Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
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 | Mar. 31, 2016 | |
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 | 73,672,795 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 271,732 | $ 307,869 |
Interest earning deposits with banks | 113,785 | 73,572 |
Total cash and cash equivalents | 385,517 | 381,441 |
Investment securities: | ||
Securities available for sale, at fair value | 1,532,844 | 1,585,023 |
Securities held to maturity, at amortized cost ($1,246,656 fair value at March 31, 2016 and $1,274,767 at December 31, 2015) | 1,191,910 | 1,230,810 |
Non-marketable securities - FHLB and FRB stock | 121,750 | 114,233 |
Total investment securities | 2,846,504 | 2,930,066 |
Loans held for sale | 632,196 | 744,727 |
Loans: | ||
Total loans, excluding purchased credit impaired loans | 9,820,903 | 9,652,592 |
Purchased credit impaired loans | 140,445 | 141,406 |
Total loans | 9,961,348 | 9,793,998 |
Less: Allowance for loan and lease losses | 134,493 | 128,140 |
Net loans | 9,826,855 | 9,665,858 |
Lease investments, net | 216,046 | 211,687 |
Premises and equipment, net | 238,578 | 236,013 |
Cash surrender value of life insurance | 137,807 | 136,953 |
Goodwill | 725,068 | 725,070 |
Other intangibles | 43,186 | 44,812 |
Mortgage servicing rights, at fair value | 145,800 | 168,162 |
Other real estate owned, net | 28,309 | 31,553 |
Other real estate owned related to FDIC-assisted transactions | 10,397 | 10,717 |
Other assets | 339,390 | 297,948 |
Total assets | 15,575,653 | 15,585,007 |
Deposits: | ||
Non-interest bearing | 4,667,410 | 4,627,184 |
Interest bearing | 6,866,416 | 6,878,031 |
Total deposits | 11,533,826 | 11,505,215 |
Short-term borrowings | 884,101 | 1,005,737 |
Long-term borrowings | 439,615 | 400,274 |
Junior subordinated notes issued to capital trusts | 185,820 | 186,164 |
Accrued expenses and other liabilities | 409,406 | 400,333 |
Total liabilities | 13,452,768 | 13,497,723 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at March 31, 2016 and December 31, 2015; Series A, 8% perpetual non-cumulative, 4,000,000 shares issued and outstanding at March 31, 2016 and December 31, 2015, $25 liquidation value) | 115,280 | 115,280 |
Common stock, ($0.01 par value; authorized 100,000,000 shares at March 31, 2016 and December 31, 2015; issued 75,567,693 shares at March 31, 2016 and 75,566,885 shares at December 31, 2015) | 756 | 756 |
Additional paid-in capital | 1,284,438 | 1,280,870 |
Retained earnings | 756,272 | 731,812 |
Accumulated other comprehensive income | 24,687 | 15,777 |
Less: 1,928,206 and 1,888,556 shares of treasury common stock, at cost, at March 31, 2016 and December 31, 2015, respectively | (59,863) | (58,504) |
Controlling interest stockholders’ equity | 2,121,570 | 2,085,991 |
Noncontrolling interest | 1,315 | 1,293 |
Total stockholders’ equity | 2,122,885 | 2,087,284 |
Total liabilities and stockholders’ equity | $ 15,575,653 | $ 15,585,007 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, at amortized cost, fair value | $ 1,246,656 | $ 1,274,767 |
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 | 75,567,693 | 75,566,885 |
Treasury stock, shares | 1,928,206 | 1,888,556 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Loans: | |||
Taxable | $ 104,923 | $ 98,846 | |
Nontaxable | 2,586 | 2,174 | |
Investment securities: | |||
Taxable | 9,566 | 9,934 | |
Nontaxable | 10,776 | 9,113 | |
Other interest earning accounts | 141 | 62 | |
Total interest income | 127,992 | 120,129 | |
Interest expense: | |||
Deposits | 5,622 | 4,645 | |
Short-term borrowings | 721 | 277 | |
Long-term borrowings and junior subordinated notes | 2,345 | 1,812 | |
Total interest expense | 8,688 | 6,734 | |
Net interest income | 119,304 | 113,395 | |
Provision for credit losses | 7,563 | 4,974 | |
Net interest income after provision for credit losses | 111,741 | 108,421 | |
Non-interest income: | |||
Lease financing revenue, net | 19,046 | 25,080 | |
Mortgage banking revenue | 27,482 | 24,544 | |
Commercial deposit and treasury management fees | 11,878 | 11,038 | |
Trust and asset management fees | 7,950 | 5,714 | |
Card fees | 3,525 | 3,927 | |
Capital markets and international banking fees | 3,227 | 1,928 | |
Consumer and other deposit service fees | 3,025 | 3,083 | |
Brokerage fees | 1,158 | 1,678 | |
Loan service fees | 1,752 | 1,485 | |
Increase in cash surrender value of life insurance | 854 | 839 | |
Net loss on investment securities | 0 | (460) | |
Net (loss) gain on sale of assets | (48) | 4 | |
Other operating income | 1,844 | 2,408 | |
Total non-interest income | 81,693 | 81,268 | |
Non-interest expenses: | |||
