merger and non-compete accrual | — | 623 | |||||||||||
Other items | 3,390 | 1,222 | |||||||||||
Total deferred tax asset | 195,319 | 117,539 | |||||||||||
Valuation allowance | — | — | |||||||||||
Total deferred tax asset, net of valuation allowance | 195,319 | 117,539 | |||||||||||
Deferred tax liability: | |||||||||||||
Equipment leasing | (112,524 | ) | (90,941 | ) | |||||||||
Premises and equipment | (18,817 | ) | (27,059 | ) | |||||||||
Mortgage servicing rights | (64,486 | ) | (7 | ) | |||||||||
Deferred income from FDIC-assisted transactions | (45,999 | ) | (48,272 | ) | |||||||||
Investment securities | (1,802 | ) | (5,030 | ) | |||||||||
FHLB stock dividends | (2,652 | ) | (2,441 | ) | |||||||||
Core deposit intangible | (9,118 | ) | (2,918 | ) | |||||||||
Other items | (2,794 | ) | (3,792 | ) | |||||||||
Total deferred tax liability | (258,192 | ) | (180,460 | ) | |||||||||
Net deferred tax liability | (62,873 | ) | (62,921 | ) | |||||||||
Net unrealized holding gain on investment securities available for sale | (13,099 | ) | (5,354 | ) | |||||||||
Net deferred tax liability | $ | (75,972 | ) | $ | (68,275 | ) | |||||||
Schedule of income taxes attributable to continuing operations | Income taxes attributable to continuing operations consist of (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current expense (benefit): | |||||||||||||
Federal | $ | 25,270 | $ | 12,234 | $ | 15,075 | |||||||
State | 11,971 | 5,576 | 6,225 | ||||||||||
Foreign | — | — | — | ||||||||||
37,241 | 17,810 | 21,300 | |||||||||||
Deferred expense (benefit): | |||||||||||||
Federal | 3,122 | 17,245 | 13,688 | ||||||||||
State | (3,170 | ) | 4,436 | 1,489 | |||||||||
Foreign | — | — | — | ||||||||||
(48 | ) | 21,681 | 15,177 | ||||||||||
$ | 37,193 | $ | 39,491 | $ | 36,477 | ||||||||
Schedule of reconciliation between the statutory federal income tax rate and the effective tax rate on income from continuing operations | The reconciliation between the statutory federal income tax rate of 35% and the effective tax rate on income from continuing operations follows (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax expense at expected statutory rate | $ | 43,153 | $ | 48,281 | $ | 44,398 | |||||||
Increase (decrease) due to: | |||||||||||||
Tax exempt income, net | (14,848 | ) | (14,200 | ) | (12,539 | ) | |||||||
State tax expense net of federal impact | 5,721 | 6,508 | 5,014 | ||||||||||
Non-deductible contingent consideration | 3,738 | — | — | ||||||||||
Non-includable increase in cash surrender value of life insurance | (1,120 | ) | (1,111 | ) | (1,177 | ) | |||||||
Non-deductible merger expense | 988 | 591 | — | ||||||||||
Adjustment of tax contingency reserves | (31 | ) | (24 | ) | 14 | ||||||||
Other items, net | (408 | ) | (554 | ) | 767 | ||||||||
Income tax expense | $ | 37,193 | $ | 39,491 | $ | 36,477 | |||||||
Schedule of reconciliation of the change in unrecognized tax benefits | A reconciliation of the change in unrecognized tax benefits from January 1, 2014 to December 31, 2014 is as follows (in thousands): | ||||||||||||
Unrecognized Tax Benefit | Interest on unrecognized | Total Unrecognized Tax | |||||||||||
Without Interest | Tax Benefit | Benefit Including Interest | |||||||||||
Balance at January 1, 2014 | $ | 73 | $ | 7 | $ | 80 | |||||||
Increases for tax positions of prior years | — | 6 | 6 | ||||||||||
Acquisition related increases | 939 | — | 939 | ||||||||||
Benefits recognized | (31 | ) | (6 | ) | (37 | ) | |||||||
Balance at December 31, 2014 | $ | 981 | $ | 7 | $ | 988 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Schedule of outstanding financial instruments, contractual amounts of off-balance sheet credit risk | At December 31, 2014 and 2013, the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands): | ||||||||
Contractual Amount | |||||||||
2014 | 2013 | ||||||||
Commitments to extend credit: | |||||||||
Home equity lines | $ | 221,102 | $ | 208,581 | |||||
Other commitments | 2,643,220 | 1,214,391 | |||||||
Letters of credit: | |||||||||
Standby | 131,810 | 69,556 | |||||||
Commercial | 2,401 | 708 | |||||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||
Schedule of the required and actual amounts and ratios for the Company and its subsidiary bank | The required and actual amounts and ratios for the Company and its bank subsidiary are presented below as of the dates indicated (dollars in thousands): | |||||||||||||||||||||
To Be Well | ||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | $ | 1,544,759 | 13.62 | % | $ | 907,369 | 8 | % | N/A | N/A | ||||||||||||
MB Financial Bank | 1,473,928 | 13.03 | 904,917 | 8 | $ | 1,131,146 | 10 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | 1,430,702 | 12.61 | % | 453,684 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 1,359,871 | 12.02 | 452,459 | 4 | 678,688 | 6 | % | |||||||||||||||
Tier 1 capital (to average assets): | ||||||||||||||||||||||
Consolidated | 1,430,702 | 10.47 | % | 546,766 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 1,359,871 | 9.96 | 545,943 | 4 | 682,429 | 5 | % | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | $ | 1,106,541 | 16.53 | % | $ | 535,430 | 8 | % | N/A | N/A | ||||||||||||
MB Financial Bank | 974,189 | 14.59 | 534,004 | 8 | $ | 667,505 | 10 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets): | ||||||||||||||||||||||
Consolidated | 1,022,512 | 15.28 | % | 267,715 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 890,380 | 13.34 | 267,002 | 4 | 400,503 | 6 | % | |||||||||||||||
Tier 1 capital (to average assets): | ||||||||||||||||||||||
Consolidated | 1,022,512 | 11.22 | % | 364,587 | 4 | % | N/A | N/A | ||||||||||||||
MB Financial Bank | 890,380 | 9.79 | 363,904 | 4 | 454,880 | 5 | % | |||||||||||||||
N/A — not applicable |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): | ||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 65,873 | $ | — | $ | 65,873 | $ | — | |||||||||||||||||
States and political subdivisions | 410,854 | — | 410,391 | 463 | |||||||||||||||||||||
Residential mortgage-backed securities | 720,563 | — | 720,053 | 510 | |||||||||||||||||||||
Commercial mortgage-backed securities | 187,662 | — | 187,662 | — | |||||||||||||||||||||
Corporate bonds | 259,203 | — | 259,203 | — | |||||||||||||||||||||
Equity securities | 10,597 | 10,597 | — | — | |||||||||||||||||||||
Loans held for sale | 737,209 | — | 737,209 | — | |||||||||||||||||||||
Mortgage servicing rights | 235,402 | — | — | 235,402 | |||||||||||||||||||||
Assets held in trust for deferred compensation | 16,829 | 16,829 | — | — | |||||||||||||||||||||
Derivative financial instruments | 46,388 | 1,607 | 39,707 | 5,074 | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Other liabilities (1) | 16,483 | 16,483 | — | — | |||||||||||||||||||||
Derivative financial instruments | 40,499 | 7,209 | 33,290 | — | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. Government sponsored agencies and enterprises | $ | 52,068 | $ | — | $ | 52,068 | $ | — | |||||||||||||||||
States and political subdivisions | 19,143 | — | 19,143 | — | |||||||||||||||||||||
Residential mortgage-backed securities | 701,233 | — | 700,542 | 691 | |||||||||||||||||||||
Commercial mortgage-backed securities | 52,941 | — | 52,941 | — | |||||||||||||||||||||
Corporate bonds | 283,070 | — | 277,905 | 5,165 | |||||||||||||||||||||
Equity securities | 10,457 | 10,457 | — | — | |||||||||||||||||||||
Loans held for sale | 629 | — | 629 | — | |||||||||||||||||||||
Assets held in trust for deferred compensation | 10,679 | 10,679 | — | — | |||||||||||||||||||||
Derivative financial instruments | 18,645 | — | 18,645 | — | |||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Other liabilities (1) | 10,569 | 10,569 | — | — | |||||||||||||||||||||
Derivative financial instruments | 18,632 | — | 18,632 | — | |||||||||||||||||||||
(1) Liabilities associated with assets held in trust for deferred compensation | |||||||||||||||||||||||||
Financial assets measured at fair value on a recurring and non-recurring basis, unobservable inputs used | The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands): | ||||||||||||||||||||||||
Fair Value at | Valuation | ||||||||||||||||||||||||
December 31, 2014 | Technique | Unobservable Input | Range | ||||||||||||||||||||||
Impaired loans | $ | 61,717 | Appraisal of collateral | Appraisal adjustments - sales costs | 5% - 10% | ||||||||||||||||||||
Foreclosed assets | 38,619 | Appraisal of collateral | Appraisal adjustments - sales costs | 5% - 10% | |||||||||||||||||||||
The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a recurring basis that were categorized within the Level 3 of the fair value hierarchy (fair value in thousands): | |||||||||||||||||||||||||
Fair Value at | |||||||||||||||||||||||||
December 31, 2014 | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
States and political subdivisions | $ | 463 | Discounted cash flows | Credit assumption | 45% Loss | ||||||||||||||||||||
Residential mortgage-backed securities | 510 | Discounted cash flows | Constant pre-payment rates (CPR) | 1% - 3% | |||||||||||||||||||||
Mortgage servicing rights | 235,402 | Discounted cash flows | CPR | 4.9% - 26.9% | |||||||||||||||||||||
Discount rate | 9.25 - 16.00 | ||||||||||||||||||||||||
Maturity (months) | 36 - 460 | ||||||||||||||||||||||||
Delinquencies | 0.00 - 28.57 | ||||||||||||||||||||||||
Costs to service | $ 60 - $ 356 | ||||||||||||||||||||||||
Derivative financial instruments (mortgage | 5,074 | Sales cash flows | Expected closing ratio | 16.90% - 94.00% | |||||||||||||||||||||
interest rate lock commitments) | Expected delivery price | 98.89 bps - 110.01 bps | |||||||||||||||||||||||
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets | Key economic assumptions used in the measuring of the fair value of the mortgage servicing rights and the sensitivity of the fair value to immediate adverse changes in those assumptions at December 31, 2014 are presented in the following table. This table does not take into account the derivatives used to economically hedge the mortgage servicing rights. | ||||||||||||||||||||||||
(dollars in thousands, except for weighted average cost to service) | December 31, 2014 | ||||||||||||||||||||||||
Weighted average prepayment speed (CPR) | 11.5 | % | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | $ | (9,650 | ) | ||||||||||||||||||||||
Impact on fair value of 20% adverse change | (18,574 | ) | |||||||||||||||||||||||
Weighted average discount rate | 9.41 | % | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | $ | (8,998 | ) | ||||||||||||||||||||||
Impact on fair value of 20% adverse change | (17,356 | ) | |||||||||||||||||||||||
Weighted average delinquency rate | 1.25 | % | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | $ | (1,520 | ) | ||||||||||||||||||||||
Impact on fair value of 20% adverse change | (2,196 | ) | |||||||||||||||||||||||
Weighted average costs to service | $ | 70 | |||||||||||||||||||||||
Impact on fair value of 10% adverse change | (3,325 | ) | |||||||||||||||||||||||
Impact on fair value of 20% adverse change | (6,651 | ) | |||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following table presents additional information about financial assets measured at fair value on a recurring basis for which the Company used significant unobservable inputs (Level 3) (in thousands): | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Investment Securities | Mortgage Servicing Rights | Derivatives | |||||||||||||||||||||||
Balance, beginning of period | $ | 5,856 | $ | 6,071 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Acquired through business combination | 507 | — | 224,798 | — | 5,922 | — | |||||||||||||||||||
Purchases | — | — | 1,096 | — | — | — | |||||||||||||||||||
Originations | — | — | 21,285 | — | — | — | |||||||||||||||||||
Other comprehensive income | 128 | (44 | ) | (11,777 | ) | — | (848 | ) | — | ||||||||||||||||
Principal payments | (363 | ) | (157 | ) | — | — | — | — | |||||||||||||||||
Impairment charge | (92 | ) | (14 | ) | — | — | — | — | |||||||||||||||||
Sales | (498 | ) | — | — | — | — | — | ||||||||||||||||||
Transferred out of level 3 | (4,565 | ) | — | — | — | — | — | ||||||||||||||||||
Balance, ending of period | $ | 973 | $ | 5,856 | $ | 235,402 | $ | — | $ | 5,074 | $ | — | |||||||||||||
Assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis as of December 31, 2014 and 2013 are included in the table below (in thousands): | ||||||||||||||||||||||||
Total | Quoted Prices in Active | Significant Other | Significant | ||||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Impaired loans | $ | 61,717 | $ | — | $ | — | $ | 61,717 | |||||||||||||||||
Non-financial assets: | |||||||||||||||||||||||||
Foreclosed assets | 38,619 | — | — | 38,619 | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Impaired loans | $ | 77,497 | $ | — | $ | — | $ | 77,497 | |||||||||||||||||
Non-financial assets: | |||||||||||||||||||||||||
Foreclosed assets | 44,601 | — | — | 44,601 | |||||||||||||||||||||
Estimated fair values of financial instruments | The estimated fair values of financial instruments are as follows (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active | Significant Other | Significant | |||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||
Cash and due from banks | $ | 256,804 | $ | 256,804 | $ | 256,804 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits with banks | 55,277 | 55,277 | 55,277 | — | — | ||||||||||||||||||||
Investment securities available for sale | 1,654,752 | 1,654,752 | 10,597 | 1,643,182 | 973 | ||||||||||||||||||||
Investment securities held to maturity | 993,380 | 1,035,061 | — | 1,035,061 | — | ||||||||||||||||||||
Non-marketable securities - FHLB and FRB stock | 75,569 | 75,569 | — | — | 75,569 | ||||||||||||||||||||
Loans held for sale | 737,209 | 737,209 | — | 737,209 | — | ||||||||||||||||||||
Loans, net | 8,973,191 | 8,956,494 | — | — | 8,956,494 | ||||||||||||||||||||
Accrued interest receivable | 49,065 | 49,065 | 49,065 | — | — | ||||||||||||||||||||
Derivative financial instruments | 46,388 | 46,388 | 1,607 | 39,707 | 5,074 | ||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Non-interest bearing deposits | $ | 4,118,256 | $ | 4,118,256 | $ | 4,118,256 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits | 6,872,686 | 6,877,349 | — | — | 6,877,349 | ||||||||||||||||||||
Short-term borrowings | 931,415 | 931,416 | — | — | 931,416 | ||||||||||||||||||||
Long-term borrowings | 82,916 | 86,025 | — | — | 86,025 | ||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 185,778 | 122,408 | — | — | 122,408 | ||||||||||||||||||||
Accrued interest payable | 3,709 | 3,709 | 3,709 | — | — | ||||||||||||||||||||
Derivative financial instruments | 40,499 | 40,499 | 7,209 | 33,290 | — | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active | Significant Other | Significant | |||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||
Cash and due from banks | $ | 205,193 | $ | 205,193 | $ | 205,193 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits with banks | 268,266 | 268,266 | 268,266 | — | — | ||||||||||||||||||||
Federal funds sold | 42,950 | 42,950 | 42,950 | — | — | ||||||||||||||||||||
Investment securities available for sale | 1,118,912 | 1,118,912 | 10,457 | 1,102,599 | 5,856 | ||||||||||||||||||||
Investment securities held to maturity | 1,182,533 | 1,198,929 | — | 1,198,929 | — | ||||||||||||||||||||
Non-marketable securities - FHLB and FRB stock | 51,417 | 51,417 | — | — | 51,417 | ||||||||||||||||||||
Loans held for sale | 629 | 629 | — | 629 | — | ||||||||||||||||||||
Loans, net | 5,600,805 | 5,583,759 | — | — | 5,583,759 | ||||||||||||||||||||
Accrued interest receivable | 36,593 | 36,593 | 36,593 | — | — | ||||||||||||||||||||
Derivative financial instruments | 18,645 | 18,645 | — | 18,645 | — | ||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||
Non-interest bearing deposits | $ | 2,375,863 | $ | 2,375,863 | $ | 2,375,863 | $ | — | $ | — | |||||||||||||||
Interest bearing deposits | 5,005,396 | 5,012,928 | — | — | 5,012,928 | ||||||||||||||||||||
Short-term borrowings | 493,389 | 493,384 | — | — | 493,384 | ||||||||||||||||||||
Long-term borrowings | 62,159 | 66,301 | — | — | 66,301 | ||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 152,065 | 101,247 | — | — | 101,247 | ||||||||||||||||||||
Accrued interest payable | 2,042 | 2,042 | 2,042 | — | — | ||||||||||||||||||||
Derivative financial instruments | 18,632 | 18,632 | — | 18,632 | — | ||||||||||||||||||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Summary of the impact of share-based payment plans in the financial statements | The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the periods shown (in thousands): | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Total cost of share-based payment plans during the year | $ | 8,974 | $ | 5,456 | $ | 4,806 | ||||||||
Amount of related income tax benefit recognized in income | $ | 3,528 | $ | 2,159 | $ | 1,918 | ||||||||
Additional information related to options outstanding | The following table summarizes stock options outstanding for the year ended December 31, 2014: | |||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||
Options | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in thousands) | ||||||||||||
Term | ||||||||||||||
(in years) | ||||||||||||||
Options outstanding as of December 31, 2013 | 2,443,752 | $ | 27.57 | 4.71 | ||||||||||
Granted | 231,977 | 29.63 | ||||||||||||
Exercised | (211,339 | ) | 19.88 | |||||||||||
Expired or cancelled | (177,125 | ) | 35.78 | |||||||||||
Forfeited | (36,551 | ) | 22.33 | |||||||||||
Options outstanding as of December 31, 2014 | 2,250,714 | $ | 27.94 | 4.39 | $ | 13,820 | ||||||||
Options exercisable as of December 31, 2014 | 1,689,055 | $ | 29 | 3.2 | $ | 9,263 | ||||||||
Assumptions used for options granted | The following assumptions were used for options granted during the years ended December 31, 2014, 2013, and 2012: | |||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.82 | % | 1.92 | % | 1.02 | % | ||||||||
Expected volatility of Company’s stock | 23.16 | % | 25.18 | % | 27.17 | % | ||||||||
Expected dividend yield | 1.65 | % | 1.73 | % | 2 | % | ||||||||
Expected life of options (years) | 5.5 | 5.6 | 5.7 | |||||||||||
Weighted average fair value per option of options granted during the year | $ | 5.93 | $ | 5.88 | $ | 4.23 | ||||||||
Summary of changes in restricted shares | The following is a summary of changes in restricted shares and units for the year ended December 31, 2014: | |||||||||||||
Number of | Weighted | |||||||||||||
Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Shares and Units Outstanding at December 31, 2013 | 685,719 | $ | 22.59 | |||||||||||
Granted | 443,375 | 29.23 | ||||||||||||
Vested | (305,504 | ) | 20.53 | |||||||||||
Forfeited | (22,505 | ) | 24.92 | |||||||||||
Shares and Units Outstanding at December 31, 2014 | 801,085 | $ | 26.99 | |||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Summary of derivative financial instruments | The Company’s derivative financial instruments are summarized below as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||
Notional | Estimated | Notional | Estimated | Notional | Estimated | Notional | Estimated | ||||||||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||||||||
Derivative instruments designated as hedges of fair value: | |||||||||||||||||||||||||||||||||
Interest rate swap contracts (1) | $ | — | $ | — | $ | — | $ | — | $ | 197 | $ | (15 | ) | $ | 238 | $ | (23 | ) | |||||||||||||||
Stand-alone derivative instruments: (2) | |||||||||||||||||||||||||||||||||
Interest rate swap contracts | 1,509,930 | 37,039 | 550,883 | 17,298 | 2,001,787 | (30,761 | ) | 551,798 | (17,350 | ) | |||||||||||||||||||||||
Interest rate options contracts | 55,830 | 283 | 83,907 | 323 | 55,830 | (283 | ) | 84,953 | (323 | ) | |||||||||||||||||||||||
Foreign exchange contracts | 27,402 | 2,276 | 31,361 | 1,006 | 27,002 | (2,109 | ) | 47,760 | (935 | ) | |||||||||||||||||||||||
Spot foreign exchange contracts | 512 | 5 | — | — | 304 | (18 | ) | — | — | ||||||||||||||||||||||||
Mortgage related derivatives | 871,446 | 6,785 | 1,783 | 18 | 879,841 | (7,313 | ) | 250 | (1 | ) | |||||||||||||||||||||||
Total non-hedging derivative instruments | 2,465,120 | 46,388 | 667,934 | 18,645 | 2,964,764 | (40,484 | ) | 684,761 | (18,609 | ) | |||||||||||||||||||||||
Total | $ | 2,465,120 | $ | 46,388 | $ | 667,934 | $ | 18,645 | $ | 2,964,961 | $ | (40,499 | ) | $ | 684,999 | $ | (18,632 | ) | |||||||||||||||
(1) Hedged fixed-rate commercial real estate loans | |||||||||||||||||||||||||||||||||
(2) These portfolio swaps are not designated as hedging instruments under ASC Topic 815. | |||||||||||||||||||||||||||||||||
