Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | MB FINANCIAL INC /MD | |
Entity Central Index Key | 1,139,812 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 75,082,414 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 290,266 | $ 256,804 |
Interest earning deposits with banks | 144,154 | 55,277 |
Total cash and cash equivalents | 434,420 | 312,081 |
Federal funds sold | 5 | 0 |
Investment securities: | ||
Securities available for sale, at fair value | 1,620,551 | 1,654,752 |
Securities held to maturity, at amortized cost ($1,231,840 fair value at June 30, 2015 and $1,035,061 at December 31, 2014) | 1,203,627 | 993,380 |
Non-marketable securities - FHLB and FRB stock | 111,400 | 75,569 |
Total investment securities | 2,935,578 | 2,723,701 |
Loans held for sale | 801,343 | 737,209 |
Loans: | ||
Total loans, excluding purchased credit impaired loans | 8,929,181 | 8,831,572 |
Purchased credit impaired loans | 164,775 | 251,645 |
Total loans | 9,093,956 | 9,083,217 |
Less: Allowance for loan and lease losses | 120,070 | 110,026 |
Net loans | 8,973,886 | 8,973,191 |
Lease investments, net | 167,966 | 162,833 |
Premises and equipment, net | 234,651 | 238,377 |
Cash surrender value of life insurance | 135,237 | 133,562 |
Goodwill | 711,521 | 711,521 |
Other intangibles | 34,979 | 38,006 |
Mortgage servicing rights, at fair value | 261,034 | 235,402 |
Other real estate owned, net | 28,517 | 19,198 |
Other real estate owned related to FDIC-assisted transactions | 13,867 | 19,328 |
Other assets | 285,190 | 297,690 |
Total assets | 15,018,194 | 14,602,099 |
Deposits: | ||
Non-interest bearing | 4,378,005 | 4,118,256 |
Interest bearing | 6,483,809 | 6,872,686 |
Total deposits | 10,861,814 | 10,990,942 |
Short-term borrowings | 1,382,635 | 931,415 |
Long-term borrowings | 89,639 | 82,916 |
Junior subordinated notes issued to capital trusts | 185,971 | 185,778 |
Accrued expenses and other liabilities | 420,396 | 382,762 |
Total liabilities | 12,940,455 | 12,573,813 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at June 30, 2015 and December 31, 2014; Series A, 8% perpetual non-cumulative, 4,000,000 shares issued and outstanding at June 30, 2015 and December 31, 2014, $25 liquidation value) | 115,280 | 115,280 |
Common stock, ($0.01 par value; authorized 100,000,000 shares at June 30, 2015 and December 31, 2014; issued 75,421,543 shares at June 30, 2015 and 75,067,482 shares at December 31, 2014) | 754 | 751 |
Additional paid-in capital | 1,273,333 | 1,267,761 |
Retained earnings | 677,246 | 629,677 |
Accumulated other comprehensive income | 18,778 | 20,356 |
Less: 348,251 and 296,715 shares of treasury common stock, at cost, at June 30, 2015 and December 31, 2014, respectively | (9,035) | (6,974) |
Controlling interest stockholders’ equity | 2,076,356 | 2,026,851 |
Noncontrolling interest | 1,383 | 1,435 |
Total stockholders’ equity | 2,077,739 | 2,028,286 |
Total liabilities and stockholders’ equity | $ 15,018,194 | $ 14,602,099 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, at amortized cost, fair value | $ 1,231,840 | $ 1,035,061 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, dividend rate, percentage | 8.00% | 8.00% |
Preferred stock, shares issued | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding | 4,000,000 | 4,000,000 |
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | $ 25 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 75,421,543 | 75,067,482 |
Treasury stock, shares | 348,251 | 296,715 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||
Loans: | ||||||
Taxable | $ 98,768 | $ 53,649 | $ 197,614 | $ 107,595 | ||
Nontaxable | 2,259 | 2,256 | 4,433 | 4,554 | ||
Investment securities: | ||||||
Taxable | 10,002 | 8,794 | 19,936 | 16,940 | ||
Nontaxable | 10,140 | 8,285 | 19,253 | 16,352 | ||
Federal funds sold | 0 | 4 | 0 | 9 | ||
Other interest earning accounts | 57 | 277 | 119 | 390 | ||
Total interest income | 121,226 | 73,265 | 241,355 | 145,840 | ||
Interest expense: | ||||||
Deposits | 4,554 | 3,754 | 9,199 | 7,523 | ||
Short-term borrowings | 355 | 95 | 632 | 195 | ||
Long-term borrowings and junior subordinated notes | 1,844 | 1,344 | 3,656 | 2,722 | ||
Total interest expense | 6,753 | 5,193 | 13,487 | 10,440 | ||
Net interest income | 114,473 | 68,072 | 227,868 | 135,400 | ||
Provision for credit losses | 4,296 | (1,950) | 9,270 | (800) | ||
Net interest income after provision for credit losses | 110,177 | 70,022 | 218,598 | 136,200 | ||
Non-interest income: | ||||||
Lease financing, net | 15,564 | 14,853 | 40,644 | 28,049 | ||
Mortgage banking revenue | 35,648 | 187 | 60,192 | 246 | ||
Commercial deposit and treasury management fees | 11,062 | 7,106 | 22,100 | 14,250 | ||
Trust and asset management fees | 5,752 | 5,405 | 11,466 | 10,612 | ||
Card fees | 4,409 | 3,304 | 8,336 | 6,005 | ||
Capital markets and international banking fees | 1,508 | 1,360 | 3,436 | 2,338 | ||
Consumer and other deposit service fees | 3,260 | 3,156 | 6,343 | 6,091 | ||
Brokerage fees | 1,543 | 1,356 | 3,221 | 2,681 | ||
Loan service fees | 1,353 | 916 | 2,838 | 1,881 | ||
Increase in cash surrender value of life insurance | 836 | 834 | 1,675 | 1,661 | ||
Net (loss) gain on investment securities | (84) | (87) | (544) | 230 | ||
Net loss on sale of assets | (7) | (24) | (3) | (17) | ||
Other operating income | 2,105 | 1,562 | 4,513 | 2,513 | ||
Total non-interest income | 82,949 | 39,928 | 164,217 | 76,540 | ||
Non-interest expenses: | ||||||
Salaries and employee benefits | 86,145 | 46,622 | 170,931 | 90,999 | ||
Occupancy and equipment | 12,177 | 9,518 | 25,117 | 19,110 | ||
Computer services and telecommunication | 8,537 | 5,079 | 17,441 | 10,163 | ||
Advertising and marketing | 2,497 | 2,221 | 4,943 | 4,302 | ||
Professional and legal | 2,413 | 1,567 | 5,083 | 3,346 | ||
Other intangibles amortization | 1,509 | 1,174 | 3,027 | 2,414 | ||
Branch exit and facilities impairment charges | 438 | 0 | 7,829 | 0 | ||
Net loss recognized on other real estate owned and other expenses | 724 | 528 | 1,620 | 1,111 | ||
Prepayment fees on interest bearing liabilities | 0 | 0 | 85 | 0 | ||
Other operating expenses | 18,297 | 11,321 | 36,581 | 22,632 | ||
Total non-interest expenses | 132,737 | [1] | 78,030 | 272,657 | [2] | 154,077 |
Income before income taxes | 60,389 | 31,920 | 110,158 | 58,663 | ||
Income tax expense | 19,437 | 8,814 | 35,095 | 15,588 | ||
Net income | 40,952 | 23,106 | 75,063 | 43,075 | ||
Dividends on preferred shares | 2,000 | 0 | 4,000 | 0 | ||
Net income available to common stockholders | $ 38,952 | $ 23,106 | $ 71,063 | $ 43,075 | ||
Common share data: | ||||||
Basic earnings per common share | $ 0.52 | $ 0.42 | $ 0.95 | $ 0.79 | ||
Diluted earnings per common share | $ 0.52 | $ 0.42 | $ 0.94 | $ 0.78 | ||
Weighted average common shares outstanding for basic earnings per common share | 74,596,925 | 54,669,868 | 74,582,097 | 54,654,992 | ||
Diluted weighted average common shares outstanding for diluted earnings per common share | 75,296,029 | 55,200,054 | 75,230,455 | 55,232,703 | ||
[1] | Includes merger related expenses of $1.2 million and $488 thousand in the banking segment for the three months ended June 30, 2015 and 2014, respectively. | |||||
[2] | Includes merger related expenses of $9.3 million and $1.2 million in the banking segment for the six months ended June 30, 2015 and 2014, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 40,952 | $ 23,106 | $ 75,063 | $ 43,075 |
Unrealized holding (losses) gains on investment securities, net of reclassification adjustments | (10,886) | 5,554 | (1,482) | 10,500 |
Reclassification adjustment for amortization of unrealized gains on investment securities transferred to held to maturity from available for sale | (1,257) | (1,239) | (1,659) | (2,615) |
Reclassification adjustments for losses (gains) included in net income | 84 | 87 | 544 | (230) |
Other comprehensive (loss) income, before tax | (12,059) | 4,402 | (2,597) | 7,655 |
Income tax expense (benefit) related to items of other comprehensive income | 4,736 | (1,730) | 1,019 | (3,004) |
Other comprehensive (loss) income, net of tax | (7,323) | 2,672 | (1,578) | 4,651 |
Comprehensive income | $ 33,629 | $ 25,778 | $ 73,485 | $ 47,726 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income, Net of Tax | Treasury Stock | Noncontrolling Interest |
Beginning 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 | 43,216 | 43,075 | 141 | |||||
Other comprehensive income, net of tax | 4,651 | 4,651 | ||||||
Cash dividends declared on common shares | (13,332) | (13,332) | ||||||
Restricted common stock activity, net of tax | 123 | 2 | 61 | 60 | ||||
Stock option activity, net of tax | 256 | 256 | ||||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan | (409) | 199 | (608) | |||||
Stock-based compensation expense | 4,255 | 4,255 | ||||||
Distributions to noncontrolling interest | (126) | (126) | ||||||
Ending balance at Jun. 30, 2014 | 1,365,316 | 0 | 553 | 742,824 | 611,741 | 13,034 | (4,295) | 1,459 |
Beginning balance at Dec. 31, 2014 | 2,028,286 | 115,280 | 751 | 1,267,761 | 629,677 | 20,356 | (6,974) | 1,435 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 75,211 | 75,063 | 148 | |||||
Other comprehensive income, net of tax | (1,578) | (1,578) | ||||||
Issuance of common stock | 217 | 217 | ||||||
Cash dividends declared on preferred shares | (4,000) | (4,000) | ||||||
Cash dividends declared on common shares | (23,494) | (23,494) | ||||||
Restricted common stock activity, net of tax | 318 | 3 | (2,561) | 2,876 | ||||
Stock option activity, net of tax | 102 | 102 | ||||||
Repurchase of common shares | (3,055) | (3,055) | ||||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan | (1,543) | 339 | (1,882) | |||||
Stock-based compensation expense | 7,475 | 7,475 | ||||||
Distributions to noncontrolling interest | (200) | (200) | ||||||
Ending balance at Jun. 30, 2015 | $ 2,077,739 | $ 115,280 | $ 754 | $ 1,273,333 | $ 677,246 | $ 18,778 | $ (9,035) | $ 1,383 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.31 | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 75,063 | $ 43,075 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment and leased equipment | 29,879 | 27,865 |
Branch exit and facilities impairment charges | 7,829 | 0 |
Compensation expense for share-based payment plans | 7,475 | 4,255 |
Net loss (gain) on sales of premises and equipment and leased equipment | 2,111 | (1,275) |
Amortization of other intangibles | 3,027 | 2,414 |
Provision for credit losses | 9,270 | (800) |
Deferred income tax expense | 14,292 | (646) |
Amortization of premiums and discounts on investment securities, net | 23,245 | 22,022 |
Amortization of premiums and discounts on loans, net | (18,700) | (1,819) |
Accretion of FDIC indemnification asset | (48) | (59) |
Net loss (gain) on investment securities | 544 | (230) |
Proceeds from sale of loans held for sale | 3,577,634 | 9,810 |
Origination of loans held for sale | (3,676,454) | (10,098) |
Net gain on sale of loans held for sale | (16,114) | (246) |
Change in fair value of mortgage servicing rights | 11,123 | 0 |
Net loss on other real estate owned | 1,550 | 326 |
Net (gain) loss on other real estate owned related to FDIC-assisted transactions | (361) | 52 |
Increase in cash surrender value of life insurance | (1,675) | (1,661) |
(Increase) decrease in other assets, net | (11,335) | 9,971 |
Decrease (increase) in other liabilities, net | 7,665 | (1,227) |
Net cash provided by operating activities | 46,020 | 101,729 |
Cash Flows From Investing Activities | ||
(Increase) decrease in federal funds sold | (5) | 32,950 |
Proceeds from sales of investment securities available for sale | 28,356 | 11,718 |
Proceeds from maturities and calls of investment securities available for sale | 128,013 | 126,206 |
Purchases of investment securities available for sale | (137,029) | (175,645) |
Proceeds from maturities and calls of investment securities held to maturity | 42,460 | 21,319 |
Purchases of investment securities held to maturity | (255,091) | (82,841) |
Purchases of non-marketable securities - FHLB and FRB stock | (35,831) | (15) |
Net decrease in loans | 32,677 | 147,150 |
Purchases of mortgage servicing rights | (352) | 0 |
Purchases of premises and equipment and leased equipment | (31,871) | (26,964) |
Proceeds from sales of premises and equipment and leased equipment | 2,868 | 3,729 |
Proceeds from sale of other real estate owned | 2,341 | 3,308 |
Proceeds from sale of other real estate owned related to FDIC-assisted transactions | 7,544 | 9,060 |
Net proceeds from FDIC related covered assets | (4,972) | 1,778 |
Net cash (used in) provided by investing activities | (220,892) | 71,753 |
Cash Flows From Financing Activities | ||
Net (decrease) increase in deposits | (129,128) | 381,805 |
Net increase (decrease) in short-term borrowings | 451,220 | (263,580) |
Proceeds from long-term borrowings | 14,881 | 14,853 |
Principal paid on long-term borrowings | (8,158) | (5,539) |
Treasury stock transactions, net | (4,598) | (410) |
Stock options exercised | 87 | 134 |
Excess tax expense from share-based payment arrangements | 94 | 231 |
Dividends paid on preferred stock | (4,000) | 0 |
Dividends paid on common stock | (23,187) | (13,140) |
Net cash provided by financing activities | 297,211 | 114,354 |
Net increase in cash and cash equivalents | 122,339 | 287,836 |
Cash and cash equivalents: | ||
Beginning of period | 312,081 | 473,459 |
End of period | 434,420 | 761,295 |
Cash payments for: | ||
Interest paid to depositors and other borrowed funds | 14,485 | 10,393 |
Income tax payments, net | 1,574 | 11,740 |
Supplemental Schedule of Noncash Investing Activities: | ||
Investment securities held to maturity purchased not settled | 6,978 | 7,075 |
Loans held for sale transferred to loans held for investment | 32,469 | 0 |
Loans transferred to other real estate owned | 13,210 | 651 |
Loans transferred to other real estate owned related to FDIC-assisted transactions | 1,290 | 3,894 |
Loans transferred to repossessed vehicles | 439 | 345 |
Operating leases rewritten as direct finance leases included as loans | $ 6,412 | $ 4,429 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited consolidated financial statements include the accounts of MB Financial, Inc., a Maryland corporation (the “Company”), and its subsidiaries, including its wholly owned national bank subsidiary, MB Financial Bank, N.A. (“MB Financial Bank”), based in Chicago, Illinois. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been made. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year. These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and industry practice. Certain information in footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP and industry practice has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ from those estimates. 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. |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition. New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to require an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if (i) the loan has a government guarantee that is not separable from the loan before foreclosure, (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have a material 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not have an 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not 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. In addition, it requires disclosures related to collateral, remaining contractual tenor and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition. The additional disclosures are included in Note 9. Short-Term Borrowings and Note 10. Long-Term Borrowings. 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition. ASC Topic 225 “Income Statement - Extraordinary and Unusual Items.” New authoritative accounting guidance under ASC Topic 225, “Income Statement - Extraordinary and Unusual Items” amended prior guidance to eliminate the concept of extraordinary items. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 810 “Consolidation.” New authoritative accounting guidance under ASC Topic 810, “Consolidation” amended prior guidance over the consolidation of certain legal entities. The new authoritative guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with variable interest entities and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements similar to those for registered money market funds. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 835 “Interest.” New authoritative accounting guidance under ASC Topic 835, “Interest” amended prior guidance to simplify the presentation of debt issuance costs. The new authoritative guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 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 share and per share data). Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Distributed earnings allocated to common stock $ 12,884 $ 6,666 $ 23,494 $ 13,332 Undistributed earnings 28,068 16,440 51,569 29,743 Net income 40,952 23,106 75,063 43,075 Less: preferred stock dividends 2,000 — 4,000 — Net income available to common stockholders 38,952 23,106 71,063 43,075 Less: earnings allocated to participating securities 2 1 3 1 Earnings allocated to common stockholders $ 38,950 $ 23,105 $ 71,060 $ 43,074 Weighted average shares outstanding for basic earnings per common share 74,596,925 54,669,868 74,582,097 54,654,992 Dilutive effect of equity awards 699,104 530,186 648,358 577,711 Weighted average shares outstanding for diluted earnings per common share 75,296,029 55,200,054 75,230,455 55,232,703 Basic earnings per common share $ 0.52 $ 0.42 $ 0.95 $ 0.79 Diluted earnings per common share 0.52 0.42 0.94 0.78 |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination 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. As the consideration paid for Taylor Capital exceeded the net assets acquired, goodwill of $288.2 million was recorded on the acquisition and was 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 have been determined to be final as of March 31, 2015. 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 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. 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 credit-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 recorded $9.3 million and $1.2 million in pre-tax merger related expenses for the six months ended June 30, 2015 and 2014 , respectively. These merger related expenses primarily relate to retention and severance compensation costs, professional and legal fees and branch exit and facilities impairment charges. 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 three and six months ended June 30, 2014 , as if the acquisition had occurred January 1, 2014. The pro forma results combine the historical results of Taylor Capital into the Company's consolidated statement of operations 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, 2014. 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. Net income in the table below includes merger related expenses. Pro Forma Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (in thousands) Total revenues (net interest income plus non-interest income) $ 199,248 $ 384,276 Net income 37,410 72,162 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. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Amortized cost and fair value of investment securities were as follows as of the dates indicated (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Available for Sale U.S. Government sponsored agencies and enterprises $ 64,211 $ 1,274 $ — $ 65,485 States and political subdivisions 380,221 16,160 (469 ) 395,912 Residential mortgage-backed securities 731,399 10,848 (1,069 ) 741,178 Commercial mortgage-backed securities 158,935 2,175 (271 ) 160,839 Corporate bonds 245,506 2,962 (2,000 ) 246,468 Equity securities 10,644 25 — 10,669 Total Available for Sale 1,590,916 33,444 (3,809 ) 1,620,551 Held to Maturity States and political subdivisions 974,032 22,990 (6,349 ) 990,673 Residential mortgage-backed securities 229,595 11,572 — 241,167 Total Held to Maturity 1,203,627 34,562 (6,349 ) 1,231,840 Total $ 2,794,543 $ 68,006 $ (10,158 ) $ 2,852,391 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 Total Available for Sale 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 Total Held to Maturity 993,380 42,063 (382 ) 1,035,061 Total $ 2,617,648 $ 77,433 $ (5,268 ) $ 2,689,813 The Company has no direct exposure to the State of Illinois, but approximately 22% of the state and political subdivisions portfolio consisted of securities issued by municipalities located in Illinois as of June 30, 2015 . Approximately 94% of such securities were general obligation issues as of June 30, 2015 . Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at June 30, 2015 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 States and political subdivisions $ 65,211 $ (453 ) $ 2,243 $ (16 ) $ 67,454 $ (469 ) Residential mortgage-backed securities 113,428 (509 ) 42,403 (560 ) 155,831 (1,069 ) Commercial mortgage-backed securities 11,909 (271 ) — — 11,909 (271 ) Corporate bonds 31,869 (260 ) 9,350 (1,740 ) 41,219 (2,000 ) Total Available for Sale 222,417 (1,493 ) 53,996 (2,316 ) 276,413 (3,809 ) Held to Maturity States and political subdivisions 302,960 (6,110 ) 6,685 (239 ) 309,645 (6,349 ) Total $ 525,377 $ (7,603 ) $ 60,681 $ (2,555 ) $ 586,058 $ (10,158 ) Unrealized losses on investment securities by length of time in a continuous unrealized loss position 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 ) Total Available for Sale 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 ) Total $ 434,234 $ (2,886 ) $ 56,844 $ (2,382 ) $ 491,078 $ (5,268 ) The total number of security positions in the investment portfolio in an unrealized loss position at June 30, 2015 was 334 compared to 168 at December 31, 2014 . This increase, as well as the increase in securities in a continuous unrealized loss position from December 31, 2014 to June 30, 2015, was mainly attributable to securities issued by states and political subdivisions in the investment securities portfolio. 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 the Company is more likely than not to sell the security before recovery of its cost basis. As of June 30, 2015 , 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 securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2015 , 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): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Realized gains $ 324 $ 7 $ 1,083 $ 325 Realized losses (408 ) (2 ) (1,627 ) (3 ) Impairment charges — (92 ) — (92 ) Net (losses) gains $ (84 ) $ (87 ) $ (544 ) $ 230 The amortized cost and fair value of investment securities as of June 30, 2015 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 $ 13,661 $ 13,693 Due after one year through five years 308,631 311,523 Due after five years through ten years 40,075 41,024 Due after ten years 327,571 341,625 Equity securities 10,644 10,669 Residential and commercial mortgage-backed securities 890,334 902,017 1,590,916 1,620,551 Held to maturity: Due in one year or less 63,836 64,022 Due after one year through five years 215,085 217,122 Due after five years through ten years 96,604 99,540 Due after ten years 598,507 609,989 Residential mortgage-backed securities 229,595 241,167 1,203,627 1,231,840 Total $ 2,794,543 $ 2,852,391 Investment securities with a carrying amount of $1.5 billion at June 30, 2015 and December 31, 2014 were pledged as collateral on public deposits and for other purposes as required or permitted by law, while only $874.9 million and $980.4 million were required to be pledged at June 30, 2015 and December 31, 2014 , respectively. Of those pledged, the Company had investment securities pledged as collateral for advances from the Federal Home Loan Bank of $234.3 million and $226.9 million at June 30, 2015 and December 31, 2014 , respectively. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans | Loans Loans consist of the following at (in thousands): June 30, December 31, Commercial loans $ 3,354,889 $ 3,245,206 Commercial loans collateralized by assignment of lease payments 1,690,866 1,692,258 Commercial real estate 2,539,991 2,544,867 Residential real estate 533,118 503,287 Construction real estate 189,599 247,068 Indirect vehicle 303,777 268,840 Home equity 230,478 251,909 Other consumer loans 86,463 78,137 Total loans, excluding purchased credit-impaired loans 8,929,181 8,831,572 Purchased credit-impaired loans 164,775 251,645 Total loans $ 9,093,956 $ 9,083,217 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. Purchased credit-impaired loans. Purchased credit-impaired loans are loans accounted for under ASC 310-30, which include purchased credit-impaired loans acquired through a business combination, FDIC-assisted transactions and re-purchase transactions with the Government National Mortgage Association ("GNMA"). The loans re-purchased from GNMA were originally sold by the Company with servicing retained and subsequently became delinquent. These loans are also insured by the Federal Housing Administration (commonly referred to as "FHA") or the U.S. Department of Veterans Affairs (commonly referred to as "VA") where the Company would be able to recover the principal balance of these loans. All re-purchases from GNMA are at the Company's discretion. 