Salaries and employee benefits | 85,591 | 84,786 | |
Occupancy and equipment | 13,260 | 12,940 | |
Computer services and telecommunication | 9,055 | 8,904 | |
Advertising and marketing | 2,878 | 2,446 | |
Professional and legal | 2,589 | 2,670 | |
Other intangibles amortization | 1,626 | 1,518 | |
Branch exit and facilities impairment charges | 44 | 7,391 | |
Net (gain) loss recognized on other real estate owned and other related expenses | (346) | 896 | |
Prepayment fees on interest bearing liabilities | 0 | 85 | |
Other operating expenses | 21,103 | 18,284 | |
Total non-interest expenses | [1] | 135,800 | 139,920 |
Income before income taxes | 57,634 | 49,769 | |
Income tax expense | 18,520 | 15,658 | |
Net income | 39,114 | 34,111 | |
Dividends on preferred shares | 2,000 | 2,000 | |
Net income available to common stockholders | $ 37,114 | $ 32,111 | |
Common share data: | |||
Basic earnings per common share | $ 0.51 | $ 0.43 | |
Diluted earnings per common share | $ 0.50 | $ 0.43 | |
Weighted average common shares outstanding for basic earnings per common share | 73,330,731 | 74,567,104 | |
Diluted weighted average common shares outstanding for diluted earnings per common share | 73,966,935 | 75,164,716 | |
[1] | Includes merger related and repositioning expenses of $3.3 million and $8.1 million in the Banking Segment for the three months ended March 31, 2016 and 2015, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 39,114 | $ 34,111 |
Unrealized holding gains on investment securities, net of reclassification adjustments | 15,576 | 9,404 |
Reclassification adjustment for amortization of unrealized gains on investment securities transferred to held to maturity from available for sale | (803) | (402) |
Reclassification adjustments for losses included in net income | 0 | 460 |
Other comprehensive income, before tax | 14,773 | 9,462 |
Income tax expense related to items of other comprehensive income | (5,863) | (3,717) |
Other comprehensive income, net of tax | 8,910 | 5,745 |
Comprehensive income | $ 48,024 | $ 39,856 |
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, 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 | 34,182 | 34,111 | 71 | |||||
Other comprehensive income, net of tax | 5,745 | 5,745 | ||||||
Cash dividends declared on preferred shares | (2,000) | (2,000) | ||||||
Cash dividends declared on common shares | (10,610) | (10,610) | ||||||
Restricted common stock activity, net of tax | 135 | 3 | (2,744) | 2,876 | ||||
Stock option activity, net of tax | 35 | 35 | ||||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan | (985) | 194 | (1,179) | |||||
Stock-based compensation expense | 3,605 | 3,605 | ||||||
Distributions to noncontrolling interest | (100) | (100) | ||||||
Ending balance at Mar. 31, 2015 | 2,058,293 | 115,280 | 754 | 1,268,851 | 651,178 | 26,101 | (5,277) | 1,406 |
Beginning balance at Dec. 31, 2015 | 2,087,284 | 115,280 | 756 | 1,280,870 | 731,812 | 15,777 | (58,504) | 1,293 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 39,211 | 39,114 | 97 | |||||
Other comprehensive income, net of tax | 8,910 | 8,910 | ||||||
Cash dividends declared on preferred shares | (2,000) | (2,000) | ||||||
Cash dividends declared on common shares | (12,654) | (12,654) | ||||||
Restricted common stock activity, net of tax | 1 | (698) | 699 | |||||
Stock option activity, net of tax | 17 | 17 | ||||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan | (1,860) | 198 | (2,058) | |||||
Stock-based compensation expense | 4,051 | 4,051 | ||||||
Distributions to noncontrolling interest | (75) | (75) | ||||||
Ending balance at Mar. 31, 2016 | $ 2,122,885 | $ 115,280 | $ 756 | $ 1,284,438 | $ 756,272 | $ 24,687 | $ (59,863) | $ 1,315 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.17 | $ 0.14 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows From Operating Activities | ||
Net income | $ 39,114 | $ 34,111 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment and leased equipment | 17,302 | 14,737 |
Branch exit and facilities impairment charges | 44 | 7,391 |
Compensation expense for share-based payment plans | 4,051 | 3,605 |
Net loss (gain) on sales of premises and equipment and leased equipment | 121 | (167) |
Amortization of other intangibles | 1,626 | 1,518 |
Provision for credit losses | 7,563 | 4,974 |
Deferred income tax expense | 11,751 | 8,384 |
Amortization of premiums and discounts on investment securities, net | 12,059 | 11,231 |
Amortization of premiums and discounts on loans, net | (7,156) | (9,879) |
Accretion of FDIC indemnification asset | 0 | (24) |
Net loss on investment securities | 0 | 460 |
Proceeds from sale of loans held for sale | 1,365,630 | 1,741,704 |