Schedule of the amount of gains and losses on derivative contracts designated as hedges and not designated as hedges | Amounts included in the other income in the consolidated statements of operations related to derivative financial instruments were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Derivative instruments designated as hedges of fair value: | |||||||||||||||||||||||||||||||||
Interest rate swap contracts | $ | 8 | $ | 9 | $ | (15 | ) | ||||||||||||||||||||||||||
Stand-alone derivative instruments: | |||||||||||||||||||||||||||||||||
Interest rate swap contracts | 2,458 | 40 | 30 | ||||||||||||||||||||||||||||||
Interest rate options contracts | — | — | — | ||||||||||||||||||||||||||||||
Foreign exchange contracts | 96 | (30 | ) | 67 | |||||||||||||||||||||||||||||
Spot foreign exchange contracts | (14 | ) | — | — | |||||||||||||||||||||||||||||
Mortgage related derivatives | (965 | ) | (109 | ) | 96 | ||||||||||||||||||||||||||||
Total non-hedging derivative instruments | 1,575 | (99 | ) | 193 | |||||||||||||||||||||||||||||
Total | $ | 1,583 | $ | (90 | ) | $ | 178 | ||||||||||||||||||||||||||
Schedule of derivative instruments | Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2014 is summarized below (in thousands): | ||||||||||||||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | ||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Interest rate swaps, caps and floors | $ | 10,727 | $ | — | $ | 10,727 | $ | 29,916 | $ | — | $ | 29,916 | |||||||||||||||||||||
Foreign currency forward contracts | 1,525 | — | 1,525 | 709 | — | 709 | |||||||||||||||||||||||||||
Mortgage banking derivatives | 1,700 | — | 1,700 | 7,302 | — | 7,302 | |||||||||||||||||||||||||||
Total derivatives | 13,952 | — | 13,952 | 37,927 | — | 37,927 | |||||||||||||||||||||||||||
Repurchase agreements | — | — | — | 219,824 | — | 219,824 | |||||||||||||||||||||||||||
Total | $ | 13,952 | $ | — | $ | 13,952 | $ | 257,751 | $ | — | $ | 257,751 | |||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Net Amount Recognized | Financial Instruments | Collateral | Net Amount | Net Amount Recognized | Financial Instruments | Collateral | Net Amount | ||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Counterparty A | $ | 13 | $ | (13 | ) | $ | — | $ | — | $ | 9,556 | $ | (13 | ) | $ | (9,543 | ) | $ | — | ||||||||||||||
Counterparty B | 145 | (145 | ) | — | — | 3,736 | (145 | ) | (3,591 | ) | — | ||||||||||||||||||||||
Counterparty C | 6,123 | (6,123 | ) | — | — | 10,335 | (6,122 | ) | (4,213 | ) | — | ||||||||||||||||||||||
Other counterparties | 7,671 | (3,920 | ) | — | 3,751 | 14,300 | (3,920 | ) | (8,663 | ) | 1,717 | ||||||||||||||||||||||
Total derivatives | 13,952 | (10,201 | ) | — | 3,751 | 37,927 | (10,200 | ) | (26,010 | ) | 1,717 | ||||||||||||||||||||||
Repurchase agreements | — | — | — | — | 219,824 | — | (219,824 | ) | — | ||||||||||||||||||||||||
Total | $ | 13,952 | $ | (10,201 | ) | $ | — | $ | 3,751 | $ | 257,751 | $ | (10,200 | ) | $ | (245,834 | ) | $ | 1,717 | ||||||||||||||
Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2013 is summarized below (in thousands): | |||||||||||||||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | ||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Interest rate swaps, caps and floors | $ | 5,792 | $ | — | $ | 5,792 | $ | 11,904 | $ | — | $ | 11,904 | |||||||||||||||||||||
Foreign currency forward contracts | 80 | — | 80 | 848 | — | 848 | |||||||||||||||||||||||||||
Mortgage banking derivatives | 3 | — | 3 | 1 | — | 1 | |||||||||||||||||||||||||||
Total derivatives | 5,875 | — | 5,875 | 12,753 | — | 12,753 | |||||||||||||||||||||||||||
Repurchase agreements | — | — | — | 193,389 | — | 193,389 | |||||||||||||||||||||||||||
Total | $ | 5,875 | $ | — | $ | 5,875 | $ | 206,142 | $ | — | $ | 206,142 | |||||||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||||||||||||||||||
Net Amount Recognized | Financial Instruments | Collateral | Net Amount | Net Amount Recognized | Financial Instruments | Collateral | Net Amount | ||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||
Counterparty A | $ | 883 | $ | (883 | ) | $ | — | $ | — | $ | 10,669 | $ | (883 | ) | $ | (9,786 | ) | $ | — | ||||||||||||||
Counterparty B | 1,836 | (412 | ) | — | 1,424 | 412 | (412 | ) | — | — | |||||||||||||||||||||||
Counterparty C | 2,380 | (1,612 | ) | — | 768 | 1,612 | (1,612 | ) | — | — | |||||||||||||||||||||||
Other counterparties | 776 | (5 | ) | — | 771 | 60 | (5 | ) | — | 55 | |||||||||||||||||||||||
Total derivatives | 5,875 | (2,912 | ) | — | 2,963 | 12,753 | (2,912 | ) | (9,786 | ) | 55 | ||||||||||||||||||||||
Repurchase agreements | — | — | — | — | 193,389 | — | (193,389 | ) | — | ||||||||||||||||||||||||
Total | $ | 5,875 | $ | (2,912 | ) | $ | — | $ | 2,963 | $ | 206,142 | $ | (2,912 | ) | $ | (203,175 | ) | $ | 55 | ||||||||||||||
Operating_Segments_Tables
Operating Segments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of segment reporting information, by segment | The following table presents summary financial information for the reportable segments (in thousands): | |||||||||||||||
Banking | Leasing | Mortgage Banking | Consolidated | |||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Net interest income | $ | 328,326 | $ | 12,783 | $ | 9,714 | $ | 350,823 | ||||||||
Provision for credit losses | 12,022 | 35 | (5 | ) | 12,052 | |||||||||||
Non-interest income | 115,411 | 59,806 | 46,088 | 221,305 | ||||||||||||
Non-interest expense (1) | 350,358 | 39,525 | 46,899 | 436,782 | ||||||||||||
Income tax expense | 21,106 | 12,524 | 3,563 | 37,193 | ||||||||||||
Net income | $ | 60,251 | $ | 20,505 | $ | 5,345 | $ | 86,101 | ||||||||
Total assets | $ | 12,698,740 | $ | 930,748 | $ | 972,611 | $ | 14,602,099 | ||||||||
Year ended December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Net interest income | $ | 267,131 | $ | 5,205 | $ | — | $ | 272,336 | ||||||||
Provision for credit losses | (6,167 | ) | 363 | — | (5,804 | ) | ||||||||||
Non-interest income | 92,936 | 59,794 | 1,664 | 154,394 | ||||||||||||
Non-interest expense (1) | 259,753 | 34,835 | — | 294,588 | ||||||||||||
Income tax expense | 28,201 | 11,290 | — | 39,491 | ||||||||||||
Net income | $ | 78,280 | $ | 18,511 | $ | 1,664 | $ | 98,455 | ||||||||
Total assets | $ | 9,167,127 | $ | 474,300 | $ | — | $ | 9,641,427 | ||||||||
Year ended December 31, | ||||||||||||||||
2012 | ||||||||||||||||
Net interest income | $ | 290,881 | $ | 1,907 | $ | — | $ | 292,788 | ||||||||
Provision for credit losses | (9,035 | ) | 135 | — | (8,900 | ) | ||||||||||
Non-interest income | 93,124 | 33,744 | 2,325 | 129,193 | ||||||||||||
Non-interest expense | 284,452 | 19,578 | — | 304,030 | ||||||||||||
Income tax expense | 30,780 | 5,697 | — | 36,477 | ||||||||||||
Net income | $ | 77,808 | $ | 10,241 | $ | 2,325 | $ | 90,374 | ||||||||
Total assets | $ | 9,187,480 | $ | 384,325 | $ | — | $ | 9,571,805 | ||||||||
(1) | Includes merger related expenses of $34.8 million and $2.5 million in the banking segment for the years ended December 31, 2014 and 2013, respectively. Also, includes contingent consideration expense related to our acquisition of Celtic Leasing Corp. in the banking segment for the year ended December 31, 2014. |
Condensed_Parent_Company_Finan1
Condensed Parent Company Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed balance sheets | Balance Sheets | ||||||||||||
(In thousands) | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash | $ | 32,161 | $ | 122,001 | |||||||||
Investments in subsidiaries | 2,143,408 | 1,340,641 | |||||||||||
Other assets | 38,941 | 24,505 | |||||||||||
Total assets | $ | 2,214,510 | $ | 1,487,147 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Junior subordinated notes issued to capital trusts | $ | 185,778 | $ | 152,065 | |||||||||
Other liabilities | 446 | 8,400 | |||||||||||
Stockholders’ equity | 2,028,286 | 1,326,682 | |||||||||||
Total liabilities and stockholders’ equity | $ | 2,214,510 | $ | 1,487,147 | |||||||||
Condensed statements of income | Statements of Operations | ||||||||||||
(In thousands) | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividends from subsidiaries | $ | 101,500 | $ | 80,500 | $ | 146,000 | |||||||
Interest and other income | 3,097 | 4,215 | 1,682 | ||||||||||
Interest and other expense | 14,636 | 7,143 | 7,117 | ||||||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | 89,961 | 77,572 | 140,565 | ||||||||||
Income tax benefit | (4,590 | ) | (1,223 | ) | (2,192 | ) | |||||||
Income before equity in undistributed net income of subsidiaries | 94,551 | 78,795 | 142,757 | ||||||||||
Equity in undistributed net (loss) income of subsidiaries | (8,450 | ) | 19,660 | (52,383 | ) | ||||||||
Net income | 86,101 | 98,455 | 90,374 | ||||||||||
Dividends and discount accretion on preferred shares | 4,000 | — | 3,269 | ||||||||||
Net income available to common stockholders | $ | 82,101 | $ | 98,455 | $ | 87,105 | |||||||
Condensed statements of cash flows | Statements of Cash Flows | ||||||||||||
(In thousands) | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash Flows From Operating Activities | |||||||||||||
Net income | $ | 86,101 | $ | 98,455 | $ | 90,374 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Compensation expense for share-based payment plans | 8,974 | 5,456 | 4,806 | ||||||||||
Equity in undistributed net income of subsidiaries | 8,450 | (19,660 | ) | 52,383 | |||||||||
Change in other assets and other liabilities | (8,980 | ) | (1,460 | ) | (5,064 | ) | |||||||
Net cash provided by operating activities | 94,545 | 82,791 | 142,499 | ||||||||||
Cash Flows From Investing Activities | |||||||||||||
Net decrease in loans | — | 6,960 | 21,010 | ||||||||||
Net cash paid in business acquisition | (101,546 | ) | — | — | |||||||||
Net cash (used in) provided by investing activities | (101,546 | ) | 6,960 | 21,010 | |||||||||
Cash Flows From Financing Activities | |||||||||||||
Treasury stock transactions, net | (2,690 | ) | (1,672 | ) | (249 | ) | |||||||
Stock options exercised | 1,034 | 1,014 | 154 | ||||||||||
Excess tax benefits from share-based payment arrangements | 396 | (325 | ) | (390 | ) | ||||||||
Dividends paid on common stock | (34,210 | ) | (24,070 | ) | (7,101 | ) | |||||||
Dividends paid on preferred stock | (2,000 | ) | — | (3,239 | ) | ||||||||
Repurchase of preferred stock and warrant | — | — | (197,518 | ) | |||||||||
Redemption of on junior subordinated notes issued to capital trusts | (45,369 | ) | — | (6,186 | ) | ||||||||
Net cash used in financing activities | (82,839 | ) | (25,053 | ) | (214,529 | ) | |||||||
Net (decrease) increase in cash | (89,840 | ) | 64,698 | (51,020 | ) | ||||||||
Cash: | |||||||||||||
Beginning of year | 122,001 | 57,303 | 108,323 | ||||||||||
End of year | $ | 32,161 | $ | 122,001 | $ | 57,303 | |||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
category | |
element | |
rating | |
indicator | |
instrument | |
Troubled debt restructurings: | |
Number of notes into which a note is restructured (in instruments) | 2 |
Allowance for loan and lease losses: | |
Number of elements in allowance for loan losses | 3 |
Number of categories of commercial related loans for which a general loan loss reserve | 4 |
Loan risk rating that represents those loans least likely to default | 1 |
Loan risk rating that represents a loss | 9 |
Period of loan risk rating migration (in years) | 14 years |
Period for computing average losses (in years) | 13 years |
Number of indicators for which correlation to charge-offs is tested | 20 |
Time horizon over which forecast is applied (in years) | 1 year |
Minimum | |
Loans and leases: | |
Period past due for discontinuance of interest accrual on loans (in days) | 90 days |
Troubled debt restructurings: | |
Period of sustained repayment for a note to get accrual status (in months) | 6 months |
Finite-Lived Intangible Assets, Net [Abstract] | |
Finite-lived intangible assets, useful life | 4 years |
Maximum | |
Cash and cash equivalents: | |
Term of original maturity to classify instrument as cash equivalent (in days) | 90 days |
Allowance for loan and lease losses: | |
Period in which external appraisal on real estate secured impaired loan was obtained (in months) | 12 months |
Lease investments: | |
Life of leased equipment under operating leases (in years) | 5 years |
Finite-Lived Intangible Assets, Net [Abstract] | |
Finite-lived intangible assets, useful life | 15 years |
MB Financial Bank | |
Significant Accounting Policies | |
Number of wholly owned subsidiaries | 3 |
ILLINOIS | MB Financial Bank | |
Significant Accounting Policies | |
Number of banking offices | 86 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2014 | |
Land improvements | |
Premises and Equipment | |
Estimated useful life (in years) | 15 years |
Minimum | Computer equipment and software | |
Premises and Equipment | |
Estimated useful life (in years) | 3 years |
Minimum | Software | |
Premises and Equipment | |
Estimated useful life (in years) | 3 years |
Minimum | Furniture and equipment | |
Premises and Equipment | |
Estimated useful life (in years) | 5 years |
Minimum | Buildings and building improvements | |
Premises and Equipment | |
Estimated useful life (in years) | 5 years |
Maximum | Computer equipment and software | |
Premises and Equipment | |
Estimated useful life (in years) | 7 years |
Maximum | Software | |
Premises and Equipment | |
Estimated useful life (in years) | 7 years |
Maximum | Furniture and equipment | |
Premises and Equipment | |
Estimated useful life (in years) | 10 years |
Maximum | Buildings and building improvements | |
Premises and Equipment | |
Estimated useful life (in years) | 39 years |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||
Basic and diluted earnings per common share: | |||
Net income | $86,101 | $98,455 | $90,374 |
Less: preferred stock dividends and discount accretion | 4,000 | 3,269 | |
Net income available to common stockholders | 82,101 | 98,455 | 87,105 |
Earnings allocated to common stockholders | 82,099 | 98,453 | 87,102 |
Weighted average shares outstanding for basic earnings per common share | 62,012,196 | 54,509,612 | 54,270,297 |
Weighted average shares outstanding for diluted earnings per common share | 62,573,406 | 54,993,865 | 54,505,976 |
Basic earnings per common share (dollars per share) | $1.32 | $1.81 | $1.61 |
Diluted earnings per common share (dollars per share) | $1.31 | $1.79 | $1.60 |
Segment Reporting | |||
Number of reportable segments | 3 | ||
Common Stock | |||
Basic and diluted earnings per common share: | |||
Distributed earnings allocated to common stock | 34,422 | 24,290 | 7,149 |
Undistributed earnings | 51,679 | 74,165 | 83,225 |
Net income | 86,101 | 98,455 | 90,374 |
Net income available to common stockholders | 82,101 | 98,455 | 87,105 |
Weighted average shares outstanding for basic earnings per common share | 62,012,196 | 54,509,612 | 54,270,297 |
Dilutive effect of equity awards | 561,210 | 484,253 | 235,679 |
Weighted average shares outstanding for diluted earnings per common share | 62,573,406 | 54,993,865 | 54,505,976 |
Participating Securities | |||
Basic and diluted earnings per common share: | |||
Less: earnings and dividends allocated to participating securities | $2 | $2 | $3 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Aug. 18, 2014 | Dec. 31, 2013 | Aug. 15, 2014 | |
Business combination | ||||
Preferred stock, par value | $0.01 | $0.01 | ||
Assets | ||||
Goodwill | $711,521,000 | $423,369,000 | ||
LIABILITIES | ||||
Series A preferred stock at $28.82 per share at August 15, 2014 | 115,280,000 | 0 | ||
Decrease in fair value of loans acquired | -7,100,000 | |||
Decrease in fair value of core deposit intangibles acquired | -4,900,000 | |||
Decrease in fair value of mortgage servicing rights acquired | -8,000,000 | |||
Taylor Capital Group, Inc. | ||||
Business combination | ||||
Amount called by each warrant or right | 4.08 | |||
Payments to acquire businesses, employee stock options and warrants | 4,400,000 | |||
Assets | ||||
Cash and cash equivalents | 154,684,000 | |||
Investment securities available for sale | 826,691,000 | |||
Investment securities held to maturity | 22,599,000 | |||
Non-marketable securities - FRB and FHLB Stock | 50,620,000 | |||
Loans held for sale | 670,671,000 | |||
Loans | 3,532,211,000 | |||
Leases investments, net | 11,885,000 | |||
Premises and equipment | 19,701,000 | |||
Goodwill | 288,152,000 | |||
Core deposit intangible | 20,079,000 | |||
Mortgage servicing rights | 224,453,000 | |||
Other real estate owned | 4,720,000 | |||
Other assets | 130,478,000 | |||
Total assets | 5,956,944,000 | |||
LIABILITIES | ||||
Deposits | 3,953,213,000 | |||
Short-term borrowings | 1,035,800,000 | |||
Junior subordinated notes issued to capital trusts | 80,843,000 | |||
Accrued expenses and other liabilities | 123,028,000 | |||
Total liabilities | 5,192,884,000 | |||
Total identifiable net assets less Series A preferred stock | 648,780,000 | |||
Market value of common stock at $26.49 per share at August 15, 2014 (19,602,482 shares of common stock issued) | 519,270,000 | |||
Cash paid | 129,510,000 | |||
Total fair value of consideration, excluding Series A preferred stock | 648,780,000 | |||
PCI Loans | ||||
Fair value of acquired loans | 3,532,211,000 | |||
Non-PCI Loans | ||||
Business combination, merger expenses | 34,800,000 | 2,500,000 | ||
Business combination, professional and legal fees | 7,100,000 | 2,400,000 | ||
Business Acquisition, Pro Forma Information [Abstract] | ||||
Business acquisition, pro forma revenue | 774,778,000 | 790,655,000 | ||
Business acquisition, pro forma net income (loss) | 112,220,000 | 180,085,000 | ||
Common Stock | Taylor Capital Group, Inc. | ||||
Business combination | ||||
Number of securities called by each warrant or right | 0.64318 | |||
Business acquisition, shares of common stock issued | 19,600,000 | 19,602,482 | ||
LIABILITIES | ||||
Share Price | $26.49 | |||
Restricted stock | Taylor Capital Group, Inc. | ||||
LIABILITIES | ||||
Cash paid | 3,700,000 | |||
Series A Preferred Stock | Taylor Capital Group, Inc. | ||||
Business combination | ||||
Preferred stock, par value | $28.82 | |||
LIABILITIES | ||||
Series A preferred stock at $28.82 per share at August 15, 2014 | 115,280,000 | |||
Substandard | Taylor Capital Group, Inc. | ||||
Assets | ||||
Loans | 204,805,000 | |||
PCI Loans | ||||
Contractually required principal and interest payments | 244,650,000 | |||
Nonaccretable difference | -34,219,000 | |||
Cash flows expected to be collected | 210,431,000 | |||
Accretable difference | -5,626,000 | |||
Fair value of acquired loans | 204,805,000 | |||
Pass | Taylor Capital Group, Inc. | ||||
Non-PCI Loans | ||||
Contractually required principal and interest payments | 3,707,463,000 | |||
Contractually required interest payments not expected to be collected due to estimated prepayments | -302,329,000 | |||
Cash flows expected to be collected | 3,405,134,000 | |||
Accretable difference | -77,728,000 | |||
Fair value of acquired loans | $3,327,406,000 |
Restrictions_on_Cash_and_Due_F1
Restrictions on Cash and Due From Banks (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Restrictions on Cash and Due from Banks [Abstract] | ||
Required reserve balances in cash or on deposits with Federal Reserve Bank | $127.20 | $75.10 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2014 | |
Available for Sale | ||||
Amortized Cost | $1,111,922,000 | $1,624,268,000 | ||
Gross Unrealized Gains | 13,928,000 | 35,370,000 | ||
Gross Unrealized Losses | -6,938,000 | -4,886,000 | ||
Fair Value | 1,118,912,000 | 1,654,752,000 | ||
Held to Maturity | ||||
Amortized Cost | 1,182,533,000 | 993,380,000 | ||
Gross Unrealized Gains | 20,762,000 | 42,063,000 | ||
Gross Unrealized Losses | -4,366,000 | -382,000 | ||
Investment Securities held to maturity | 1,198,929,000 | 1,035,061,000 | ||
Total Available for Sale and Held to Maturity Investment Securities | ||||
Amortized Cost | 2,294,455,000 | 2,617,648,000 | ||
Gross Unrealized Gains | 34,690,000 | 77,433,000 | ||
Gross Unrealized Losses | -11,304,000 | -5,268,000 | ||
Fair Value | 2,317,841,000 | 2,689,813,000 | ||
Transfer of investment securities held to maturity to investment securities available for sale | 0 | 0 | ||
U.S. Government sponsored agencies and enterprises | ||||
Available for Sale | ||||
Amortized Cost | 50,486,000 | 64,612,000 | ||
Gross Unrealized Gains | 1,704,000 | 1,281,000 | ||
Gross Unrealized Losses | -122,000 | -20,000 | ||
Fair Value | 52,068,000 | 65,873,000 | ||
States and political subdivisions | ||||
Available for Sale | ||||
Amortized Cost | 19,398,000 | 390,076,000 | ||
Gross Unrealized Gains | 22,000 | 20,846,000 | ||
Gross Unrealized Losses | -277,000 | -68,000 | ||
Fair Value | 19,143,000 | 410,854,000 | ||
Held to Maturity | ||||
Amortized Cost | 932,955,000 | 752,558,000 | ||