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 June 30, 2015 and December 31, 2014 , the Company had $3.3 billion and $2.0 billion , respectively, of loans pledged as collateral for long-term Federal Home Loan Bank advances and third party letters of credit, while only $2.3 billion and $1.3 billion were required to be pledged at June 30, 2015 and December 31, 2014 , respectively. The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of June 30, 2015 and December 31, 2014 (in thousands): Current 30-59 Days 60-89 Days Loans Past Due Total Total June 30, 2015 Commercial $ 3,322,336 $ 2,129 $ 20,734 $ 9,690 $ 32,553 $ 3,354,889 Commercial collateralized by assignment of lease payments 1,677,305 2,129 4,979 6,453 13,561 1,690,866 Commercial real estate Healthcare 379,218 — — — — 379,218 Industrial 350,957 — — 1,425 1,425 352,382 Multifamily 362,636 795 234 1,517 2,546 365,182 Retail 423,627 134 108 3,173 3,415 427,042 Office 233,567 1,199 2,179 2,868 6,246 239,813 Other 772,628 1,086 847 1,793 3,726 776,354 Residential real estate 520,930 2,710 1,358 8,120 12,188 533,118 Construction real estate 189,262 — — 337 337 189,599 Indirect vehicle 301,239 1,930 432 176 2,538 303,777 Home equity 221,627 1,522 1,150 6,179 8,851 230,478 Other consumer 86,107 178 70 108 356 86,463 Total loans, excluding purchased credit-impaired loans 8,841,439 13,812 32,091 41,839 87,742 8,929,181 Purchased credit-impaired loans 104,520 345 1,731 58,179 60,255 164,775 Total loans $ 8,945,959 $ 14,157 $ 33,822 $ 100,018 $ 147,997 $ 9,093,956 Non-performing loan aging $ 46,777 $ 1,636 $ 7,864 $ 41,778 $ 51,278 $ 98,055 December 31, 2014 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 Total loans, excluding purchased credit-impaired loans 8,755,253 28,643 13,240 34,436 76,319 8,831,572 Purchased credit-impaired 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 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 loans, as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Loans past due Loans past due Non-accrual 90 days or more and still accruing Non-accrual 90 days or more and still accruing Commercial $ 15,807 $ — $ 14,088 $ — Commercial collateralized by assignment of lease payments 10,930 4,316 2,404 3,566 Commercial real estate: Healthcare — — — — Industrial 4,382 — 6,371 — Multifamily 5,116 — 5,333 — Office 2,848 1,446 3,644 464 Retail 5,047 — 2,986 — Other 13,519 — 13,541 324 Residential real estate 17,210 265 17,311 — Construction real estate 337 — 337 — Indirect vehicle 1,368 — 1,542 — Home equity 15,343 — 15,171 — Other consumer 36 85 5 — Total $ 91,943 $ 6,112 $ 82,733 $ 4,354 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 potential problem and problem 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 any time the situation warrants and at least annually. Loans listed as not rated are included in groups of homogeneous loans with similar risk and loss characteristics. The following tables present the risk category of loans by class of loans based on the most recent analysis performed, excluding purchased credit-impaired loans, as of June 30, 2015 and December 31, 2014 (in thousands): Pass Special Substandard Doubtful Total June 30, 2015 Commercial $ 3,100,715 $ 156,718 $ 97,456 $ — $ 3,354,889 Commercial collateralized by assignment of lease payments 1,677,745 683 12,438 — 1,690,866 Commercial real estate Healthcare 379,218 — — — 379,218 Industrial 334,463 12,894 5,025 — 352,382 Multifamily 357,937 739 6,506 — 365,182 Retail 416,120 2,879 8,043 — 427,042 Office 220,939 9,301 9,573 — 239,813 Other 727,399 13,903 35,052 — 776,354 Construction real estate 189,262 — 337 — 189,599 Total $ 7,403,798 $ 197,117 $ 174,430 $ — $ 7,775,345 December 31, 2014 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 Approximately $58.0 million and $49.1 million of the substandard and doubtful loans were non-performing as of June 30, 2015 and December 31, 2014 , respectively. For residential real estate, home equity, indirect vehicle and other consumer loan classes, which are not rated, the Company 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 loans, as of June 30, 2015 and December 31, 2014 (in thousands): Performing Non-performing Total June 30, 2015 Residential real estate $ 515,643 $ 17,475 $ 533,118 Indirect vehicle 302,409 1,368 303,777 Home equity 215,135 15,343 230,478 Other consumer 86,342 121 86,463 Total $ 1,119,529 $ 34,307 $ 1,153,836 December 31, 2014 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 The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired loans, as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 Three Months Ended Six Months Ended Unpaid Recorded Partial Allowance for Average Interest Average Interest With no related allowance recorded: Commercial $ 3,626 $ 3,626 $ — $ — $ 3,906 $ — $ 7,254 $ — Commercial collateralized by assignment of lease payments 1,138 1,138 — — 1,366 18 1,495 47 Commercial real estate: Healthcare — — — — — — — — Industrial 5,549 4,373 1,176 — 4,884 — 4,923 — Multifamily 1,814 1,814 — — 1,926 10 1,859 17 Retail 2,013 801 1,212 — 824 — 824 — Office 1,608 1,031 577 — 1,031 — 1,318 — Other 1,490 1,464 26 — 1,502 — 1,514 — Residential real estate 970 970 — — 959 — 482 — Construction real estate — — — — — — — — Indirect vehicle — — — — — — — — Home equity 1,327 1,025 302 — 1,327 — 667 — Other consumer — — — — — — — — With an allowance recorded: Commercial 13,396 12,636 760 3,706 12,210 — 9,500 — Commercial collateralized by assignment of lease payments 9,800 9,785 15 4,606 6,098 62 3,728 76 Commercial real estate: Healthcare — — — — — — — — Industrial 10 10 — 3 18 — 33 — Multifamily 4,916 4,066 850 661 3,798 19 4,856 27 Retail 7,713 7,043 670 738 7,160 — 7,433 — Office 4,519 4,016 503 1,438 2,319 — 2,297 — Other 12,543 12,522 21 250 13,322 — 13,265 — Residential real estate 13,249 13,249 — 2,831 13,762 — 14,083 — Construction real estate 2,708 337 2,371 162 431 — 431 — Indirect vehicle 132 132 — 10 248 — 310 — Home equity 27,482 27,482 — 2,506 27,384 — 27,299 — Other consumer — — — — — — — — Total $ 116,003 $ 107,520 $ 8,483 $ 16,911 $ 104,475 $ 109 $ 103,571 $ 167 December 31, 2014 Year Ended Unpaid Recorded Partial Allowance for Average Interest 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 Impaired loans included accruing restructured loans of $16.9 million and $15.6 million that have been modified and are performing in accordance with those modified terms as of June 30, 2015 and December 31, 2014 , respectively. In addition, impaired loans included $24.5 million and $25.8 million of non-performing restructured loans as of June 30, 2015 and December 31, 2014 , 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, deferring past due interest or principal, implementing an A/B note structure, redeeming past due taxes, reducing interest rates, extending maturities and modifying 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”), a restructuring program similar to the Home Affordable Modification Program (“HAMP”) for first mortgage borrowers, the Second Lien Modification Program (“2MP”) and similar programs for home equity borrowers in keeping with the restructuring techniques discussed above. 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. As of June 30, 2015 and December 31, 2014 , there was one A/B structure with a recorded investment of $1.0 million , which is included above as an accruing restructured loan. 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 to 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 will not be able to meet the modified terms of the loan, the loan will 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 losses process. 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 were restructured during the three months ended June 30, 2015 (dollars in thousands): June 30, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial 1 $ 80 $ 80 $ — Home equity 6 1,467 1,467 — Total 7 $ 1,547 $ 1,547 $ — Non-Performing: Commercial real estate: Multifamily 1 $ 334 $ 334 $ — Residential real estate 1 140 140 17 Indirect vehicle 3 21 21 7 Total 5 $ 495 $ 495 $ 24 The following table presents loans that were restructured during the six months ended June 30, 2015 (dollars in thousands): June 30, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial 1 $ 80 $ 80 $ — Home equity 12 3,813 3,813 — Total 13 $ 3,893 $ 3,893 $ — Non-Performing: Commercial real estate: Multifamily 1 $ 334 $ 334 $ — Residential real estate 1 140 140 17 Indirect vehicle 6 30 30 7 Home equity 5 798 798 122 Total 13 $ 1,302 $ 1,302 $ 146 The following table presents loans that were restructured during the three months ended June 30, 2014 (dollars in thousands): June 30, 2014 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Home equity 3 $ 843 $ 843 $ — Total 3 $ 843 $ 843 $ — Non-Performing: Commercial 1 $ 263 $ 263 $ 85 Commercial real estate: Multifamily 1 158 158 40 Indirect vehicle 11 59 59 27 Home equity 3 531 531 — Total 16 $ 1,011 $ 1,011 $ 152 The following table presents loans that were restructured during the six months ended June 30, 2014 (dollars in thousands): June 30, 2014 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Indirect vehicle 1 $ 5 $ 5 $ — Home equity 6 1,883 1,883 — Total 7 $ 1,888 $ 1,888 $ — Non-Performing: Commercial 1 $ 263 $ 263 $ 85 Commercial real estate: Multifamily 1 158 158 40 Residential real estate 4 1,439 1,439 — Indirect vehicle 29 167 167 27 Home equity 7 1,063 1,063 — Total 42 $ 3,090 $ 3,090 $ 152 Of the troubled debt restructurings entered into during the past twelve months, $224 thousand subsequently defaulted during the six months ended June 30, 2015 . 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 table presents the troubled debt restructurings activity during the six months ended June 30, 2015 (in thousands): Performing Non-performing Beginning balance $ 15,603 $ 25,771 Additions 3,893 1,302 Charge-offs — (299 ) Principal payments, net (11 ) (946 ) Removals (3,093 ) (867 ) Transfer from/to performing 561 78 Transfer from/to non-performing (78 ) (561 ) Ending balance $ 16,875 $ 24,478 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 during the six months ended June 30, 2015 (in thousands): June 30, 2015 Extended Maturity, Delay in Amortization Extended Payments or and Reduction Maturity and/or Reduction of of Interest Rate Amortization Interest Rate Total Commercial $ — $ — $ 80 $ 80 Commercial real estate: Multifamily — 334 — 334 Residential real estate 140 — — 140 Indirect vehicle — — 30 30 Home equity 1,991 267 2,353 4,611 Total $ 2,131 $ 601 $ 2,463 $ 5,195 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 June 30, 2015 and 2014 (in thousands): Commercial Commercial collateralized by assignment of lease payments Commercial real estate Residential real estate Construction real estate Indirect vehicle Home equity Other consumer Unfunded commitments Total June 30, 2015 Allowance for credit losses: Three Months Ended Beginning balance $ 32,827 $ 9,825 $ 41,958 $ 6,760 $ 9,473 $ 1,715 $ 8,780 $ 2,074 $ 3,777 $ 117,189 Charge-offs 57 100 108 318 3 627 276 500 — 1,989 Recoveries 816 340 2,561 8 35 545 160 169 — 4,634 Provision 5,556 1,203 (6,335 ) 219 2,954 276 (252 ) 392 283 4,296 Ending balance $ 39,142 $ 11,268 $ 38,076 $ 6,669 $ 12,459 $ 1,909 $ 8,412 $ 2,135 $ 4,060 $ 124,130 Six Months Ended Beginning balance $ 29,571 $ 9,962 $ 41,826 $ 6,646 $ 8,918 $ 1,687 $ 9,456 $ 1,960 $ 4,031 $ 114,057 Charge-offs 626 100 2,142 897 6 1,501 720 924 — 6,916 Recoveries 1,058 1,089 3,936 80 37 1,020 261 238 — 7,719 Provision 9,139 317 (5,544 ) 840 3,510 703 (585 ) 861 29 9,270 Ending balance $ 39,142 $ 11,268 $ 38,076 $ 6,669 $ 12,459 $ 1,909 $ 8,412 $ 2,135 $ 4,060 $ 124,130 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 3,706 $ 4,606 $ 3,090 $ 2,831 $ 162 $ 10 $ 2,506 $ — $ 1,334 $ 18,245 Collectively evaluated for impairment 34,984 6,662 34,195 3,838 12,292 1,899 5,906 2,135 2,726 104,637 Acquired and accounted for under ASC 310-30 (1) 452 — 791 — 5 — — — — 1,248 Total ending allowance balance $ 39,142 $ 11,268 $ 38,076 $ 6,669 $ 12,459 $ 1,909 $ 8,412 $ 2,135 $ 4,060 $ 124,130 Loans: Individually evaluated for impairment $ 16,262 $ 10,923 $ 37,140 $ 14,219 $ 337 $ 132 $ 28,507 $ — $ — $ 107,520 Collectively evaluated for impairment 3,338,627 1,679,943 2,502,851 518,899 189,262 303,645 201,971 86,463 — 8,821,661 Acquired and accounted for under ASC 310-30 (1) 52,675 — 53,141 27,861 11,764 — 86 19,248 — 164,775 Total ending loans balance $ 3,407,564 $ 1,690,866 $ 2,593,132 $ 560,979 $ 201,363 $ 303,777 $ 230,564 $ 105,711 $ — $ 9,093,956 Commercial Commercial collateralized by assignment of lease payments Commercial real estate Residential real estate Construction real estate Indirect vehicle Home equity Other consumer Unfunded commitments Total June 30, 2014 Allowance for credit losses: Three Months Ended Beginning balance $ 23,938 $ 9,058 $ 47,540 $ 8,087 $ 6,484 $ 1,684 $ 8,397 $ 1,564 $ 1,643 $ 108,395 Charge-offs 446 40 1,727 433 14 583 817 590 — 4,650 Recoveries 696 130 567 6 77 439 127 68 — 2,110 Provision (1,034 ) 277 (2,447 ) (165 ) (1,934 ) 187 574 1,240 1,352 (1,950 ) Ending balance $ 23,154 $ 9,425 $ 43,933 $ 7,495 $ 4,613 $ 1,727 $ 8,281 $ 2,282 $ 2,995 $ 103,905 Six Months Ended Beginning balance $ 23,461 $ 9,159 $ 51,628 $ 8,872 $ 6,856 $ 1,662 $ 8,478 $ 1,630 $ 1,716 $ 113,462 Charge-offs 536 40 8,883 698 70 1,503 1,436 1,085 — 14,251 Recoveries 2,324 130 1,052 525 176 881 260 146 — 5,494 Provision (2,095 ) 176 136 (1,204 ) (2,349 ) 687 979 1,591 1,279 (800 ) Ending balance $ 23,154 $ 9,425 $ 43,933 $ 7,495 $ 4,613 $ 1,727 $ 8,281 $ 2,282 $ 2,995 $ 103,905 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 5,500 $ 98 $ 4,511 $ 3,135 $ 161 $ 29 $ 1,727 $ — $ 1,307 $ 16,468 Collectively evaluated for impairment 17,128 9,327 38,734 4,360 4,447 1,698 6,554 2,282 1,688 86,218 Acquired and accounted for under ASC 310-30 (1) 526 — 688 — 5 — — — — 1,219 Total ending allowance balance $ 23,154 $ 9,425 $ 43,933 $ 7,495 $ 4,613 $ 1,727 $ 8,281 $ 2,282 $ 2,995 $ 103,905 Loans: Individually evaluated for impairment $ 34,117 $ 3,267 $ 57,587 $ 16,888 $ 337 $ 187 $ 25,451 $ — $ — $ 137,834 Collectively evaluated for impairment 1,217,963 1,512,179 1,561,735 288,813 116,659 272,654 219,684 70,584 — 5,260,271 Acquired and accounted for under ASC 310-30 (1) 26,680 — 73,708 5,695 28,554 — 121 23,861 — 158,619 Total ending loans balance $ 1,278,760 $ 1,515,446 $ 1,693,030 $ 311,396 $ 145,550 $ 272,841 $ 245,256 $ 94,445 $ — $ 5,556,724 (1) Loans acquired in business combinations 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 (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 credit-impaired 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 six months ended June 30, 2015 , there was a negative provision for credit losses of $538 thousand and net recoveries of $503 thousand , in relation to 16 pools of purchased loans with a total carrying amount of $52.6 million as of June 30, 2015 . There was $1.2 million and $1.3 million in allowance for loan and lease losses related to these purchased loans at June 30, 2015 and December 31, 2014 , respectively. 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 six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Balance at beginning of period $ 6,367 $ 2,361 $ 7,434 $ 2,337 Accretion (1,817 ) (1,143 ) (3,747 ) (1,693 ) Other (1) 6,906 — 7,769 574 Balance at end of period $ 11,456 $ 1,218 $ 11,456 $ 1,218 (1) Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loans acquired and accounted for under ASC 310-30. In our FDIC-assisted transactions, the fair value of purchased credit-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-d |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Jun. 30, 2015 | |
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 has three reporting units: banking, leasing and mortgage banking. No impairment losses were recognized during the six months ended June 30, 2015 or 2014 . The carrying amount of goodwill was $711.5 million at June 30, 2015 and 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 June 30, 2015 . 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 June 30, 2015 (in thousands): Six Months Ended June 30, 2015 Balance at beginning of period $ 38,006 Amortization expense (3,027 ) Balance at end of period $ 34,979 Gross carrying amount $ 80,371 Accumulated amortization (45,392 ) Net book value $ 34,979 The following presents the estimated future amortization expense of other intangible assets (in thousands): Year ending December 31, Amount 2015 $ 2,936 2016 5,157 2017 4,637 2018 4,221 2019 2,743 Thereafter 15,285 $ 34,979 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2015 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The composition of deposits was as follows (in thousands): June 30, December 31, 2015 2014 Demand deposit accounts, noninterest bearing $ 4,378,005 $ 4,118,256 NOW and money market accounts 3,842,264 3,913,765 Savings accounts 970,875 940,345 Certificates of deposit, $250,000 or more 689,504 838,928 Other certificates of deposit 981,166 1,179,648 Total $ 10,861,814 $ 10,990,942 Certificates of deposit of $250,000 or more included $401.0 million and $485.3 million of brokered deposits at June 30, 2015 and December 31, 2014 , 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. |
Short-Term Borrowings
Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings were as follows as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Weighted Average Cost Amount Weighted Average Cost Amount Customer repurchase agreements 0.18 % $ 276,724 0.21 % $ 219,824 Federal Home Loan Bank advances 0.12 1,100,000 0.13 700,000 Federal funds purchased 0.08 5,911 0.14 11,591 0.13 % $ 1,382,635 0.15 % $ 931,415 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 pledges mortgage-backed securities as collateral for the repurchase agreements and may be required to provide additional collateral based on the fair value of those securities. The Company had Federal Home Loan Bank fixed rate advances with a maturity date less than one year of $1.1 billion and $700.0 million at June 30, 2015 and December 31, 2014 , respectively. At June 30, 2015 , the interest rate on the advance outstanding on that date had a rate of 0.12% with a maturity of December 11, 2015 . The Company has investment securities available for sale and loans pledged as collateral on this FHLB advance. See Note 5. Investment Securities and Note 6. 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 June 30, 2015 , no amount was outstanding and the line of credit is scheduled to mature on September 7, 2015. |
Long-term Borrowings
Long-term Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | Long-Term Borrowings The Company had Federal Home Loan Bank advances with remaining contractual maturities greater than one year of $4.1 million at June 30, 2015 and $4.2 million at December 31, 2014 . As of June 30, 2015 , 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 5. Investment Securities and Note 6. Loans of the notes to the consolidated financial statements. The Company had notes payable to banks totaling $45.4 million and $38.5 million at June 30, 2015 and December 31, 2014 , respectively, which as of June 30, 2015 , were accruing interest at rates ranging from 2.25% to 12.00% , with a weighted average rate of 4.42% . Lease investments includes equipment with an amortized cost of $54.7 million and $48.8 million at June 30, 2015 and December 31, 2014 , respectively, that is pledged as collateral on these notes. The Company had a $40.0 million 10 -year structured repurchase agreement as of June 30, 2015 and December 31, 2014 , which bears interest at a fixed rate borrowing of 4.75% and expires in 2016. The Company pledges mortgage-backed securities as collateral for the repurchase agreement and may be required to provide additional collateral based on the fair value of those securities. |
Junior Subordinated Notes Issue
Junior Subordinated Notes Issued to Capital Trusts | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 (in thousands): Coal City Capital Trust I MB Financial Capital Trust II MB Financial Capital Trust III MB Financial 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 Capital Trust V MB Financial Capital Trust VI FOBB Statutory Trust III (2) TAYC 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 in 2006, 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 in 2014, 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 $7.3 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 , the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands): Contractual Amount June 30, 2015 December 31, 2014 Commitments to extend credit: Home equity lines $ 197,121 $ 221,102 Other commitments 2,810,547 2,643,220 Letters of credit: Standby 128,807 131,810 Commercial 1,179 2,401 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 June 30, 2015 , the maximum remaining term for any standby letters of credit was 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 June 30, 2015 , 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, decreased $4.2 million to $130.0 million from $134.2 million at December 31, 2014 . Of the $130.0 million in commitments outstanding at June 30, 2015 , approximately $52.8 million of the letters of credit have been issued or renewed since December 31, 2014 . Letters of credit issued on behalf of bank customers may be done on either a secured or unsecured basis. If a letter credit is 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 June 30, 2015 , the Company had approximately $2.7 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 June 30, 2015 , approximately 22% 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 June 30, 2015 . 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 throughout 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