Origination of loans held for sale | (1,241,245) | (1,701,005) |
Net gain on sale of loans held for sale | (10,176) | (12,574) |
Change in fair value of mortgage servicing rights | 34,372 | 32,793 |
Net (gain) loss on other real estate owned | (637) | 888 |
Net loss on other real estate owned related to FDIC-assisted transactions | 154 | 273 |
Increase in cash surrender value of life insurance | (854) | (839) |
Increase in other assets, net | (57,188) | (38,984) |
Decrease in other liabilities, net | (9,867) | (41,616) |
Net cash provided by operating activities | 166,664 | 56,981 |
Cash Flows From Investing Activities | ||
Proceeds from sales of investment securities available for sale | 842 | 28,067 |
Proceeds from maturities and calls of investment securities available for sale | 62,891 | 51,922 |
Purchases of investment securities available for sale | (3,857) | (11,570) |
Proceeds from maturities and calls of investment securities held to maturity | 44,100 | 19,177 |
Purchases of investment securities held to maturity | (9,513) | (24,448) |
Purchases of non-marketable securities - FHLB and FRB stock | (7,517) | (12,108) |
Net (increase) decrease in loans | (163,704) | 190,353 |
Purchases of mortgage servicing rights | (154) | (85) |
Purchases of premises and equipment and leased equipment | (21,513) | (11,557) |
Proceeds from sales of premises and equipment and leased equipment | 1,185 | 1,326 |
Proceeds from sale of other real estate owned | 5,151 | 1,086 |
Proceeds from sale of other real estate owned related to FDIC-assisted transactions | 1,085 | 2,087 |
Net proceeds from FDIC related covered assets | (1,593) | (3,773) |
Net cash (used in) provided by investing activities | (92,597) | 230,477 |
Cash Flows From Financing Activities | ||
Net increase in deposits | 28,611 | 28,559 |
Net decrease in short-term borrowings | (121,636) | (316,184) |
Proceeds from long-term borrowings | 86,070 | 7,650 |
Principal paid on long-term borrowings | (46,729) | (5,089) |
Treasury stock transactions, net | (1,860) | (985) |
Stock options exercised | 55 | 45 |
Excess tax expense from share-based payment arrangements | 0 | 12 |
Dividends paid on preferred stock | (2,000) | (2,000) |
Dividends paid on common stock | (12,502) | (10,495) |
Net cash used in financing activities | (69,991) | (298,487) |
Net increase (decrease) in cash and cash equivalents | 4,076 | (11,029) |
Cash and cash equivalents: | ||
Beginning of period | 381,441 | 312,081 |
End of period | 385,517 | 301,052 |
Cash payments for: | ||
Interest paid to depositors and other borrowed funds | 8,734 | 7,438 |
Income tax payments, net | 1,832 | 987 |
Supplemental Schedule of Noncash Investing Activities: | ||
Investment securities held to maturity purchased not settled | 581 | 6,416 |
Loans held for sale transferred to loans held for investment | 0 | 20,829 |
Loans transferred to other real estate owned | 1,270 | 4,615 |
Loans transferred to other real estate owned related to FDIC-assisted transactions | 830 | 1,345 |
Loans transferred to repossessed vehicles | 337 | 286 |
Operating leases rewritten as direct finance leases included as loans | $ 137 | $ 5,590 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 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, 2015 . 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 | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance 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 Company adopted this new authoritative guidance on January 1, 2016, and it did not have an 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 Company adopted this new authoritative guidance on January 1, 2016, and it did not have an impact on the Company's statements of operations or financial condition. ASC Topic 805 "Business Combinations." New authoritative accounting guidance under ASC Topic 805, "Business Combinations" amended prior guidance to require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The new guidance requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. It also requires an entity to present separately on the face of the statement of operations or disclose in the notes the portion of the amount recorded in current-period earnings by line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of acquisition date. The Company adopted this new authoritative guidance on January 1, 2016, and it did not have an impact on the Company's statements of operations or financial condition. ASC Topic 606 "Revenue from Contracts with Customers." New authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" amended prior guidance to require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new authoritative guidance was