Gross Unrealized Gains | 7,584,000 | 30,089,000 | ||
Gross Unrealized Losses | -4,366,000 | -382,000 | ||
Investment Securities held to maturity | 936,173,000 | 782,265,000 | ||
Total Available for Sale and Held to Maturity Investment Securities | ||||
Percentage of securities consisting general obligation issues | 93.00% | |||
Transferred security at fair value | 291,200,000 | |||
Transfer of investment securities held to maturity to investment securities available for sale | 273,500,000 | |||
Held-to-maturity securities, realized loss | 3,200,000 | |||
Residential mortgage-backed securities | ||||
Available for Sale | ||||
Amortized Cost | 696,415,000 | 713,413,000 | ||
Gross Unrealized Gains | 8,555,000 | 8,977,000 | ||
Gross Unrealized Losses | -3,737,000 | -1,827,000 | ||
Fair Value | 701,233,000 | 720,563,000 | ||
Held to Maturity | ||||
Amortized Cost | 249,578,000 | 240,822,000 | ||
Gross Unrealized Gains | 13,178,000 | 11,974,000 | ||
Gross Unrealized Losses | 0 | 0 | ||
Investment Securities held to maturity | 262,756,000 | 252,796,000 | ||
Commercial mortgage-backed securities | ||||
Available for Sale | ||||
Amortized Cost | 50,891,000 | 186,110,000 | ||
Gross Unrealized Gains | 2,050,000 | 1,772,000 | ||
Gross Unrealized Losses | 0 | -220,000 | ||
Fair Value | 52,941,000 | 187,662,000 | ||
Corporate bonds | ||||
Available for Sale | ||||
Amortized Cost | 284,083,000 | 259,526,000 | ||
Gross Unrealized Gains | 1,597,000 | 2,428,000 | ||
Gross Unrealized Losses | -2,610,000 | -2,751,000 | ||
Fair Value | 283,070,000 | 259,203,000 | ||
Equity securities | ||||
Available for Sale | ||||
Amortized Cost | 10,649,000 | 10,531,000 | ||
Gross Unrealized Gains | 0 | 66,000 | ||
Gross Unrealized Losses | -192,000 | 0 | ||
Fair Value | 10,457,000 | 10,597,000 | ||
Certain longer-term and lower-coupon investment securities | ||||
Available for Sale | ||||
Fair Value | $451,600,000 | |||
Geographic Concentration Risk | States and political subdivisions | Securities Portfolio | ||||
Total Available for Sale and Held to Maturity Investment Securities | ||||
Percentage of investments issued by states and political subdivisions that were within the state of Illinois | 27.00% |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | securitypositions | securitypositions |
Available for Sale | ||
Less Than 12 Months, Fair Value | $405,448 | $386,481 |
Less Than 12 Months, Unrealized Losses | -2,756 | -5,991 |
12 Months or More, Fair Value | 42,606 | 49,635 |
12 Months or More, Unrealized Losses | -2,130 | -947 |
Total Fair Value | 448,054 | 436,116 |
Total Unrealized Losses | -4,886 | -6,938 |
Total | ||
Less Than 12 Months, Fair Value | 434,234 | 621,497 |
Less Than 12 Months, Unrealized Losses | -2,886 | -10,321 |
12 Months or More, Fair Value | 56,844 | 50,936 |
12 Months or More, Unrealized Losses | -2,382 | -983 |
Total Fair Value | 491,078 | 672,433 |
Total Unrealized Losses | -5,268 | -11,304 |
Number of security positions in the investment portfolio in an unrealized loss position | 168 | 345 |
U.S. Government sponsored agencies and enterprises | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 9,644 | 18,598 |
Less Than 12 Months, Unrealized Losses | -20 | -122 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total Fair Value | 9,644 | 18,598 |
Total Unrealized Losses | -20 | -122 |
States and political subdivisions | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 7,784 | 2,275 |
Less Than 12 Months, Unrealized Losses | -21 | -166 |
12 Months or More, Fair Value | 3,558 | 4,748 |
12 Months or More, Unrealized Losses | -47 | -111 |
Total Fair Value | 11,342 | 7,023 |
Total Unrealized Losses | -68 | -277 |
Held to maturity | ||
Less Than 12 Months, Fair Value | 28,786 | 235,016 |
Less than 12 Months, Unrealized Losses | -130 | -4,330 |
12 Months or More, Fair Value | 14,238 | 1,301 |
12 Months or More, Unrealized Losses | -252 | -36 |
Total Fair Value | 43,024 | 236,317 |
Total Unrealized Losses | -382 | -4,366 |
Residential mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 235,818 | 232,807 |
Less Than 12 Months, Unrealized Losses | -1,336 | -2,905 |
12 Months or More, Fair Value | 29,373 | 44,182 |
12 Months or More, Unrealized Losses | -491 | -832 |
Total Fair Value | 265,191 | 276,989 |
Total Unrealized Losses | -1,827 | -3,737 |
Commercial mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 89,509 | |
Less Than 12 Months, Unrealized Losses | -220 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 89,509 | |
Total Unrealized Losses | -220 | |
Corporate bonds | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 62,693 | 122,344 |
Less Than 12 Months, Unrealized Losses | -1,159 | -2,606 |
12 Months or More, Fair Value | 9,675 | 705 |
12 Months or More, Unrealized Losses | -1,592 | -4 |
Total Fair Value | 72,368 | 123,049 |
Total Unrealized Losses | -2,751 | -2,610 |
Equity securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 10,457 | |
Less Than 12 Months, Unrealized Losses | -192 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 10,457 | |
Total Unrealized Losses | ($192) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Amortized cost and fair value of investment securities by contractual maturity | |||
Pledged Financial Instruments, Not Separately Reported, Securities | $1,500,000,000 | $1,200,000,000 | |
Pledged Financial Instruments, Not Separately Reported, Securities Required to be Pledged | 980,400,000 | 908,400,000 | |
Realized net gains on the sale of investment securities available for sale | |||
Realized gains | 2,045,000 | 15,000 | 787,000 |
Realized losses | -4,478,000 | -2,000 | -8,000 |
Impairment charges | -92,000 | -14,000 | -224,000 |
Net (losses) gains | -2,525,000 | -1,000 | 555,000 |
Amortized Cost, Available for sale | |||
Due in one year or less | 13,752,000 | ||
Due after one year through five years | 305,172,000 | ||
Due after five years through ten years | 39,903,000 | ||
Due after ten years | 355,387,000 | ||
Amortized Cost | 1,624,268,000 | 1,111,922,000 | |
Fair Value, Available for sale | |||
Due in one year or less | 13,792,000 | ||
Due after one year through five years | 306,103,000 | ||
Due after five years through ten years | 40,823,000 | ||
Due after ten years | 375,212,000 | ||
Fair Value | 1,654,752,000 | 1,118,912,000 | |
Amortized Cost, Held to maturity | |||
Due in one year or less | 29,060,000 | ||
Due in after one year through five years | 247,683,000 | ||
Due after five years through ten years | 102,901,000 | ||
Due after ten years | 372,914,000 | ||
Investment securities held to maturity | 993,380,000 | 1,182,533,000 | |
Fair value, Held to maturity | |||
Due in one year or less | 29,114,000 | ||
Due in after one year through five years | 249,058,000 | ||
Due after five years through ten years | 106,556,000 | ||
Due after ten years | 397,537,000 | ||
Investment Securities held to maturity | 1,035,061,000 | 1,198,929,000 | |
Total Available for Sale and Held to Maturity Investment Securities | |||
Amortized Cost | 2,617,648,000 | 2,294,455,000 | |
Fair Value | 2,689,813,000 | 2,317,841,000 | |
Investment securities pledged as collateral for Federal Home Loan Bank advances | 226,900,000 | 29,000,000 | |
Equity securities | |||
Amortized Cost, Available for sale | |||
Amortized Cost | 10,531,000 | 10,649,000 | |
Fair Value, Available for sale | |||
Fair Value | 10,597,000 | 10,457,000 | |
Residential and commercial mortgage-backed securities | |||
Amortized Cost, Available for sale | |||
Amortized Cost | 899,523,000 | ||
Fair Value, Available for sale | |||
Fair Value | 908,225,000 | ||
Residential mortgage-backed securities | |||
Amortized Cost, Available for sale | |||
Amortized Cost | 713,413,000 | 696,415,000 | |
Fair Value, Available for sale | |||
Fair Value | 720,563,000 | 701,233,000 | |
Amortized Cost, Held to maturity | |||
Investment securities held to maturity | 240,822,000 | 249,578,000 | |
Fair value, Held to maturity | |||
Investment Securities held to maturity | $252,796,000 | $262,756,000 |
Loans_Details
Loans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
investmentrating | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased credit impaired and covered loans | $251,645,000 | $235,720,000 |
Total loans, excluding purchased credit impaired and covered loans | 8,831,572,000 | 5,476,831,000 |
Purchased credit impaired and covered loans | 69,057,000 | |
Total loans | 9,083,217,000 | 5,712,551,000 |
Number of highest rating categories by rating services company | 1 | |
Number of highest rating categories to be achieved for classification as investment grade companies | 4 | |
Loans and leases receivable related parties | 63,100,000 | 24,000,000 |
Loans and leases receivable related parties additions | 7,900,000 | |
Loans and leases receivable related parties collections | -14,900,000 | |
Percentage of collateral pledge of first mortgage loans as per agreement | 133.00% | |
Percentage of collateral pledge of home equity loans as per agreement | 250.00% | |
Loans pledged as collateral for Federal Home Loan Bank advances | 2,000,000,000 | 518,400,000 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 3,245,206,000 | 1,281,377,000 |
Purchased credit impaired and covered loans | 1,139,000 | |
Total loans | 3,348,788,000 | 1,300,018,000 |
Commercial collateralized by assignment of lease payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 1,692,258,000 | 1,494,188,000 |
Total loans | 1,692,258,000 | 1,494,188,000 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 2,544,867,000 | 1,647,700,000 |
Purchased credit impaired and covered loans | 37,017,000 | |
Total loans | 2,625,245,000 | 1,788,204,000 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 503,287,000 | 314,440,000 |
Total loans | 517,425,000 | 316,275,000 |
Construction real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 247,068,000 | 141,253,000 |
Purchased credit impaired and covered loans | 4,597,000 | |
Total loans | 278,136,000 | 189,566,000 |
Indirect vehicle | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 268,840,000 | 262,632,000 |
Total loans | 268,840,000 | 262,632,000 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 251,909,000 | 268,289,000 |
Total loans | 252,047,000 | 268,396,000 |
Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 78,137,000 | 66,952,000 |
Total loans | $100,478,000 | $93,272,000 |
Loans_Details_2
Loans (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | $8,831,572 | $5,476,831 |
Total loans | 9,083,217 | 5,712,551 |
Period past due of recorded investment in loans (in days) | 90 days | |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,231,571 | 1,273,302 |
30-59 days, past due | 8,222 | 5,952 |
60-89 days, past due | 0 | 626 |
Loans past due, 90 days or more | 5,413 | 1,497 |
Total, past due | 13,635 | 8,075 |
Total loans, excluding covered loans | 3,245,206 | 1,281,377 |
Total loans | 3,348,788 | 1,300,018 |
Commercial collateralized by assignment of lease payments | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,679,991 | 1,489,391 |
30-59 days, past due | 2,025 | 3,841 |
60-89 days, past due | 6,095 | 656 |
Loans past due, 90 days or more | 4,147 | 300 |
Total, past due | 12,267 | 4,797 |
Total loans, excluding covered loans | 1,692,258 | 1,494,188 |
Total loans | 1,692,258 | 1,494,188 |
Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 342,984 | 213,665 |
30-59 days, past due | 0 | 0 |
60-89 days, past due | 0 | 0 |
Loans past due, 90 days or more | 0 | 3,064 |
Total, past due | 0 | 3,064 |
Total loans, excluding covered loans | 342,984 | 216,729 |
Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 333,907 | 372,975 |
30-59 days, past due | 944 | 5,465 |
60-89 days, past due | 0 | 0 |
Loans past due, 90 days or more | 3,182 | 1,404 |
Total, past due | 4,126 | 6,869 |
Total loans, excluding covered loans | 338,033 | 379,844 |
Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 417,504 | 302,456 |
30-59 days, past due | 1,377 | 3,078 |
60-89 days, past due | 0 | 181 |
Loans past due, 90 days or more | 1,517 | 2,226 |
Total, past due | 2,894 | 5,485 |
Total loans, excluding covered loans | 420,398 | 307,941 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 432,718 | 334,198 |
30-59 days, past due | 2,481 | 328 |
60-89 days, past due | 652 | 2,816 |
Loans past due, 90 days or more | 2,325 | 7,258 |
Total, past due | 5,458 | 10,402 |
Total loans, excluding covered loans | 438,176 | 344,600 |
Office | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 244,166 | 155,936 |
30-59 days, past due | 0 | 0 |
60-89 days, past due | 0 | 0 |
Loans past due, 90 days or more | 2,127 | 2,066 |
Total, past due | 2,127 | 2,066 |
Total loans, excluding covered loans | 246,293 | 158,002 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 754,031 | 233,464 |
30-59 days, past due | 307 | 4,898 |
60-89 days, past due | 2,421 | 259 |
Loans past due, 90 days or more | 2,224 | 1,963 |
Total, past due | 4,952 | 7,120 |
Total loans, excluding covered loans | 758,983 | 240,584 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 485,492 | 302,362 |
30-59 days, past due | 8,038 | 1,422 |
60-89 days, past due | 2,319 | 1,030 |
Loans past due, 90 days or more | 7,438 | 9,626 |
Total, past due | 17,795 | 12,078 |
Total loans, excluding covered loans | 503,287 | 314,440 |
Total loans | 517,425 | 316,275 |
Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 246,731 | 138,563 |
30-59 days, past due | 0 | 391 |
60-89 days, past due | 0 | 0 |
Loans past due, 90 days or more | 337 | 2,299 |
Total, past due | 337 | 2,690 |
Total loans, excluding covered loans | 247,068 | 141,253 |
Total loans | 278,136 | 189,566 |
Indirect vehicle | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 265,296 | 259,488 |
30-59 days, past due | 2,516 | 2,210 |
60-89 days, past due | 702 | 657 |
Loans past due, 90 days or more | 326 | 277 |
Total, past due | 3,544 | 3,144 |
Total loans, excluding covered loans | 268,840 | 262,632 |
Total loans | 268,840 | 262,632 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 242,756 | 257,219 |
30-59 days, past due | 2,717 | 1,725 |
60-89 days, past due | 1,039 | 2,165 |
Loans past due, 90 days or more | 5,397 | 7,180 |
Total, past due | 9,153 | 11,070 |
Total loans, excluding covered loans | 251,909 | 268,289 |
Total loans | 252,047 | 268,396 |
Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 78,106 | 66,866 |
30-59 days, past due | 16 | 81 |
60-89 days, past due | 12 | 1 |
Loans past due, 90 days or more | 3 | 4 |
Total, past due | 31 | 86 |
Total loans, excluding covered loans | 78,137 | 66,952 |
Total loans | 100,478 | 93,272 |
Gross Loans Excluding Purchase Credit Impaired And Covered Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 8,755,253 | |
30-59 days, past due | 28,643 | |
60-89 days, past due | 13,240 | |
Loans past due, 90 days or more | 34,436 | |
Total, past due | 76,319 | |
Total loans, excluding purchased credit impaired and covered loans | 8,831,572 | |
Purchased Credit Impaired And Covered Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 158,215 | |
30-59 days, past due | 4,432 | |
60-89 days, past due | 585 | |
Loans past due, 90 days or more | 88,413 | |
Total, past due | 93,430 | |
Total loans | 251,645 | |
Other Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding covered loans | 1,102,173 | 912,313 |
Gross loans, excluding covered loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,399,885 | |
30-59 days, past due | 29,391 | |
60-89 days, past due | 8,391 | |
Loans past due, 90 days or more | 39,164 | |
Total, past due | 76,946 | |
Total loans, excluding covered loans | 5,476,831 | |
Covered loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 135,717 | |
30-59 days, past due | 902 | |
60-89 days, past due | 3,346 | |
Loans past due, 90 days or more | 95,755 | |
Total, past due | 100,003 | |
Total loans | 235,720 | |
Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 8,913,468 | 5,535,602 |
30-59 days, past due | 33,075 | 30,293 |
60-89 days, past due | 13,825 | 11,737 |
Loans past due, 90 days or more | 122,849 | 134,919 |
Total, past due | 169,749 | 176,949 |
Total loans | 9,083,217 | 5,712,551 |
Non-performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 46,149 | 56,339 |
30-59 days, past due | 5,764 | 14,325 |
60-89 days, past due | 1,099 | 3,283 |
Loans past due, 90 days or more | 34,075 | 32,614 |
Total, past due | 40,938 | 50,222 |
Total loans, excluding covered loans | 34,029 | 25,446 |
Total loans | 87,087 | 106,561 |
Non-performing | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding covered loans | 17,311 | 13,009 |
Non-performing | Indirect vehicle | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding covered loans | 1,543 | 1,459 |
Non-performing | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding covered loans | 15,170 | 10,969 |
Non-performing | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding covered loans | $5 | $9 |
Loans_Details_3
Loans (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Reduction in interest income associated with loans on nonaccrual status | $4,300,000 | $4,700,000 | $5,600,000 |
Commercial | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 14,088,000 | 17,781,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Commercial collateralized by assignment of lease payments | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 2,404,000 | 4,276,000 | |
Loans past due 90 days or more and still accruing | 3,566,000 | 291,000 | |
Healthcare | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 0 | 3,064,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Industrial | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 6,371,000 | 15,265,000 | |
Loans past due 90 days or more and still accruing | 0 | 155,000 | |
Multifamily | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 5,333,000 | 5,145,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Office | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 3,644,000 | 11,703,000 | |
Loans past due 90 days or more and still accruing | 464,000 | 0 | |
Retail | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 2,986,000 | 2,969,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Other | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 13,541,000 | 19,991,000 | |
Loans past due 90 days or more and still accruing | 324,000 | 0 | |
Residential real estate | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 17,311,000 | 13,009,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Construction real estate | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 337,000 | 475,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Indirect vehicle | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 1,542,000 | 1,459,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Loans | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 82,733,000 | 106,115,000 | |
Loans past due 90 days or more and still accruing | 4,354,000 | 446,000 | |
Non-performing | Home equity | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 15,171,000 | 10,969,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Non-performing | Other consumer | |||
Financing Receivable Recorded Investment Non Accrual and Past Due [Abstract] | |||
Nonaccrual | 5,000 | 9,000 | |
Loans past due 90 days or more and still accruing | $0 | $0 |
Loans_Details_4
Loans (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-performing substandard and doubtful loans | $49,100,000 | $80,700,000 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 3,245,206,000 | 1,281,377,000 |
Commercial collateralized by assignment of lease payments | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 1,692,258,000 | 1,494,188,000 |
Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 342,984,000 | 216,729,000 |
Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 338,033,000 | 379,844,000 |
Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 420,398,000 | 307,941,000 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 438,176,000 | 344,600,000 |
Office | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 246,293,000 | 158,002,000 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 758,983,000 | 240,584,000 |
Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 247,068,000 | 141,253,000 |
Pass | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 7,390,916,000 | 4,335,981,000 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 3,036,069,000 | 1,193,114,000 |
Pass | Commercial collateralized by assignment of lease payments | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 1,680,736,000 | 1,486,899,000 |
Pass | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 338,622,000 | 189,705,000 |
Pass | Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 314,225,000 | 345,236,000 |
Pass | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 412,824,000 | 296,179,000 |