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. Residential real estate 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. Loans. The Company has elected to record certain mortgage loans at fair value. The fair value of these loans 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 June 30, 2015 and December 31, 2014 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Financial assets Securities available for sale: U.S Government sponsored agencies and enterprises $ 65,485 $ — $ 65,485 $ — States and political subdivisions 395,912 — 395,449 463 Residential mortgage-backed securities 741,178 — 740,744 434 Commercial mortgage-backed securities 160,839 — 160,839 — Corporate bonds 246,468 — 246,468 — Equity securities 10,669 10,669 — — Loans held for sale 801,343 — 801,343 — Loans 19,822 — 19,822 — Mortgage servicing rights 261,034 — — 261,034 Assets held in trust for deferred compensation 17,019 17,019 — — Derivative financial instruments 43,345 7,683 31,856 3,806 Financial liabilities Other liabilities (1) 16,488 16,488 — — Derivative financial instruments 47,054 13,711 33,343 — December 31, 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 — (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 at June 30, 2015 Valuation Technique Unobservable Input Range (in thousands) States and political subdivisions $ 463 Discounted cash flows Credit assumption 45% Loss Residential mortgage-backed securities 434 Discounted cash flows Constant pre-payment rates (CPR) 1% - 3% Mortgage servicing rights 261,034 Discounted cash flows CPR 8.3% - 12.8% Discount rate 9.25 - 12.00 Maturity (months) 326 - 356 Delinquencies 0.51 - 3.74 Costs to service $ 60 - $ 160 Costs to service - delinquent $ 150 - $ 1,000 Derivative financial instruments (mortgage 3,806 Sales cash flows Expected closing ratio 70% - 95% interest rate lock commitments) Expected delivery price 98.01 bps - 108.19 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 June 30, 2015 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) June 30, 2015 Weighted average CPR 10.80 % Impact on fair value of 10% adverse change $ (6,154 ) Impact on fair value of 20% adverse change (11,890 ) Weighted average discount rate 9.56 % Impact on fair value of 10% adverse change $ (5,750 ) Impact on fair value of 20% adverse change (11,099 ) Weighted average delinquency rate 1.83 % Impact on fair value of 10% adverse change $ (945 ) Impact on fair value of 20% adverse change (1,890 ) Weighted average costs to service $ 79 Impact on fair value of 10% adverse change (2,899 ) Impact on fair value of 20% adverse change (5,797 ) The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2015 . 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): Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 (in thousands) Investment Securities Mortgage Servicing Rights Derivatives Balance, beginning of period $ 973 $ 5,856 $ 235,402 $ — $ 5,074 $ — Purchases — — 352 — — — Originations — — 36,404 — — — Other comprehensive income — 108 — — — — Included in earnings — — (11,124 ) — (1,268 ) — Principal payments (76 ) (256 ) — — — — Balance, ending of period $ 897 $ 5,616 $ 261,034 $ — $ 3,806 $ — 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 June 30, 2015 ), 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 June 30, 2015 and December 31, 2014 are included in the table below (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Financial assets: Impaired loans $ 79,084 $ — $ — $ 79,084 Non-financial assets: Foreclosed assets 42,462 — — 42,462 December 31, 2014 Financial assets: Impaired loans $ 61,717 $ — $ — $ 61,717 Non-financial assets: Foreclosed assets 38,619 — — 38,619 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 at Valuation Unobservable June 30, 2015 Technique Input Range (in thousands) Impaired loans $ 79,084 Appraisal of collateral Appraisal adjustments - sales costs 5% - 10% Foreclosed assets 42,462 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 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. The Company has elected to record certain mortgage loans at fair value. The fair value of these loans is determined using quoted secondary market prices and classified as Level 2. 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): June 30, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets: Cash and due from banks $ 290,266 $ 290,266 $ 290,266 $ — $ — Interest earning deposits with banks 144,154 144,154 144,154 — — Federal funds sold 5 5 5 — — Investment securities available for sale 1,620,551 1,620,551 10,669 1,608,985 897 Investment securities held to maturity 1,203,627 1,231,840 — 1,231,840 — Non-marketable securities - FHLB and FRB stock 111,400 111,400 — — 111,400 Loans held for sale 801,343 801,343 — 801,343 — Loans, net 8,973,886 8,989,754 — 19,822 8,969,932 Accrued interest receivable 49,328 49,328 49,328 — — Derivative financial instruments 43,345 43,345 7,683 31,856 3,806 Financial Liabilities: Noninterest bearing deposits $ 4,378,005 $ 4,378,005 $ 4,378,005 $ — $ — Interest bearing deposits 6,483,809 6,487,155 — — 6,487,155 Short-term borrowings 1,382,635 1,382,627 — — 1,382,627 Long-term borrowings 89,639 91,901 — — 91,901 Junior subordinated notes issued to capital trusts 185,971 124,672 — — 124,672 Accrued interest payable 2,711 2,711 2,711 — — Derivative financial instruments 47,054 47,054 13,711 33,343 — December 31, 2014 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets: Cash and due from banks $ 256,804 $ 256,804 $ 256,804 $ — $ — Interest earning 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 931,415 931,415 — — 931,415 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 — |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2015 | |
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): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total cost of share-based payment plans during the period $ 3,870 $ 2,243 $ 7,475 $ 4,255 Amount of related income tax benefit recognized in income 1,509 880 2,921 $ 1,670 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. No more than 10% of the total number of authorized shares may be issued with respect to awards granted after May 28, 2014, other than stock appreciation rights, stock options and performance-based awards, which at the date of grant are 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 June 30, 2015 , there were 4,996,212 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 six months ended June 30, 2015 : Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2014 2,250,714 $ 27.94 4.39 Granted 309,615 31.40 Exercised (41,063 ) 19.46 Expired or cancelled (25,379 ) 33.37 Forfeited (6,086 ) 25.90 Options outstanding as of June 30, 2015 2,487,801 $ 28.46 4.54 $ 16,880 Options exercisable as of June 30, 2015 1,687,552 $ 29.24 2.84 $ 10,771 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 six months ended June 30, 2015 : June 30, 2015 Risk-free interest rate 1.69 % Expected volatility of Company’s stock 29.97 % Expected dividend yield 1.80 % Expected life of options 5.9 years Weighted average fair value per option of options granted during the year $ 7.94 The total intrinsic value of options exercised during the six months ended June 30, 2015 and 2014 was $481 thousand and $874 thousand , respectively. The following is a summary of changes in restricted shares and units for the six months ended June 30, 2015 : Number of Shares and Units Weighted Average Grant Date Fair Value Shares Outstanding at December 31, 2014 801,085 $ 26.99 Granted 491,465 31.66 Vested (149,406 ) 27.58 Forfeited (7,049 ) 27.61 Shares Outstanding at June 30, 2015 1,136,095 $ 28.93 The total intrinsic value of restricted shares that vested during the six months ended June 30, 2015 and 2014 was $4.8 million and $1.1 million , respectively. The Company issued 71,560 , 48,569 , 56,752 and 65,333 market-based restricted stock units in 2015, 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. As of June 30, 2015 , there was $27.8 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 June 30, 2015 , the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 2.5 years. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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 as of June 30, 2015 was approximately $1 thousand , and the net amount payable as of December 31, 2014 was approximately $1.1 million . 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 June 30, 2015 , the Company’s credit exposure relating to interest rate swaps was approximately $26.1 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 $176 thousand at June 30, 2015 . 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 June 30, 2015 and December 31, 2014 (in thousands): Asset Derivatives Liability Derivatives June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 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) $ — $ — $ — $ — $ 176 $ (12 ) $ 197 $ (15 ) Stand-alone derivative instruments: (2) Interest rate swap contracts 1,570,558 30,503 1,509,930 37,039 1,722,557 (44,306 ) 2,001,787 (30,761 ) Interest rate options contracts 291,572 420 55,830 283 66,572 (239 ) 55,830 (283 ) Foreign exchange contracts 108,341 3,078 27,402 2,276 46,751 (2,758 ) 27,002 (2,109 ) Spot foreign exchange contracts 1,562 22 512 5 1,384 (9 ) 304 (18 ) Mortgage related derivatives 1,840,488 9,322 871,446 6,785 482,000 270 879,841 (7,313 ) Total non-hedging derivative instruments 3,812,521 43,345 2,465,120 46,388 2,319,264 (47,042 ) 2,964,764 (40,484 ) Total $ 3,812,521 $ 43,345 $ 2,465,120 $ 46,388 $ 2,319,440 $ (47,054 ) $ 2,964,961 $ (40,499 ) (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 other operating income in the consolidated statements of operations related to derivative financial instruments were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Derivative instruments designated as hedges of fair value: Interest rate swap contracts $ 1 $ (2 ) $ 2 $ (2 ) Stand-alone derivative instruments: Interest rate swap contracts (25,364 ) 9 (14,239 ) 18 Interest rate options contracts (1,264 ) — (541 ) — Foreign exchange contracts 64 (4 ) 186 57 Spot foreign exchange contracts 54 — 26 8 Mortgage related derivatives 2,867 37 3,775 40 Total non-hedging derivative instruments (23,643 ) 42 (10,793 ) 123 Total $ (23,642 ) $ 40 $ (10,791 ) $ 121 Methods and assumptions used by the Company in estimating the fair value of its interest rate swaps are discussed in Note 13 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 June 30, 2015 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 $ 4,870 $ — $ 4,870 $ 43,678 $ — $ 43,678 Foreign currency forward contracts 1,875 — 1,875 1,041 — 1,041 Mortgage related derivatives 7,914 — 7,914 2,128 — 2,128 Total derivatives 14,659 — 14,659 46,847 — 46,847 Repurchase agreements — — — 276,724 — 276,724 Total $ 14,659 $ — $ 14,659 $ 323,571 $ — $ 323,571 Financial Assets Financial Liabilities Net Amount Recognized Financial Instruments Collateral Net Amount Net Amount Recognized Financial Instruments Collateral Net Amount Derivatives: Counterparty A $ 1,000 $ (1,000 ) $ — $ — $ 12,813 $ (1,000 ) $ (11,813 ) $ — Counterparty B 3,866 (3,866 ) — — 13,811 (3,866 ) (9,945 ) — Counterparty C 16 (16 ) — — 8,412 (16 ) (8,396 ) — Other counterparties 9,777 (4,054 ) (5,558 ) 165 11,811 (4,054 ) (7,496 ) 261 Total derivatives 14,659 (8,936 ) (5,558 ) 165 46,847 (8,936 ) (37,650 ) 261 Repurchase agreements — — — — 276,724 — (276,724 ) — Total $ 14,659 $ (8,936 ) $ (5,558 ) $ 165 $ 323,571 $ (8,936 ) $ (314,374 ) $ 261 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 related 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 |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2015 | |
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 MB Equipment Finance, LLC (formerly known as 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 and mortgage banking segments include adjustments based on the Company's internal funds transfer pricing model. Non-interest income for the leasing segment includes income on loans originated for the sole purpose of funding equipment purchases related to leases at the Company's lease subsidiaries. The following tables present summary financial information for the reportable segments (in thousands): Banking Leasing Mortgage Banking Consolidated Three months ended June 30, 2015 Net interest income $ 104,352 $ 2,915 $ 7,206 $ 114,473 Provision for credit losses 2,844 1,356 96 4,296 Non-interest income 31,108 16,193 35,648 82,949 Non-interest expense (1) 87,638 9,828 35,271 132,737 Income tax expense 13,369 3,073 2,995 19,437 Net income $ 31,609 $ 4,851 $ 4,492 $ 40,952 Total assets $ 12,714,482 $ 976,054 $ 1,327,658 $ 15,018,194 Three months ended June 30, 2014 Net interest income $ 65,266 $ 2,806 $ — $ 68,072 Provision for credit losses (1,764 ) (186 ) — (1,950 ) Non-interest income 25,678 14,063 187 39,928 Non-interest expense 67,930 10,100 — 78,030 Income tax expense 6,149 2,665 — 8,814 Net income $ 18,629 $ 4,290 $ 187 $ 23,106 Total assets $ 9,153,407 $ 665,284 $ — $ 9,818,691 (1) Includes merger related expenses of $1.2 million and $488 thousand in the banking segment for the three months ended June 30, 2015 and 2014 , respectively. Banking Leasing Mortgage Banking Consolidated Six months ended June 30, 2015 Net interest income $ 208,478 $ 5,930 $ 13,460 $ 227,868 Provision for credit losses 7,818 1,356 96 9,270 Non-interest income 62,625 41,396 60,196 164,217 Non-interest expense (1) 182,972 23,484 66,201 272,657 Income tax expense 23,331 8,820 2,944 35,095 Net income $ 56,982 $ 13,666 $ 4,415 $ 75,063 Total assets $ 12,714,482 $ 976,054 $ 1,327,658 $ 15,018,194 Six months ended June 30, 2014 Net interest income $ 130,385 $ 5,015 $ — $ 135,400 Provision for credit losses (684 ) (116 ) — (800 ) Non-interest income 49,877 26,417 246 76,540 Non-interest expense 135,627 18,450 — 154,077 Income tax expense 10,632 4,956 — 15,588 Net income $ 34,687 $ 8,142 $ 246 $ 43,075 Total assets $ 9,153,407 $ 665,284 $ — $ 9,818,691 (1) Includes merger related expenses of $9.3 million and $1.2 million in the banking segment for the six months ended June 30, 2015 and 2014 , respectively. |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2015 | |
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 amount, 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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In July 2015, we sold approximately $106 million of mortgage servicing rights at a price (net of transaction costs) that approximated fair value. |
New Authoritative Accounting 27
New Authoritative Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Authoritative Accounting Pronouncements | 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition. New authoritative accounting guidance under ASC Topic 310, “Receivables” amended prior guidance to require an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if (i) the loan has a government guarantee that is not separable from the loan before foreclosure, (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have a material 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not have an 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not 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. In addition, it requires disclosures related to collateral, remaining contractual tenor and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. The Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition. The additional disclosures are included in Note 9. Short-Term Borrowings and Note 10. Long-Term Borrowings. 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 Company adopted this new authoritative guidance on January 1, 2015, and it did not have an impact on the Company's statements of operations or financial condition. ASC Topic 225 “Income Statement - Extraordinary and Unusual Items.” New authoritative accounting guidance under ASC Topic 225, “Income Statement - Extraordinary and Unusual Items” amended prior guidance to eliminate the concept of extraordinary items. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 810 “Consolidation.” New authoritative accounting guidance under ASC Topic 810, “Consolidation” amended prior guidance over the consolidation of certain legal entities. The new authoritative guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with variable interest entities and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements similar to those for registered money market funds. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 835 “Interest.” New authoritative accounting guidance under ASC Topic 835, “Interest” amended prior guidance to simplify the presentation of debt issuance costs. The new authoritative guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new authoritative guidance will be effective for reporting periods after January 1, 2016 and is not expected to have a significant impact on the Company's statements of operations or financial condition. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of the number of shares used in the calculation of basic and diluted earnings (loss) per common share, net income available to common stockholders, and earnings per 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 share and per share data). Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Distributed earnings allocated to common stock $ 12,884 $ 6,666 $ 23,494 $ 13,332 Undistributed earnings 28,068 16,440 51,569 29,743 Net income 40,952 23,106 75,063 43,075 Less: preferred stock dividends 2,000 — 4,000 — Net income available to common stockholders 38,952 23,106 71,063 43,075 Less: earnings allocated to participating securities 2 1 3 1 Earnings allocated to common stockholders $ 38,950 $ 23,105 $ 71,060 $ 43,074 Weighted average shares outstanding for basic earnings per common share 74,596,925 54,669,868 74,582,097 54,654,992 Dilutive effect of equity awards 699,104 530,186 648,358 577,711 Weighted average shares outstanding for diluted earnings per common share 75,296,029 55,200,054 75,230,455 55,232,703 Basic earnings per common share $ 0.52 $ 0.42 $ 0.95 $ 0.79 Diluted earnings per common share 0.52 0.42 0.94 0.78 |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions, by acquisition | 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 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 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 three and six months ended June 30, 2014 , as if the acquisition had occurred January 1, 2014. The pro forma results combine the historical results of Taylor Capital into the Company's consolidated statement of operations 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, 2014. 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. Net income in the table below includes merger related expenses. Pro Forma Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (in thousands) Total revenues (net interest income plus non-interest income) $ 199,248 $ 384,276 Net income 37,410 72,162 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary investment holdings | Amortized cost and fair value of investment securities were as follows as of the dates indicated (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Available for Sale U.S. Government sponsored agencies and enterprises $ 64,211 $ 1,274 $ — $ 65,485 States and political subdivisions 380,221 16,160 (469 ) 395,912 Residential mortgage-backed securities 731,399 10,848 (1,069 ) 741,178 Commercial mortgage-backed securities 158,935 2,175 (271 ) 160,839 Corporate bonds 245,506 2,962 (2,000 ) 246,468 Equity securities 10,644 25 — 10,669 Total Available for Sale 1,590,916 33,444 (3,809 ) 1,620,551 Held to Maturity States and political subdivisions 974,032 22,990 (6,349 ) 990,673 Residential mortgage-backed securities 229,595 11,572 — 241,167 Total Held to Maturity 1,203,627 34,562 (6,349 ) 1,231,840 Total $ 2,794,543 $ 68,006 $ (10,158 ) $ 2,852,391 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 Total Available for Sale 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 Total Held to Maturity 993,380 42,063 (382 ) 1,035,061 Total $ 2,617,648 $ 77,433 $ (5,268 ) $ 2,689,813 |
Unrealized losses on investment securities and the fair value of the related securities | Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at June 30, 2015 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 States and political subdivisions $ 65,211 $ (453 ) $ 2,243 $ (16 ) $ 67,454 $ (469 ) Residential mortgage-backed securities 113,428 (509 ) 42,403 (560 ) 155,831 (1,069 ) Commercial mortgage-backed securities 11,909 (271 ) — — 11,909 (271 ) Corporate bonds 31,869 (260 ) 9,350 (1,740 ) 41,219 (2,000 ) Total Available for Sale 222,417 (1,493 ) 53,996 (2,316 ) 276,413 (3,809 ) Held to Maturity States and political subdivisions 302,960 (6,110 ) 6,685 (239 ) 309,645 (6,349 ) Total $ 525,377 $ (7,603 ) $ 60,681 $ (2,555 ) $ 586,058 $ (10,158 ) Unrealized losses on investment securities by length of time in a continuous unrealized loss position 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 ) Total Available for Sale 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 ) Total $ 434,234 $ (2,886 ) $ 56,844 $ (2,382 ) $ 491,078 $ (5,268 ) |
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): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Realized gains $ 324 $ 7 $ 1,083 $ 325 Realized losses (408 ) (2 ) (1,627 ) (3 ) Impairment charges — (92 ) — (92 ) Net (losses) gains $ (84 ) $ (87 ) $ (544 ) $ 230 |
Schedule of remaining contractual maturities of securities included in the securities portfolio | The amortized cost and fair value of investment securities as of June 30, 2015 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 $ 13,661 $ 13,693 Due after one year through five years 308,631 311,523 Due after five years through ten years 40,075 41,024 Due after ten years 327,571 341,625 Equity securities 10,644 10,669 Residential and commercial mortgage-backed securities 890,334 902,017 1,590,916 1,620,551 Held to maturity: Due in one year or less 63,836 64,022 Due after one year through five years 215,085 217,122 Due after five years through ten years 96,604 99,540 Due after ten years 598,507 609,989 Residential mortgage-backed securities 229,595 241,167 1,203,627 1,231,840 Total $ 2,794,543 $ 2,852,391 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of composition of loans | Loans consist of the following at (in thousands): June 30, December 31, Commercial loans $ 3,354,889 $ 3,245,206 Commercial loans collateralized by assignment of lease payments 1,690,866 1,692,258 Commercial real estate 2,539,991 2,544,867 Residential real estate 533,118 503,287 Construction real estate 189,599 247,068 Indirect vehicle 303,777 268,840 Home equity 230,478 251,909 Other consumer loans 86,463 78,137 Total loans, excluding purchased credit-impaired loans 8,929,181 8,831,572 Purchased credit-impaired loans 164,775 251,645 Total loans $ 9,093,956 $ 9,083,217 |
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 June 30, 2015 and December 31, 2014 (in thousands): Current 30-59 Days 60-89 Days Loans Past Due Total Total June 30, 2015 Commercial $ 3,322,336 $ 2,129 $ 20,734 $ 9,690 $ 32,553 $ 3,354,889 Commercial collateralized by assignment of lease payments 1,677,305 2,129 4,979 6,453 13,561 1,690,866 Commercial real estate Healthcare 379,218 — — — — 379,218 Industrial 350,957 — — 1,425 1,425 352,382 Multifamily 362,636 795 234 1,517 2,546 365,182 Retail 423,627 134 108 3,173 3,415 427,042 Office 233,567 1,199 2,179 2,868 6,246 239,813 Other 772,628 1,086 847 1,793 3,726 776,354 Residential real estate 520,930 2,710 1,358 8,120 12,188 533,118 Construction real estate 189,262 — — 337 337 189,599 Indirect vehicle 301,239 1,930 432 176 2,538 303,777 Home equity 221,627 1,522 1,150 6,179 8,851 230,478 Other consumer 86,107 178 70 108 356 86,463 Total loans, excluding purchased credit-impaired loans 8,841,439 13,812 32,091 41,839 87,742 8,929,181 Purchased credit-impaired loans 104,520 345 1,731 58,179 60,255 164,775 Total loans $ 8,945,959 $ 14,157 $ 33,822 $ 100,018 $ 147,997 $ 9,093,956 Non-performing loan aging $ 46,777 $ 1,636 $ 7,864 $ 41,778 $ 51,278 $ 98,055 December 31, 2014 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 Total loans, excluding purchased credit-impaired loans 8,755,253 28,643 13,240 34,436 76,319 8,831,572 Purchased credit-impaired 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 |
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 loans, as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Loans past due Loans past due Non-accrual 90 days or more and still accruing Non-accrual 90 days or more and still accruing Commercial $ 15,807 $ — $ 14,088 $ — Commercial collateralized by assignment of lease payments 10,930 4,316 2,404 3,566 Commercial real estate: Healthcare — — — — Industrial 4,382 — 6,371 — Multifamily 5,116 — 5,333 — Office 2,848 1,446 3,644 464 Retail 5,047 — 2,986 — Other 13,519 — 13,541 324 Residential real estate 17,210 265 17,311 — Construction real estate 337 — 337 — Indirect vehicle 1,368 — 1,542 — Home equity 15,343 — 15,171 — Other consumer 36 85 5 — Total $ 91,943 $ 6,112 $ 82,733 $ 4,354 |
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 loans, as of June 30, 2015 and December 31, 2014 (in thousands): Pass Special Substandard Doubtful Total June 30, 2015 Commercial $ 3,100,715 $ 156,718 $ 97,456 $ — $ 3,354,889 Commercial collateralized by assignment of lease payments 1,677,745 683 12,438 — 1,690,866 Commercial real estate Healthcare 379,218 — — — 379,218 Industrial 334,463 12,894 5,025 — 352,382 Multifamily 357,937 739 6,506 — 365,182 Retail 416,120 2,879 8,043 — 427,042 Office 220,939 9,301 9,573 — 239,813 Other 727,399 13,903 35,052 — 776,354 Construction real estate 189,262 — 337 — 189,599 Total $ 7,403,798 $ 197,117 $ 174,430 $ — $ 7,775,345 December 31, 2014 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 |
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 loans, as of June 30, 2015 and December 31, 2014 (in thousands): Performing Non-performing Total June 30, 2015 Residential real estate $ 515,643 $ 17,475 $ 533,118 Indirect vehicle 302,409 1,368 303,777 Home equity 215,135 15,343 230,478 Other consumer 86,342 121 86,463 Total $ 1,119,529 $ 34,307 $ 1,153,836 December 31, 2014 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 |
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 loans, as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 Three Months Ended Six Months Ended Unpaid Recorded Partial Allowance for Average Interest Average Interest With no related allowance recorded: Commercial $ 3,626 $ 3,626 $ — $ — $ 3,906 $ — $ 7,254 $ — Commercial collateralized by assignment of lease payments 1,138 1,138 — — 1,366 18 1,495 47 Commercial real estate: Healthcare — — — — — — — — Industrial 5,549 4,373 1,176 — 4,884 — 4,923 — Multifamily 1,814 1,814 — — 1,926 10 1,859 17 Retail 2,013 801 1,212 — 824 — 824 — Office 1,608 1,031 577 — 1,031 — 1,318 — Other 1,490 1,464 26 — 1,502 — 1,514 — Residential real estate 970 970 — — 959 — 482 — Construction real estate — — — — — — — — Indirect vehicle — — — — — — — — Home equity 1,327 1,025 302 — 1,327 — 667 — Other consumer — — — — — — — — With an allowance recorded: Commercial 13,396 12,636 760 3,706 12,210 — 9,500 — Commercial collateralized by assignment of lease payments 9,800 9,785 15 4,606 6,098 62 3,728 76 Commercial real estate: Healthcare — — — — — — — — Industrial 10 10 — 3 18 — 33 — Multifamily 4,916 4,066 850 661 3,798 19 4,856 27 Retail 7,713 7,043 670 738 7,160 — 7,433 — Office 4,519 4,016 503 1,438 2,319 — 2,297 — Other 12,543 12,522 21 250 13,322 — 13,265 — Residential real estate 13,249 13,249 — 2,831 13,762 — 14,083 — Construction real estate 2,708 337 2,371 162 431 — 431 — Indirect vehicle 132 132 — 10 248 — 310 — Home equity 27,482 27,482 — 2,506 27,384 — 27,299 — Other consumer — — — — — — — — Total $ 116,003 $ 107,520 $ 8,483 $ 16,911 $ 104,475 $ 109 $ 103,571 $ 167 December 31, 2014 Year Ended Unpaid Recorded Partial Allowance for Average Interest 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 |