Pass | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 423,842,000 | 316,420,000 |
Pass | Office | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 229,947,000 | 151,393,000 |
Pass | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 708,447,000 | 217,188,000 |
Pass | Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 246,204,000 | 139,847,000 |
Special Mention | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 233,740,000 | 68,277,000 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 178,984,000 | 26,637,000 |
Special Mention | Commercial collateralized by assignment of lease payments | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 6,853,000 | 553,000 |
Special Mention | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 4,362,000 | 21,186,000 |
Special Mention | Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 8,817,000 | 5,328,000 |
Special Mention | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 920,000 | 342,000 |
Special Mention | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 2,740,000 | 10,660,000 |
Special Mention | Office | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 8,524,000 | 2,682,000 |
Special Mention | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 22,013,000 | 349,000 |
Special Mention | Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 527,000 | 540,000 |
Substandard | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 104,743,000 | 156,570,000 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 30,153,000 | 61,000,000 |
Substandard | Commercial collateralized by assignment of lease payments | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 4,669,000 | 6,736,000 |
Substandard | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 2,774,000 |
Substandard | Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 14,991,000 | 29,280,000 |
Substandard | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 6,654,000 | 11,420,000 |
Substandard | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 11,594,000 | 17,520,000 |
Substandard | Office | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 7,822,000 | 3,927,000 |
Substandard | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 28,523,000 | 23,047,000 |
Substandard | Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 337,000 | 866,000 |
Doubtful | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 3,690,000 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 626,000 |
Doubtful | Commercial collateralized by assignment of lease payments | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 0 |
Doubtful | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 3,064,000 |
Doubtful | Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 0 |
Doubtful | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 0 |
Doubtful | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 0 |
Doubtful | Office | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 0 |
Doubtful | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 0 |
Doubtful | Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 0 | 0 |
Risk Rated Category | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 7,729,399,000 | 4,564,518,000 |
Risk Rated Category | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 3,245,206,000 | 1,281,377,000 |
Risk Rated Category | Commercial collateralized by assignment of lease payments | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 1,692,258,000 | 1,494,188,000 |
Risk Rated Category | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 342,984,000 | 216,729,000 |
Risk Rated Category | Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 338,033,000 | 379,844,000 |
Risk Rated Category | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 420,398,000 | 307,941,000 |
Risk Rated Category | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 438,176,000 | 344,600,000 |
Risk Rated Category | Office | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 246,293,000 | 158,002,000 |
Risk Rated Category | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 758,983,000 | 240,584,000 |
Risk Rated Category | Construction real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | $247,068,000 | $141,253,000 |
Loans_Details_5
Loans (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | $503,287 | $314,440 |
Indirect vehicle | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 268,840 | 262,632 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 251,909 | 268,289 |
Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 78,137 | 66,952 |
Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 1,102,173 | 912,313 |
Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 1,068,144 | 886,867 |
Performing | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 485,976 | 301,431 |
Performing | Indirect vehicle | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 267,297 | 261,173 |
Performing | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 236,739 | 257,320 |
Performing | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 78,132 | 66,943 |
Non-performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 34,029 | 25,446 |
Non-performing | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 17,311 | 13,009 |
Non-performing | Indirect vehicle | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 1,543 | 1,459 |
Non-performing | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | 15,170 | 10,969 |
Non-performing | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, excluding purchased credit impaired and covered loans | $5 | $9 |
Loans_Details_6
Loans (Details 6) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | $113,336,000 | $135,041,000 | |
Recorded Investment | 101,532,000 | 128,521,000 | |
Partial Charge-Offs | 11,804,000 | 6,520,000 | |
Allowance for Loan Losses Allocated | 10,482,000 | 17,368,000 | |
Average Recorded Investment | 126,665,000 | 136,454,000 | 119,300,000 |
Interest Income Recognized | 407,000 | 1,870,000 | |
Interest income recognized on cash basis | 400,000 | 1,900,000 | 1,600,000 |
Restructured loans | 9,269,000 | ||
Performing | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 15,600,000 | 29,400,000 | |
Non-performing | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 25,800,000 | 25,000,000 | |
Commercial | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 263,000 | ||
Multifamily | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 158,000 | ||
Residential real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 2,438,000 | ||
Indirect vehicle | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 346,000 | ||
Home equity | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 6,064,000 | ||
Impaired financing receivable with no allowance | Commercial | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 9,752,000 | 8,903,000 | |
Recorded Investment | 8,992,000 | 8,903,000 | |
Partial Charge-Offs | 760,000 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 10,324,000 | 8,259,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Commercial collateralized by assignment of lease payments | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 2,316,000 | 3,401,000 | |
Recorded Investment | 2,316,000 | 3,401,000 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 2,569,000 | 1,030,000 | |
Interest Income Recognized | 121,000 | 6,000 | |
Impaired financing receivable with no allowance | Healthcare | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 0 | 2,698,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Industrial | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 9,115,000 | 7,560,000 | |
Recorded Investment | 5,858,000 | 7,560,000 | |
Partial Charge-Offs | 3,257,000 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 7,870,000 | 8,900,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Multifamily | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,733,000 | 1,166,000 | |
Recorded Investment | 1,733,000 | 1,166,000 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 1,928,000 | 758,000 | |
Interest Income Recognized | 52,000 | 11,000 | |
Impaired financing receivable with no allowance | Retail | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 2,025,000 | 4,466,000 | |
Recorded Investment | 813,000 | 4,466,000 | |
Partial Charge-Offs | 1,212,000 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 3,465,000 | 3,628,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Office | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 559,000 | |
Recorded Investment | 0 | 527,000 | |
Partial Charge-Offs | 0 | 32,000 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 1,127,000 | 922,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Other | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,479,000 | 2,963,000 | |
Recorded Investment | 1,465,000 | 2,963,000 | |
Partial Charge-Offs | 14,000 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 5,249,000 | 4,380,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Residential real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,941,000 | 4,234,000 | |
Recorded Investment | 1,941,000 | 4,234,000 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 2,740,000 | 3,260,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Construction real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 34,000 | 0 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Indirect vehicle | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Home equity | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 577,000 | 577,000 | |
Recorded Investment | 577,000 | 577,000 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 762,000 | 797,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with no allowance | Other consumer | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with allowance | Commercial | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 7,987,000 | 8,923,000 | |
Recorded Investment | 7,987,000 | 8,919,000 | |
Partial Charge-Offs | 0 | 4,000 | |
Allowance for Loan Losses Allocated | 2,395,000 | 4,284,000 | |
Average Recorded Investment | 14,227,000 | 13,476,000 | |
Interest Income Recognized | 0 | 4,000 | |
Impaired financing receivable with allowance | Commercial collateralized by assignment of lease payments | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 715,000 | 1,060,000 | |
Recorded Investment | 715,000 | 1,060,000 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 105,000 | 144,000 | |
Average Recorded Investment | 1,515,000 | 1,279,000 | |
Interest Income Recognized | 91,000 | 192,000 | |
Impaired financing receivable with allowance | Healthcare | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 3,186,000 | |
Recorded Investment | 0 | 3,064,000 | |
Partial Charge-Offs | 0 | 122,000 | |
Allowance for Loan Losses Allocated | 0 | 382,000 | |
Average Recorded Investment | 0 | 8,189,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with allowance | Industrial | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 517,000 | 7,707,000 | |
Recorded Investment | 513,000 | 7,705,000 | |
Partial Charge-Offs | 4,000 | 2,000 | |
Allowance for Loan Losses Allocated | 130,000 | 3,038,000 | |
Average Recorded Investment | 4,982,000 | 3,699,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with allowance | Multifamily | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 5,680,000 | 5,374,000 | |
Recorded Investment | 4,709,000 | 5,374,000 | |
Partial Charge-Offs | 971,000 | 0 | |
Allowance for Loan Losses Allocated | 996,000 | 1,661,000 | |
Average Recorded Investment | 6,354,000 | 6,443,000 | |
Interest Income Recognized | 131,000 | 340,000 | |
Impaired financing receivable with allowance | Retail | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 9,264,000 | 14,169,000 | |
Recorded Investment | 7,897,000 | 12,428,000 | |
Partial Charge-Offs | 1,367,000 | 1,741,000 | |
Allowance for Loan Losses Allocated | 720,000 | 1,511,000 | |
Average Recorded Investment | 8,547,000 | 12,885,000 | |
Interest Income Recognized | 0 | 280,000 | |
Impaired financing receivable with allowance | Office | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 4,528,000 | 2,442,000 | |
Recorded Investment | 2,986,000 | 2,442,000 | |
Partial Charge-Offs | 1,542,000 | 0 | |
Allowance for Loan Losses Allocated | 545,000 | 791,000 | |
Average Recorded Investment | 2,833,000 | 4,045,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with allowance | Other | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 12,612,000 | 20,367,000 | |
Recorded Investment | 12,527,000 | 17,029,000 | |
Partial Charge-Offs | 85,000 | 3,338,000 | |
Allowance for Loan Losses Allocated | 136,000 | 796,000 | |
Average Recorded Investment | 11,022,000 | 12,868,000 | |
Interest Income Recognized | 12,000 | 20,000 | |
Impaired financing receivable with allowance | Residential real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 14,234,000 | 13,496,000 | |
Recorded Investment | 14,234,000 | 12,710,000 | |
Partial Charge-Offs | 0 | 786,000 | |
Allowance for Loan Losses Allocated | 3,126,000 | 3,119,000 | |
Average Recorded Investment | 14,632,000 | 12,966,000 | |
Interest Income Recognized | 0 | 245,000 | |
Impaired financing receivable with allowance | Construction real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 2,707,000 | 475,000 | |
Recorded Investment | 337,000 | 475,000 | |
Partial Charge-Offs | 2,370,000 | 0 | |
Allowance for Loan Losses Allocated | 162,000 | 227,000 | |
Average Recorded Investment | 455,000 | 1,603,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with allowance | Indirect vehicle | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 227,000 | 173,000 | |
Recorded Investment | 227,000 | 123,000 | |
Partial Charge-Offs | 0 | 50,000 | |
Allowance for Loan Losses Allocated | 14,000 | 57,000 | |
Average Recorded Investment | 358,000 | 86,000 | |
Interest Income Recognized | 0 | 0 | |
Impaired financing receivable with allowance | Home equity | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 25,927,000 | 23,840,000 | |
Recorded Investment | 25,705,000 | 23,395,000 | |
Partial Charge-Offs | 222,000 | 445,000 | |
Allowance for Loan Losses Allocated | 2,153,000 | 1,358,000 | |
Average Recorded Investment | 25,672,000 | 24,283,000 | |
Interest Income Recognized | 0 | 772,000 | |
Impaired financing receivable with allowance | Other consumer | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Partial Charge-Offs | 0 | 0 | |
Allowance for Loan Losses Allocated | 0 | 0 | |
Average Recorded Investment | 0 | 0 | |
Interest Income Recognized | $0 | $0 |
Loans_Details_7
Loans (Details 7) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
loan | loan | |
Restructured loans | ||
Number of separate notes restructured into A/B by the company | 2 | |
Minimum period of sustained repayment required to return the note to accrual status (in months) | 6 months | |
Restructured loans representing A/B structures | $1,000,000 | $1,100,000 |
Number of A/B structures represented by restructured loans | 1 | |
Redefaulted loans | 188,000 | |
Period past due of recorded redefaulted loans (in days) | 90 days | |
Troubled Debt Restructuring Activity [Roll Forward] | ||
Ending balance | 9,269,000 | |
Performing | ||
Restructured loans | ||
Number of loans | 14 | 21 |
Pre-Modification Recorded Investment | 2,865,000 | 3,715,000 |
Post-Modification Recorded Investment | 2,865,000 | 3,715,000 |
Charge-offs and Specific Reserves | 0 | 0 |
Troubled Debt Restructuring Activity [Roll Forward] | ||
Beginning balance | 29,430,000 | |
Additions | 2,865,000 | |
Charge-offs | -451,000 | |
Principal payments, net | -2,650,000 | |
Removals | -8,574,000 | |
Transfer to other real estate owned | 0 | |
Transfer from non-performing/performing | 6,407,000 | |
Transfer to non-performing/performing | -11,424,000 | |
Ending balance | 15,603,000 | 29,430,000 |
Non-performing | ||
Restructured loans | ||
Number of loans | 88 | 75 |
Pre-Modification Recorded Investment | 6,404,000 | 17,359,000 |
Post-Modification Recorded Investment | 6,404,000 | 17,196,000 |
Charge-offs and Specific Reserves | 794,000 | 3,184,000 |
Troubled Debt Restructuring Activity [Roll Forward] | ||
Beginning balance | 24,952,000 | |
Additions | 6,404,000 | |
Charge-offs | -2,840,000 | |
Principal payments, net | -3,965,000 | |
Removals | -3,576,000 | |
Transfer to other real estate owned | -221,000 | |
Transfer from non-performing/performing | 11,424,000 | |
Transfer to non-performing/performing | -6,407,000 | |
Ending balance | 25,771,000 | 24,952,000 |
Commercial | ||
Troubled Debt Restructuring Activity [Roll Forward] | ||
Ending balance | 263,000 | |
Commercial | Non-performing | ||
Restructured loans | ||
Number of loans | 1 | 2 |
Pre-Modification Recorded Investment | 263,000 | 1,251,000 |
Post-Modification Recorded Investment | 263,000 | 1,251,000 |
Charge-offs and Specific Reserves | 85,000 | 673,000 |
Commercial collateralized by assignment of lease payments | Non-performing | ||
Restructured loans | ||
Number of loans | 1 | |
Pre-Modification Recorded Investment | 3,401,000 | |
Post-Modification Recorded Investment | 3,401,000 | |
Charge-offs and Specific Reserves | 0 | |
Healthcare | Non-performing | ||
Restructured loans | ||
Number of loans | 1 | |
Pre-Modification Recorded Investment | 3,164,000 | |
Post-Modification Recorded Investment | 3,164,000 | |
Charge-offs and Specific Reserves | 496,000 | |
Industrial | Non-performing | ||
Restructured loans | ||
Number of loans | 4 | |
Pre-Modification Recorded Investment | 2,570,000 | |
Post-Modification Recorded Investment | 2,570,000 | |
Charge-offs and Specific Reserves | 1,425,000 | |
Multifamily | ||
Troubled Debt Restructuring Activity [Roll Forward] | ||
Ending balance | 158,000 | |
Multifamily | Performing | ||
Restructured loans | ||
Number of loans | 1 | |
Pre-Modification Recorded Investment | 601,000 | |
Post-Modification Recorded Investment | 601,000 | |
Charge-offs and Specific Reserves | 0 | |
Multifamily | Non-performing | ||
Restructured loans | ||
Number of loans | 1 | 2 |
Pre-Modification Recorded Investment | 158,000 | 623,000 |
Post-Modification Recorded Investment | 158,000 | 623,000 |
Charge-offs and Specific Reserves | 40,000 | 169,000 |
Retail | Non-performing | ||
Restructured loans | ||
Number of loans | 3 | |
Pre-Modification Recorded Investment | 862,000 | |
Post-Modification Recorded Investment | 862,000 | |
Charge-offs and Specific Reserves | 235,000 | |
Other | Non-performing | ||
Restructured loans | ||
Number of loans | 1 | |
Pre-Modification Recorded Investment | 84,000 | |
Post-Modification Recorded Investment | 84,000 | |
Charge-offs and Specific Reserves | 23,000 | |
Residential real estate | ||
Troubled Debt Restructuring Activity [Roll Forward] | ||
Ending balance | 2,438,000 | |
Residential real estate | Performing | ||
Restructured loans | ||
Number of loans | 3 | 6 |
Pre-Modification Recorded Investment | 588,000 | 910,000 |
Post-Modification Recorded Investment | 588,000 | 910,000 |
Charge-offs and Specific Reserves | 0 | 0 |
Residential real estate | Non-performing | ||
Restructured loans | ||
Number of loans | 6 | 9 |
Pre-Modification Recorded Investment | 1,850,000 | 1,803,000 |
Post-Modification Recorded Investment | 1,850,000 | 1,682,000 |
Charge-offs and Specific Reserves | 246,000 | 121,000 |
Indirect vehicle | ||
Troubled Debt Restructuring Activity [Roll Forward] | ||
Ending balance | 346,000 | |
Indirect vehicle | Performing | ||
Restructured loans | ||
Number of loans | 2 | |
Pre-Modification Recorded Investment | 26,000 | |
Post-Modification Recorded Investment | 26,000 | |
Charge-offs and Specific Reserves | 0 | |
Indirect vehicle | Non-performing | ||
Restructured loans | ||
Number of loans | 53 | 26 |
Pre-Modification Recorded Investment | 320,000 | 171,000 |
Post-Modification Recorded Investment | 320,000 | 129,000 |
Charge-offs and Specific Reserves | 88,000 | 42,000 |
Home equity | ||
Troubled Debt Restructuring Activity [Roll Forward] | ||
Ending balance | 6,064,000 | |
Home equity | Performing | ||
Restructured loans | ||
Number of loans | 9 | 14 |
Pre-Modification Recorded Investment | 2,251,000 | 2,204,000 |
Post-Modification Recorded Investment | 2,251,000 | 2,204,000 |
Charge-offs and Specific Reserves | 0 | 0 |
Home equity | Non-performing | ||
Restructured loans | ||
Number of loans | 27 | 26 |
Pre-Modification Recorded Investment | 3,813,000 | 3,430,000 |
Post-Modification Recorded Investment | 3,813,000 | 3,430,000 |
Charge-offs and Specific Reserves | $335,000 | $0 |
Loans_Details_8
Loans (Details 8) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Extended Maturity, Amortization and Reduction of Interest Rate | $2,795 |
Extended Maturity, Delay in Payments and Reduction of Interest Rate | 878 |
Extended Maturity and Delay in Payments or Reduction of Interest Rate | 2,900 |
Delay in Payments or Reduction of Interest Rate | 2,696 |
Total | 9,269 |
Commercial | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Extended Maturity, Amortization and Reduction of Interest Rate | 0 |
Extended Maturity, Delay in Payments and Reduction of Interest Rate | 0 |
Extended Maturity and Delay in Payments or Reduction of Interest Rate | 263 |
Delay in Payments or Reduction of Interest Rate | 0 |
Total | 263 |
Multifamily | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Extended Maturity, Amortization and Reduction of Interest Rate | 0 |
Extended Maturity, Delay in Payments and Reduction of Interest Rate | 0 |
Extended Maturity and Delay in Payments or Reduction of Interest Rate | 158 |
Delay in Payments or Reduction of Interest Rate | 0 |
Total | 158 |
Residential real estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Extended Maturity, Amortization and Reduction of Interest Rate | 411 |
Extended Maturity, Delay in Payments and Reduction of Interest Rate | 0 |
Extended Maturity and Delay in Payments or Reduction of Interest Rate | 1,268 |
Delay in Payments or Reduction of Interest Rate | 759 |
Total | 2,438 |
Indirect vehicle | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Extended Maturity, Amortization and Reduction of Interest Rate | 0 |
Extended Maturity, Delay in Payments and Reduction of Interest Rate | 0 |
Extended Maturity and Delay in Payments or Reduction of Interest Rate | 0 |
Delay in Payments or Reduction of Interest Rate | 346 |
Total | 346 |
Home equity | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Extended Maturity, Amortization and Reduction of Interest Rate | 2,384 |
Extended Maturity, Delay in Payments and Reduction of Interest Rate | 878 |
Extended Maturity and Delay in Payments or Reduction of Interest Rate | 1,211 |
Delay in Payments or Reduction of Interest Rate | 1,591 |
Total | $6,064 |
Loans_Details_9
Loans (Details 9) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, beginning balance | $113,462 | $128,279 | $135,975 |
Allowance for unfunded credit commitments acquired through business combination | 1,261 | 0 | 0 |
Utilization of allowance for unfunded credit commitments | -637 | 0 | 0 |
Provision for credit losses | 12,052 | -5,804 | -8,900 |
Total charge-offs | 24,745 | 23,675 | 30,616 |
Total recoveries | 12,664 | 14,662 | 31,820 |
Net charge-offs | 12,081 | 9,013 | -1,204 |
Allowance for credit losses, ending balance | 114,057 | 113,462 | 128,279 |
Allowance for unfunded credit commitments | -4,031 | -1,716 | -4,075 |
Ending Balance | 110,026 | 111,746 | 124,204 |
Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 1,339 | 3,706 | 2,408 |
Recoveries | 3,757 | 3,156 | 3,475 |
Ending Balance | 29,571 | 23,461 | 24,943 |
Commercial collateralized by assignment of lease payments | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 586 | 0 | 1,721 |
Recoveries | 939 | 1,131 | 6,720 |
Ending Balance | 9,962 | 9,159 | 7,755 |
Commercial real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 11,438 | 7,517 | 11,377 |
Recoveries | 4,020 | 6,025 | 16,987 |
Ending Balance | 41,826 | 51,628 | 61,056 |
Residential real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 1,718 | 2,796 | 2,944 |
Recoveries | 1,190 | 479 | 501 |
Ending Balance | 6,646 | 8,872 | 6,941 |
Construction real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 79 | 980 | 4,007 |
Recoveries | 252 | 1,616 | 2,019 |
Ending Balance | 8,918 | 6,856 | 11,222 |
Indirect vehicle | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 3,735 | 2,911 | 2,259 |
Recoveries | 1,736 | 1,411 | 1,096 |
Ending Balance | 1,687 | 1,662 | 1,324 |
Home equity | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 3,383 | 3,692 | 4,551 |
Recoveries | 482 | 594 | 671 |
Ending Balance | 9,456 | 8,478 | 9,401 |
Other consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 2,467 | 2,073 | 1,349 |
Recoveries | 288 | 250 | 351 |
Ending Balance | $1,960 | $1,630 | $1,562 |
Loans_Details_10
Loans (Details 10) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for credit losses: | |||||
Beginning balance | $111,746,000 | $124,204,000 | |||
Transfer to (from) allowance for unfunded credit commitments | -500,000 | ||||
Ending Balance | 110,026,000 | 111,746,000 | 124,204,000 | ||
Ending allowance balance attributable to loans: | |||||
Acquired and accounted for under ASC 310-30 | 1,283,000 | [1] | 2,232,000 | [1] | |
Total ending allowance balance | 110,026,000 | 111,746,000 | 124,204,000 | ||
Loans: | |||||
Individually evaluated for impairment | 101,532,000 | 128,521,000 | |||
Collectively evaluated for impairment | 8,730,040,000 | 5,327,665,000 | |||
Acquired and accounted for under ASC 310-30 | 251,645,000 | [1] | 256,365,000 | [1] | |
Total loans | 9,083,217,000 | 5,712,551,000 | |||
Unfunded Commitments: | |||||
Beginning balance | 1,716,000 | 4,075,000 | |||
Allowance for unfunded credit commitments acquired through business combination | 1,261,000 | ||||
Utilization of allowance for unfunded credit commitments | -637,000 | ||||
Transfer to (from) allowance for unfunded credit commitments | -500,000 | ||||
Provision | 1,691,000 | -1,859,000 | |||
Ending balance | 4,031,000 | 1,716,000 | 4,075,000 | ||
Unfunded commitments ending allowance balance: | |||||
Individually evaluated for impairment for unfunded commitments | 1,348,000 | 689,000 | |||
Unfunded commitments collectively evaluated for impairment | 2,683,000 | 1,027,000 | |||
Total ending allowance balance | 4,031,000 | 1,716,000 | 4,075,000 | ||
Allowance for credit losses | |||||
Allowance for credit losses, beginning balance | 113,462,000 | 128,279,000 | 135,975,000 | ||
Allowance for credit losses, Allowance for unfunded credit commitments acquired through business combination | 1,261,000 | 0 | 0 | ||
Allowance for credit losses, Utilization of allowance for unfunded credit commitments | -637,000 | 0 | 0 | ||
Allowance for credit losses, Charge-offs | 24,745,000 | 23,675,000 | 30,616,000 | ||
Allowance for credit losses, Recoveries | 12,664,000 | 14,662,000 | 31,820,000 | ||
Allowance for credit losses, Provision | 12,052,000 | -5,804,000 | |||
Allowance for credit losses, ending balance | 114,057,000 | 113,462,000 | 128,279,000 | ||
Allowance for credit losses ending allowance balance: | |||||
Allowance for credit losses, individually evaluated for impairment | 11,830,000 | 18,057,000 | |||
Allowance for credit losses, collectively evaluated for impairment | 100,944,000 | 93,173,000 | |||
Acquired and accounted for under ASC 310-30 | 1,283,000 | [1] | 2,232,000 | [1] | |
Total ending allowance balance | 114,057,000 | 113,462,000 | 128,279,000 | ||
Net charge-offs (recoveries) | 12,081,000 | 9,013,000 | -1,204,000 | ||
Purchase Credit Impaired Loan | |||||
Allowance for credit losses: | |||||
Provision | -1,300,000 | 2,500,000 | |||
Loans: | |||||
Total loans | 71,700,000 | 195,500,000 | |||
Allowance for credit losses ending allowance balance: | |||||
Provision and charge-offs related to the number of pools | 16 | 15 | |||
Net charge-offs (recoveries) | -323,000 | -218,000 | |||
Commercial | |||||
Allowance for credit losses: | |||||
Beginning balance | 23,461,000 | 24,943,000 | |||
Charge-offs | 1,339,000 | 3,706,000 | 2,408,000 | ||
Recoveries | 3,757,000 | 3,156,000 | 3,475,000 | ||
Provision | 3,692,000 | -932,000 | |||
Ending Balance | 29,571,000 | 23,461,000 | 24,943,000 | ||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 2,395,000 | 4,284,000 | |||
Collectively evaluated for impairment | 26,684,000 | 18,693,000 | |||
Acquired and accounted for under ASC 310-30 | 492,000 | [1] | 484,000 | [1] | |
Total ending allowance balance | 29,571,000 | 23,461,000 | 24,943,000 | ||
Loans: | |||||
Individually evaluated for impairment | 16,979,000 | 17,822,000 | |||
Collectively evaluated for impairment | 3,228,227,000 | 1,246,523,000 | |||
Acquired and accounted for under ASC 310-30 | 103,582,000 | [1] | 35,673,000 | [1] | |
Total loans | 3,348,788,000 | 1,300,018,000 | |||
Allowance for credit losses ending allowance balance: | |||||
Acquired and accounted for under ASC 310-30 | 492,000 | [1] | 484,000 | [1] | |
Commercial collateralized by assignment of lease payments | |||||
Allowance for credit losses: | |||||
Beginning balance | 9,159,000 | 7,755,000 | |||
Charge-offs | 586,000 | 0 | 1,721,000 | ||
Recoveries | 939,000 | 1,131,000 | 6,720,000 | ||
Provision | 450,000 | 273,000 | |||
Ending Balance | 9,962,000 | 9,159,000 | 7,755,000 | ||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 105,000 | 144,000 | |||
Collectively evaluated for impairment | 9,857,000 | 9,015,000 | |||
Total ending allowance balance | 9,962,000 | 9,159,000 | 7,755,000 | ||
Loans: | |||||
Individually evaluated for impairment | 3,031,000 | 4,461,000 | |||
Collectively evaluated for impairment | 1,689,227,000 | 1,489,727,000 | |||
Total loans | 1,692,258,000 | 1,494,188,000 | |||
Commercial real estate | |||||
Allowance for credit losses: | |||||
Beginning balance | 51,628,000 | 61,056,000 | |||
Charge-offs | 11,438,000 | 7,517,000 | 11,377,000 | ||
Recoveries | 4,020,000 | 6,025,000 | 16,987,000 | ||
Provision | -2,384,000 | -7,936,000 | |||
Ending Balance | 41,826,000 | 51,628,000 | 61,056,000 | ||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 2,527,000 | 8,179,000 | |||
Collectively evaluated for impairment | 38,517,000 | 41,763,000 | |||
Acquired and accounted for under ASC 310-30 | 782,000 | [1] | 1,686,000 | [1] | |
Total ending allowance balance | 41,826,000 | 51,628,000 | 61,056,000 | ||
Loans: | |||||
Individually evaluated for impairment | 38,501,000 | 64,724,000 | |||
Collectively evaluated for impairment | 2,506,366,000 | 1,582,976,000 | |||
Acquired and accounted for under ASC 310-30 | 80,378,000 | [1] | 140,504,000 | [1] | |
Total loans | 2,625,245,000 | 1,788,204,000 | |||
Allowance for credit losses ending allowance balance: | |||||
Acquired and accounted for under ASC 310-30 | 782,000 | [1] | 1,686,000 | [1] | |
Allowance for loan losses and unfunded commitments acquired with deteriorated credit quality | 1,300,000 | 2,200,000 | |||
Residential real estate | |||||
Allowance for credit losses: | |||||
Beginning balance | 8,872,000 | 6,941,000 | |||
Charge-offs | 1,718,000 | 2,796,000 | 2,944,000 | ||
Recoveries | 1,190,000 | 479,000 | 501,000 | ||
Provision | -1,698,000 | 4,248,000 | |||
Ending Balance | 6,646,000 | 8,872,000 | 6,941,000 | ||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 3,126,000 | 3,119,000 | |||
Collectively evaluated for impairment | 3,520,000 | 5,753,000 | |||
Total ending allowance balance | 6,646,000 | 8,872,000 | 6,941,000 | ||
Loans: | |||||
Individually evaluated for impairment | 16,175,000 | 16,944,000 | |||
Collectively evaluated for impairment | 487,112,000 | 293,883,000 | |||
Acquired and accounted for under ASC 310-30 | 14,138,000 | [1] | 5,448,000 | [1] | |
Total loans | 517,425,000 | 316,275,000 | |||
Construction real estate | |||||
Allowance for credit losses: | |||||
Beginning balance | 6,856,000 | 11,222,000 | |||
Transfer to (from) allowance for unfunded credit commitments | 500,000 | ||||
Charge-offs | 79,000 | 980,000 | 4,007,000 | ||
Recoveries | 252,000 | 1,616,000 | 2,019,000 | ||
Provision | 1,889,000 | -5,502,000 | |||
Ending Balance | 8,918,000 | 6,856,000 | 11,222,000 | ||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 162,000 | 227,000 | |||
Collectively evaluated for impairment | 8,747,000 | 6,567,000 | |||
Acquired and accounted for under ASC 310-30 | 9,000 | [1] | 62,000 | [1] | |
Total ending allowance balance | 8,918,000 | 6,856,000 | 11,222,000 | ||
Loans: | |||||
Individually evaluated for impairment | 337,000 | 475,000 | |||
Collectively evaluated for impairment | 246,731,000 | 140,778,000 | |||
Acquired and accounted for under ASC 310-30 | 31,068,000 | [1] | 48,313,000 | [1] | |
Total loans | 278,136,000 | 189,566,000 | |||
Unfunded Commitments: | |||||
Transfer to (from) allowance for unfunded credit commitments | 500,000 | ||||
Allowance for credit losses ending allowance balance: | |||||
Acquired and accounted for under ASC 310-30 | 9,000 | [1] | 62,000 | [1] | |
Indirect vehicle | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,662,000 | 1,324,000 | |||
Charge-offs | 3,735,000 | 2,911,000 | 2,259,000 | ||
Recoveries | 1,736,000 | 1,411,000 | 1,096,000 | ||
Provision | 2,024,000 | 1,838,000 | |||
Ending Balance | 1,687,000 | 1,662,000 | 1,324,000 | ||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 14,000 | 57,000 | |||
Collectively evaluated for impairment | 1,673,000 | 1,605,000 | |||
Total ending allowance balance | 1,687,000 | 1,662,000 | 1,324,000 | ||
Loans: | |||||
Individually evaluated for impairment | 227,000 | 123,000 | |||
Collectively evaluated for impairment | 268,613,000 | 262,509,000 | |||
Total loans | 268,840,000 | 262,632,000 | |||
Home equity | |||||
Allowance for credit losses: | |||||
Beginning balance | 8,478,000 | 9,401,000 | |||
Charge-offs | 3,383,000 | 3,692,000 | 4,551,000 | ||
Recoveries | 482,000 | 594,000 | 671,000 | ||
Provision | 3,879,000 | 2,175,000 | |||
Ending Balance | 9,456,000 | 8,478,000 | 9,401,000 | ||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 2,153,000 | 1,358,000 | |||
Collectively evaluated for impairment | 7,303,000 | 7,120,000 | |||
Total ending allowance balance | 9,456,000 | 8,478,000 | 9,401,000 | ||
Loans: | |||||
Individually evaluated for impairment | 26,282,000 | 23,972,000 | |||
Collectively evaluated for impairment | 225,627,000 | 244,317,000 | |||
Acquired and accounted for under ASC 310-30 | 138,000 | [1] | 107,000 | [1] | |
Total loans | 252,047,000 | 268,396,000 | |||
Other consumer | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,630,000 | 1,562,000 | |||
Charge-offs | 2,467,000 | 2,073,000 | 1,349,000 | ||
Recoveries | 288,000 | 250,000 | 351,000 | ||
Provision | 2,509,000 | 1,891,000 | |||
Ending Balance | 1,960,000 | 1,630,000 | 1,562,000 | ||
Ending allowance balance attributable to loans: | |||||
Collectively evaluated for impairment | 1,960,000 | 1,630,000 | |||
Total ending allowance balance | 1,960,000 | 1,630,000 | 1,562,000 | ||
Loans: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 78,137,000 | 66,952,000 | |||
Acquired and accounted for under ASC 310-30 | 22,341,000 | [1] | 26,320,000 | [1] | |
Total loans | $100,478,000 | $93,272,000 | |||
[1] | Loans acquired in the Taylor Capital merger and FDIC-assisted transactions and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.†|
Loans_Details_11
Loans (Details 11) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in the accretable yield for purchased credit-impaired loans | ||
Balance at beginning of period | $2,337 | $5,685 |
Purchases | 5,626 | 0 |
Accretion | -2,098 | -4,456 |
Other | 1,569 | 1,108 |
Balance at end of period | $7,434 | $2,337 |
Loans_Details_12
Loans (Details 12) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | $69,057,000 | ||
Estimated receivable amount from the FDIC under the loss-share agreement | 2,663,000 | [1] | |
Non covered loans | 3,342,837,000 | ||
Outstanding balances on purchased loans from the FDIC | 95,100,000 | 273,500,000 | |
Carrying amount on loans purchased from the FDIC | 91,400,000 | 261,400,000 | |
Purchased Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 26,414,000 | ||
Estimated receivable amount from the FDIC under the loss-share agreement | -1,850,000 | [1] | |
Non covered loans | 182,588,000 | ||
Purchased Non-Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 42,643,000 | ||
Estimated receivable amount from the FDIC under the loss-share agreement | 4,513,000 | [1] | |
Non covered loans | 3,160,249,000 | ||
Commercial related | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 2,805,000 | [2] | |
Non covered loans | 17,658,000 | [3] | |
Commercial related | Purchased Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 706,000 | [2] | |
Non covered loans | 4,288,000 | [3] | |
Reimbursable Amount Covered Other Real Estate Owned | 303,000 | ||
Commercial related | Purchased Non-Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 2,099,000 | [2] | |
Non covered loans | 13,370,000 | [3] | |
Commercial | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 1,139,000 | ||
Non covered loans | 1,777,258,000 | ||
Commercial | Purchased Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 830,000 | ||
Non covered loans | 95,350,000 | ||
Commercial | Purchased Non-Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 309,000 | ||
Non covered loans | 1,681,908,000 | ||
Commercial collateralized by assignment of lease payments | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Non covered loans | 160,299,000 | ||
Commercial collateralized by assignment of lease payments | Purchased Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Non covered loans | 0 | ||
Commercial collateralized by assignment of lease payments | Purchased Non-Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Non covered loans | 160,299,000 | ||
Commercial real estate | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 37,017,000 | ||
Non covered loans | 969,545,000 | ||
Commercial real estate | Purchased Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 20,489,000 | ||
Non covered loans | 43,361,000 | ||
Commercial real estate | Purchased Non-Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 16,528,000 | ||
Non covered loans | 926,184,000 | ||
Construction real estate | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 4,597,000 | ||
Non covered loans | 173,038,000 | ||
Construction real estate | Purchased Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 2,512,000 | ||
Non covered loans | 26,471,000 | ||
Construction real estate | Purchased Non-Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 2,085,000 | ||
Non covered loans | 146,567,000 | ||
Other | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 23,499,000 | ||
Non covered loans | 245,039,000 | ||
Other | Purchased Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 1,877,000 | ||
Non covered loans | 13,118,000 | ||
Other | Purchased Non-Credit Impaired Loans Receivable | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Purchased credit impaired and covered loans | 21,622,000 | ||
Non covered loans | 231,921,000 | ||
Commercial Loans, Commercial Real Estate Receivable And Construction Loans [Member] | |||
Purchased credit-impaired loans and non-credit-impaired loans | |||
Loans Not Covered Under the Loss Share Agreement | $2,800,000 | ||
[1] | Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $303 thousand in reimbursable amounts related to covered other real estate owned. | ||
[2] | Covered commercial related loans include commercial, commercial real estate and construction real estate loans acquired in connection with the Benchmark FDIC-assisted transactions. | ||
[3] | Non-covered commercial related loans include commercial, commercial real estate and construction real estate for InBank and Heritage. |
Lease_Investments_Details
Lease Investments (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Direct finance leases: | ||||
Minimum lease payments | $340,602,000 | $155,945,000 | ||
Estimated unguaranteed residual values | 70,469,000 | 31,272,000 | ||
Less: unearned income | -31,229,000 | -14,473,000 | ||
Direct finance leases | 379,842,000 | [1] | 172,744,000 | [1] |
Leveraged leases: | ||||
Minimum lease payments | 10,689,000 | 24,320,000 | ||
Estimated unguaranteed residual values | 1,586,000 | 2,508,000 | ||
Less: unearned income | -540,000 | -1,644,000 | ||
Less: related non-recourse debt | -10,330,000 | -23,243,000 | ||
Leveraged leases | 1,405,000 | [1] | 1,941,000 | [1] |
Operating leases: | ||||
Equipment, at cost | 257,495,000 | 218,473,000 | ||
Less accumulated depreciation | -94,662,000 | -87,384,000 | ||
Lease investments, net | 162,833,000 | 131,089,000 | ||
Minimum percentage of residual component in total equipment investment | 10.00% | |||
Loans at other banks for lease equipment purchases | $38,500,000 | $17,500,000 | ||
[1] | Direct finance and leveraged leases are included as commercial loans collateralized by assignment of lease payments for financial statement purposes. |
Lease_Investments_Details_2
Lease Investments (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Minimum lease payments receivable for direct finance leases | |
2015 | $122,353 |
2016 | 97,324 |
2017 | 66,223 |
2018 | 37,231 |
2019 | 13,457 |
Thereafter | 4,014 |
Total | 340,602 |
Minimum lease payments receivable for leveraged leases | |
2015 | 7,386 |
2016 | 2,482 |
2017 | 642 |
2018 | 179 |
2019 | 0 |
Thereafter | 0 |
Total | 10,689 |
Minimum lease payments receivable for operating leases | |
2015 | 40,624 |
2016 | 29,802 |
2017 | 20,461 |
2018 | 9,475 |
2019 | 5,143 |
Thereafter | 3,205 |
Total | 108,710 |
Minimum lease payments receivable for, total | |
2015 | 170,363 |
2016 | 129,608 |
2017 | 87,326 |
2018 | 46,885 |
2019 | 18,600 |
Thereafter | 7,219 |
Total | $460,001 |