Schedule of loans that have been restructured classified as performing and non-performing | The following table presents loans that were restructured during the three months ended June 30, 2015 (dollars in thousands): June 30, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial 1 $ 80 $ 80 $ — Home equity 6 1,467 1,467 — Total 7 $ 1,547 $ 1,547 $ — Non-Performing: Commercial real estate: Multifamily 1 $ 334 $ 334 $ — Residential real estate 1 140 140 17 Indirect vehicle 3 21 21 7 Total 5 $ 495 $ 495 $ 24 The following table presents loans that were restructured during the six months ended June 30, 2015 (dollars in thousands): June 30, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Commercial 1 $ 80 $ 80 $ — Home equity 12 3,813 3,813 — Total 13 $ 3,893 $ 3,893 $ — Non-Performing: Commercial real estate: Multifamily 1 $ 334 $ 334 $ — Residential real estate 1 140 140 17 Indirect vehicle 6 30 30 7 Home equity 5 798 798 122 Total 13 $ 1,302 $ 1,302 $ 146 The following table presents loans that were restructured during the three months ended June 30, 2014 (dollars in thousands): June 30, 2014 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Home equity 3 $ 843 $ 843 $ — Total 3 $ 843 $ 843 $ — Non-Performing: Commercial 1 $ 263 $ 263 $ 85 Commercial real estate: Multifamily 1 158 158 40 Indirect vehicle 11 59 59 27 Home equity 3 531 531 — Total 16 $ 1,011 $ 1,011 $ 152 The following table presents loans that were restructured during the six months ended June 30, 2014 (dollars in thousands): June 30, 2014 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Indirect vehicle 1 $ 5 $ 5 $ — Home equity 6 1,883 1,883 — Total 7 $ 1,888 $ 1,888 $ — Non-Performing: Commercial 1 $ 263 $ 263 $ 85 Commercial real estate: Multifamily 1 158 158 40 Residential real estate 4 1,439 1,439 — Indirect vehicle 29 167 167 27 Home equity 7 1,063 1,063 — Total 42 $ 3,090 $ 3,090 $ 152 |
Troubled debt restructuring activity rollforward | The following table presents the troubled debt restructurings activity during the six months ended June 30, 2015 (in thousands): Performing Non-performing Beginning balance $ 15,603 $ 25,771 Additions 3,893 1,302 Charge-offs — (299 ) Principal payments, net (11 ) (946 ) Removals (3,093 ) (867 ) Transfer from/to performing 561 78 Transfer from/to non-performing (78 ) (561 ) Ending balance $ 16,875 $ 24,478 |
Type of financing receivable modifications and restructuring | The following table presents the type of modification for loans that have been restructured during the six months ended June 30, 2015 (in thousands): June 30, 2015 Extended Maturity, Delay in Amortization Extended Payments or and Reduction Maturity and/or Reduction of of Interest Rate Amortization Interest Rate Total Commercial $ — $ — $ 80 $ 80 Commercial real estate: Multifamily — 334 — 334 Residential real estate 140 — — 140 Indirect vehicle — — 30 30 Home equity 1,991 267 2,353 4,611 Total $ 2,131 $ 601 $ 2,463 $ 5,195 |
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 June 30, 2015 and 2014 (in thousands): Commercial Commercial collateralized by assignment of lease payments Commercial real estate Residential real estate Construction real estate Indirect vehicle Home equity Other consumer Unfunded commitments Total June 30, 2015 Allowance for credit losses: Three Months Ended Beginning balance $ 32,827 $ 9,825 $ 41,958 $ 6,760 $ 9,473 $ 1,715 $ 8,780 $ 2,074 $ 3,777 $ 117,189 Charge-offs 57 100 108 318 3 627 276 500 — 1,989 Recoveries 816 340 2,561 8 35 545 160 169 — 4,634 Provision 5,556 1,203 (6,335 ) 219 2,954 276 (252 ) 392 283 4,296 Ending balance $ 39,142 $ 11,268 $ 38,076 $ 6,669 $ 12,459 $ 1,909 $ 8,412 $ 2,135 $ 4,060 $ 124,130 Six Months Ended Beginning balance $ 29,571 $ 9,962 $ 41,826 $ 6,646 $ 8,918 $ 1,687 $ 9,456 $ 1,960 $ 4,031 $ 114,057 Charge-offs 626 100 2,142 897 6 1,501 720 924 — 6,916 Recoveries 1,058 1,089 3,936 80 37 1,020 261 238 — 7,719 Provision 9,139 317 (5,544 ) 840 3,510 703 (585 ) 861 29 9,270 Ending balance $ 39,142 $ 11,268 $ 38,076 $ 6,669 $ 12,459 $ 1,909 $ 8,412 $ 2,135 $ 4,060 $ 124,130 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 3,706 $ 4,606 $ 3,090 $ 2,831 $ 162 $ 10 $ 2,506 $ — $ 1,334 $ 18,245 Collectively evaluated for impairment 34,984 6,662 34,195 3,838 12,292 1,899 5,906 2,135 2,726 104,637 Acquired and accounted for under ASC 310-30 (1) 452 — 791 — 5 — — — — 1,248 Total ending allowance balance $ 39,142 $ 11,268 $ 38,076 $ 6,669 $ 12,459 $ 1,909 $ 8,412 $ 2,135 $ 4,060 $ 124,130 Loans: Individually evaluated for impairment $ 16,262 $ 10,923 $ 37,140 $ 14,219 $ 337 $ 132 $ 28,507 $ — $ — $ 107,520 Collectively evaluated for impairment 3,338,627 1,679,943 2,502,851 518,899 189,262 303,645 201,971 86,463 — 8,821,661 Acquired and accounted for under ASC 310-30 (1) 52,675 — 53,141 27,861 11,764 — 86 19,248 — 164,775 Total ending loans balance $ 3,407,564 $ 1,690,866 $ 2,593,132 $ 560,979 $ 201,363 $ 303,777 $ 230,564 $ 105,711 $ — $ 9,093,956 Commercial Commercial collateralized by assignment of lease payments Commercial real estate Residential real estate Construction real estate Indirect vehicle Home equity Other consumer Unfunded commitments Total June 30, 2014 Allowance for credit losses: Three Months Ended Beginning balance $ 23,938 $ 9,058 $ 47,540 $ 8,087 $ 6,484 $ 1,684 $ 8,397 $ 1,564 $ 1,643 $ 108,395 Charge-offs 446 40 1,727 433 14 583 817 590 — 4,650 Recoveries 696 130 567 6 77 439 127 68 — 2,110 Provision (1,034 ) 277 (2,447 ) (165 ) (1,934 ) 187 574 1,240 1,352 (1,950 ) Ending balance $ 23,154 $ 9,425 $ 43,933 $ 7,495 $ 4,613 $ 1,727 $ 8,281 $ 2,282 $ 2,995 $ 103,905 Six Months Ended Beginning balance $ 23,461 $ 9,159 $ 51,628 $ 8,872 $ 6,856 $ 1,662 $ 8,478 $ 1,630 $ 1,716 $ 113,462 Charge-offs 536 40 8,883 698 70 1,503 1,436 1,085 — 14,251 Recoveries 2,324 130 1,052 525 176 881 260 146 — 5,494 Provision (2,095 ) 176 136 (1,204 ) (2,349 ) 687 979 1,591 1,279 (800 ) Ending balance $ 23,154 $ 9,425 $ 43,933 $ 7,495 $ 4,613 $ 1,727 $ 8,281 $ 2,282 $ 2,995 $ 103,905 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 5,500 $ 98 $ 4,511 $ 3,135 $ 161 $ 29 $ 1,727 $ — $ 1,307 $ 16,468 Collectively evaluated for impairment 17,128 9,327 38,734 4,360 4,447 1,698 6,554 2,282 1,688 86,218 Acquired and accounted for under ASC 310-30 (1) 526 — 688 — 5 — — — — 1,219 Total ending allowance balance $ 23,154 $ 9,425 $ 43,933 $ 7,495 $ 4,613 $ 1,727 $ 8,281 $ 2,282 $ 2,995 $ 103,905 Loans: Individually evaluated for impairment $ 34,117 $ 3,267 $ 57,587 $ 16,888 $ 337 $ 187 $ 25,451 $ — $ — $ 137,834 Collectively evaluated for impairment 1,217,963 1,512,179 1,561,735 288,813 116,659 272,654 219,684 70,584 — 5,260,271 Acquired and accounted for under ASC 310-30 (1) 26,680 — 73,708 5,695 28,554 — 121 23,861 — 158,619 Total ending loans balance $ 1,278,760 $ 1,515,446 $ 1,693,030 $ 311,396 $ 145,550 $ 272,841 $ 245,256 $ 94,445 $ — $ 5,556,724 (1) Loans acquired in business combinations 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 six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Balance at beginning of period $ 6,367 $ 2,361 $ 7,434 $ 2,337 Accretion (1,817 ) (1,143 ) (3,747 ) (1,693 ) Other (1) 6,906 — 7,769 574 Balance at end of period $ 11,456 $ 1,218 $ 11,456 $ 1,218 (1) Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loans acquired and accounted for under ASC 310-30. |
Purchased loans disclosures | The carrying amount of loans acquired through a business combination by loan type are as follows (in thousands): June 30, 2015 Purchased Purchased Non-Credit-Impaired Total Covered loans: Commercial related (1) $ 247 $ — $ 247 Commercial 344 — 344 Commercial real estate 23,816 — 23,816 Construction real estate 4,549 — 4,549 Other 20,533 — 20,533 Total covered loans 49,489 — 49,489 Non-covered loans: Commercial related (1) 8,352 10,399 18,751 Commercial loans 43,762 1,037,522 1,081,284 Commercial loans collateralized by assignment of lease payments — 105,327 105,327 Commercial real estate 29,294 753,681 782,975 Construction real estate 7,216 60,750 67,966 Other 26,662 216,753 243,415 Total non-covered loans 115,286 2,184,432 2,299,718 Total acquired $ 164,775 $ 2,184,432 $ 2,349,207 Estimated receivable amount from the FDIC under the loss-share agreement (2) $ 2,288 $ — $ 2,288 (1) Commercial related loans include commercial, commercial real estate and construction real estate for the InBank, Heritage and Benchmark FDIC-assisted transactions. (2) Estimated reimbursable amounts from the FDIC under the loss-share agreement exclude $936 thousand in amounts due to the FDIC related to covered other real estate owned. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 (in thousands): Six Months Ended June 30, 2015 Balance at beginning of period $ 38,006 Amortization expense (3,027 ) Balance at end of period $ 34,979 Gross carrying amount $ 80,371 Accumulated amortization (45,392 ) Net book value $ 34,979 |
Estimated future amortization expense of other intangible assets | The following presents the estimated future amortization expense of other intangible assets (in thousands): Year ending December 31, Amount 2015 $ 2,936 2016 5,157 2017 4,637 2018 4,221 2019 2,743 Thereafter 15,285 $ 34,979 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of composition of deposits | The composition of deposits was as follows (in thousands): June 30, December 31, 2015 2014 Demand deposit accounts, noninterest bearing $ 4,378,005 $ 4,118,256 NOW and money market accounts 3,842,264 3,913,765 Savings accounts 970,875 940,345 Certificates of deposit, $250,000 or more 689,504 838,928 Other certificates of deposit 981,166 1,179,648 Total $ 10,861,814 $ 10,990,942 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of short-term borrowings | Short-term borrowings were as follows as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Weighted Average Cost Amount Weighted Average Cost Amount Customer repurchase agreements 0.18 % $ 276,724 0.21 % $ 219,824 Federal Home Loan Bank advances 0.12 1,100,000 0.13 700,000 Federal funds purchased 0.08 5,911 0.14 11,591 0.13 % $ 1,382,635 0.15 % $ 931,415 |
Junior Subordinated Notes Iss35
Junior Subordinated Notes Issued to Capital Trusts (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 (in thousands): Coal City Capital Trust I MB Financial Capital Trust II MB Financial Capital Trust III MB Financial 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 Capital Trust V MB Financial Capital Trust VI FOBB Statutory Trust III (2) TAYC 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 in 2006, 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 in 2014, 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 $7.3 million . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding financial instruments, contractual amounts of off-balance sheet credit risk | At June 30, 2015 and December 31, 2014 , the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands): Contractual Amount June 30, 2015 December 31, 2014 Commitments to extend credit: Home equity lines $ 197,121 $ 221,102 Other commitments 2,810,547 2,643,220 Letters of credit: Standby 128,807 131,810 Commercial 1,179 2,401 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Financial assets Securities available for sale: U.S Government sponsored agencies and enterprises $ 65,485 $ — $ 65,485 $ — States and political subdivisions 395,912 — 395,449 463 Residential mortgage-backed securities 741,178 — 740,744 434 Commercial mortgage-backed securities 160,839 — 160,839 — Corporate bonds 246,468 — 246,468 — Equity securities 10,669 10,669 — — Loans held for sale 801,343 — 801,343 — Loans 19,822 — 19,822 — Mortgage servicing rights 261,034 — — 261,034 Assets held in trust for deferred compensation 17,019 17,019 — — Derivative financial instruments 43,345 7,683 31,856 3,806 Financial liabilities Other liabilities (1) 16,488 16,488 — — Derivative financial instruments 47,054 13,711 33,343 — December 31, 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 — (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 recurring basis that were categorized within the Level 3 of the fair value hierarchy: Fair Value at June 30, 2015 Valuation Technique Unobservable Input Range (in thousands) States and political subdivisions $ 463 Discounted cash flows Credit assumption 45% Loss Residential mortgage-backed securities 434 Discounted cash flows Constant pre-payment rates (CPR) 1% - 3% Mortgage servicing rights 261,034 Discounted cash flows CPR 8.3% - 12.8% Discount rate 9.25 - 12.00 Maturity (months) 326 - 356 Delinquencies 0.51 - 3.74 Costs to service $ 60 - $ 160 Costs to service - delinquent $ 150 - $ 1,000 Derivative financial instruments (mortgage 3,806 Sales cash flows Expected closing ratio 70% - 95% interest rate lock commitments) Expected delivery price 98.01 bps - 108.19 bps 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 at Valuation Unobservable June 30, 2015 Technique Input Range (in thousands) Impaired loans $ 79,084 Appraisal of collateral Appraisal adjustments - sales costs 5% - 10% Foreclosed assets 42,462 Appraisal of collateral Appraisal adjustments - sales costs 5% - 10% |
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 June 30, 2015 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) June 30, 2015 Weighted average CPR 10.80 % Impact on fair value of 10% adverse change $ (6,154 ) Impact on fair value of 20% adverse change (11,890 ) Weighted average discount rate 9.56 % Impact on fair value of 10% adverse change $ (5,750 ) Impact on fair value of 20% adverse change (11,099 ) Weighted average delinquency rate 1.83 % Impact on fair value of 10% adverse change $ (945 ) Impact on fair value of 20% adverse change (1,890 ) Weighted average costs to service $ 79 Impact on fair value of 10% adverse change (2,899 ) Impact on fair value of 20% adverse change (5,797 ) |
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): Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 (in thousands) Investment Securities Mortgage Servicing Rights Derivatives Balance, beginning of period $ 973 $ 5,856 $ 235,402 $ — $ 5,074 $ — Purchases — — 352 — — — Originations — — 36,404 — — — Other comprehensive income — 108 — — — — Included in earnings — — (11,124 ) — (1,268 ) — Principal payments (76 ) (256 ) — — — — Balance, ending of period $ 897 $ 5,616 $ 261,034 $ — $ 3,806 $ — |
Assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 are included in the table below (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Financial assets: Impaired loans $ 79,084 $ — $ — $ 79,084 Non-financial assets: Foreclosed assets 42,462 — — 42,462 December 31, 2014 Financial assets: Impaired loans $ 61,717 $ — $ — $ 61,717 Non-financial assets: Foreclosed assets 38,619 — — 38,619 |
Estimated fair values of financial instruments | The estimated fair values of financial instruments are as follows (in thousands): June 30, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets: Cash and due from banks $ 290,266 $ 290,266 $ 290,266 $ — $ — Interest earning deposits with banks 144,154 144,154 144,154 — — Federal funds sold 5 5 5 — — Investment securities available for sale 1,620,551 1,620,551 10,669 1,608,985 897 Investment securities held to maturity 1,203,627 1,231,840 — 1,231,840 — Non-marketable securities - FHLB and FRB stock 111,400 111,400 — — 111,400 Loans held for sale 801,343 801,343 — 801,343 — Loans, net 8,973,886 8,989,754 — 19,822 8,969,932 Accrued interest receivable 49,328 49,328 49,328 — — Derivative financial instruments 43,345 43,345 7,683 31,856 3,806 Financial Liabilities: Noninterest bearing deposits $ 4,378,005 $ 4,378,005 $ 4,378,005 $ — $ — Interest bearing deposits 6,483,809 6,487,155 — — 6,487,155 Short-term borrowings 1,382,635 1,382,627 — — 1,382,627 Long-term borrowings 89,639 91,901 — — 91,901 Junior subordinated notes issued to capital trusts 185,971 124,672 — — 124,672 Accrued interest payable 2,711 2,711 2,711 — — Derivative financial instruments 47,054 47,054 13,711 33,343 — December 31, 2014 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets: Cash and due from banks $ 256,804 $ 256,804 $ 256,804 $ — $ — Interest earning 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 931,415 931,415 — — 931,415 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 — |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by plan | The following table summarizes the impact of the Company’s share-based payment plans in the financial statements for the periods shown (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total cost of share-based payment plans during the period $ 3,870 $ 2,243 $ 7,475 $ 4,255 Amount of related income tax benefit recognized in income 1,509 880 2,921 $ 1,670 |
Schedule of share-based compensation, stock options, activity | The following table summarizes stock options outstanding for the six months ended June 30, 2015 : Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2014 2,250,714 $ 27.94 4.39 Granted 309,615 31.40 Exercised (41,063 ) 19.46 Expired or cancelled (25,379 ) 33.37 Forfeited (6,086 ) 25.90 Options outstanding as of June 30, 2015 2,487,801 $ 28.46 4.54 $ 16,880 Options exercisable as of June 30, 2015 1,687,552 $ 29.24 2.84 $ 10,771 |
Schedule of share-based payment award, stock options, valuation assumptions | The following assumptions were used for options granted during the six months ended June 30, 2015 : June 30, 2015 Risk-free interest rate 1.69 % Expected volatility of Company’s stock 29.97 % Expected dividend yield 1.80 % Expected life of options 5.9 years Weighted average fair value per option of options granted during the year $ 7.94 |
Schedule of share-based compensation, restricted stock and restricted stock units activity | The following is a summary of changes in restricted shares and units for the six months ended June 30, 2015 : Number of Shares and Units Weighted Average Grant Date Fair Value Shares Outstanding at December 31, 2014 801,085 $ 26.99 Granted 491,465 31.66 Vested (149,406 ) 27.58 Forfeited (7,049 ) 27.61 Shares Outstanding at June 30, 2015 1,136,095 $ 28.93 |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of derivative financial instruments | The Company’s derivative financial instruments are summarized below as of June 30, 2015 and December 31, 2014 (in thousands): Asset Derivatives Liability Derivatives June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 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) $ — $ — $ — $ — $ 176 $ (12 ) $ 197 $ (15 ) Stand-alone derivative instruments: (2) Interest rate swap contracts 1,570,558 30,503 1,509,930 37,039 1,722,557 (44,306 ) 2,001,787 (30,761 ) Interest rate options contracts 291,572 420 55,830 283 66,572 (239 ) 55,830 (283 ) Foreign exchange contracts 108,341 3,078 27,402 2,276 46,751 (2,758 ) 27,002 (2,109 ) Spot foreign exchange contracts 1,562 22 512 5 1,384 (9 ) 304 (18 ) Mortgage related derivatives 1,840,488 9,322 871,446 6,785 482,000 270 879,841 (7,313 ) Total non-hedging derivative instruments 3,812,521 43,345 2,465,120 46,388 2,319,264 (47,042 ) 2,964,764 (40,484 ) Total $ 3,812,521 $ 43,345 $ 2,465,120 $ 46,388 $ 2,319,440 $ (47,054 ) $ 2,964,961 $ (40,499 ) (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 other operating income in the consolidated statements of operations related to derivative financial instruments were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Derivative instruments designated as hedges of fair value: Interest rate swap contracts $ 1 $ (2 ) $ 2 $ (2 ) Stand-alone derivative instruments: Interest rate swap contracts (25,364 ) 9 (14,239 ) 18 Interest rate options contracts (1,264 ) — (541 ) — Foreign exchange contracts 64 (4 ) 186 57 Spot foreign exchange contracts 54 — 26 8 Mortgage related derivatives 2,867 37 3,775 40 Total non-hedging derivative instruments (23,643 ) 42 (10,793 ) 123 Total $ (23,642 ) $ 40 $ (10,791 ) $ 121 |
Schedule of derivative instruments | Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of June 30, 2015 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 $ 4,870 $ — $ 4,870 $ 43,678 $ — $ 43,678 Foreign currency forward contracts 1,875 — 1,875 1,041 — 1,041 Mortgage related derivatives 7,914 — 7,914 2,128 — 2,128 Total derivatives 14,659 — 14,659 46,847 — 46,847 Repurchase agreements — — — 276,724 — 276,724 Total $ 14,659 $ — $ 14,659 $ 323,571 $ — $ 323,571 Financial Assets Financial Liabilities Net Amount Recognized Financial Instruments Collateral Net Amount Net Amount Recognized Financial Instruments Collateral Net Amount Derivatives: Counterparty A $ 1,000 $ (1,000 ) $ — $ — $ 12,813 $ (1,000 ) $ (11,813 ) $ — Counterparty B 3,866 (3,866 ) — — 13,811 (3,866 ) (9,945 ) — Counterparty C 16 (16 ) — — 8,412 (16 ) (8,396 ) — Other counterparties 9,777 (4,054 ) (5,558 ) 165 11,811 (4,054 ) (7,496 ) 261 Total derivatives 14,659 (8,936 ) (5,558 ) 165 46,847 (8,936 ) (37,650 ) 261 Repurchase agreements — — — — 276,724 — (276,724 ) — Total $ 14,659 $ (8,936 ) $ (5,558 ) $ 165 $ 323,571 $ (8,936 ) $ (314,374 ) $ 261 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 related 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 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables present summary financial information for the reportable segments (in thousands): Banking Leasing Mortgage Banking Consolidated Three months ended June 30, 2015 Net interest income $ 104,352 $ 2,915 $ 7,206 $ 114,473 Provision for credit losses 2,844 1,356 96 4,296 Non-interest income 31,108 16,193 35,648 82,949 Non-interest expense (1) 87,638 9,828 35,271 132,737 Income tax expense 13,369 3,073 2,995 19,437 Net income $ 31,609 $ 4,851 $ 4,492 $ 40,952 Total assets $ 12,714,482 $ 976,054 $ 1,327,658 $ 15,018,194 Three months ended June 30, 2014 Net interest income $ 65,266 $ 2,806 $ — $ 68,072 Provision for credit losses (1,764 ) (186 ) — (1,950 ) Non-interest income 25,678 14,063 187 39,928 Non-interest expense 67,930 10,100 — 78,030 Income tax expense 6,149 2,665 — 8,814 Net income $ 18,629 $ 4,290 $ 187 $ 23,106 Total assets $ 9,153,407 $ 665,284 $ — $ 9,818,691 (1) Includes merger related expenses of $1.2 million and $488 thousand in the banking segment for the three months ended June 30, 2015 and 2014 , respectively. Banking Leasing Mortgage Banking Consolidated Six months ended June 30, 2015 Net interest income $ 208,478 $ 5,930 $ 13,460 $ 227,868 Provision for credit losses 7,818 1,356 96 9,270 Non-interest income 62,625 41,396 60,196 164,217 Non-interest expense (1) 182,972 23,484 66,201 272,657 Income tax expense 23,331 8,820 2,944 35,095 Net income $ 56,982 $ 13,666 $ 4,415 $ 75,063 Total assets $ 12,714,482 $ 976,054 $ 1,327,658 $ 15,018,194 Six months ended June 30, 2014 Net interest income $ 130,385 $ 5,015 $ — $ 135,400 Provision for credit losses (684 ) (116 ) — (800 ) Non-interest income 49,877 26,417 246 76,540 Non-interest expense 135,627 18,450 — 154,077 Income tax expense 10,632 4,956 — 15,588 Net income $ 34,687 $ 8,142 $ 246 $ 43,075 Total assets $ 9,153,407 $ 665,284 $ — $ 9,818,691 (1) Includes merger related expenses of $9.3 million and $1.2 million in the banking segment for the six months ended June 30, 2015 and 2014 , respectively. |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic and diluted earnings per common share: | ||||
Net income | $ 40,952 | $ 23,106 | $ 75,063 | $ 43,075 |
Less: preferred stock dividends | 2,000 | 0 | 4,000 | 0 |
Net income available to common stockholders | 38,952 | 23,106 | 71,063 | 43,075 |
Earnings allocated to common stockholders | $ 38,950 | $ 23,105 | $ 71,060 | $ 43,074 |
Weighted average shares outstanding for basic earnings per common share | 74,596,925 | 54,669,868 | 74,582,097 | 54,654,992 |
Weighted average shares outstanding for diluted earnings per common share | 75,296,029 | 55,200,054 | 75,230,455 | 55,232,703 |
Basic earnings per common share | $ 0.52 | $ 0.42 | $ 0.95 | $ 0.79 |
Diluted earnings per common share | $ 0.52 | $ 0.42 | $ 0.94 | $ 0.78 |
Common Stock | ||||
Basic and diluted earnings per common share: | ||||
Distributed earnings allocated to common stock | $ 12,884 | $ 6,666 | $ 23,494 | $ 13,332 |
Undistributed earnings | 28,068 | 16,440 | 51,569 | 29,743 |
Net income | 40,952 | 23,106 | 75,063 | 43,075 |
Net income available to common stockholders | $ 38,952 | $ 23,106 | $ 71,063 | $ 43,075 |
Weighted average shares outstanding for basic earnings per common share | 74,596,925 | 54,669,868 | 74,582,097 | 54,654,992 |
Dilutive effect of equity awards | 699,104 | 530,186 | 648,358 | 577,711 |
Weighted average shares outstanding for diluted earnings per common share | 75,296,029 | 55,200,054 | 75,230,455 | 55,232,703 |
Participating Securities | ||||
Basic and diluted earnings per common share: | ||||
Less: earnings allocated to participating securities | $ 2 | $ 1 | $ 3 | $ 1 |
Business Combination (Details)