Lease_Investments_Details_3
Lease Investments (Details 3) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Residual values for leases by category in the year the initial lease term ends | |
2015 | $12,501 |
2016 | 16,129 |
2017 | 29,885 |
2018 | 23,828 |
2019 | 18,408 |
Thereafter | 28,552 |
Total | 129,303 |
Direct Finance Leases | |
Residual values for leases by category in the year the initial lease term ends | |
2015 | 8,827 |
2016 | 7,597 |
2017 | 19,448 |
2018 | 14,544 |
2019 | 10,551 |
Thereafter | 9,502 |
Total | 70,469 |
Leveraged Leases | |
Residual values for leases by category in the year the initial lease term ends | |
2015 | 856 |
2016 | 606 |
2017 | 105 |
2018 | 19 |
2019 | 0 |
Thereafter | 0 |
Total | 1,586 |
Operating Leases | |
Residual values for leases by category in the year the initial lease term ends | |
2015 | 2,818 |
2016 | 7,926 |
2017 | 10,332 |
2018 | 9,265 |
2019 | 7,857 |
Thereafter | 19,050 |
Total | $57,248 |
Lease_Investments_Details_4
Lease Investments (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
lease | lease | ||
Lease Investments | |||
Limit on individual lease equipment residual value per transaction | $1,000,000 | ||
Number of leases | 3,793 | 3,590 | |
Average residual value per lease | 34,000 | 21,000 | |
Average residual value per master lease | 155,000 | 82,000 | |
Rental income | 64,017,000 | 62,629,000 | 49,473,000 |
Equipment maintenance contracts revenue, net of cost of sales | 16,441,000 | 11,071,000 | 14,129,000 |
Vendor promotional income | 8,382,000 | 7,587,000 | 4,051,000 |
Other lease related revenue | 2,121,000 | 1,796,000 | 167,000 |
Gain on sale of lease payments and leased equipment, net of residual write downs | 12,899,000 | 12,002,000 | 4,708,000 |
Income on lease investments, gross | 103,860,000 | 95,085,000 | 72,528,000 |
Less: depreciation on operating leases | -39,550,000 | -33,842,000 | -36,146,000 |
Lease financing, net | $64,310,000 | $61,243,000 | $36,382,000 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premises and Equipment | |||
Premises and equipment, gross | $352,358 | $319,469 | |
Accumulated depreciation | -113,981 | -98,404 | |
Premises and equipment, net | 238,377 | 221,065 | |
Depreciation of premises and equipment and leased equipment | 20,401 | 18,051 | 16,273 |
Land and land improvements | |||
Premises and Equipment | |||
Premises and equipment, gross | 67,630 | 67,389 | |
Buildings | |||
Premises and Equipment | |||
Premises and equipment, gross | 100,505 | 98,675 | |
Furniture and equipment | |||
Premises and Equipment | |||
Premises and equipment, gross | 124,490 | 97,766 | |
Buildings and leasehold improvements | |||
Premises and Equipment | |||
Premises and equipment, gross | $59,733 | $55,639 |
Goodwill_and_Intangibles_Detai
Goodwill and Intangibles (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 18, 2014 | |
segment | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Number of operating segments | 3 | |||
Goodwill impairment loss | $0 | $0 | $0 | |
Carrying amount of goodwill | 711,521,000 | 423,369,000 | ||
Weighted average amortization period (in years) | 5 years | |||
Changes in the carrying amount of core deposit and client relationship intangibles | ||||
Balance at beginning of period | 23,428,000 | 29,512,000 | ||
Amortization expense | -5,501,000 | -6,084,000 | -5,010,000 | |
Other intangibles from business combinations | 0 | |||
Balance at end of period | 38,006,000 | 23,428,000 | 29,512,000 | |
Gross carrying amount | 80,371,000 | 60,292,000 | ||
Accumulated amortization | -42,365,000 | -36,864,000 | ||
Net book value | 38,006,000 | 23,428,000 | 29,512,000 | |
Estimated future amortization expense | ||||
2015 | 5,963,000 | |||
2016 | 5,157,000 | |||
2017 | 4,637,000 | |||
2018 | 4,221,000 | |||
2019 | 2,743,000 | |||
Thereafter | 15,285,000 | |||
Total estimated future amortization expense | 38,006,000 | |||
Taylor Capital Group, Inc. | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Carrying amount of goodwill | 288,152,000 | |||
Goodwill acquired during the period | 288,200,000 | |||
Taylor Capital Group, Inc. | Core Deposits | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, useful life | 15 years | |||
Changes in the carrying amount of core deposit and client relationship intangibles | ||||
Other intangibles from business combinations | 20,079,000 | |||
Banking | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Carrying amount of goodwill | 670,881,000 | |||
Leasing | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Carrying amount of goodwill | 40,640,000 | |||
Mortgage Banking | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Carrying amount of goodwill | $0 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits [Abstract] | ||
Demand deposit accounts, noninterest bearing | $4,118,256,000 | $2,375,863,000 |
NOW and money market accounts | 3,913,765,000 | 2,682,419,000 |
Savings accounts | 940,345,000 | 855,394,000 |
Certificates of deposit, $250,000 or more | 838,928,000 | 522,094,000 |
Other certificates of deposit | 1,179,648,000 | 945,489,000 |
Total deposits | 10,990,942,000 | 7,381,259,000 |
Brokered deposits | 485,300,000 | 224,200,000 |
Scheduled maturities of time certificates | ||
2015 | 1,595,106,000 | |
2016 | 204,649,000 | |
2017 | 96,043,000 | |
2018 | 29,585,000 | |
2019 | 38,858,000 | |
Thereafter | 54,335,000 | |
Total | $2,018,576,000 |
ShortTerm_Borrowings_Details
Short-Term Borrowings (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Mar. 09, 2012 | Dec. 31, 2013 | |
Short-term borrowings | |||
Weighted Average Cost | 0.15% | 0.18% | |
Amount | 931,415,000 | $493,389,000 | |
Fixed interest rate Federal Home Loan Bank advances | 700,000,000 | 300,000,000 | |
Effective interest rate for fixed rate advance (as a percent) | 0.13% | ||
Customer repurchase agreements | |||
Short-term borrowings | |||
Weighted Average Cost | 0.21% | 0.20% | |
Amount | 219,824,000 | 193,389,000 | |
Federal Home Loan Bank advances | |||
Short-term borrowings | |||
Weighted Average Cost | 0.13% | 0.17% | |
Amount | 700,000,000 | 300,000,000 | |
Federal Funds Purchased | |||
Short-term borrowings | |||
Weighted Average Cost | 0.14% | 0.00% | |
Amount | 11,591,000 | 0 | |
Line of Credit | |||
Short-term borrowings | |||
Unsecured line of credit | 35,000,000 | ||
Description of interest rate basis | one month LIBOR | ||
Line of Credit | Libor | |||
Short-term borrowings | |||
Interest rate, basis spread (as a percent) | 1.85% |
Longterm_Borrowings_Details
Long-term Borrowings (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term Debt, Unclassified [Abstract] | ||
Federal Home Loan Bank advances | $4,200,000 | $4,300,000 |
Effective interest rates on Federal Home Loan Bank advances, low end of range (as a percent) | 3.23% | |
Effective interest rates on Federal Home Loan Bank advances, high end of range (as a percent) | 5.87% | |
Long-term borrowings | ||
Long-term borrowings | 82,916,000 | 62,159,000 |
Principal payments due on long-term borrowings | ||
2015 | 17,589,000 | |
2016 | 53,147,000 | |
2017 | 6,018,000 | |
2018 | 1,917,000 | |
2019 | 680,000 | |
Thereafter | 3,565,000 | |
Total | 82,916,000 | 62,159,000 |
Notes payable to banks | ||
Long-term borrowings | ||
Long-term borrowings | 38,500,000 | 17,500,000 |
Minimum interest rates (as a percent) | 2.25% | |
Maximum interest rates (as a percent) | 12.00% | |
Equipment pledged as collateral | 48,800,000 | 25,700,000 |
Principal payments due on long-term borrowings | ||
Total | 38,500,000 | 17,500,000 |
Structured repurchase agreement | ||
Long-term borrowings | ||
Long-term borrowings | 40,000,000 | 40,000,000 |
Term of structured repurchase agreement (in years) | 10 years | 10 years |
Fixed interest rate, if option not exercised (as a percent) | 4.75% | 4.75% |
Principal payments due on long-term borrowings | ||
Total | $40,000,000 | $40,000,000 |
Junior_Subordinated_Notes_Issu2
Junior Subordinated Notes Issued to Capital Trusts (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 22, 2014 | Sep. 30, 2014 | |
Outstanding junior subordinated notes | ||||||
Principal balance | $185,778 | $152,065 | ||||
Liquidation amount of trust preferred securities | 13,059 | 61,616 | 156,956 | |||
Gain on extinguishment of debt | 1,895 | 0 | 0 | |||
Junior Subordinated Notes | Maximum | ||||||
Outstanding junior subordinated notes | ||||||
Period for deferment of payment of interest on notes (in years) | 5 years | |||||
Taylor Capital Trust I [Member] | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Stated interest rate | 9.75% | |||||
Liquidation amount of trust preferred securities | 45,400 | |||||
Gain on extinguishment of debt | 1,900 | |||||
Coal City Capital Trust I | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | 25,774 | |||||
Interest rate, basis spread (as a percent) | 1.80% | |||||
Description of annual interest rate basis | 3-mo LIBOR | |||||
MB Financial Capital Trust II | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | 36,083 | |||||
Interest rate, basis spread (as a percent) | 1.40% | |||||
Description of annual interest rate basis | 3-mo LIBOR | |||||
MB Financial Capital Trust III | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | 10,310 | |||||
Interest rate, basis spread (as a percent) | 1.50% | |||||
Description of annual interest rate basis | 3-mo LIBOR | |||||
MB Financial Capital Trust IV | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | 20,619 | |||||
Interest rate, basis spread (as a percent) | 1.52% | |||||
Description of annual interest rate basis | 3-mo LIBOR | |||||
MB Financial Capital Trust V | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | 30,928 | |||||
Interest rate, basis spread (as a percent) | 1.30% | |||||
Description of annual interest rate basis | 3-mo LIBOR | |||||
MB Financial Capital Trust VI | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | 23,196 | |||||
Interest rate, basis spread (as a percent) | 1.30% | |||||
Description of annual interest rate basis | 3-mo LIBOR | |||||
FOBB Statutory Trust III | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | 5,155 | [1] | ||||
Interest rate, basis spread (as a percent) | 2.80% | [1] | ||||
Description of annual interest rate basis | 3-mo LIBOR | [1] | ||||
TAYC Capital Trust II [Member] | Junior Subordinated Notes | ||||||
Outstanding junior subordinated notes | ||||||
Principal balance | $41,238 | [2] | ||||
Interest rate, basis spread (as a percent) | 2.68% | [2] | ||||
Description of annual interest rate basis | 3-mo LIBOR | [2] | ||||
[1] | FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBBâ€) prior to the Company's acquisition of FOBB, and the junior subordinated notes issued by FOBB to FOBB Statutory Trust III were assumed by the Company upon completion of the acquisition. | |||||
[2] | TAYC Capital Trust II was established by Taylor Capital prior to the Company's acquisition of Taylor Capital, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with TAYC Capital Trust II do not include purchase accounting adjustments to such amounts, which in each case resulted in a discount of $7.5 million. |
Junior_Subordinated_Notes_Issu3
Junior Subordinated Notes Issued to Capital Trusts (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Coal City Capital Trust I | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | $25,000,000 | |
Interest rate, basis spread (as a percent) | 1.80% | |
Description of annual interest rate basis | 3-mo LIBOR | |
MB Financial Capital Trust II | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | 35,000,000 | |
Interest rate, basis spread (as a percent) | 1.40% | |
Description of annual interest rate basis | 3-mo LIBOR | |
MB Financial Capital Trust III | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | 10,000,000 | |
Interest rate, basis spread (as a percent) | 1.50% | |
Description of annual interest rate basis | 3-mo LIBOR | |
MB Financial Capital Trust IV | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | 20,000,000 | |
Interest rate, basis spread (as a percent) | 1.52% | |
Description of annual interest rate basis | 3-mo LIBOR | |
MB Financial Capital Trust V | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | 30,000,000 | |
Interest rate, basis spread (as a percent) | 1.30% | |
Description of annual interest rate basis | 3-mo LIBOR | |
MB Financial Capital Trust VI | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | 22,500,000 | |
Interest rate, basis spread (as a percent) | 1.30% | |
Description of annual interest rate basis | 3-mo LIBOR | |
FOBB Statutory Trust III | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | 5,000,000 | [1] |
Interest rate, basis spread (as a percent) | 2.80% | [1] |
Description of annual interest rate basis | 3-mo LIBOR | [1] |
TAYC Capital Trust II [Member] | ||
Trust preferred securities issued by each trust | ||
Purchase accounting adjustments discount | 7,500,000 | |
TAYC Capital Trust II [Member] | Trust preferred securities issued by each trust | ||
Trust preferred securities issued by each trust | ||
Face Value | $40,000,000 | [2] |
Interest rate, basis spread (as a percent) | 2.68% | [2] |
Description of annual interest rate basis | 3-mo LIBOR | [2] |
[1] | FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBBâ€) prior to the Company's acquisition of FOBB, and the junior subordinated notes issued by FOBB to FOBB Statutory Trust III were assumed by the Company upon completion of the acquisition. | |
[2] | TAYC Capital Trust II was established by Taylor Capital prior to the Company's acquisition of Taylor Capital, and the junior subordinated notes issued by Taylor Capital to TAYC Capital Trust II were assumed by the Company upon completion of the acquisition. Principal balance and face value amounts associated with TAYC Capital Trust II do not include purchase accounting adjustments to such amounts, which in each case resulted in a discount of $7.5 million. |
Lease_Commitments_and_Rental_E2
Lease Commitments and Rental Expense (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net Rents | |||
Net rental expense | $7,400,000 | $4,700,000 | $5,400,000 |
Office space | |||
Gross Rents | |||
2015 | 10,272,000 | ||
2016 | 8,329,000 | ||
2017 | 7,398,000 | ||
2018 | 5,296,000 | ||
2019 | 4,680,000 | ||
Thereafter | 17,310,000 | ||
Total | 53,285,000 | ||
Sublease Rents | |||
2015 | 797,000 | ||
2016 | 484,000 | ||
2017 | 439,000 | ||
2018 | 414,000 | ||
2019 | 424,000 | ||
Thereafter | 581,000 | ||
Total | 3,139,000 | ||
Net Rents | |||
2015 | 9,475,000 | ||
2016 | 7,845,000 | ||
2017 | 6,959,000 | ||
2018 | 4,882,000 | ||
2019 | 4,256,000 | ||
Thereafter | 16,729,000 | ||
Total | $50,146,000 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Benefit Plans | |||
Requisite service period to participate in contribution plan (in months) | 3 months | ||
Employee contribution limit per calendar year (as a percent of compensation) | 75.00% | ||
Employer contribution limit per calendar year (as a percent of compensation) | 3.50% | ||
Company's expected contribution to plan during current fiscal year | $8,600,000 | ||
Company's total contribution to plan | 7,000,000 | 6,900,000 | |
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Defer payment, participant limit per calendar year (as a percent of compensation) | 100.00% | ||
Estimated discretionary company contributions | 563,000 | ||
Actual employer's contribution | 643,000 | 464,000 | |
Chief executive officer | Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employer's contribution to deferred compensation plan (as a percent of base salary) | 20.00% | ||
Fair market value of assets held in other publicly traded funds | 16,800,000 | ||
Decreases in fair market value of assets and obligation | $829,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax asset: | ||
Allowance for credit losses | $43,853 | $44,418 |
Federal net operating loss carryforwards | 12,234 | 0 |
State net operating loss carryforwards | 26,582 | 24,354 |
Other real estate owned | 14,229 | 7,878 |
Stock options and restricted stock | 5,904 | 5,816 |
Loans | 47,668 | 6,833 |
Deferred compensation | 10,620 | 8,423 |
Tax credit carryforwards | 25,244 | 13,233 |
Bonus accrual | 5,595 | 4,739 |
Merger and non-compete accrual | 0 | 623 |
Other items | 3,390 | 1,222 |
Total deferred tax asset | 195,319 | 117,539 |
Valuation allowance | 0 | 0 |
Total deferred tax asset, net of valuation allowance | 195,319 | 117,539 |
Deferred tax liability: | ||
Equipment leasing | -112,524 | -90,941 |
Premises and equipment | -18,817 | -27,059 |
Mortgage servicing rights | -64,486 | -7 |
Deferred income from FDIC-assisted transactions | -45,999 | -48,272 |
Investment securities | -1,802 | -5,030 |
FHLB stock dividends | -2,652 | -2,441 |
Core deposit intangible | -9,118 | -2,918 |
Other items | -2,794 | -3,792 |
Total deferred tax liability | -258,192 | -180,460 |
Net deferred tax liability | -62,873 | -62,921 |
Net unrealized holding gain on investment securities available for sale | -13,099 | -5,354 |
Net deferred tax liability | ($75,972) | ($68,275) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current expense (benefit): | |||
Federal | $25,270,000 | $12,234,000 | $15,075,000 |
State | 11,971,000 | 5,576,000 | 6,225,000 |
Foreign | 0 | 0 | 0 |
Current expense (benefit) | 37,241,000 | 17,810,000 | 21,300,000 |
Deferred expense (benefit): | |||
Federal | 3,122,000 | 17,245,000 | 13,688,000 |
State | -3,170,000 | 4,436,000 | 1,489,000 |
Foreign | 0 | 0 | 0 |
Deferred income tax expense | -48,000 | 21,681,000 | 15,177,000 |
Income tax expense | 37,193,000 | 39,491,000 | 36,477,000 |
Statutory federal income tax rate (as a percent) | 35.00% | ||
Federal income tax expense at expected statutory rate | 43,153,000 | 48,281,000 | 44,398,000 |
Increase (decrease) due to: | |||
Tax exempt income, net | -14,848,000 | -14,200,000 | -12,539,000 |
State tax expense net of federal impact | 5,721,000 | 6,508,000 | 5,014,000 |
Non-deductible contingent consideration | 3,738,000 | 0 | 0 |
Non-includable increase in cash surrender value of life insurance | -1,120,000 | -1,111,000 | -1,177,000 |
Non-deductible merger expense | 988,000 | 591,000 | 0 |
Adjustment of tax contingency reserves | -31,000 | -24,000 | 14,000 |
Other items, net | -408,000 | -554,000 | 767,000 |
Income tax expense | 37,193,000 | 39,491,000 | 36,477,000 |
Federal Alternative Minimum Tax Credit Carryforward | |||
Operating loss carryforwards | |||
Tax credit carryforward | 21,400,000 | ||
General Business Tax Credit Carryforward | |||
Operating loss carryforwards | |||
Tax credit carryforward | 3,700,000 | ||
Domestic Tax Authority [Member] | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | 35,000,000 | ||
State | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | 12,700,000 | ||
ILLINOIS | State | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | $509,200,000 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Unrecognized Tax Benefit Without Interest | |
Balance at the beginning of the period | $73 |
Increases for tax positions of prior years | 0 |
Acquisition related increases | 939 |
Benefits recognized | -31 |
Balance at the end of the period | 981 |
Interest on unrecognized Tax Benefit | |
Balance at the beginning of the period | 7 |
Increases for tax positions of prior years | 6 |
Acquisition related increases | 0 |
Benefits recognized | -6 |
Balance at the end of the period | 7 |
Total Unrecognized Tax Benefit Including Interest | |
Balance at the beginning of the period | 80 |
Increases for tax positions of prior years | 6 |
Acquisition related increases | 939 |
Benefits recognized | -37 |
Balance at the end of the period | $988 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments [Abstract] | ||
Maximum maturity period for letters of credit (in years) | 5 years | |
Increase in maximum potential amount of future payments under letters of credit | $63,900,000 | |
Dollar amount of letters of credit outstanding | 134,200,000 | 70,300,000 |
Letters of credit issued or renewed | 121,800,000 | |
Capital expenditure commitments outstanding | 1,400,000 | |
Home equity lines | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | 221,102,000 | 208,581,000 |
Other commitments | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | 2,643,220,000 | 1,214,391,000 |
Standby | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | 131,810,000 | 69,556,000 |
Commercial | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | $2,401,000 | $708,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (States and political subdivisions, State of Illinois) | 12 Months Ended |
Dec. 31, 2014 | |
States and political subdivisions | State of Illinois | |
Concentrations of credit risk | |
Percentage of investments issued by states and political subdivisions that were within the state of Illinois | 27.00% |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total capital (to risk-weighted assets): | ||
Actual Amount | $1,544,759 | $1,106,541 |
Actual Ratio (as a percent) | 13.62% | 16.53% |
For Capital Adequacy Purposes Amount | 907,369 | 535,430 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier I capital (to risk-weighted assets): | ||
Actual Amount | 1,430,702 | 1,022,512 |
Actual Ratio (as a percent) | 12.61% | 15.28% |
For Capital Adequacy Purposes Amount | 453,684 | 267,715 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Tier I capital (to average assets): | ||
Actual Amount | 1,430,702 | 1,022,512 |
Actual Ratio (as a percent) | 10.47% | 11.22% |
For Capital Adequacy Purposes Amount | 546,766 | 364,587 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
MB Financial Bank | ||
Total capital (to risk-weighted assets): | ||
Actual Amount | 1,473,928 | 974,189 |
Actual Ratio (as a percent) | 13.03% | 14.59% |
For Capital Adequacy Purposes Amount | 904,917 | 534,004 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 1,131,146 | 667,505 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10.00% | 10.00% |
Tier I capital (to risk-weighted assets): | ||
Actual Amount | 1,359,871 | 890,380 |
Actual Ratio (as a percent) | 12.02% | 13.34% |
For Capital Adequacy Purposes Amount | 452,459 | 267,002 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 678,688 | 400,503 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.00% | 6.00% |
Tier I capital (to average assets): | ||
Actual Amount | 1,359,871 | 890,380 |
Actual Ratio (as a percent) | 9.96% | 9.79% |
For Capital Adequacy Purposes Amount | 545,943 | 363,904 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $682,429 | $454,880 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financial assets | ||||
Securities available for sale, at fair value | $1,654,752,000 | $1,118,912,000 | ||
Loans held for sale | 737,209,000 | 629,000 | ||
Mortgage servicing rights, at fair value | 235,402,000 | 413,000 | ||
Derivative financial instruments, assets | 13,952,000 | 5,875,000 | ||
Financial liabilities | ||||
Derivative financial instrument, liabilities | 37,927,000 | 12,753,000 | ||
U.S. Government sponsored agencies and enterprises | ||||
Financial assets | ||||
Securities available for sale, at fair value | 65,873,000 | 52,068,000 | ||
States and political subdivisions | ||||
Financial assets | ||||
Securities available for sale, at fair value | 410,854,000 | 19,143,000 | ||
Residential mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 720,563,000 | 701,233,000 | ||
Commercial mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 187,662,000 | 52,941,000 | ||
Corporate bonds | ||||
Financial assets | ||||
Securities available for sale, at fair value | 259,203,000 | 283,070,000 | ||
Equity securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 10,597,000 | 10,457,000 | ||
Recurring basis | ||||
Financial assets | ||||
Loans held for sale | 737,209,000 | 629,000 | ||
Mortgage servicing rights, at fair value | 235,402,000 | |||
Assets held in trust for deferred compensation | 16,829,000 | 10,679,000 | ||
Derivative financial instruments, assets | 46,388,000 | 18,645,000 | ||
Financial liabilities | ||||
Other liabilities | 16,483,000 | [1] | 10,569,000 | [1] |
Derivative financial instrument, liabilities | 40,499,000 | 18,632,000 | ||
Recurring basis | U.S. Government sponsored agencies and enterprises | ||||
Financial assets | ||||
Securities available for sale, at fair value | 65,873,000 | 52,068,000 | ||
Recurring basis | States and political subdivisions | ||||
Financial assets | ||||
Securities available for sale, at fair value | 410,854,000 | 19,143,000 | ||
Recurring basis | Residential mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 720,563,000 | 701,233,000 | ||
Recurring basis | Commercial mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 187,662,000 | 52,941,000 | ||
Recurring basis | Corporate bonds | ||||
Financial assets | ||||
Securities available for sale, at fair value | 259,203,000 | 283,070,000 | ||
Recurring basis | Equity securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 10,597,000 | 10,457,000 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets | ||||
Securities available for sale, at fair value | 10,597,000 | 10,457,000 | ||
Loans held for sale | 0 | 0 | ||
Mortgage servicing rights, at fair value | 0 | |||
Assets held in trust for deferred compensation | 16,829,000 | 10,679,000 | ||
Derivative financial instruments, assets | 1,607,000 | 0 | ||
Financial liabilities | ||||
Other liabilities | 16,483,000 | [1] | 10,569,000 | [1] |
Derivative financial instrument, liabilities | 7,209,000 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government sponsored agencies and enterprises | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 10,597,000 | 10,457,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | ||||
Financial assets | ||||
Securities available for sale, at fair value | 1,643,182,000 | 1,102,599,000 | ||
Loans held for sale | 737,209,000 | 629,000 | ||
Mortgage servicing rights, at fair value | 0 | |||
Assets held in trust for deferred compensation | 0 | 0 | ||
Derivative financial instruments, assets | 39,707,000 | 18,645,000 | ||
Financial liabilities | ||||
Other liabilities | 0 | [1] | 0 | [1] |
Derivative financial instrument, liabilities | 33,290,000 | 18,632,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government sponsored agencies and enterprises | ||||
Financial assets | ||||
Securities available for sale, at fair value | 65,873,000 | 52,068,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions | ||||
Financial assets | ||||
Securities available for sale, at fair value | 410,391,000 | 19,143,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 720,053,000 | 700,542,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 187,662,000 | 52,941,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||||
Financial assets | ||||
Securities available for sale, at fair value | 259,203,000 | 277,905,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | Equity securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Significant Unobservable Inputs (Level 3) | ||||
Financial assets | ||||
Securities available for sale, at fair value | 973,000 | 5,856,000 | ||
Loans held for sale | 0 | 0 | ||
Mortgage servicing rights, at fair value | 235,402,000 | |||
Assets held in trust for deferred compensation | 0 | 0 | ||
Derivative financial instruments, assets | 5,074,000 | 0 | ||
Financial liabilities | ||||
Other liabilities | 0 | [1] | 0 | [1] |
Derivative financial instrument, liabilities | 0 | 0 | ||
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Government sponsored agencies and enterprises | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions | ||||
Financial assets | ||||
Securities available for sale, at fair value | 463,000 | 0 | ||
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 510,000 | 691,000 | ||
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 0 | ||
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate bonds | ||||
Financial assets | ||||
Securities available for sale, at fair value | 0 | 5,165,000 | ||
Recurring basis | Significant Unobservable Inputs (Level 3) | Equity securities | ||||
Financial assets | ||||
Securities available for sale, at fair value | $0 | $0 | ||
[1] | Liabilities associated with assets held in trust for deferred compensation |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $1,654,752,000 | $1,118,912,000 |
Mortgage servicing rights, at fair value | 235,402,000 | 413,000 |
Derivative financial instruments, assets | 13,952,000 | 5,875,000 |
Appraisal adjustments - sales costs (as a percent) | 90.00% | |
States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 410,854,000 | 19,143,000 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 720,563,000 | 701,233,000 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 259,203,000 | 283,070,000 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights, at fair value | 235,402,000 | |
Derivative financial instruments, assets | 46,388,000 | 18,645,000 |
Recurring basis | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 410,854,000 | 19,143,000 |
Recurring basis | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 720,563,000 | 701,233,000 |
Recurring basis | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 259,203,000 | 283,070,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 973,000 | 5,856,000 |
Mortgage servicing rights, at fair value | 235,402,000 | |
Derivative financial instruments, assets | 5,074,000 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring basis | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 463,000 | 0 |
Credit assumption (as a percent) | 45.00% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 510,000 | 691,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 5,165,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Constant prepayment rates (as a percent) | 1.00% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
CPR (as percent) | 4.90% | |
Discount rate (as percent) | 9.25% | |
Maturity period (in months) | 36 months | |
Delinquencies (as percent) | 0.00% | |
Costs to service | 60 | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Mortgage Derivative Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Expected closing ratio | 16.90% | |
Expected delivery price | 98.89% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Constant prepayment rates (as a percent) | 3.00% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
CPR (as percent) | 26.90% | |
Discount rate (as percent) | 16.00% | |
Maturity period (in months) | 460 months | |
Delinquencies (as percent) | 28.57% | |
Costs to service | $356 | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Mortgage Derivative Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and a Nonrecurring Basis [Line Items] | ||
Expected closing ratio | 94.00% | |
Expected delivery price | 1.10% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Mortgage Servicing Rights, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
CPR, Impact on fair value of 10% adverse change | ($9,650,000) |
CPR, Impact on fair value of 20% adverse change | -18,574,000 |
Discount rate, Impact on fair value of 10% adverse change | -8,998,000 |
Discount rate, Impact on fair value of 20% adverse change | -17,356,000 |
Delinquency rate, Impact on fair value of 10% adverse change | -1,520,000 |
Delinquency rate, Impact on fair value of 20% adverse change | -2,196,000 |
Weighted average costs to service, Impact on fair value of 10% adverse change | -3,325,000 |
Weighted average costs to service, Impact on fair value of 20% adverse change | -6,651,000 |
Weighted Average | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
CPR (as percent) | 11.50% |
Discount rate (as percent) | 9.41% |
Delinquencies (as percent) | 1.25% |
Costs to service | $70 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at the end of the period | $973 | $5,856 |
Securities Investment | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at the beginning of the period | 5,856 | 6,071 |
Acquired through business combination | 507 | 0 |
Purchases | 0 | 0 |
Originations | 0 | 0 |
Other comprehensive income | 128 | -44 |
Principal payments | -363 | -157 |
Impairment charge | -92 | -14 |
Sales | -498 | 0 |
Transferred out of level 3 | -4,565 | 0 |
Balance at the end of the period | 5,856 | |
Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at the beginning of the period | 0 | 0 |
Acquired through business combination | 224,798 | 0 |
Purchases | 1,096 | 0 |
Originations | 21,285 | 0 |
Other comprehensive income | -11,777 | 0 |
Principal payments | 0 | 0 |
Transferred out of level 3 | 0 | 0 |
Balance at the end of the period | 235,402 | 0 |
Mortgage Derivative Instruments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at the beginning of the period | 0 | 0 |
Acquired through business combination | 5,922 | 0 |
Purchases | 0 | 0 |
Originations | 0 | 0 |
Other comprehensive income | -848 | 0 |
Principal payments | 0 | 0 |
Transferred out of level 3 | 0 | 0 |
Balance at the end of the period | 5,074 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Impairment charge | 0 | 0 |
Sales | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage Derivative Instruments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Impairment charge | 0 | 0 |
Sales | $0 | $0 |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (Nonrecurring basis, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Impaired loans | $61,717 | $77,497 |
Foreclosed assets | 38,619 | 44,601 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Impaired loans | 61,717 | 77,497 |
Foreclosed assets | $38,619 | $44,601 |
Significant Unobservable Inputs (Level 3) | Minimum | ||
Financial Assets: | ||
Appraisal adjustment, impaired loans | 5.00% | |
Appraisal adjustment, foreclosed assets | 5.00% | |
Significant Unobservable Inputs (Level 3) | Maximum | ||
Financial Assets: | ||
Appraisal adjustment, impaired loans | 10.00% | |
Appraisal adjustment, foreclosed assets | 10.00% |
Fair_Value_Measurements_Detail5
Fair Value Measurements (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ||
Maximum maturity period of short-term borrowings where carrying value approximates fair value (in days) | 90 days | |
Minimum maturity period of short-term borrowings where fair value is based on discounted value of contractual cash flows (in days) | 90 days | |
Financial Assets: | ||
Cash and due from banks | $256,804 | $205,193 |
Interest bearing deposits with banks | 55,277 | 268,266 |
Federal funds sold | 0 | 42,950 |
Securities available for sale, at fair value | 1,654,752 | 1,118,912 |
Investment securities held to maturity | 1,035,061 | 1,198,929 |
Non-marketable securities - FHLB and FRB stock | 75,569 | 51,417 |
Loans held for sale | 737,209 | 629 |
Derivative financial instruments | 13,952 | 5,875 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,118,256 | 2,375,863 |
Interest bearing deposits | 6,872,686 | 5,005,396 |
Short-term borrowings | 931,415 | 493,389 |
Junior subordinated notes issued to capital trusts | 185,778 | 152,065 |
Derivative financial instruments | 37,927 | 12,753 |
Carrying Amount | ||
Financial Assets: | ||
Cash and due from banks | 256,804 | 205,193 |
Interest bearing deposits with banks | 55,277 | 268,266 |
Federal funds sold | 42,950 | |
Securities available for sale, at fair value | 1,654,752 | 1,118,912 |
Investment securities held to maturity | 993,380 | 1,182,533 |
Non-marketable securities - FHLB and FRB stock | 75,569 | 51,417 |
Loans held for sale | 737,209 | 629 |
Loans, net | 8,973,191 | 5,600,805 |
Accrued interest receivable | 49,065 | 36,593 |
Derivative financial instruments | 46,388 | 18,645 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,118,256 | 2,375,863 |
Interest bearing deposits | 6,872,686 | 5,005,396 |
Short-term borrowings | 931,415 | 493,389 |
Long-term borrowings | 82,916 | 62,159 |
Junior subordinated notes issued to capital trusts | 185,778 | 152,065 |
Accrued interest payable | 3,709 | 2,042 |
Derivative financial instruments | 40,499 | 18,632 |
Total Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 256,804 | 205,193 |
Interest bearing deposits with banks | 55,277 | 268,266 |
Federal funds sold | 42,950 | |
Securities available for sale, at fair value | 1,654,752 | 1,118,912 |
Investment securities held to maturity | 1,035,061 | 1,198,929 |
Non-marketable securities - FHLB and FRB stock | 75,569 | 51,417 |
Loans held for sale | 737,209 | 629 |
Loans, net | 8,956,494 | 5,583,759 |
Accrued interest receivable | 49,065 | 36,593 |
Derivative financial instruments | 46,388 | 18,645 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,118,256 | 2,375,863 |
Interest bearing deposits | 6,877,349 | 5,012,928 |
Short-term borrowings | 931,416 | 493,384 |
Long-term borrowings | 86,025 | 66,301 |
Junior subordinated notes issued to capital trusts | 122,408 | 101,247 |
Accrued interest payable | 3,709 | 2,042 |
Derivative financial instruments | 40,499 | 18,632 |
Recurring basis | ||
Financial Assets: | ||
Loans held for sale | 737,209 | 629 |
Derivative financial instruments | 46,388 | 18,645 |
Financial Liabilities: | ||
Derivative financial instruments | 40,499 | 18,632 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets: | ||
Cash and due from banks | 256,804 | 205,193 |
Interest bearing deposits with banks | 55,277 | 268,266 |
Federal funds sold | 42,950 | |
Securities available for sale, at fair value | 10,597 | 10,457 |
Investment securities held to maturity | 0 | 0 |
Non-marketable securities - FHLB and FRB stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 49,065 | 36,593 |
Derivative financial instruments | 1,607 | 0 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,118,256 | 2,375,863 |
Interest bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Accrued interest payable | 3,709 | 2,042 |
Derivative financial instruments | 7,209 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest bearing deposits with banks | 0 | 0 |
Federal funds sold | 0 | |
Securities available for sale, at fair value | 1,643,182 | 1,102,599 |
Investment securities held to maturity | 1,035,061 | 1,198,929 |
Non-marketable securities - FHLB and FRB stock | 0 | 0 |
Loans held for sale | 737,209 | 629 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative financial instruments | 39,707 | 18,645 |
Financial Liabilities: | ||
Non-interest bearing deposits | 0 | 0 |
Interest bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative financial instruments | 33,290 | 18,632 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest bearing deposits with banks | 0 | 0 |
Federal funds sold | 0 | |
Securities available for sale, at fair value | 973 | 5,856 |
Investment securities held to maturity | 0 | 0 |
Non-marketable securities - FHLB and FRB stock | 75,569 | 51,417 |
Loans held for sale | 0 | 0 |
Loans, net | 8,956,494 | 5,583,759 |
Accrued interest receivable | 0 | 0 |
Derivative financial instruments | 5,074 | 0 |
Financial Liabilities: | ||
Non-interest bearing deposits | 0 | 0 |
Interest bearing deposits | 6,877,349 | 5,012,928 |
Short-term borrowings | 931,416 | 493,384 |
Long-term borrowings | 86,025 | 66,301 |
Junior subordinated notes issued to capital trusts | 122,408 | 101,247 |
Accrued interest payable | 0 | 0 |
Derivative financial instruments | $0 | $0 |
Stock_Incentive_Plans_Details
Stock Incentive Plans (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 28-May-14 | Dec. 31, 2011 | |
Impact of the share-based payment plans in the financial statements | |||||
Total cost of share-based payment plans during the year | $8,974,000 | $5,456,000 | $4,806,000 | ||
Amount of related income tax benefit recognized in income | 3,528,000 | 2,159,000 | 1,918,000 | ||
Stock-based compensation | |||||
Numerator of shares granted beyond threshold limit | 2 | ||||
Denominator of shares granted beyond threshold limit | 1 | ||||
Omnibus Incentive Plan (the "Omnibus Plan") | |||||
Stock-based compensation | |||||
Number of additional authorized shares | 3,100,000 | ||||
Number of common shares authorized for issuance | 11,400,000 | ||||
Percentage of shares authorized for issuance | 10.00% | ||||
Number of shares available for future grants | 6,243,194 | ||||
Minimum vesting period (in years) | 3 years | ||||
Unrecognized compensation cost | $17,400,000 | ||||
Expected weighted-average period for recognition of unrecognized compensation expense (in years) | 2 years 3 months 0 days | ||||
Stock options | |||||
Stock-based compensation | |||||
Continuous service period for vesting of option awards (in years) | 4 years | ||||
Contractual terms of option awards (in years) | 10 years | ||||
Stock options | Director | |||||
Stock-based compensation | |||||
Minimum vesting period (in years) | 5 years | ||||
Maximum percentage of fees with an option to be received in equity-based incentive awards | 70.00% | ||||
Period of restriction for sale of underlying shares (in months) | 6 months | ||||
Restricted stock | Director | |||||
Stock-based compensation | |||||
Minimum vesting period (in years) | 1 year | ||||
Maximum percentage of fees with an option to be received in equity-based incentive awards | 100.00% | ||||
Performance-based restricted stock units | |||||
Stock-based compensation | |||||
Minimum vesting period (in years) | 3 years | ||||
Number of shares issued | 48,569 | 56,752 | 65,333 | ||
Performance based restricted units performance period (in years) | 3 years | ||||
Share based compensation restricted stock units multiplier (in percent) | 100.00% | ||||
Market-based restricted stock | |||||
Stock-based compensation | |||||
Number of shares issued | 92,717 | ||||
Number of consecutive trading days over which a specified closing price of the entity's stock is maintained | 10 days | ||||