Business Combination (Details) - USD ($) | Aug. 18, 2014 | Aug. 15, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 711,521,000 | $ 711,521,000 | $ 711,521,000 | ||||
Taylor Capital Group, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Amount called by each right | $ 4.08 | ||||||
Cash paid | 129,510,000 | ||||||
Cash paid, net, stock options and warrants | 4,400,000 | ||||||
Goodwill | 288,152,000 | ||||||
Pretax merger related costs | $ 1,200,000 | $ 488,000 | $ 9,300,000 | $ 1,200,000 | |||
Taylor Capital Group, Inc. | Restricted stock | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid | $ 3,700,000 | ||||||
Taylor Capital Group, Inc. | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Number of securities called by each right (in shares) | 0.64318 | ||||||
Number of shares issued | 19,600,000 | 19,602,482 | |||||
Series A Preferred Stock | Taylor Capital Group, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Number of securities called by each right (in shares) | 1 |
Business Combination (Details 2
Business Combination (Details 2) - USD ($) $ / shares in Units, $ in Thousands | Aug. 18, 2014 | Aug. 15, 2014 | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Goodwill | $ 711,521 | $ 711,521 | ||
LIABILITIES | ||||
Series A preferred stock at $28.82 per share at August 15, 2014 | $ 115,280 | $ 115,280 | ||
Consideration excluding Series A preferred stock: | ||||
Preferred stock, stated value per share | $ 0.01 | $ 0.01 | ||
Taylor Capital Group, Inc. | ||||
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 | 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 | |||
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 | |||
Taylor Capital Group, Inc. | Series A Preferred Stock | ||||
LIABILITIES | ||||
Series A preferred stock at $28.82 per share at August 15, 2014 | $ 115,280 | |||
Consideration excluding Series A preferred stock: | ||||
Preferred stock, stated value per share | $ 28.82 | |||
Common Stock | Taylor Capital Group, Inc. | ||||
Consideration excluding Series A preferred stock: | ||||
Share price | $ 26.49 | |||
Number of shares issued | 19,600,000 | 19,602,482 |
Business Combination (Details 3
Business Combination (Details 3) - Taylor Capital Group, Inc. $ in Thousands | Aug. 18, 2014USD ($) |
Business Combination, Acquired Receivables [Abstract] | |
Fair value of acquired loans | $ 3,532,211 |
Purchased Credit Impaired Loans Receivable | |
Business Combination, Acquired Receivables [Abstract] | |
Contractually required principal and interest payments | 244,650 |
Nonaccretable difference | (34,219) |
Cash flows expected to be collected | 210,431 |
Accretable difference | (5,626) |
Fair value of acquired loans | 204,805 |
Purchased Non-Credit Impaired Loans Receivable | |
Business Combination, Acquired Receivables [Abstract] | |
Contractually required principal and interest payments | 3,707,463 |
Contractually required interest payments not expected to be collected due to estimated prepayments | (302,329) |
Cash flows expected to be collected | 3,405,134 |
Accretable difference | (77,728) |
Fair value of acquired loans | $ 3,327,406 |
Business Combination (Details 4
Business Combination (Details 4) - Jun. 30, 2014 - Taylor Capital Group, Inc. - USD ($) $ in Thousands | Total | Total |
Business Acquisition [Line Items] | ||
Total revenues (net interest income plus non-interest income) | $ 199,248 | $ 384,276 |
Net income | $ 37,410 | $ 72,162 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Available for Sale | ||
Amortized Cost | $ 1,590,916 | $ 1,624,268 |
Gross Unrealized Gains | 33,444 | 35,370 |
Gross Unrealized Losses | (3,809) | (4,886) |
Fair Value | 1,620,551 | 1,654,752 |
Held to Maturity | ||
Investment securities held to maturity | 1,203,627 | 993,380 |
Gross Unrealized Gains | 34,562 | 42,063 |
Gross Unrealized Losses | (6,349) | (382) |
Investment securities held to maturity | 1,231,840 | 1,035,061 |
Total Available for Sale and Held to Maturity Investment Securities | ||
Amortized Cost | 2,794,543 | 2,617,648 |
Gross Unrealized Gains | 68,006 | 77,433 |
Gross Unrealized Losses | (10,158) | (5,268) |
Fair Value | 2,852,391 | 2,689,813 |
U.S. Government sponsored agencies and enterprises | ||
Available for Sale | ||
Amortized Cost | 64,211 | 64,612 |
Gross Unrealized Gains | 1,274 | 1,281 |
Gross Unrealized Losses | 0 | (20) |
Fair Value | 65,485 | 65,873 |
States and political subdivisions | ||
Available for Sale | ||
Amortized Cost | 380,221 | 390,076 |
Gross Unrealized Gains | 16,160 | 20,846 |
Gross Unrealized Losses | (469) | (68) |
Fair Value | 395,912 | 410,854 |
Held to Maturity | ||
Investment securities held to maturity | 974,032 | 752,558 |
Gross Unrealized Gains | 22,990 | 30,089 |
Gross Unrealized Losses | (6,349) | (382) |
Investment securities held to maturity | $ 990,673 | 782,265 |
Total Available for Sale and Held to Maturity Investment Securities | ||
Percentage of securities consisting general obligation issues | 94.00% | |
States and political subdivisions | State of Illinois | ||
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 | 22.00% | |
Residential mortgage-backed securities | ||
Available for Sale | ||
Amortized Cost | $ 731,399 | 713,413 |
Gross Unrealized Gains | 10,848 | 8,977 |
Gross Unrealized Losses | (1,069) | (1,827) |
Fair Value | 741,178 | 720,563 |
Held to Maturity | ||
Investment securities held to maturity | 229,595 | 240,822 |
Gross Unrealized Gains | 11,572 | 11,974 |
Gross Unrealized Losses | 0 | 0 |
Investment securities held to maturity | 241,167 | 252,796 |
Commercial mortgage-backed securities | ||
Available for Sale | ||
Amortized Cost | 158,935 | 186,110 |
Gross Unrealized Gains | 2,175 | 1,772 |
Gross Unrealized Losses | (271) | (220) |
Fair Value | 160,839 | 187,662 |
Corporate bonds | ||
Available for Sale | ||
Amortized Cost | 245,506 | 259,526 |
Gross Unrealized Gains | 2,962 | 2,428 |
Gross Unrealized Losses | (2,000) | (2,751) |
Fair Value | 246,468 | 259,203 |
Equity securities | ||
Available for Sale | ||
Amortized Cost | 10,644 | 10,531 |
Gross Unrealized Gains | 25 | 66 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 10,669 | $ 10,597 |
Investment Securities (Details
Investment Securities (Details 2) $ in Thousands | Jun. 30, 2015USD ($)Security_Position | Dec. 31, 2014USD ($)Security_Position |
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 222,417 | $ 405,448 |
Less Than 12 Months, Unrealized Losses | (1,493) | (2,756) |
12 Months or More, Fair Value | 53,996 | 42,606 |
12 Months or More, Unrealized Losses | (2,316) | (2,130) |
Total Fair Value | 276,413 | 448,054 |
Total Unrealized Losses | (3,809) | (4,886) |
Total | ||
Less Than 12 Months, Fair Value | 525,377 | 434,234 |
Less Than 12 Months, Unrealized Losses | (7,603) | (2,886) |
12 Months or More, Fair Value | 60,681 | 56,844 |
12 Months or More, Unrealized Losses | (2,555) | (2,382) |
Total Fair Value | 586,058 | 491,078 |
Total Unrealized Losses | $ (10,158) | $ (5,268) |
Number of security positions in the investment portfolio in an unrealized loss position | Security_Position | 334 | 168 |
U.S. Government sponsored agencies and enterprises | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 9,644 | |
Less Than 12 Months, Unrealized Losses | (20) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 9,644 | |
Total Unrealized Losses | (20) | |
States and political subdivisions | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 65,211 | 7,784 |
Less Than 12 Months, Unrealized Losses | (453) | (21) |
12 Months or More, Fair Value | 2,243 | 3,558 |
12 Months or More, Unrealized Losses | (16) | (47) |
Total Fair Value | 67,454 | 11,342 |
Total Unrealized Losses | (469) | (68) |
Held to maturity | ||
Less Than 12 Months, Fair Value | 302,960 | 28,786 |
Less Than 12 Months, Unrealized Losses | (6,110) | (130) |
12 Months or More, Fair Value | 6,685 | 14,238 |
12 Months or More, Unrealized Losses | (239) | (252) |
Total Fair Value | 309,645 | 43,024 |
Total Unrealized Losses | (6,349) | (382) |
Residential mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 113,428 | 235,818 |
Less Than 12 Months, Unrealized Losses | (509) | (1,336) |
12 Months or More, Fair Value | 42,403 | 29,373 |
12 Months or More, Unrealized Losses | (560) | (491) |
Total Fair Value | 155,831 | 265,191 |
Total Unrealized Losses | (1,069) | (1,827) |
Commercial mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 11,909 | 89,509 |
Less Than 12 Months, Unrealized Losses | (271) | (220) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total Fair Value | 11,909 | 89,509 |
Total Unrealized Losses | (271) | (220) |
Corporate bonds | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 31,869 | 62,693 |
Less Than 12 Months, Unrealized Losses | (260) | (1,159) |
12 Months or More, Fair Value | 9,350 | 9,675 |
12 Months or More, Unrealized Losses | (1,740) | (1,592) |
Total Fair Value | 41,219 | 72,368 |
Total Unrealized Losses | $ (2,000) | $ (2,751) |
Investment Securities (Detail48
Investment Securities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Amortized cost and fair value of investment securities by contractual maturity | |||||
Realized gains | $ 324 | $ 7 | $ 1,083 | $ 325 | |
Realized losses | (408) | (2) | (1,627) | (3) | |
Impairment charges | 0 | (92) | 0 | (92) | |
Net (losses) gains | (84) | $ (87) | (544) | $ 230 | |
Amortized Cost, Available for sale | |||||
Due in one year or less | 13,661 | 13,661 | |||
Due after one year through five years | 308,631 | 308,631 | |||
Due after five years through ten years | 40,075 | 40,075 | |||
Due after ten years | 327,571 | 327,571 | |||
Amortized Cost | 1,590,916 | 1,590,916 | $ 1,624,268 | ||
Fair Value, Available for sale | |||||
Due in one year or less | 13,693 | 13,693 | |||
Due after one year through five years | 311,523 | 311,523 | |||
Due after five years through ten years | 41,024 | 41,024 | |||
Due after ten years | 341,625 | 341,625 | |||
Fair Value | 1,620,551 | 1,620,551 | 1,654,752 | ||
Amortized Cost, Held to maturity | |||||
Due in one year or less | 63,836 | 63,836 | |||
Due in after one year through five years | 215,085 | 215,085 | |||
Due after five years through ten years | 96,604 | 96,604 | |||
Due after ten years | 598,507 | 598,507 | |||
Investment securities held to maturity | 1,203,627 | 1,203,627 | 993,380 | ||
Fair value, Held to maturity | |||||
Due in one year or less | 64,022 | 64,022 | |||
Due in after one year through five years | 217,122 | 217,122 | |||
Due after five years through ten years | 99,540 | 99,540 | |||
Due after ten years | 609,989 | 609,989 | |||
Investment securities held to maturity | 1,231,840 | 1,231,840 | 1,035,061 | ||
Total Available for Sale and Held to Maturity Investment Securities | |||||
Amortized Cost | 2,794,543 | 2,794,543 | 2,617,648 | ||
Fair Value | 2,852,391 | 2,852,391 | 2,689,813 | ||
Pledged financial instruments, not separately reported, securities | 1,500,000 | 1,500,000 | 1,500,000 | ||
Pledged financial instruments, not separately reported, securities required to be pledged | 874,900 | 874,900 | 980,400 | ||
Investment securities pledged as collateral for long-term Federal Home Loan Bank advances | 234,300 | 234,300 | 226,900 | ||
Equity securities | |||||
Amortized Cost, Available for sale | |||||
Amortized Cost | 10,644 | 10,644 | 10,531 | ||
Fair Value, Available for sale | |||||
Fair Value | 10,669 | 10,669 | 10,597 | ||
Residential and commercial mortgage-backed securities | |||||
Amortized Cost, Available for sale | |||||
Amortized Cost | 890,334 | 890,334 | |||
Fair Value, Available for sale | |||||
Fair Value | 902,017 | 902,017 | |||
Residential mortgage-backed securities | |||||
Amortized Cost, Available for sale | |||||
Amortized Cost | 731,399 | 731,399 | 713,413 | ||
Fair Value, Available for sale | |||||
Fair Value | 741,178 | 741,178 | 720,563 | ||
Amortized Cost, Held to maturity | |||||
Investment securities held to maturity | 229,595 | 229,595 | 240,822 | ||
Fair value, Held to maturity | |||||
Investment securities held to maturity | $ 241,167 | $ 241,167 | $ 252,796 |
Loans (Details)
Loans (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)investmentrating | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | |
Loans | |||
Total loans, excluding purchased credit impaired loans | $ 8,929,181 | $ 8,831,572 | |
Purchased credit-impaired loans | 164,775 | 251,645 | |
Total loans | $ 9,093,956 | 9,083,217 | $ 5,556,724 |
Number of highest rating categories by rating services company | investmentrating | 1 | ||
Number of highest rating categories to be achieved for classification as investment grade companies | investmentrating | 4 | ||
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 long-term Federal Home Loan Bank advances | $ 3,300,000 | 2,000,000 | |
Loans required to be pledged as collateral for long-term Federal Home Loan Bank advances | 2,300,000 | 1,300,000 | |
Commercial loans | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 3,354,889 | 3,245,206 | |
Total loans | 3,407,564 | 1,278,760 | |
Commercial loans collateralized by assignment of lease payments | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 1,690,866 | 1,692,258 | |
Total loans | 1,690,866 | 1,515,446 | |
Commercial real estate | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 2,539,991 | 2,544,867 | |
Total loans | 2,593,132 | 1,693,030 | |
Residential real estate | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 533,118 | 503,287 | |
Total loans | 560,979 | 311,396 | |
Construction real estate | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 189,599 | 247,068 | |
Total loans | 201,363 | 145,550 | |
Indirect vehicle | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 303,777 | 268,840 | |
Total loans | 303,777 | 272,841 | |
Home equity lines | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 230,478 | 251,909 | |
Total loans | 230,564 | 245,256 | |
Other consumer | |||
Loans | |||
Total loans, excluding purchased credit impaired loans | 86,463 | $ 78,137 | |
Total loans | $ 105,711 | $ 94,445 |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | $ 8,929,181 | $ 8,831,572 | |
Total loans | $ 9,093,956 | 9,083,217 | $ 5,556,724 |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Period past due of recorded investment in loans (in days) | 90 days | ||
Commercial loans | |||
Contractual aging of the recorded investment in loans | |||
Current | $ 3,322,336 | 3,231,571 | |
30-59 days, past due | 2,129 | 8,222 | |
60-89 days, past due | 20,734 | 0 | |
Loans past due, 90 days or more | 9,690 | 5,413 | |
Total, past due | 32,553 | 13,635 | |
Total loans, excluding covered loans | 3,354,889 | 3,245,206 | |
Total loans | 3,407,564 | 1,278,760 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 15,807 | 14,088 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Commercial loans collateralized by assignment of lease payments | |||
Contractual aging of the recorded investment in loans | |||
Current | 1,677,305 | 1,679,991 | |
30-59 days, past due | 2,129 | 2,025 | |
60-89 days, past due | 4,979 | 6,095 | |
Loans past due, 90 days or more | 6,453 | 4,147 | |
Total, past due | 13,561 | 12,267 | |
Total loans, excluding covered loans | 1,690,866 | 1,692,258 | |
Total loans | 1,690,866 | 1,515,446 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 10,930 | 2,404 | |
Loans past due 90 days or more and still accruing | 4,316 | 3,566 | |
Commercial real estate | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 2,539,991 | 2,544,867 | |
Total loans | 2,593,132 | 1,693,030 | |
Healthcare | |||
Contractual aging of the recorded investment in loans | |||
Current | 379,218 | 342,984 | |
30-59 days, past due | 0 | 0 | |
60-89 days, past due | 0 | 0 | |
Loans past due, 90 days or more | 0 | 0 | |
Total, past due | 0 | 0 | |
Total loans, excluding covered loans | 379,218 | 342,984 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 0 | 0 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Industrial | |||
Contractual aging of the recorded investment in loans | |||
Current | 350,957 | 333,907 | |
30-59 days, past due | 0 | 944 | |
60-89 days, past due | 0 | 0 | |
Loans past due, 90 days or more | 1,425 | 3,182 | |
Total, past due | 1,425 | 4,126 | |
Total loans, excluding covered loans | 352,382 | 338,033 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 4,382 | 6,371 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Multifamily | |||
Contractual aging of the recorded investment in loans | |||
Current | 362,636 | 417,504 | |
30-59 days, past due | 795 | 1,377 | |
60-89 days, past due | 234 | 0 | |
Loans past due, 90 days or more | 1,517 | 1,517 | |
Total, past due | 2,546 | 2,894 | |
Total loans, excluding covered loans | 365,182 | 420,398 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 5,116 | 5,333 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Retail | |||
Contractual aging of the recorded investment in loans | |||
Current | 423,627 | 432,718 | |
30-59 days, past due | 134 | 2,481 | |
60-89 days, past due | 108 | 652 | |
Loans past due, 90 days or more | 3,173 | 2,325 | |
Total, past due | 3,415 | 5,458 | |
Total loans, excluding covered loans | 427,042 | 438,176 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 5,047 | 2,986 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Office | |||
Contractual aging of the recorded investment in loans | |||
Current | 233,567 | 244,166 | |
30-59 days, past due | 1,199 | 0 | |
60-89 days, past due | 2,179 | 0 | |
Loans past due, 90 days or more | 2,868 | 2,127 | |
Total, past due | 6,246 | 2,127 | |
Total loans, excluding covered loans | 239,813 | 246,293 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 2,848 | 3,644 | |
Loans past due 90 days or more and still accruing | 1,446 | 464 | |
Other | |||
Contractual aging of the recorded investment in loans | |||
Current | 772,628 | 754,031 | |
30-59 days, past due | 1,086 | 307 | |
60-89 days, past due | 847 | 2,421 | |
Loans past due, 90 days or more | 1,793 | 2,224 | |
Total, past due | 3,726 | 4,952 | |
Total loans, excluding covered loans | 776,354 | 758,983 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 13,519 | 13,541 | |
Loans past due 90 days or more and still accruing | 0 | 324 | |
Residential real estate | |||
Contractual aging of the recorded investment in loans | |||
Current | 520,930 | 485,492 | |
30-59 days, past due | 2,710 | 8,038 | |
60-89 days, past due | 1,358 | 2,319 | |
Loans past due, 90 days or more | 8,120 | 7,438 | |
Total, past due | 12,188 | 17,795 | |
Total loans, excluding covered loans | 533,118 | 503,287 | |
Total loans | 560,979 | 311,396 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 17,210 | 17,311 | |
Loans past due 90 days or more and still accruing | 265 | 0 | |
Construction real estate | |||
Contractual aging of the recorded investment in loans | |||
Current | 189,262 | 246,731 | |
30-59 days, past due | 0 | 0 | |
60-89 days, past due | 0 | 0 | |
Loans past due, 90 days or more | 337 | 337 | |
Total, past due | 337 | 337 | |
Total loans, excluding covered loans | 189,599 | 247,068 | |
Total loans | 201,363 | 145,550 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 337 | 337 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Indirect vehicle | |||
Contractual aging of the recorded investment in loans | |||
Current | 301,239 | 265,296 | |
30-59 days, past due | 1,930 | 2,516 | |
60-89 days, past due | 432 | 702 | |
Loans past due, 90 days or more | 176 | 326 | |
Total, past due | 2,538 | 3,544 | |
Total loans, excluding covered loans | 303,777 | 268,840 | |
Total loans | 303,777 | 272,841 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 1,368 | 1,542 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Home equity lines | |||
Contractual aging of the recorded investment in loans | |||
Current | 221,627 | 242,756 | |
30-59 days, past due | 1,522 | 2,717 | |
60-89 days, past due | 1,150 | 1,039 | |
Loans past due, 90 days or more | 6,179 | 5,397 | |
Total, past due | 8,851 | 9,153 | |
Total loans, excluding covered loans | 230,478 | 251,909 | |
Total loans | 230,564 | 245,256 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 15,343 | 15,171 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Other consumer | |||
Contractual aging of the recorded investment in loans | |||
Current | 86,107 | 78,106 | |
30-59 days, past due | 178 | 16 | |
60-89 days, past due | 70 | 12 | |
Loans past due, 90 days or more | 108 | 3 | |
Total, past due | 356 | 31 | |
Total loans, excluding covered loans | 86,463 | 78,137 | |
Total loans | 105,711 | $ 94,445 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 36 | 5 | |
Loans past due 90 days or more and still accruing | 85 | 0 | |
Gross loans, excluding covered loans | |||
Contractual aging of the recorded investment in loans | |||
Current | 8,841,439 | 8,755,253 | |
30-59 days, past due | 13,812 | 28,643 | |
60-89 days, past due | 32,091 | 13,240 | |
Loans past due, 90 days or more | 41,839 | 34,436 | |
Total, past due | 87,742 | 76,319 | |
Total loans, excluding covered loans | 8,929,181 | 8,831,572 | |
Purchased credit-impaired including covered loans | |||
Contractual aging of the recorded investment in loans | |||
Current | 104,520 | 158,215 | |
30-59 days, past due | 345 | 4,432 | |
60-89 days, past due | 1,731 | 585 | |
Loans past due, 90 days or more | 58,179 | 88,413 | |
Total, past due | 60,255 | 93,430 | |
Total loans | 164,775 | 251,645 | |
Loans | |||
Contractual aging of the recorded investment in loans | |||
Current | 8,945,959 | 8,913,468 | |
30-59 days, past due | 14,157 | 33,075 | |
60-89 days, past due | 33,822 | 13,825 | |
Loans past due, 90 days or more | 100,018 | 122,849 | |
Total, past due | 147,997 | 169,749 | |
Total loans | 9,093,956 | 9,083,217 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 91,943 | 82,733 | |
Loans past due 90 days or more and still accruing | 6,112 | 4,354 | |
Non-performing | |||
Contractual aging of the recorded investment in loans | |||
Current | 46,777 | 46,149 | |
30-59 days, past due | 1,636 | 5,764 | |
60-89 days, past due | 7,864 | 1,099 | |
Loans past due, 90 days or more | 41,778 | 34,075 | |
Total, past due | 51,278 | 40,938 | |
Total loans | 98,055 | 87,087 | |
Non-performing | Residential real estate | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 17,475 | 17,311 | |
Non-performing | Indirect vehicle | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 1,368 | 1,543 | |
Non-performing | Home equity lines | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 15,343 | 15,170 | |
Non-performing | Other consumer | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | $ 121 | $ 5 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 8,929,181 | $ 8,831,572 |
Loans and Leases Receivable Net of Deferred Income of Nonperforming Substandard and Doubtful Loans | 58,000 | 49,100 |
Commercial loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 3,354,889 | 3,245,206 |
Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,690,866 | 1,692,258 |
Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 379,218 | 342,984 |
Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 352,382 | 338,033 |
Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 365,182 | 420,398 |
Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 427,042 | 438,176 |
Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 239,813 | 246,293 |
Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 776,354 | 758,983 |
Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 189,599 | 247,068 |
Pass | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 7,403,798 | 7,390,916 |
Pass | Commercial loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 3,100,715 | 3,036,069 |
Pass | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,677,745 | 1,680,736 |
Pass | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 379,218 | 338,622 |
Pass | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 334,463 | 314,225 |
Pass | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 357,937 | 412,824 |
Pass | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 416,120 | 423,842 |
Pass | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 220,939 | 229,947 |
Pass | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 727,399 | 708,447 |
Pass | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 189,262 | 246,204 |
Special Mention | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 197,117 | 233,740 |
Special Mention | Commercial loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 156,718 | 178,984 |
Special Mention | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 683 | 6,853 |
Special Mention | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 4,362 |
Special Mention | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 12,894 | 8,817 |
Special Mention | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 739 | 920 |
Special Mention | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 2,879 | 2,740 |
Special Mention | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 9,301 | 8,524 |
Special Mention | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 13,903 | 22,013 |
Special Mention | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 527 |
Substandard | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 174,430 | 104,743 |
Substandard | Commercial loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 97,456 | 30,153 |
Substandard | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 12,438 | 4,669 |
Substandard | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Substandard | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 5,025 | 14,991 |
Substandard | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 6,506 | 6,654 |
Substandard | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 8,043 | 11,594 |
Substandard | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 9,573 | 7,822 |
Substandard | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 35,052 | 28,523 |
Substandard | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 337 | 337 |
Doubtful | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Commercial loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Risk Rated Category | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 7,775,345 | 7,729,399 |
Risk Rated Category | Commercial loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 3,354,889 | 3,245,206 |
Risk Rated Category | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,690,866 | 1,692,258 |
Risk Rated Category | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 379,218 | 342,984 |
Risk Rated Category | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 352,382 | 338,033 |
Risk Rated Category | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 365,182 | 420,398 |
Risk Rated Category | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 427,042 | 438,176 |
Risk Rated Category | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 239,813 | 246,293 |
Risk Rated Category | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 776,354 | 758,983 |
Risk Rated Category | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 189,599 | $ 247,068 |
Loans (Details 4)
Loans (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 8,929,181 | $ 8,831,572 |
Residential real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 533,118 | 503,287 |
Indirect vehicle | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 303,777 | 268,840 |
Home equity | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 230,478 | 251,909 |
Other consumer | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 86,463 | 78,137 |
Other loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,153,836 | 1,102,173 |
Performing | Residential real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 515,643 | 485,976 |
Performing | Indirect vehicle | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 302,409 | 267,297 |
Performing | Home equity | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 215,135 | 236,739 |
Performing | Other consumer | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 86,342 | 78,132 |
Performing | Other loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,119,529 | 1,068,144 |
Non-performing | Residential real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 17,475 | 17,311 |
Non-performing | Indirect vehicle | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,368 | 1,543 |
Non-performing | Home equity | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 15,343 | 15,170 |
Non-performing | Other consumer | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 121 | 5 |
Non-performing | Other loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 34,307 | $ 34,029 |
Loans (Details 5)
Loans (Details 5) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)loannote | Jun. 30, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | $ 116,003 | $ 116,003 | $ 113,336 |
Recorded Investment | 107,520 | 107,520 | 101,532 |
Partial Charge-Offs | 8,483 | 8,483 | 11,804 |
Allowance for Loan Losses Allocated | 16,911 | 16,911 | 10,482 |
Impaired Financing Receivable, Average Recorded Investment | 104,475 | 103,571 | 126,665 |
Interest Income Recognized | 109 | 167 | $ 407 |
Restructured loans | $ 5,195 | $ 5,195 | |
Number of separate notes into which note is restructured | note | 2 | ||
Minimum period of sustained repayment required to return note to accrual status | 6 months | ||
Restructured loans number of A and B structures | loan | 1 | 1 | 1 |
Restructured loans representing A And B structures | $ 1,000 | $ 1,000 | $ 1,000 |
Commercial loans | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 80 | 80 | |
Multifamily | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 334 | 334 | |
Residential real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 140 | 140 | |
Indirect vehicle | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 30 | 30 | |
Home equity lines | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 4,611 | 4,611 | |
Impaired Financing Receivable With No Allowance | Commercial loans | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 3,626 | 3,626 | 9,752 |
Recorded Investment | 3,626 | 3,626 | 8,992 |
Partial Charge-Offs | 0 | 0 | 760 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 3,906 | 7,254 | 10,324 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Commercial loans collateralized by assignment of lease payments | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,138 | 1,138 | 2,316 |
Recorded Investment | 1,138 | 1,138 | 2,316 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 1,366 | 1,495 | 2,569 |
Interest Income Recognized | 18 | 47 | 121 |
Impaired Financing Receivable With No Allowance | Healthcare | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Industrial | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 5,549 | 5,549 | 9,115 |
Recorded Investment | 4,373 | 4,373 | 5,858 |
Partial Charge-Offs | 1,176 | 1,176 | 3,257 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 4,884 | 4,923 | 7,870 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Multifamily | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,814 | 1,814 | 1,733 |
Recorded Investment | 1,814 | 1,814 | 1,733 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 1,926 | 1,859 | 1,928 |
Interest Income Recognized | 10 | 17 | 52 |
Impaired Financing Receivable With No Allowance | Retail | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 2,013 | 2,013 | 2,025 |
Recorded Investment | 801 | 801 | 813 |
Partial Charge-Offs | 1,212 | 1,212 | 1,212 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 824 | 824 | 3,465 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Office | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,608 | 1,608 | 0 |
Recorded Investment | 1,031 | 1,031 | 0 |
Partial Charge-Offs | 577 | 577 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 1,031 | 1,318 | 1,127 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Other | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,490 | 1,490 | 1,479 |
Recorded Investment | 1,464 | 1,464 | 1,465 |
Partial Charge-Offs | 26 | 26 | 14 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 1,502 | 1,514 | 5,249 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Residential real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 970 | 970 | 1,941 |
Recorded Investment | 970 | 970 | 1,941 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 959 | 482 | 2,740 |
Interest Income Recognized | 0 | 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 | 0 |
Recorded Investment | 0 | 0 | 0 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 34 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Indirect vehicle | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Home equity lines | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 1,327 | 1,327 | 577 |
Recorded Investment | 1,025 | 1,025 | 577 |
Partial Charge-Offs | 302 | 302 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 1,327 | 667 | 762 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With No Allowance | Other consumer | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Commercial loans | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 13,396 | 13,396 | 7,987 |
Recorded Investment | 12,636 | 12,636 | 7,987 |
Partial Charge-Offs | 760 | 760 | 0 |
Allowance for Loan Losses Allocated | 3,706 | 3,706 | 2,395 |
Impaired Financing Receivable, Average Recorded Investment | 12,210 | 9,500 | 14,227 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Commercial loans collateralized by assignment of lease payments | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 9,800 | 9,800 | 715 |
Recorded Investment | 9,785 | 9,785 | 715 |
Partial Charge-Offs | 15 | 15 | 0 |
Allowance for Loan Losses Allocated | 4,606 | 4,606 | 105 |
Impaired Financing Receivable, Average Recorded Investment | 6,098 | 3,728 | 1,515 |
Interest Income Recognized | 62 | 76 | 91 |
Impaired Financing Receivable With Allowance | Healthcare | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Industrial | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 10 | 10 | 517 |
Recorded Investment | 10 | 10 | 513 |
Partial Charge-Offs | 0 | 0 | 4 |
Allowance for Loan Losses Allocated | 3 | 3 | 130 |
Impaired Financing Receivable, Average Recorded Investment | 18 | 33 | 4,982 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Multifamily | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 4,916 | 4,916 | 5,680 |
Recorded Investment | 4,066 | 4,066 | 4,709 |
Partial Charge-Offs | 850 | 850 | 971 |
Allowance for Loan Losses Allocated | 661 | 661 | 996 |
Impaired Financing Receivable, Average Recorded Investment | 3,798 | 4,856 | 6,354 |
Interest Income Recognized | 19 | 27 | 131 |
Impaired Financing Receivable With Allowance | Retail | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 7,713 | 7,713 | 9,264 |
Recorded Investment | 7,043 | 7,043 | 7,897 |
Partial Charge-Offs | 670 | 670 | 1,367 |
Allowance for Loan Losses Allocated | 738 | 738 | 720 |
Impaired Financing Receivable, Average Recorded Investment | 7,160 | 7,433 | 8,547 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Office | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 4,519 | 4,519 | 4,528 |
Recorded Investment | 4,016 | 4,016 | 2,986 |
Partial Charge-Offs | 503 | 503 | 1,542 |
Allowance for Loan Losses Allocated | 1,438 | 1,438 | 545 |
Impaired Financing Receivable, Average Recorded Investment | 2,319 | 2,297 | 2,833 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Other | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 12,543 | 12,543 | 12,612 |
Recorded Investment | 12,522 | 12,522 | 12,527 |
Partial Charge-Offs | 21 | 21 | 85 |
Allowance for Loan Losses Allocated | 250 | 250 | 136 |
Impaired Financing Receivable, Average Recorded Investment | 13,322 | 13,265 | 11,022 |
Interest Income Recognized | 0 | 0 | 12 |
Impaired Financing Receivable With Allowance | Residential real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 13,249 | 13,249 | 14,234 |
Recorded Investment | 13,249 | 13,249 | 14,234 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 2,831 | 2,831 | 3,126 |
Impaired Financing Receivable, Average Recorded Investment | 13,762 | 14,083 | 14,632 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Construction real estate | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 2,708 | 2,708 | 2,707 |
Recorded Investment | 337 | 337 | 337 |
Partial Charge-Offs | 2,371 | 2,371 | 2,370 |
Allowance for Loan Losses Allocated | 162 | 162 | 162 |
Impaired Financing Receivable, Average Recorded Investment | 431 | 431 | 455 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Indirect vehicle | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 132 | 132 | 227 |
Recorded Investment | 132 | 132 | 227 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 10 | 10 | 14 |
Impaired Financing Receivable, Average Recorded Investment | 248 | 310 | 358 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Home equity lines | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 27,482 | 27,482 | 25,927 |
Recorded Investment | 27,482 | 27,482 | 25,705 |
Partial Charge-Offs | 0 | 0 | 222 |
Allowance for Loan Losses Allocated | 2,506 | 2,506 | 2,153 |
Impaired Financing Receivable, Average Recorded Investment | 27,384 | 27,299 | 25,672 |
Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable With Allowance | Other consumer | |||
Loans individually evaluated for impairment by class of loans | |||
Unpaid Principal Balance | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 |
Partial Charge-Offs | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Performing | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | 16,900 | 16,900 | 15,600 |
Non-performing | |||
Loans individually evaluated for impairment by class of loans | |||
Restructured loans | $ 24,500 | $ 24,500 | $ 25,800 |
Loans (Details 6)
Loans (Details 6) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($)loan | |
Restructured loans | ||||
Redefaulted loans | $ 224 | $ 224 | ||
Period past due of recorded redefaulted loans (in days) | 90 days | 90 days | ||
Performing | ||||
Restructured loans | ||||
Number of loans | loan | 7 | 3 | 13 | 7 |
Pre-Modification Recorded Investment | $ 1,547 | $ 843 | $ 3,893 | $ 1,888 |
Post-Modification Recorded Investment | 1,547 | 843 | 3,893 | 1,888 |
Charge-offs and Specific Reserves | $ 0 | $ 0 | $ 0 | $ 0 |
Non-performing | ||||
Restructured loans | ||||
Number of loans | loan | 5 | 16 | 13 | 42 |
Pre-Modification Recorded Investment | $ 495 | $ 1,011 | $ 1,302 | $ 3,090 |
Post-Modification Recorded Investment | 495 | 1,011 | 1,302 | 3,090 |
Charge-offs and Specific Reserves | $ 24 | $ 152 | $ 146 | $ 152 |
Commercial loans | Performing | ||||
Restructured loans | ||||
Number of loans | loan | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 80 | $ 80 | ||
Post-Modification Recorded Investment | 80 | 80 | ||
Charge-offs and Specific Reserves | $ 0 | $ 0 | ||
Commercial loans | Non-performing | ||||
Restructured loans | ||||
Number of loans | loan | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 263 | $ 263 | ||
Post-Modification Recorded Investment | 263 | 263 | ||
Charge-offs and Specific Reserves | $ 85 | $ 85 | ||
Multifamily | Non-performing | ||||
Restructured loans | ||||
Number of loans | loan | 1 | 1 | 1 | 1 |
Pre-Modification Recorded Investment | $ 334 | $ 158 | $ 334 | $ 158 |
Post-Modification Recorded Investment | 334 | 158 | 334 | 158 |
Charge-offs and Specific Reserves | $ 0 | $ 40 | $ 0 | $ 40 |
Residential real estate | Non-performing | ||||
Restructured loans | ||||
Number of loans | loan | 1 | 1 | 4 | |
Pre-Modification Recorded Investment | $ 140 | $ 140 | $ 1,439 | |
Post-Modification Recorded Investment | 140 | 140 | 1,439 | |
Charge-offs and Specific Reserves | $ 17 | $ 17 | $ 0 | |
Indirect vehicle | Performing | ||||
Restructured loans | ||||
Number of loans | loan | 1 | |||
Pre-Modification Recorded Investment | $ 5 | |||
Post-Modification Recorded Investment | 5 | |||
Charge-offs and Specific Reserves | $ 0 | |||
Indirect vehicle | Non-performing | ||||
Restructured loans | ||||
Number of loans | loan | 3 | 11 | 6 | 29 |
Pre-Modification Recorded Investment | $ 21 | $ 59 | $ 30 | $ 167 |
Post-Modification Recorded Investment | 21 | 59 | 30 | 167 |
Charge-offs and Specific Reserves | $ 7 | $ 27 | $ 7 | $ 27 |
Home equity lines | Performing | ||||
Restructured loans | ||||
Number of loans | loan | 6 | 3 | 12 | 6 |
Pre-Modification Recorded Investment | $ 1,467 | $ 843 | $ 3,813 | $ 1,883 |
Post-Modification Recorded Investment | 1,467 | 843 | 3,813 | 1,883 |
Charge-offs and Specific Reserves | $ 0 | $ 0 | $ 0 | $ 0 |
Home equity lines | Non-performing | ||||
Restructured loans | ||||
Number of loans | loan | 3 | 5 | 7 | |
Pre-Modification Recorded Investment | $ 531 | $ 798 | $ 1,063 | |
Post-Modification Recorded Investment | 531 | 798 | 1,063 | |
Charge-offs and Specific Reserves | $ 0 | $ 122 | $ 0 |
Loans (Details 7)
Loans (Details 7) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward] | |
Ending balance | $ 5,195 |
Performing | |
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward] | |
Beginning balance | 15,603 |
Additions | 3,893 |
Charge-offs | 0 |
Principal payments, net | (11) |
Removals | (3,093) |
Transfer from/to performing | 561 |
Transfer from/to non-performing | (78) |
Ending balance | 16,875 |
Non-performing | |
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward] | |
Beginning balance | 25,771 |
Additions | 1,302 |
Charge-offs | (299) |
Principal payments, net | (946) |
Removals | (867) |
Transfer from/to performing | 78 |
Transfer from/to non-performing | (561) |
Ending balance | $ 24,478 |
Loans (Details 8)
Loans (Details 8) $ in Thousands | Jun. 30, 2015USD ($) |
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method | |
Extended Maturity and Amortization and Reduction of Interest Rate | $ 2,131 |
Extended Maturity And/Or Amortization | 601 |
Delay in Payments or Reduction of Interest Rate | 2,463 |
Total | 5,195 |
Commercial loans | |
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method | |
Extended Maturity and Amortization and Reduction of Interest Rate | 0 |
Extended Maturity And/Or Amortization | 0 |
Delay in Payments or Reduction of Interest Rate | 80 |
Total | 80 |
Multifamily | |
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method | |
Extended Maturity and Amortization and Reduction of Interest Rate | 0 |
Extended Maturity And/Or Amortization | 334 |
Delay in Payments or Reduction of Interest Rate | 0 |
Total | 334 |
Residential real estate | |
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method | |
Extended Maturity and Amortization and Reduction of Interest Rate | 140 |
Extended Maturity And/Or Amortization | 0 |
Delay in Payments or Reduction of Interest Rate | 0 |
Total | 140 |
Indirect vehicle | |
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method | |
Extended Maturity and Amortization and Reduction of Interest Rate | 0 |
Extended Maturity And/Or Amortization | 0 |
Delay in Payments or Reduction of Interest Rate | 30 |
Total | 30 |
Home equity lines | |
Activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method | |
Extended Maturity and Amortization and Reduction of Interest Rate | 1,991 |
Extended Maturity And/Or Amortization | 267 |
Delay in Payments or Reduction of Interest Rate | 2,353 |
Total | $ 4,611 |
Loans (Details 9)
Loans (Details 9) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Pools_of_purchased_loans | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | $ 110,026 | |||||
Ending Balance | $ 120,070 | 120,070 | ||||
Ending allowance balance attributable to loans: | ||||||
Acquired and accounted for under ASC 310-30 | [1] | 1,248 | $ 1,219 | 1,248 | $ 1,219 | |
Unfunded Commitments | ||||||
Allowance for unfunded credit commitments, beginning balance | 3,777 | 1,643 | 4,031 | 1,716 | ||
Allowance for unfunded commitments, Provision | 283 | 1,352 | 29 | 1,279 | ||
Individually evaluated for impairment for unfunded commitments | 1,334 | 1,307 | 1,334 | 1,307 | ||
Unfunded commitments collectively evaluated for impairment | 2,726 | 1,688 | 2,726 | 1,688 | ||
Allowance for unfunded credit commitments, ending balance | 4,060 | 2,995 | 4,060 | 2,995 | ||
Allowance for credit losses | ||||||
Allowance for credit losses, beginning balance | 117,189 | 108,395 | 114,057 | 113,462 | ||
Allowance for loan losses and unfunded commitments charge offs | 1,989 | 4,650 | 6,916 | 14,251 | ||
Allowance for loan losses and unfunded commitments recoveries | 4,634 | 2,110 | 7,719 | 5,494 | ||
Allowance for loan losses and unfunded commitments provision | 4,296 | (1,950) | 9,270 | (800) | ||
Allowance for credit losses, individually evaluated for impairment | 18,245 | 16,468 | 18,245 | 16,468 | ||
Allowance for credit losses, collectively evaluated for impairment | 104,637 | 86,218 | 104,637 | 86,218 | ||
Acquired and accounted for under ASC 310-30 | [1] | 1,248 | 1,219 | 1,248 | 1,219 | |
Allowance for credit losses, ending balance | 124,130 | 103,905 | 124,130 | 103,905 | ||
Loans: | ||||||
Individually evaluated for impairment | 107,520 | 137,834 | 107,520 | 137,834 | ||
Collectively evaluated for impairment | 8,821,661 | 5,260,271 | 8,821,661 | 5,260,271 | ||
Acquired and accounted for under ASC 310-30 | [1] | 164,775 | 158,619 | 164,775 | 158,619 | |
Total loans | 9,093,956 | 5,556,724 | 9,093,956 | 5,556,724 | $ 9,083,217 | |
Commercial loans | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 32,827 | 23,938 | 29,571 | 23,461 | ||
Charge-offs | 57 | 446 | 626 | 536 | ||
Recoveries | 816 | 696 | 1,058 | 2,324 | ||
Provision | 5,556 | (1,034) | 9,139 | (2,095) | ||
Ending Balance | 39,142 | 23,154 | 39,142 | 23,154 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 3,706 | 5,500 | 3,706 | 5,500 | ||
Collectively evaluated for impairment | 34,984 | 17,128 | 34,984 | 17,128 | ||
Acquired and accounted for under ASC 310-30 | [1] | 452 | 526 | 452 | 526 | |
Allowance for credit losses | ||||||
Acquired and accounted for under ASC 310-30 | [1] | 452 | 526 | 452 | 526 | |
Loans: | ||||||
Individually evaluated for impairment | 16,262 | 34,117 | 16,262 | 34,117 | ||
Collectively evaluated for impairment | 3,338,627 | 1,217,963 | 3,338,627 | 1,217,963 | ||
Acquired and accounted for under ASC 310-30 | [1] | 52,675 | 26,680 | 52,675 | 26,680 | |
Total loans | 3,407,564 | 1,278,760 | 3,407,564 | 1,278,760 | ||
Commercial loans collateralized by assignment of lease payments | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 9,825 | 9,058 | 9,962 | 9,159 | ||
Charge-offs | 100 | 40 | 100 | 40 | ||
Recoveries | 340 | 130 | 1,089 | 130 | ||
Provision | 1,203 | 277 | 317 | 176 | ||
Ending Balance | 11,268 | 9,425 | 11,268 | 9,425 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 4,606 | 98 | 4,606 | 98 | ||
Collectively evaluated for impairment | 6,662 | 9,327 | 6,662 | 9,327 | ||
Loans: | ||||||
Individually evaluated for impairment | 10,923 | 3,267 | 10,923 | 3,267 | ||
Collectively evaluated for impairment | 1,679,943 | 1,512,179 | 1,679,943 | 1,512,179 | ||
Total loans | 1,690,866 | 1,515,446 | 1,690,866 | 1,515,446 | ||
Commercial real estate | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 41,958 | 47,540 | 41,826 | 51,628 | ||
Charge-offs | 108 | 1,727 | 2,142 | 8,883 | ||
Recoveries | 2,561 | 567 | 3,936 | 1,052 | ||
Provision | (6,335) | (2,447) | (5,544) | 136 | ||
Ending Balance | 38,076 | 43,933 | 38,076 | 43,933 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 3,090 | 4,511 | 3,090 | 4,511 | ||
Collectively evaluated for impairment | 34,195 | 38,734 | 34,195 | 38,734 | ||
Acquired and accounted for under ASC 310-30 | [1] | 791 | 688 | 791 | 688 | |
Allowance for credit losses | ||||||
Acquired and accounted for under ASC 310-30 | [1] | 791 | 688 | 791 | 688 | |
Loans: | ||||||
Individually evaluated for impairment | 37,140 | 57,587 | 37,140 | 57,587 | ||
Collectively evaluated for impairment | 2,502,851 | 1,561,735 | 2,502,851 | 1,561,735 | ||
Acquired and accounted for under ASC 310-30 | [1] | 53,141 | 73,708 | 53,141 | 73,708 | |
Total loans | 2,593,132 | 1,693,030 | 2,593,132 | 1,693,030 | ||
Allowance for loan losses and unfunded commitments acquired with deteriorated credit quality | 1,200 | 1,200 | $ 1,300 | |||
Residential real estate | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 6,760 | 8,087 | 6,646 | 8,872 | ||
Charge-offs | 318 | 433 | 897 | 698 | ||
Recoveries | 8 | 6 | 80 | 525 | ||
Provision | 219 | (165) | 840 | (1,204) | ||
Ending Balance | 6,669 | 7,495 | 6,669 | 7,495 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 2,831 | 3,135 | 2,831 | 3,135 | ||
Collectively evaluated for impairment | 3,838 | 4,360 | 3,838 | 4,360 | ||
Acquired and accounted for under ASC 310-30 | [1] | 0 | 0 | |||
Allowance for credit losses | ||||||
Acquired and accounted for under ASC 310-30 | [1] | 0 | 0 | |||
Loans: | ||||||
Individually evaluated for impairment | 14,219 | 16,888 | 14,219 | 16,888 | ||
Collectively evaluated for impairment | 518,899 | 288,813 | 518,899 | 288,813 | ||
Acquired and accounted for under ASC 310-30 | [1] | 27,861 | 5,695 | 27,861 | 5,695 | |
Total loans | 560,979 | 311,396 | 560,979 | 311,396 | ||
Construction real estate | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 9,473 | 6,484 | 8,918 | 6,856 | ||
Charge-offs | 3 | 14 | 6 | 70 | ||
Recoveries | 35 | 77 | 37 | 176 | ||
Provision | 2,954 | (1,934) | 3,510 | (2,349) | ||
Ending Balance | 12,459 | 4,613 | 12,459 | 4,613 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 162 | 161 | 162 | 161 | ||
Collectively evaluated for impairment | 12,292 | 4,447 | 12,292 | 4,447 | ||
Acquired and accounted for under ASC 310-30 | [1] | 5 | 5 | 5 | 5 | |
Allowance for credit losses | ||||||
Acquired and accounted for under ASC 310-30 | [1] | 5 | 5 | 5 | 5 | |
Loans: | ||||||
Individually evaluated for impairment | 337 | 337 | 337 | 337 | ||
Collectively evaluated for impairment | 189,262 | 116,659 | 189,262 | 116,659 | ||
Acquired and accounted for under ASC 310-30 | [1] | 11,764 | 28,554 | 11,764 | 28,554 | |