Minimum closing price of the entity's stock (in dollars per share) | $27 | ||||
Minimum | Restricted stock and restricted stock units | |||||
Stock-based compensation | |||||
Minimum vesting period (in years) | 2 years | ||||
Minimum | Performance-based restricted stock units | |||||
Stock-based compensation | |||||
Percentage of shares earned to number of units issued | 0.00% | ||||
Maximum | Restricted stock and restricted stock units | |||||
Stock-based compensation | |||||
Minimum vesting period (in years) | 4 years | ||||
Maximum | Performance-based restricted stock units | |||||
Stock-based compensation | |||||
Percentage of shares earned to number of units issued | 175.00% | ||||
Taylor Capital Group, Inc. | Omnibus Incentive Plan (the "Omnibus Plan") | |||||
Stock-based compensation | |||||
Number of common shares authorized for issuance | 13,800,000 | ||||
Number of additional shares authorized | 2,400,000 |
Stock_Incentive_Plans_Details_
Stock Incentive Plans (Details 2) (Stock options, USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock options | ||
Options outstanding activity | ||
Options outstanding at the beginning of the period (in shares) | 2,443,752 | |
Granted (in shares) | 231,977 | |
Exercised (in shares) | -211,339 | |
Expired or cancelled (in shares) | -177,125 | |
Forfeited (in shares) | -36,551 | |
Options outstanding at the end of the period (in shares) | 2,250,714 | 2,443,752 |
Weighted Average Exercise Price | ||
Options outstanding at the beginning of the period (in dollars per share) | $27.57 | |
Granted (in dollars per share) | $29.63 | |
Exercised (in dollars per share) | $19.88 | |
Expired or cancelled (in dollars per share) | $35.78 | |
Forfeited (in dollars per share) | $22.33 | |
Options outstanding at the end of the period (in dollars per share) | $27.94 | $27.57 |
Options exercisable at end of the period (in dollars per share) | $29 | |
Options exercisable at end of the period (in shares) | 1,689,055 | |
Weighted Average Remaining Contractual Term (In Years) | ||
Options outstanding at the end of the period | 4 years 4 months 20 days | 4 years 8 months 16 days |
Options exercisable at end of the period | 3 years 2 months 12 days | |
Aggregate Intrinsic Value | ||
Options outstanding at the end of the period | $13,820 | |
Options exercisable at end of the period | $9,263 |
Stock_Incentive_Plans_Details_1
Stock Incentive Plans (Details 3) (Stock options, USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options | |||
Stock-based compensation | |||
Intrinsic value of options exercised | $2,000 | $1,300 | $203 |
Fair value assumptions | |||
Risk free interest rate (as a percent) | 1.82% | 1.92% | 1.02% |
Expected volatility of Company's stock (as a percent) | 23.16% | 25.18% | 27.17% |
Expected dividend yield (as a percent) | 1.65% | 1.73% | 2.00% |
Expected life of options (in years) | 5 years 6 months 10 days | 5 years 6 months 19 days | 5 years 8 months 12 days |
Weighted average fair value per option of options granted during the year (in dollars per share) | $5.93 | $5.88 | $4.23 |
Stock_Incentive_Plans_Details_2
Stock Incentive Plans (Details 4) (Restricted stock and restricted stock units, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted stock and restricted stock units | |||
Stock-based compensation | |||
Intrinsic value of restricted shares vested | $8,600,000 | $5,800,000 | $6,200,000 |
Changes in restricted shares | |||
Nonvested shares of restricted stock and nonvested restricted stock units at the beginning of the period | 685,719 | ||
Granted (in shares) | 443,375 | ||
Vested (in shares) | -305,504 | ||
Forfeited (in shares) | -22,505 | ||
Nonvested shares of restricted stock and nonvested restricted stock units at the end of the period | 801,085 | 685,719 | |
Weighted Average Grant Date Fair Value, restricted shares | |||
Shares Outstanding at the beginning of the period (in dollars per share) | $22.59 | ||
Granted (in dollars per share) | $29.23 | ||
Vested (in dollars per share) | $20.53 | ||
Forfeited (in dollars per share) | $24.92 | ||
Nonvested shares of restricted stock and nonvested restricted stock units at the end of the period (in dollars per share) | $26.99 | $22.59 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative [Line Items] | |||||
Net amount payable under interest rate swap | $1,134,000 | $25,000 | |||
Interest rate swap credit risk exposure | 11,200,000 | ||||
Asset Derivatives, Notional Amount | 2,465,120,000 | 667,934,000 | |||
Derivative Asset | 46,388,000 | 18,645,000 | |||
Asset Derivatives, Estimated Fair Value | 13,952,000 | 5,875,000 | |||
Liability Derivatives, Notional Amount | 2,964,961,000 | 684,999,000 | |||
Derivative Liability | -40,499,000 | -18,632,000 | |||
Liability Derivatives, Estimated Fair Value | -37,927,000 | -12,753,000 | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | 1,583,000 | -90,000 | 178,000 | ||
Stand-alone derivative instruments | |||||
Derivative [Line Items] | |||||
Asset Derivatives, Notional Amount | 2,465,120,000 | [1] | 667,934,000 | [1] | |
Derivative Asset | 46,388,000 | [1] | 18,645,000 | [1] | |
Liability Derivatives, Notional Amount | 2,964,764,000 | [1] | 684,761,000 | [1] | |
Derivative Liability | -40,484,000 | [1] | -18,609,000 | [1] | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | 1,575,000 | -99,000 | 193,000 | ||
Commercial loan interest rate swaps | |||||
Derivative [Line Items] | |||||
Liability Derivatives, Notional Amount | 197,000 | ||||
Interest rate swap contracts | Derivative instruments designated as hedges of fair value | |||||
Derivative [Line Items] | |||||
Liability Derivatives, Notional Amount | 197,000 | [2] | 238,000 | [2] | |
Derivative Liability | -15,000 | [2] | -23,000 | [2] | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | 8,000 | 9,000 | -15,000 | ||
Interest rate swap contracts | Stand-alone derivative instruments | |||||
Derivative [Line Items] | |||||
Asset Derivatives, Notional Amount | 1,509,930,000 | [1] | 550,883,000 | [1] | |
Derivative Asset | 37,039,000 | [1] | 17,298,000 | [1] | |
Liability Derivatives, Notional Amount | 2,001,787,000 | [1] | 551,798,000 | [1] | |
Derivative Liability | -30,761,000 | [1] | -17,350,000 | [1] | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | 2,458,000 | 40,000 | 30,000 | ||
Interest rate options contracts | Stand-alone derivative instruments | |||||
Derivative [Line Items] | |||||
Asset Derivatives, Notional Amount | 55,830,000 | [1] | 83,907,000 | [1] | |
Derivative Asset | 283,000 | [1] | 323,000 | [1] | |
Liability Derivatives, Notional Amount | 55,830,000 | [1] | 84,953,000 | [1] | |
Derivative Liability | -283,000 | [1] | -323,000 | [1] | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | 0 | 0 | 0 | ||
Foreign exchange contracts | Stand-alone derivative instruments | |||||
Derivative [Line Items] | |||||
Asset Derivatives, Notional Amount | 27,402,000 | [1] | 31,361,000 | [1] | |
Derivative Asset | 2,276,000 | [1] | 1,006,000 | [1] | |
Liability Derivatives, Notional Amount | 27,002,000 | [1] | 47,760,000 | [1] | |
Derivative Liability | -2,109,000 | [1] | -935,000 | [1] | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | 96,000 | -30,000 | 67,000 | ||
Spot Foreign Exchange Contract [Member] | Stand-alone derivative instruments | |||||
Derivative [Line Items] | |||||
Asset Derivatives, Notional Amount | 512,000 | 0 | |||
Derivative Asset | 5,000 | 0 | |||
Liability Derivatives, Notional Amount | 304,000 | 0 | |||
Derivative Liability | -18,000 | 0 | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | -14,000 | 0 | 0 | ||
Mortgage banking derivatives | Stand-alone derivative instruments | |||||
Derivative [Line Items] | |||||
Asset Derivatives, Notional Amount | 871,446,000 | [1] | 1,783,000 | [1] | |
Derivative Asset | 6,785,000 | [1] | 18,000 | [1] | |
Liability Derivatives, Notional Amount | 879,841,000 | [1] | 250,000 | [1] | |
Derivative Liability | -7,313,000 | [1] | -1,000 | [1] | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||||
Amounts of gain or (loss) recognized in income on derivatives | ($965,000) | ($109,000) | $96,000 | ||
[1] | These portfolio swaps are not designated as hedging instruments under ASC Topic 815. | ||||
[2] | Hedged fixed-rate commercial real estate loans |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | $13,952 | $5,875 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 13,952 | 5,875 |
Financial Liabilities, Gross Amount Recognized | 37,927 | 12,753 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 37,927 | 12,753 |
Repurchase Agreements, Financial Assets, Gross Amount Recognized | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Gross Amount Offset | 0 | 0 |
Repurchase Agreements, Financial Assets, Net Amount Recognized | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Gross Amount Recognized | 219,824 | 193,389 |
Repurchase Agreements, Financial Liabilities, Gross Amount Offset | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Net Amount Recognized | 219,824 | 193,389 |
Total Financial Assets, Gross Amount Recognized | 13,952 | 5,875 |
Total Financial Assets, Gross Amount Offset | 0 | 0 |
Total Financial Assets, Net Amount Recognized | 13,952 | 5,875 |
Total Financial Liabilities, Gross Amount Recognized | 257,751 | 206,142 |
Total Financial Liabilities, Gross Amount Offset | 0 | 0 |
Total Financial Liabilities, Net Amount Recognized | 257,751 | 206,142 |
Interest rate swaps, caps and floors | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 10,727 | 5,792 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 10,727 | 5,792 |
Financial Liabilities, Gross Amount Recognized | 29,916 | 11,904 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 29,916 | 11,904 |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 1,525 | 80 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 1,525 | 80 |
Financial Liabilities, Gross Amount Recognized | 709 | 848 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 709 | 848 |
Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 1,700 | 3 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 1,700 | 3 |
Financial Liabilities, Gross Amount Recognized | 7,302 | 1 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | $7,302 | $1 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | $13,952 | $5,875 |
Financial Assets, Financial Instruments | -10,201 | -2,912 |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 3,751 | 2,963 |
Financial Liabilities, Net Amount Recognized | 37,927 | 12,753 |
Financial Liabilities, Financial Instruments | -10,200 | -2,912 |
Financial Liabilities, Collateral | -26,010 | -9,786 |
Financial Liabilities, Net Amount | 1,717 | 55 |
Repurchase Agreements, Financial Assets, Net Amount Recognized | 0 | 0 |
Repurchase Agreements, Financial Assets, Financial Instruments | 0 | 0 |
Repurchase Agreements, Financial Assets, Collateral | 0 | 0 |
Repurchase Agreements, Financial Assets, Net Amount | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Net Amount Recognized | 219,824 | 193,389 |
Repurchase Agreements, Financial Liabilities, Financial Instruments | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Collateral | -219,824 | -193,389 |
Repurchase Agreements, Financial Liabilities, Net Amount | 0 | 0 |
Total Financial Assets, Net Amount Recognized | 13,952 | 5,875 |
Total Financial Assets, Financial Instruments | -10,201 | -2,912 |
Total Financial Assets, Collateral | 0 | 0 |
Total Financial Assets, Net Amount | 3,751 | 2,963 |
Total Financial Liabilities, Net Amount Recognized | 257,751 | 206,142 |
Total Financial Liabilities, Financial Instruments | -10,200 | -2,912 |
Total Financial Liabilities, Collateral | -245,834 | -203,175 |
Total Financial Liabilities, Net Amount | 1,717 | 55 |
Counterparty A | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 13 | 883 |
Financial Assets, Financial Instruments | -13 | -883 |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 9,556 | 10,669 |
Financial Liabilities, Financial Instruments | -13 | -883 |
Financial Liabilities, Collateral | -9,543 | -9,786 |
Financial Liabilities, Net Amount | 0 | 0 |
Counterparty B | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 145 | 1,836 |
Financial Assets, Financial Instruments | -145 | -412 |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 1,424 |
Financial Liabilities, Net Amount Recognized | 3,736 | 412 |
Financial Liabilities, Financial Instruments | -145 | -412 |
Financial Liabilities, Collateral | -3,591 | 0 |
Financial Liabilities, Net Amount | 0 | 0 |
Counterparty C | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 6,123 | 2,380 |
Financial Assets, Financial Instruments | -6,123 | -1,612 |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 768 |
Financial Liabilities, Net Amount Recognized | 10,335 | 1,612 |
Financial Liabilities, Financial Instruments | -6,122 | -1,612 |
Financial Liabilities, Collateral | -4,213 | 0 |
Financial Liabilities, Net Amount | 0 | 0 |
Other Counterparties | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 7,671 | 776 |
Financial Assets, Financial Instruments | -3,920 | -5 |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 3,751 | 771 |
Financial Liabilities, Net Amount Recognized | 14,300 | 60 |
Financial Liabilities, Financial Instruments | -3,920 | -5 |
Financial Liabilities, Collateral | -8,663 | 0 |
Financial Liabilities, Net Amount | $1,717 | $55 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
segment | |||||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | 3 | ||||
Net interest income | $350,823,000 | $272,336,000 | $292,788,000 | ||
Provision for credit losses | 12,052,000 | -5,804,000 | -8,900,000 | ||
Non-interest income | 221,305,000 | 154,394,000 | 129,193,000 | ||
Non-interest expense | 436,782,000 | [1] | 294,588,000 | [1] | 304,030,000 |
Income tax expense | 37,193,000 | 39,491,000 | 36,477,000 | ||
Net income | 86,101,000 | 98,455,000 | 90,374,000 | ||
Total assets | 14,602,099,000 | 9,641,427,000 | 9,571,805,000 | ||
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 328,326,000 | 267,131,000 | 290,881,000 | ||
Provision for credit losses | 12,022,000 | -6,167,000 | -9,035,000 | ||
Non-interest income | 115,411,000 | 92,936,000 | 93,124,000 | ||
Non-interest expense | 350,358,000 | [1] | 259,753,000 | [1] | 284,452,000 |
Income tax expense | 21,106,000 | 28,201,000 | 30,780,000 | ||
Net income | 60,251,000 | 78,280,000 | 77,808,000 | ||
Total assets | 12,698,740,000 | 9,167,127,000 | 9,187,480,000 | ||
Leasing | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 12,783,000 | 5,205,000 | 1,907,000 | ||
Provision for credit losses | 35,000 | 363,000 | 135,000 | ||
Non-interest income | 59,806,000 | 59,794,000 | 33,744,000 | ||
Non-interest expense | 39,525,000 | [1] | 34,835,000 | [1] | 19,578,000 |
Income tax expense | 12,524,000 | 11,290,000 | 5,697,000 | ||
Net income | 20,505,000 | 18,511,000 | 10,241,000 | ||
Total assets | 930,748,000 | 474,300,000 | 384,325,000 | ||
Mortgage Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 9,714,000 | 0 | 0 | ||
Provision for credit losses | -5,000 | 0 | 0 | ||
Non-interest income | 46,088,000 | 1,664,000 | 2,325,000 | ||
Non-interest expense | 46,899,000 | [1] | 0 | [1] | 0 |
Income tax expense | 3,563,000 | 0 | 0 | ||
Net income | 5,345,000 | 1,664,000 | 2,325,000 | ||
Total assets | 972,611,000 | 0 | 0 | ||
Taylor Capital Group, Inc. | |||||
Segment Reporting Information [Line Items] | |||||
Merger expenses, banking segment | $34,800,000 | $2,500,000 | |||
[1] | Includes merger related expenses of $34.8 million and $2.5 million in the banking segment for the years ended December 31, 2014 and 2013, respectively. |
Condensed_Parent_Company_Finan2
Condensed Parent Company Financial Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash | $312,081 | $473,459 | $287,543 | $244,565 |
Other assets | 297,690 | 197,416 | ||
Total assets | 14,602,099 | 9,641,427 | 9,571,805 | |
Liabilities and Stockholders’ Equity | ||||
Junior subordinated notes issued to capital trusts | 185,778 | 152,065 | ||
Other liabilities | 382,762 | 225,873 | ||
Stockholders’ equity | 2,028,286 | 1,326,682 | 1,275,770 | 1,393,027 |
Total liabilities and stockholders’ equity | 14,602,099 | 9,641,427 | ||
MB Financial, Inc. | ||||
Assets | ||||
Cash | 32,161 | 122,001 | 57,303 | 108,323 |
Investments in subsidiaries | 2,143,408 | 1,340,641 | ||
Other assets | 38,941 | 24,505 | ||
Total assets | 2,214,510 | 1,487,147 | ||
Liabilities and Stockholders’ Equity | ||||
Junior subordinated notes issued to capital trusts | 185,778 | 152,065 | ||
Other liabilities | 446 | 8,400 | ||
Stockholders’ equity | 2,028,286 | 1,326,682 | ||
Total liabilities and stockholders’ equity | $2,214,510 | $1,487,147 |
Condensed_Parent_Company_Finan3
Condensed Parent Company Financial Information (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Parent Company Financial Information | |||
Income before income taxes | $123,294 | $137,946 | $126,851 |
Income tax benefit | 37,193 | 39,491 | 36,477 |
Net income | 86,101 | 98,455 | 90,374 |
Dividends and discount accretion on preferred shares | 4,000 | 3,269 | |
Net income available to common stockholders | 82,101 | 98,455 | 87,105 |
MB Financial, Inc. | |||
Condensed Parent Company Financial Information | |||
Dividends from subsidiaries | 101,500 | 80,500 | 146,000 |
Interest and other income | 3,097 | 4,215 | 1,682 |
Interest and other expense | 14,636 | 7,143 | 7,117 |
Income before income taxes | 89,961 | 77,572 | 140,565 |
Income tax benefit | -4,590 | -1,223 | -2,192 |
Income before equity in undistributed net income of subsidiaries | 94,551 | 78,795 | 142,757 |
Equity in undistributed net (loss) income of subsidiaries | -8,450 | 19,660 | -52,383 |
Net income | 86,101 | 98,455 | 90,374 |
Dividends and discount accretion on preferred shares | 4,000 | 0 | 3,269 |
Net income available to common stockholders | $82,101 | $98,455 | $87,105 |
Condensed_Parent_Company_Finan4
Condensed Parent Company Financial Information (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities | |||
Net income | $86,101 | $98,455 | $90,374 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Compensation expense for share-based payment plans | 8,974 | 5,456 | 4,806 |
Cash Flows From Investing Activities | |||
Net decrease in loans | 155,399 | 38,725 | 219,125 |
Payments to Acquire Businesses, Net of Cash Acquired | -25,174 | 0 | 27,010 |
Net cash (used in) provided by investing activities | 674,561 | -39,247 | 330,163 |
Cash Flows From Financing Activities | |||
Treasury stock transactions, net | -2,690 | -1,672 | -249 |
Stock options exercised | 1,034 | 1,014 | 154 |
Excess tax benefits from share-based payment arrangements | 396 | -325 | -390 |
Dividends paid on common stock | -34,210 | -24,070 | -7,101 |
Dividends paid on preferred stock | -2,000 | -3,239 | |
Net cash (used in) provided by financing activities | -1,003,386 | 32,405 | -469,005 |
Net (decrease) increase in cash and cash equivalents | -161,378 | 185,916 | 42,978 |
Cash: | |||
Beginning of year | 473,459 | 287,543 | 244,565 |
End of year | 312,081 | 473,459 | 287,543 |
MB Financial, Inc. | |||
Cash Flows From Operating Activities | |||
Net income | 86,101 | 98,455 | 90,374 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Compensation expense for share-based payment plans | 8,974 | 5,456 | 4,806 |
Equity in undistributed net income of subsidiaries | 8,450 | -19,660 | 52,383 |
Change in other assets and other liabilities | -8,980 | -1,460 | -5,064 |
Net cash provided by operating activities | 94,545 | 82,791 | 142,499 |
Cash Flows From Investing Activities | |||
Net decrease in loans | 0 | 6,960 | 21,010 |
Payments to Acquire Businesses, Net of Cash Acquired | -101,546 | ||
Net cash (used in) provided by investing activities | -101,546 | 6,960 | 21,010 |
Cash Flows From Financing Activities | |||
Treasury stock transactions, net | -2,690 | -1,672 | -249 |
Stock options exercised | 1,034 | 1,014 | 154 |
Excess tax benefits from share-based payment arrangements | 396 | -325 | -390 |
Dividends paid on common stock | -34,210 | -24,070 | -7,101 |
Dividends paid on preferred stock | -2,000 | 0 | -3,239 |
Repurchase of preferred stock and warrant | 0 | 0 | -197,518 |
Redemption of on junior subordinated notes issued to capital trusts | -45,369 | 0 | -6,186 |
Net cash (used in) provided by financing activities | -82,839 | -25,053 | -214,529 |
Net (decrease) increase in cash and cash equivalents | -89,840 | 64,698 | -51,020 |
Cash: | |||
Beginning of year | 122,001 | 57,303 | 108,323 |
End of year | $32,161 | $122,001 | $57,303 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Aug. 18, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Preferred stock, shares outstanding | 4,000,000 | 4,000,000 | 0 |
Preferred stock, liquidation preference per share | $25 | $0 | |
Preferred stock, dividend rate | 8.00% |