Total loans | 201,363 | 145,550 | 201,363 | 145,550 | ||
Indirect vehicle | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 1,715 | 1,684 | 1,687 | 1,662 | ||
Charge-offs | 627 | 583 | 1,501 | 1,503 | ||
Recoveries | 545 | 439 | 1,020 | 881 | ||
Provision | 276 | 187 | 703 | 687 | ||
Ending Balance | 1,909 | 1,727 | 1,909 | 1,727 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 10 | 29 | 10 | 29 | ||
Collectively evaluated for impairment | 1,899 | 1,698 | 1,899 | 1,698 | ||
Loans: | ||||||
Individually evaluated for impairment | 132 | 187 | 132 | 187 | ||
Collectively evaluated for impairment | 303,645 | 272,654 | 303,645 | 272,654 | ||
Total loans | 303,777 | 272,841 | 303,777 | 272,841 | ||
Home equity lines | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 8,780 | 8,397 | 9,456 | 8,478 | ||
Charge-offs | 276 | 817 | 720 | 1,436 | ||
Recoveries | 160 | 127 | 261 | 260 | ||
Provision | (252) | 574 | (585) | 979 | ||
Ending Balance | 8,412 | 8,281 | 8,412 | 8,281 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 2,506 | 1,727 | 2,506 | 1,727 | ||
Collectively evaluated for impairment | 5,906 | 6,554 | 5,906 | 6,554 | ||
Loans: | ||||||
Individually evaluated for impairment | 28,507 | 25,451 | 28,507 | 25,451 | ||
Collectively evaluated for impairment | 201,971 | 219,684 | 201,971 | 219,684 | ||
Acquired and accounted for under ASC 310-30 | [1] | 86 | 121 | 86 | 121 | |
Total loans | 230,564 | 245,256 | 230,564 | 245,256 | ||
Other consumer | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Beginning Balance | 2,074 | 1,564 | 1,960 | 1,630 | ||
Charge-offs | 500 | 590 | 924 | 1,085 | ||
Recoveries | 169 | 68 | 238 | 146 | ||
Provision | 392 | 1,240 | 861 | 1,591 | ||
Ending Balance | 2,135 | 2,282 | 2,135 | 2,282 | ||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 2,135 | 2,282 | 2,135 | 2,282 | ||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 86,463 | 70,584 | 86,463 | 70,584 | ||
Acquired and accounted for under ASC 310-30 | [1] | 19,248 | 23,861 | 19,248 | 23,861 | |
Total loans | 105,711 | $ 94,445 | 105,711 | $ 94,445 | ||
Purchased loans | ||||||
Allowance for credit losses [Roll Forward] | ||||||
Provision | (538) | |||||
Loans: | ||||||
Total loans | $ 52,600 | 52,600 | ||||
Allowance for loan losses and unfunded commitments write offs net of recoveries | $ (503) | |||||
Provision and charge-offs related to the number of pools | Pools_of_purchased_loans | 16 | |||||
[1] | Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.” |
Loans (Details 10)
Loans (Details 10) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Changes in the accretable yield for purchased credit-impaired loans | |||||
Balance at beginning of period | $ 6,367 | $ 2,361 | $ 7,434 | $ 2,337 | |
Accretion | (1,817) | (1,143) | (3,747) | (1,693) | |
Other | [1] | 6,906 | 0 | 7,769 | 574 |
Balance at end of period | $ 11,456 | $ 1,218 | $ 11,456 | $ 1,218 | |
[1] | Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loans acquired and accounted for under ASC 310-30. |
Loans (Details 11)
Loans (Details 11) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | $ 49,489 | |||
Non covered loans | 2,299,718 | |||
Loans acquired | 2,349,207 | |||
Estimated receivable amount from the FDIC under the loss-share agreement | $ 2,288 | |||
Outstanding balances on purchased loans from the FDIC | 75,100 | $ 95,100 | ||
Carrying amount on loans purchased from the FDIC | 74,400 | $ 91,400 | ||
Purchased Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 49,489 | |||
Non covered loans | 115,286 | |||
Loans acquired | 164,775 | |||
Estimated receivable amount from the FDIC under the loss-share agreement | 2,288 | |||
Purchased Non-Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 0 | |||
Non covered loans | 2,184,432 | |||
Loans acquired | 2,184,432 | |||
Estimated receivable amount from the FDIC under the loss-share agreement | $ 0 | |||
Commercial related | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | [1] | 247 | ||
Non covered loans | [2] | 18,751 | ||
Commercial related | Purchased Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | [1] | 247 | ||
Non covered loans | [2] | 8,352 | ||
Reimbursable amount covered other real estate owned | 936 | |||
Commercial related | Purchased Non-Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | [1] | 0 | ||
Non covered loans | [2] | 10,399 | ||
Commercial loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 344 | |||
Non covered loans | 1,081,284 | |||
Commercial loans | Purchased Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 344 | |||
Non covered loans | 43,762 | |||
Commercial loans | Purchased Non-Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 0 | |||
Non covered loans | 1,037,522 | |||
Commercial loans collateralized by assignment of lease payments | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Non covered loans | 105,327 | |||
Commercial loans collateralized by assignment of lease payments | Purchased Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Non covered loans | 0 | |||
Commercial loans collateralized by assignment of lease payments | Purchased Non-Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Non covered loans | 105,327 | |||
Commercial real estate | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 23,816 | |||
Non covered loans | 782,975 | |||
Commercial real estate | Purchased Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 23,816 | |||
Non covered loans | 29,294 | |||
Commercial real estate | Purchased Non-Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 0 | |||
Non covered loans | 753,681 | |||
Construction real estate | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 4,549 | |||
Non covered loans | 67,966 | |||
Construction real estate | Purchased Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 4,549 | |||
Non covered loans | 7,216 | |||
Construction real estate | Purchased Non-Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 0 | |||
Non covered loans | 60,750 | |||
Other | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 20,533 | |||
Non covered loans | 243,415 | |||
Other | Purchased Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 20,533 | |||
Non covered loans | 26,662 | |||
Other | Purchased Non-Credit-Impaired Loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Covered loans | 0 | |||
Non covered loans | 216,753 | |||
Heritage | Commercial loans, commercial real estate receivable and construction loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Loans not covered under the loss share agreement | [1] | 2,800 | ||
Benchmark | Commercial loans, commercial real estate receivable and construction loans | ||||
Purchased credit-impaired loans and non-credit-impaired loans | ||||
Loans not covered under the loss share agreement | [1] | $ 2,300 | ||
[1] | Commercial related loans include commercial, commercial real estate and construction real estate for the InBank, Heritage and Benchmark FDIC-assisted transactions. | |||
[2] | Loans acquired in business combinations and accounted for under ASC Subtopic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.” |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) | 6 Months Ended | ||
Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of operating segments | segment | 3 | ||
Impairment loss | $ 0 | $ 0 | |
Goodwill | $ 711,521,000 | $ 711,521,000 | |
Weighted average amortization period (in years) | 5 years |
Goodwill and Intangibles (Det61
Goodwill and Intangibles (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in the carrying amount of core deposit and client relationship intangibles | ||||
Balance at beginning of period | $ 38,006 | |||
Amortization expense | $ (1,509) | $ (1,174) | (3,027) | $ (2,414) |
Balance at end of period | 34,979 | 34,979 | ||
Gross carrying amount | 80,371 | |||
Accumulated amortization | (45,392) | |||
Net book value | $ 34,979 | $ 38,006 |
Goodwill and Intangibles (Det62
Goodwill and Intangibles (Details 3) $ in Thousands | Jun. 30, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,015 | $ 2,936 |
2,016 | 5,157 |
2,017 | 4,637 |
2,018 | 4,221 |
2,019 | 2,743 |
Thereafter | 15,285 |
Total estimated future amortization expense | $ 34,979 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Demand deposit accounts, noninterest bearing | $ 4,378,005 | $ 4,118,256 |
NOW and money market accounts | 3,842,264 | 3,913,765 |
Savings accounts | 970,875 | 940,345 |
Certificates of deposit, $250,000 or more | 689,504 | 838,928 |
Other certificates of deposit | 981,166 | 1,179,648 |
Total deposits | 10,861,814 | 10,990,942 |
Brokered deposits | $ 401,000 | $ 485,300 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Short-term borrowings | ||
Weighted Average Cost | 0.13% | 0.15% |
Amount | $ 1,382,635 | $ 931,415 |
Customer repurchase agreements | ||
Short-term borrowings | ||
Weighted Average Cost | 0.18% | 0.21% |
Amount | $ 276,724 | $ 219,824 |
Federal Home Loan Bank advances | ||
Short-term borrowings | ||
Weighted Average Cost | 0.12% | 0.13% |
Amount | $ 1,100,000 | $ 700,000 |
Federal funds purchased | ||
Short-term borrowings | ||
Weighted Average Cost | 0.08% | 0.14% |
Amount | $ 5,911 | $ 11,591 |
Short-Term Borrowings (Details
Short-Term Borrowings (Details 2) - USD ($) | Mar. 09, 2012 | Jun. 30, 2015 | Dec. 31, 2014 |
Short-term borrowings | |||
Fixed interest rate Federal Home Loan Bank advances | $ 1,100,000,000 | $ 700,000,000 | |
Effective interest rate of amounts due within one year | 0.12% | ||
Line of credit | |||
Short-term borrowings | |||
Unsecured line of credit | $ 35,000,000 | ||
Description of interest rate basis | one month LIBOR | ||
LIBOR | Line of credit | |||
Short-term borrowings | |||
Debt instrument, basis spread on variable rate | 1.85% |
Long-term Borrowings (Details)
Long-term Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Long-term borrowings | ||
Federal Home Loan Bank advances | $ 4,100 | $ 4,200 |
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 Debt | $ 89,639 | 82,916 |
Notes payable to banks | ||
Long-term borrowings | ||
Long-term Debt | $ 45,400 | 38,500 |
Minimum interest rates (as a percent) | 2.25% | |
Maximum interest rates (as a percent) | 12.00% | |
Long-term Debt, Weighted Average Interest Rate | 4.42% | |
Equipment pledged as collateral | $ 54,700 | 48,800 |
Structured repurchase agreement | ||
Long-term borrowings | ||
Long-term Debt | $ 40,000 | $ 40,000 |
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% |
Junior Subordinated Notes Iss67
Junior Subordinated Notes Issued to Capital Trusts (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | ||
Outstanding junior subordinated notes | |||
Principal balance | $ 185,971 | $ 185,778 | |
Junior Subordinated Notes | Maximum | |||
Outstanding junior subordinated notes | |||
Period for deferment of payment of interest on notes (in years) | 5 years | ||
Coal City Capital Trust I | Junior Subordinated Notes | |||
Outstanding junior subordinated notes | |||
Principal balance | $ 25,774 | ||
Debt instrument, basis spread on variable rate | 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 | ||
Debt instrument, basis spread on variable rate | 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 | ||
Debt instrument, basis spread on variable rate | 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 | ||
Debt instrument, basis spread on variable rate | 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 | ||
Debt instrument, basis spread on variable rate | 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 | ||
Debt instrument, basis spread on variable rate | 1.30% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
FOBB Statutory Trust III | Junior Subordinated Notes | |||
Outstanding junior subordinated notes | |||
Principal balance | [1] | $ 5,155 | |
Debt instrument, basis spread on variable rate | [1] | 2.80% | |
Description of annual interest rate basis | [1] | 3-mo LIBOR | |
TAYC Capital Trust II | |||
Outstanding junior subordinated notes | |||
Purchase accounting adjustments discount | $ 7,300 | ||
TAYC Capital Trust II | Junior Subordinated Notes | |||
Outstanding junior subordinated notes | |||
Principal balance | [2] | $ 41,238 | |
Debt instrument, basis spread on variable rate | [2] | 2.68% | |
Description of annual interest rate basis | [2] | 3-mo LIBOR | |
Trust Preferred Securities | Coal City Capital Trust I | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | 1.80% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Face Value | $ 25,000 | ||
Trust Preferred Securities | MB Financial Capital Trust II | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | 1.40% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Face Value | $ 35,000 | ||
Trust Preferred Securities | MB Financial Capital Trust III | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | 1.50% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Face Value | $ 10,000 | ||
Trust Preferred Securities | MB Financial Capital Trust IV | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | 1.52% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Face Value | $ 20,000 | ||
Trust Preferred Securities | MB Financial Capital Trust V | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | 1.30% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Face Value | $ 30,000 | ||
Trust Preferred Securities | MB Financial Capital Trust VI | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | 1.30% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Face Value | $ 22,500 | ||
Trust Preferred Securities | FOBB Statutory Trust III | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | [1] | 2.80% | |
Description of annual interest rate basis | [1] | 3-mo LIBOR | |
Face Value | [1] | $ 5,000 | |
Trust Preferred Securities | TAYC Capital Trust II | |||
Outstanding junior subordinated notes | |||
Debt instrument, basis spread on variable rate | [2] | 2.68% | |
Description of annual interest rate basis | [2] | 3-mo LIBOR | |
Face Value | [2] | $ 40,000 | |
[1] | FOBB Statutory Trust III was established by First Oak Brook Bancshares, Inc. (“FOBB”) prior to the Company's acquisition of FOBB in 2006, 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 in 2014, 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 $7.3 million. |
Commitments and Contingencies68
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Commitments [Abstract] | ||
Maximum maturity period for letters of credit (in years) | 5 years | |
Increase (decrease) in maximum potential amount of future payments under letters of credit | $ (4,200) | |
Dollar amount of letters of credit outstanding | 130,000 | $ 134,200 |
Letters of credit issued or renewed | 52,800 | |
Capital expenditure commitments outstanding | 2,700 | |
Home equity lines | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | 197,121 | 221,102 |
Other commitments | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | 2,810,547 | 2,643,220 |
Standby | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | 128,807 | 131,810 |
Commercial | ||
Commitments and contingencies | ||
Dollar amount of line of credit outstanding | $ 1,179 | $ 2,401 |
Commitments and Contingencies69
Commitments and Contingencies (Details 2) | 6 Months Ended |
Jun. 30, 2015 | |
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 | 22.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | $ 1,620,551,000 | $ 1,654,752,000 | |
Loans held for sale | 801,343,000 | 737,209,000 | |
Total loans, excluding purchased credit impaired loans | 8,929,181,000 | 8,831,572,000 | |
Mortgage servicing rights | 261,034,000 | 235,402,000 | |
Derivative financial instruments, assets | 14,659,000 | 13,952,000 | |
Derivative financial instrument, liabilities | 46,847,000 | 37,927,000 | |
U.S. Government sponsored agencies and enterprises | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 65,485,000 | 65,873,000 | |
States and political subdivisions | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 395,912,000 | 410,854,000 | |
Residential mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 741,178,000 | 720,563,000 | |
Commercial mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 160,839,000 | 187,662,000 | |
Corporate bonds | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 246,468,000 | 259,203,000 | |
Equity securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 10,669,000 | 10,597,000 | |
Recurring basis | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Loans held for sale | 801,343,000 | 737,209,000 | |
Total loans, excluding purchased credit impaired loans | 19,822,000 | ||
Assets held in trust for deferred compensation | 17,019,000 | 16,829,000 | |
Other liabilities | [1] | 16,488,000 | 16,483,000 |
Derivative financial instrument, liabilities | 47,054,000 | 40,499,000 | |
Recurring basis | U.S. Government sponsored agencies and enterprises | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 65,485,000 | 65,873,000 | |
Recurring basis | States and political subdivisions | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 395,912,000 | 410,854,000 | |
Recurring basis | Residential mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 741,178,000 | 720,563,000 | |
Recurring basis | Commercial mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 160,839,000 | 187,662,000 | |
Recurring basis | Corporate bonds | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 246,468,000 | 259,203,000 | |
Recurring basis | Equity securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 10,669,000 | 10,597,000 | |
Recurring basis | Mortgage servicing rights | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Mortgage servicing rights | 261,034,000 | 235,402,000 | |
Recurring basis | Derivative financial instruments | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments, assets | 43,345,000 | 46,388,000 | |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 10,669,000 | 10,597,000 | |
Loans held for sale | 0 | 0 | |
Assets held in trust for deferred compensation | 17,019,000 | 16,829,000 | |
Derivative financial instruments, assets | 7,683,000 | 1,607,000 | |
Other liabilities | [1] | 16,488,000 | 16,483,000 |
Derivative financial instrument, liabilities | 13,711,000 | 7,209,000 | |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 10,669,000 | 10,597,000 | |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative financial instruments | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments, assets | 7,683,000 | 1,607,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 1,608,985,000 | 1,643,182,000 | |
Loans held for sale | 801,343,000 | 737,209,000 | |
Total loans, excluding purchased credit impaired loans | 19,822,000 | ||
Derivative financial instruments, assets | 31,856,000 | 39,707,000 | |
Derivative financial instrument, liabilities | 33,343,000 | 33,290,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government sponsored agencies and enterprises | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 65,485,000 | 65,873,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 395,449,000 | 410,391,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 740,744,000 | 720,053,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 160,839,000 | 187,662,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 246,468,000 | 259,203,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative financial instruments | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments, assets | 31,856,000 | 39,707,000 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 897,000 | 973,000 | |
Loans held for sale | 0 | 0 | |
Derivative financial instruments, assets | 3,806,000 | 5,074,000 | |
Derivative financial instrument, liabilities | 0 | 0 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 463,000 | 463,000 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 434,000 | 510,000 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Mortgage servicing rights | 261,034,000 | 235,402,000 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivative financial instruments | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments, assets | $ 3,806,000 | $ 5,074,000 | |
[1] | Liabilities associated with assets held in trust for deferred compensation |
Fair Value Measurements (Deta71
Fair Value Measurements (Details 2) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | $ 1,620,551,000 | $ 1,654,752,000 |
Mortgage servicing rights | 261,034,000 | 235,402,000 |
Derivative financial instruments, assets | 14,659,000 | 13,952,000 |
States and political subdivisions | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 395,912,000 | 410,854,000 |
Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 741,178,000 | 720,563,000 |
Recurring basis | States and political subdivisions | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 395,912,000 | 410,854,000 |
Recurring basis | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 741,178,000 | 720,563,000 |
Recurring basis | Mortgage servicing rights | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Mortgage servicing rights | 261,034,000 | 235,402,000 |
Recurring basis | Derivative financial instruments | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Derivative financial instruments, assets | 43,345,000 | 46,388,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 897,000 | 973,000 |
Derivative financial instruments, assets | 3,806,000 | 5,074,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | States and political subdivisions | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | $ 463,000 | 463,000 |
Credit assumption (as a percent) | 45.00% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | $ 434,000 | 510,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | Mortgage servicing rights | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Mortgage servicing rights | 261,034,000 | 235,402,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | Derivative financial instruments | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Derivative financial instruments, assets | $ 3,806,000 | $ 5,074,000 |
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Constant prepayment rates (as a percent) | 1.00% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Mortgage servicing rights | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Constant prepayment rates (as a percent) | 8.30% | |
Discount rate | 9.25% | |
Maturity | 326 months | |
Delinquencies | 0.51% | |
Cost to services | $ 60 | |
Cost to services - deliquent | $ 150 | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Minimum | Derivative financial instruments | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Expected closing ratio | 70.00% | |
Expected delivery price | 0.9801% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Constant prepayment rates (as a percent) | 3.00% | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Mortgage servicing rights | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Constant prepayment rates (as a percent) | 12.80% | |
Discount rate | 12.00% | |
Maturity | 356 months | |
Delinquencies | 3.74% | |
Cost to services | $ 160 | |
Cost to services - deliquent | $ 1,000 | |
Significant Unobservable Inputs (Level 3) | Recurring basis | Maximum | Derivative financial instruments | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Expected closing ratio | 95.00% | |
Expected delivery price | 1.0819% |
Fair Value Measurements (Deta72
Fair Value Measurements (Details 3) - Jun. 30, 2015 - Mortgage servicing rights - USD ($) | Total |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |
Impact on fair value of 10% adverse change | $ (6,154,000) |
Impact on fair value of 20% adverse change | (11,890,000) |
Impact on fair value of 10% adverse change | (5,750,000) |
Impact on fair value of 20% adverse change | (11,099,000) |
Impact on fair value of 10% adverse change | (945,000) |
Impact on fair value of 20% adverse change | (1,890,000) |
Impact on fair value of 10% adverse change | (2,899,000) |
Impact on fair value of 20% adverse change | $ (5,797,000) |
Weighted average | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |
Weighted average CPR | 10.80% |
Weighted average discount rate | 9.56% |
Weighted average delinquency rate | 1.83% |
Weighted average costs to service | $ 79 |
Fair Value Measurements (Deta73
Fair Value Measurements (Details 4) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Fair value assumption, allowance for impaired real estate loans percentage | 90.00% | |
Investment securities | ||
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Balance, beginning of period | $ 973 | $ 5,856 |
Purchases | 0 | 0 |
Originations | 0 | 0 |
Other comprehensive income | 0 | 108 |
Included in earnings | 0 | 0 |
Principal payments | (76) | (256) |
Balance, ending of period | 897 | 5,616 |
Mortgage servicing rights | ||
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Balance, beginning of period | 235,402 | 0 |
Purchases | 352 | 0 |
Originations | 36,404 | 0 |
Other comprehensive income | 0 | 0 |
Included in earnings | (11,124) | 0 |
Principal payments | 0 | 0 |
Balance, ending of period | 261,034 | 0 |
Mortgage derivative instruments | ||
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Balance, beginning of period | 5,074 | 0 |
Purchases | 0 | 0 |
Originations | 0 | 0 |
Other comprehensive income | 0 | 0 |
Included in earnings | (1,268) | 0 |
Principal payments | 0 | 0 |
Balance, ending of period | $ 3,806 | $ 0 |
Fair Value Measurements (Deta74
Fair Value Measurements (Details 5) - Nonrecurring basis - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Impaired loans | $ 79,084 | $ 61,717 |
Foreclosed assets | 42,462 | 38,619 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Impaired loans | 79,084 | 61,717 |
Foreclosed assets | $ 42,462 | $ 38,619 |
Significant Unobservable Inputs (Level 3) | Maximum | ||
Financial Assets: | ||
Appraisal adjustment impaired loans (as a percent) | 10.00% | |
Appraisal adjustment foreclosed assets (as a percent) | 10.00% | |
Significant Unobservable Inputs (Level 3) | Minimum | ||
Financial Assets: | ||
Appraisal adjustment impaired loans (as a percent) | 5.00% | |
Appraisal adjustment foreclosed assets (as a percent) | 5.00% |
Fair Value Measurements (Deta75
Fair Value Measurements (Details 6) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
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 | $ 290,266,000 | $ 256,804,000 |
Interest earning deposits with banks | 144,154,000 | 55,277,000 |
Federal funds sold | 5,000 | 0 |
Investment securities available for sale | 1,620,551,000 | 1,654,752,000 |
Investment securities held to maturity | 1,231,840,000 | 1,035,061,000 |
Non-marketable securities - FHLB and FRB stock | 111,400,000 | 75,569,000 |
Loans held for sale | 801,343,000 | 737,209,000 |
Derivative financial instruments | 14,659,000 | 13,952,000 |
Financial Liabilities: | ||
Noninterest bearing deposits | 4,378,005,000 | 4,118,256,000 |
Interest bearing deposits | 6,483,809,000 | 6,872,686,000 |
Short-term borrowings | 1,382,635,000 | 931,415,000 |
Junior subordinated notes issued to capital trusts | 185,971,000 | 185,778,000 |
Derivative financial instruments | 46,847,000 | 37,927,000 |
Carrying Amount | ||
Financial Assets: | ||
Cash and due from banks | 290,266,000 | 256,804,000 |
Interest earning deposits with banks | 144,154,000 | 55,277,000 |
Federal funds sold | 5,000 | |
Investment securities available for sale | 1,620,551,000 | 1,654,752,000 |
Investment securities held to maturity | 1,203,627,000 | 993,380,000 |
Non-marketable securities - FHLB and FRB stock | 111,400,000 | 75,569,000 |
Loans held for sale | 801,343,000 | 737,209,000 |
Loans, net | 8,973,886,000 | 8,973,191,000 |
Accrued interest receivable | 49,328,000 | 49,065,000 |
Derivative financial instruments | 43,345,000 | 46,388,000 |
Financial Liabilities: | ||
Noninterest bearing deposits | 4,378,005,000 | 4,118,256,000 |
Interest bearing deposits | 6,483,809,000 | 6,872,686,000 |
Short-term borrowings | 1,382,635,000 | 931,415,000 |
Long-term borrowings | 89,639,000 | 82,916,000 |
Junior subordinated notes issued to capital trusts | 185,971,000 | 185,778,000 |
Accrued interest payable | 2,711,000 | 3,709,000 |
Derivative financial instruments | 47,054,000 | 40,499,000 |
Total Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 290,266,000 | 256,804,000 |
Interest earning deposits with banks | 144,154,000 | 55,277,000 |
Federal funds sold | 5,000 | |
Investment securities available for sale | 1,620,551,000 | 1,654,752,000 |
Investment securities held to maturity | 1,231,840,000 | 1,035,061,000 |
Non-marketable securities - FHLB and FRB stock | 111,400,000 | 75,569,000 |
Loans held for sale | 801,343,000 | 737,209,000 |
Loans, net | 8,989,754,000 | 8,956,494,000 |
Accrued interest receivable | 49,328,000 | 49,065,000 |
Derivative financial instruments | 43,345,000 | 46,388,000 |
Financial Liabilities: | ||
Noninterest bearing deposits | 4,378,005,000 | 4,118,256,000 |
Interest bearing deposits | 6,487,155,000 | 6,877,349,000 |
Short-term borrowings | 1,382,627,000 | 931,415,000 |
Long-term borrowings | 91,901,000 | 86,025,000 |
Junior subordinated notes issued to capital trusts | 124,672,000 | 122,408,000 |
Accrued interest payable | 2,711,000 | 3,709,000 |
Derivative financial instruments | 47,054,000 | 40,499,000 |
Recurring basis | ||
Financial Assets: | ||
Loans held for sale | 801,343,000 | 737,209,000 |
Financial Liabilities: | ||
Derivative financial instruments | 47,054,000 | 40,499,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets: | ||
Cash and due from banks | 290,266,000 | 256,804,000 |
Interest earning deposits with banks | 144,154,000 | 55,277,000 |
Federal funds sold | 5,000 | |
Investment securities available for sale | 10,669,000 | 10,597,000 |
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 | 49,328,000 | 49,065,000 |
Derivative financial instruments | 7,683,000 | 1,607,000 |
Financial Liabilities: | ||
Noninterest bearing deposits | 4,378,005,000 | 4,118,256,000 |
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 | 2,711,000 | 3,709,000 |
Derivative financial instruments | 13,711,000 | 7,209,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest earning deposits with banks | 0 | 0 |
Federal funds sold | 0 | |
Investment securities available for sale | 1,608,985,000 | 1,643,182,000 |
Investment securities held to maturity | 1,231,840,000 | 1,035,061,000 |
Non-marketable securities - FHLB and FRB stock | 0 | 0 |
Loans held for sale | 801,343,000 | 737,209,000 |
Loans, net | 19,822,000 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative financial instruments | 31,856,000 | 39,707,000 |
Financial Liabilities: | ||
Noninterest 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 | 33,343,000 | 33,290,000 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest earning deposits with banks | 0 | 0 |
Federal funds sold | 0 | |
Investment securities available for sale | 897,000 | 973,000 |
Investment securities held to maturity | 0 | 0 |
Non-marketable securities - FHLB and FRB stock | 111,400,000 | 75,569,000 |
Loans held for sale | 0 | 0 |
Loans, net | 8,969,932,000 | 8,956,494,000 |
Accrued interest receivable | 0 | 0 |
Derivative financial instruments | 3,806,000 | 5,074,000 |
Financial Liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
Interest bearing deposits | 6,487,155,000 | 6,877,349,000 |
Short-term borrowings | 1,382,627,000 | 931,415,000 |
Long-term borrowings | 91,901,000 | 86,025,000 |
Junior subordinated notes issued to capital trusts | 124,672,000 | 122,408,000 |
Accrued interest payable | 0 | 0 |
Derivative financial instruments | $ 0 | $ 0 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Impact of the share-based payment plans in the financial statements | |||||
Total cost of share-based payment plans during the period | $ 3,870 | $ 2,243 | $ 7,475 | $ 4,255 | |
Amount of related income tax benefit recognized in income | $ 1,509 | $ 880 | $ 2,921 | $ 1,670 | |
Employee stock options | |||||
Options outstanding activity | |||||
Number of Options, Outstanding, Beginning balance | 2,250,714 | ||||
Number of Options, Granted | 309,615 | ||||
Number of Options, Exercised | (41,063) | ||||
Number of Options, Expired or Cancelled | (25,379) | ||||
Number of Options, Forfeited | (6,086) | ||||
Number of Options, Outstanding, Ending balance | 2,487,801 | 2,487,801 | 2,250,714 | ||
Number of Options, Options Exercisable | 1,687,552 | 1,687,552 | |||
Weighted Average Exercise Price | |||||
Weighted Average Exercise Price, Outstanding, Beginning balance (in dollars per share) | $ 27.94 | ||||
Weighted Average Exercise Price, Granted (in dollars per share) | 31.40 | ||||
Weighted Average Exercise Price, Exercised (in dollars per share) | 19.46 | ||||
Weighted Average Exercise Price, Expired or Cancelled (in dollars per share) | 33.37 | ||||
Weighted Average Exercise Price, Forfeited (in dollars per share) | 25.90 | ||||
Weighted Average Exercise Price, Outstanding, Ending balance (in dollars per share) | $ 28.46 | 28.46 | $ 27.94 | ||
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 29.24 | $ 29.24 | |||
Weighted Average Remaining Contractual Term (In Years) | |||||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 4 years 6 months 14 days | 4 years 4 months 20 days | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 4 years 6 months 14 days | 4 years 4 months 20 days | |||
Weighted Average Remaining Contractual Term, Options Exercisable (in years) | 2 years 10 months 3 days | ||||
Aggregate Intrinsic Value | |||||
Aggregate Intrinsic Value, Options Outstanding | $ 16,880 | $ 16,880 | |||
Aggregate Intrinsic Value, Options Exercisable | $ 10,771 | $ 10,771 | |||
Fair value assumptions | |||||
Risk-free interest rate | 1.69% | ||||
Expected volatility of Company’s stock | 29.97% | ||||
Expected dividend yield | 1.80% | ||||
Expected life of options | 5 years 11 months 12 days | ||||
Weighted average fair value per option of options granted during the year (in dollars per share) | $ 7.94 | ||||
Restricted shares | |||||
Changes in restricted shares | |||||
Number of Shares and Units, Shares Outstanding, Beginning balance | 801,085 | ||||
Number of Shares and Units, Granted | 491,465 | ||||
Number of Shares and Units, Vested | (149,406) | ||||
Number of Shares and Units, Forfeited | (7,049) | ||||
Number of Shares and Units, Shares Outstanding, Ending balance | 1,136,095 | 1,136,095 | 801,085 | ||
Weighted Average Grant Date Fair Value, restricted shares | |||||
Weighted Average Grant Date Fair Value, Shares Outstanding, Beginning balance (in dollars per share) | $ 26.99 | ||||
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 31.66 | ||||
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 27.58 | ||||
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 27.61 | ||||
Weighted Average Grant Date Fair Value, Shares Outstanding, Ending balance (in dollars per share) | $ 28.93 | $ 28.93 | $ 26.99 |
Stock Incentive Plans (Details
Stock Incentive Plans (Details 2) - USD ($) $ in Thousands | May. 28, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation | ||||||
Grants beyond threshold limit count numerator | 2 | |||||
Grants beyond threshold limit count denominator | 1 | |||||
Omnibus Incentive Plan | ||||||
Stock-based compensation | ||||||
Additional number of share authorized | 3,100,000 | |||||
Total number of shares authorized | 11,400,000 | |||||
Percentage of shares authorized for issuance | 10.00% | |||||
Vesting period | 3 years | |||||
Shares available for future grant | 4,996,212 | |||||
Unrecognized compensation cost related to nonvested share-based compensation | $ 27,800 | |||||
Period for recognition | 2 years 6 months 10 days | |||||
Employee stock options | ||||||
Stock-based compensation | ||||||
Award requisite service period | 4 years | |||||
Expiration term of options | 10 years | |||||
Intrinsic value of options exercised | $ 481 | $ 874 | ||||
Restricted shares | ||||||
Stock-based compensation | ||||||
Intrinsic value of restricted shares that vested | $ 4,800 | $ 1,100 | ||||
Restricted shares | Minimum | ||||||
Stock-based compensation | ||||||
Vesting period | 2 years | |||||
Restricted shares | Maximum | ||||||
Stock-based compensation | ||||||
Vesting period | 4 years | |||||
Performance-based restricted stock units | ||||||
Stock-based compensation | ||||||
Vesting period | 3 years | |||||
Restricted stock issued (in shares) | 71,560 | 48,569 | 56,752 | 65,333 | ||
Performance based restricted units performance period | 3 years | |||||
Share based compensation restricted stock units multiplier | 100.00% | |||||
Performance-based restricted stock units | Minimum | ||||||
Stock-based compensation | ||||||
Percentage of shares earned to number of units issued | 0.00% | |||||
Performance-based restricted stock units | Maximum | ||||||
Stock-based compensation | ||||||
Percentage of shares earned to number of units issued | 175.00% | |||||
Taylor Capital Group, Inc. | Omnibus Incentive Plan | ||||||
Stock-based compensation | ||||||
Total number of shares authorized | 13,800,000 | |||||
Increase in amount of shares authorized | 2,400,000 | |||||
Director | Restricted stock | ||||||
Stock-based compensation | ||||||
Vesting period | 1 year | |||||
Maximum percentage of directors fees with option to be received in equity based incentive awards | 100.00% | |||||
Director | Employee stock options | ||||||
Stock-based compensation | ||||||
Vesting period | 5 years | |||||
Maximum percentage of directors fees with option to be received in equity based incentive awards | 70.00% | |||||
Period of restriction for sale of shares vested | 6 months |
Derivative Financial Instrume78
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Derivative [Line Items] | ||||||
Net amount payable under interest rate swap | $ 1 | $ 1,100 | ||||
Interest rate swap credit risk exposure | $ 26,100 | 26,100 | ||||
Asset Derivatives, Notional Amount | 3,812,521 | 3,812,521 | 2,465,120 | |||
Asset Derivatives, Estimated Fair Value | 43,345 | 43,345 | 46,388 | |||
Liability Derivatives, Notional Amount | 2,319,440 | 2,319,440 | 2,964,961 | |||
Liability Derivatives, Estimated Fair Value | (47,054) | (47,054) | (40,499) | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | (23,642) | $ 40 | (10,791) | $ 121 | ||
Stand-alone derivative instruments | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives, Notional Amount | [1] | 3,812,521 | 3,812,521 | 2,465,120 | ||
Asset Derivatives, Estimated Fair Value | [1] | 43,345 | 43,345 | 46,388 | ||
Liability Derivatives, Notional Amount | [1] | 2,319,264 | 2,319,264 | 2,964,764 | ||
Liability Derivatives, Estimated Fair Value | [1] | (47,042) | (47,042) | (40,484) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | (23,643) | 42 | (10,793) | 123 | ||
Commercial loan interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Liability Derivatives, Notional Amount | 176 | 176 | ||||
Interest rate swap contracts | Derivative instruments designated as hedges of fair value | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives, Notional Amount | [2] | 0 | 0 | 0 | ||
Asset Derivatives, Estimated Fair Value | [2] | 0 | 0 | 0 | ||
Liability Derivatives, Notional Amount | [2] | 176 | 176 | 197 | ||
Liability Derivatives, Estimated Fair Value | [2] | (12) | (12) | (15) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | 1 | (2) | 2 | (2) | ||
Interest rate swap contracts | Stand-alone derivative instruments | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives, Notional Amount | [1] | 1,570,558 | 1,570,558 | 1,509,930 | ||
Asset Derivatives, Estimated Fair Value | [1] | 30,503 | 30,503 | 37,039 | ||
Liability Derivatives, Notional Amount | [1] | 1,722,557 | 1,722,557 | 2,001,787 | ||
Liability Derivatives, Estimated Fair Value | [1] | (44,306) | (44,306) | (30,761) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | (25,364) | 9 | (14,239) | 18 | ||
Interest rate options contracts | Stand-alone derivative instruments | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives, Notional Amount | [1] | 291,572 | 291,572 | 55,830 | ||
Asset Derivatives, Estimated Fair Value | [1] | 420 | 420 | 283 | ||
Liability Derivatives, Notional Amount | [1] | 66,572 | 66,572 | 55,830 | ||
Liability Derivatives, Estimated Fair Value | [1] | (239) | (239) | (283) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | (1,264) | 0 | (541) | 0 | ||
Foreign exchange contracts | Stand-alone derivative instruments | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives, Notional Amount | [1] | 108,341 | 108,341 | 27,402 | ||
Asset Derivatives, Estimated Fair Value | [1] | 3,078 | 3,078 | 2,276 | ||
Liability Derivatives, Notional Amount | [1] | 46,751 | 46,751 | 27,002 | ||
Liability Derivatives, Estimated Fair Value | [1] | (2,758) | (2,758) | (2,109) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | 64 | (4) | 186 | 57 | ||
Spot foreign exchange contract | Stand-alone derivative instruments | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives, Notional Amount | [1] | 1,562 | 1,562 | 512 | ||
Asset Derivatives, Estimated Fair Value | [1] | 22 | 22 | 5 | ||
Liability Derivatives, Notional Amount | [1] | 1,384 | 1,384 | 304 | ||
Liability Derivatives, Estimated Fair Value | [1] | (9) | (9) | (18) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | 54 | 0 | 26 | 8 | ||
Mortgage related derivatives | Stand-alone derivative instruments | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives, Notional Amount | [1] | 1,840,488 | 1,840,488 | 871,446 | ||
Asset Derivatives, Estimated Fair Value | [1] | 9,322 | 9,322 | 6,785 | ||
Liability Derivatives, Notional Amount | [1] | 482,000 | 482,000 | 879,841 | ||
Liability Derivatives, Estimated Fair Value | [1] | 270 | 270 | $ (7,313) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||||
Amounts of gain or (loss) recognized in income on derivatives | $ 2,867 | $ 37 | $ 3,775 | $ 40 | ||
[1] | These portfolio swaps are not designated as hedging instruments under ASC Topic 815. | |||||
[2] | Hedged fixed-rate commercial real estate loans |
Derivative Financial Instrume79
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | $ 14,659 | $ 13,952 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 14,659 | 13,952 |
Financial Liabilities, Gross Amount Recognized | 46,847 | 37,927 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 46,847 | 37,927 |
Repurchase Agreements, Financial Assets, Gross Amount Recognized | 0 | 0 |
Repurchase Agreements, Financial Assets, Gross Amount Offset | 0 | 0 |
Repurchase Agreements, Financial Assets, Net Amount Recognized | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Gross Amount Recognized | 276,724 | 219,824 |
Repurchase Agreements, Financial Liabilities, Gross Amount Offset | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Net Amount Recognized | 276,724 | 219,824 |
Total Financial Assets, Gross Amount Recognized | 14,659 | 13,952 |
Total Financial Assets, Gross Amount Offset | 0 | 0 |
Total Financial Assets, Net Amount Recognized | 14,659 | 13,952 |
Total Financial Liabilities, Gross Amount Recognized | 323,571 | 257,751 |
Total Financial Liabilities, Gross Amount Offset | 0 | 0 |
Total Financial Liabilities, Net Amount Recognized | 323,571 | 257,751 |
Interest rate swaps, caps and floors | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 4,870 | 10,727 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 4,870 | 10,727 |
Financial Liabilities, Gross Amount Recognized | 43,678 | 29,916 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 43,678 | 29,916 |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 1,875 | 1,525 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 1,875 | 1,525 |
Financial Liabilities, Gross Amount Recognized | 1,041 | 709 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 1,041 | 709 |
Mortgage related derivatives | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 7,914 | 1,700 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 7,914 | 1,700 |
Financial Liabilities, Gross Amount Recognized | 2,128 | 7,302 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | $ 2,128 | $ 7,302 |
Derivative Financial Instrume80
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | $ 14,659 | $ 13,952 |
Financial Assets, Financial Instruments | (8,936) | (10,201) |
Financial Assets, Collateral | (5,558) | 0 |
Financial Assets, Net Amount | 165 | 3,751 |
Financial Liabilities, Net Amount Recognized | 46,847 | 37,927 |
Financial Liabilities, Financial Instruments | (8,936) | (10,200) |
Financial Liabilities, Collateral | (37,650) | (26,010) |
Financial Liabilities, Net Amount | 261 | 1,717 |
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 | 276,724 | 219,824 |
Repurchase Agreements, Financial Liabilities, Financial Instruments | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Financial Instruments | (276,724) | (219,824) |
Repurchase Agreements, Financial Liabilities, Collateral | 0 | 0 |
Total Financial Assets, Net Amount Recognized | 14,659 | 13,952 |
Total Financial Assets, Financial Instruments | (8,936) | (10,201) |
Total Financial Assets, Collateral | (5,558) | 0 |
Total Financial Assets, Net Amount | 165 | 3,751 |
Total Financial Liabilities, Net Amount Recognized | 323,571 | 257,751 |
Total Financial Liabilities, Financial Instruments | (8,936) | (10,200) |
Total Financial Liabilities, Collateral | (314,374) | (245,834) |
Total Financial Liabilities, Net Amount | 261 | 1,717 |
Counterparty A | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 1,000 | 13 |
Financial Assets, Financial Instruments | (1,000) | (13) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 12,813 | 9,556 |
Financial Liabilities, Financial Instruments | (1,000) | (13) |
Financial Liabilities, Collateral | (11,813) | (9,543) |
Financial Liabilities, Net Amount | 0 | 0 |
Counterparty B | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 3,866 | 145 |
Financial Assets, Financial Instruments | (3,866) | (145) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 13,811 | 3,736 |
Financial Liabilities, Financial Instruments | (3,866) | (145) |
Financial Liabilities, Collateral | (9,945) | (3,591) |
Financial Liabilities, Net Amount | 0 | 0 |
Counterparty C | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 16 | 6,123 |
Financial Assets, Financial Instruments | (16) | (6,123) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 8,412 | 10,335 |
Financial Liabilities, Financial Instruments | (16) | (6,122) |
Financial Liabilities, Collateral | (8,396) | (4,213) |
Financial Liabilities, Net Amount | 0 | 0 |
Other counterparties | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 9,777 | 7,671 |
Financial Assets, Financial Instruments | (4,054) | (3,920) |
Financial Assets, Collateral | (5,558) | 0 |
Financial Assets, Net Amount | 165 | 3,751 |
Financial Liabilities, Net Amount Recognized | 11,811 | 14,300 |
Financial Liabilities, Financial Instruments | (4,054) | (3,920) |
Financial Liabilities, Collateral | (7,496) | (8,663) |
Financial Liabilities, Net Amount | $ 261 | $ 1,717 |
Operating Segments (Details)
Operating Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |||
Segment Reporting Information [Line Items] | |||||||
Number of segments | segment | 3 | ||||||
Net interest income | $ 114,473 | $ 68,072 | $ 227,868 | $ 135,400 | |||
Provision for credit losses | 4,296 | (1,950) | 9,270 | (800) | |||
Non-interest income | 82,949 | 39,928 | 164,217 | 76,540 | |||
Non-interest expense | 132,737 | [1] | 78,030 | 272,657 | [2] | 154,077 | |
Income tax expense | 19,437 | 8,814 | 35,095 | 15,588 | |||
Net income | 40,952 | 23,106 | 75,063 | 43,075 | |||
Total assets | 15,018,194 | 9,818,691 | 15,018,194 | 9,818,691 | $ 14,602,099 | ||
Taylor Capital Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Pretax merger related costs | 1,200 | 488 | 9,300 | 1,200 | |||
Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 104,352 | 65,266 | 208,478 | 130,385 | |||
Provision for credit losses | 2,844 | (1,764) | 7,818 | (684) | |||
Non-interest income | 31,108 | 25,678 | 62,625 | 49,877 | |||
Non-interest expense | 87,638 | [1] | 67,930 | 182,972 | [2] | 135,627 | |
Income tax expense | 13,369 | 6,149 | 23,331 | 10,632 | |||
Net income | 31,609 | 18,629 | 56,982 | 34,687 | |||
Total assets | 12,714,482 | 9,153,407 | 12,714,482 | 9,153,407 | |||
Leasing | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 2,915 | 2,806 | 5,930 | 5,015 | |||
Provision for credit losses | 1,356 | (186) | 1,356 | (116) | |||
Non-interest income | 16,193 | 14,063 | 41,396 | 26,417 | |||
Non-interest expense | 9,828 | [1] | 10,100 | 23,484 | [2] | 18,450 | |
Income tax expense | 3,073 | 2,665 | 8,820 | 4,956 | |||
Net income | 4,851 | 4,290 | 13,666 | 8,142 | |||
Total assets | 976,054 | 665,284 | 976,054 | 665,284 | |||
Mortgage Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 7,206 | 0 | 13,460 | 0 | |||
Provision for credit losses | 96 | 0 | 96 | 0 | |||
Non-interest income | 35,648 | 187 | 60,196 | 246 | |||
Non-interest expense | 35,271 | [1] | 0 | 66,201 | [2] | 0 | |
Income tax expense | 2,995 | 0 | 2,944 | 0 | |||
Net income | 4,492 | 187 | 4,415 | 246 | |||
Total assets | $ 1,327,658 | $ 0 | $ 1,327,658 | $ 0 | |||
[1] | Includes merger related expenses of $1.2 million and $488 thousand in the banking segment for the three months ended June 30, 2015 and 2014, respectively. | ||||||
[2] | Includes merger related expenses of $9.3 million and $1.2 million in the banking segment for the six months ended June 30, 2015 and 2014, respectively. |
Preferred Stock (Details)
Preferred Stock (Details) | Aug. 18, 2014shares | Jun. 30, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares |
Equity [Abstract] | |||
Stock conversion | 1 | ||
Preferred stock, shares outstanding | 4,000,000 | 4,000,000 | 4,000,000 |
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | |
Preferred stock, dividend rate, percentage | 8.00% | 8.00% |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2015USD ($) | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Proceeds from sale of mortgage servicing rights | $ 106 |