initially effective for reporting periods after January 1, 2017 but was deferred to January 1, 2018. The Company is evaluating the new guidance but does not expect it to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 825 "Financial Instruments." New authoritative accounting guidance under ASC Topic 825 "Financial Instruments" amended prior guidance to require equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. An entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The new guidance simplifies the impairment assessment of equity investments without readily determinable fair values, requires public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from changes in the instrument-specific credit risk when the entity has selected the fair value option for financial instruments and requires separate presentation of financial assets and liabilities by measurement category and form of financial asset. The new authoritative guidance will be effective for reporting periods after January 1, 2018 and is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 405 "Liabilities-Extinguishment of Liabilities." New authoritative accounting guidance under ASC Topic 405, "Liabilities-Extinguishment of Liabilities" amended prior guidance to clarify that liabilities related to the sale of prepaid store-value products within the scope of this guidance are financial liabilities and that breakage for those liabilities are to be accounted for consistent with the breakage guidance in ASC Topic 606 "Revenue from Contracts with Customers." The new authoritative guidance will be effective for reporting periods after January 1, 2018. The Company is evaluating the new guidance but does not expect it to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 842 "Leases." New authoritative accounting guidance under ASC Topic 842 "Leases" amended prior guidance to require lessees to recognize the assets and liabilities arising from all leases on the balance sheet. The new authoritative guidance defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In addition, the qualifications for a sale and leaseback transaction have been amended. The new authoritative guidance also requires qualitative and quantitative disclosures by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The new authoritative guidance will be effective for reporting periods after January 1, 2019. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition. ASC Topic 815 "Derivatives and Hedging." New authoritative accounting guidance under ASC Topic 815 "Derivatives and Hedging" amended prior guidance to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. An entity has an option to apply the amendments in this new authoritative guidance on either a prospective basis or a modified retrospective basis. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition. New authoritative accounting guidance under ASC Topic 815 "Derivatives and Hedging" amended prior guidance to clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. An entity is required to consider whether (1) the payoff is adjusted based on changes in an index, (2) the payoff is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount, and (4) the call (put) option is contingently exercisable. An entity should apply this new authoritative guidance on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 323 "Investment - Equity Method and Joint Ventures." New authoritative accounting guidance under ASC Topic 323 "Investment - Equity Method and Joint Ventures" amended prior guidance to eliminate the requirement to retroactively adopt the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The new authoritative guidance required that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 718 "Compensation - Stock Compensation." New authoritative accounting guidance under ASC Topic 718 "Compensation - Stock Compensation" amended prior guidance on several aspects, including the income tax consequences, classification of awards as either equity or liability, and classification on the statement of cash flows. The new authoritative guidance allows for all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. For the statement of cash flows, excess tax benefits should be classified along with other income tax cash flows as an operating activity, and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The new authoritative guidance also allows an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. The Company is evaluating the new guidance and its impact on the Company's statements of operations or financial condition. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Distributed earnings allocated to common stock $ 12,654 $ 10,610 Undistributed earnings 26,460 23,501 Net income 39,114 34,111 Less: preferred stock dividends 2,000 2,000 Net income available to common stockholders 37,114 32,111 Less: earnings allocated to participating securities 2 1 Earnings allocated to common stockholders $ 37,112 $ 32,110 Weighted average shares outstanding for basic earnings per common share 73,330,731 74,567,104 Dilutive effect of equity awards 636,204 597,612 Weighted average shares outstanding for diluted earnings per common share 73,966,935 75,164,716 Basic earnings per common share $ 0.51 $ 0.43 Diluted earnings per common share 0.50 0.43 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination | Business Combinations MSA, Holding, LLC On December 31, 2015, MB Financial Bank acquired a 100% equity interest in MSA Holdings, LLC, ("MSA") the parent company of MainStreet Investment Advisors, LLC and Cambium Asset Management, LLC. Main Street Advisors provides investment management solutions to the bank trust and independent trust company markets. Through its registered investment advisor, Cambium LLC, MSA provides efficient, cost-effective account management solutions on a discretionary basis for high net worth clients, both individuals and institutions, and small accounts through its BluePrint portfolio solution. This business combination was accounted for under the acquisition method of accounting. Accordingly, the results of operations of the acquired company were included in the Company’s results of operations starting on January 1, 2016. Under this method of accounting, assets and liabilities acquired are recorded at their estimated fair values, net of applicable income tax effects. The excess cost over fair value of net assets acquired was recorded as goodwill. The Company recorded $13.5 million in goodwill and $8.8 million in other intangibles as a result of this acquisition. The amounts recognized for the business combination in the financial statements as of March 31, 2016 have been determined only provisionally for the purchase price and goodwill. American Chartered Bancorp, Inc. On November 20, 2015, the Company and American Chartered Bancorp, Inc. ("American Chartered") entered into an agreement and plan of merger whereby the Company will acquire American Chartered. The merger agreement provides that, upon the terms and subject to the conditions set forth therein, American Chartered will merge with and into the Company, with the Company as the surviving corporation in the merger. Immediately following the merger, American Chartered's wholly owned bank subsidiary, American Chartered Bank, will merge with and into the Company's wholly owned bank subsidiary, MB Financial Bank. American Chartered Bank is a commercial bank that operates 15 banking offices in the Chicago area and, as of March 31, 2016, had approximately $2.8 billion in total assets, $2.0 billion in loans, and $2.4 billion in deposits. Subject to the terms and conditions of the merger agreement, each share of American Chartered common stock that is outstanding immediately prior to the merger, other than shares held by persons who have perfected dissenters' rights under Illinois law and any shares owned by the Company or American Chartered, will be converted into the right to receive, subject to the election and the proration and allocation procedures set forth in the merger agreement: (1) cash consideration in the amount of $9.30 or (2) stock consideration consisting of 0.2732 shares of the Company's common stock, with cash paid in lieu of fractional Company shares determined by multiplying the fractional Company share amount by the average closing sale price of the Company's common stock for the five full trading days ending on the day preceding the merger closing date. Holders of American Chartered common stock also can elect to receive a combination of the cash consideration and stock consideration for their shares, subject to the proration and allocation procedures. The holders of American Chartered’s 8% Cumulative Voting Convertible Preferred Stock, Series D (“American Chartered Series D preferred stock”) and American Chartered’s Non-Voting Perpetual Preferred Stock, Series F (“American Chartered Series F preferred stock” and together with the American Chartered Series D preferred stock, the “American Chartered preferred stock”) have the right, pursuant to the terms of the American Chartered preferred stock and the merger agreement, to elect to receive the same consideration in the merger as the holders of American Chartered common stock (including the right to elect to receive the cash consideration, the stock consideration or a combination of both, subject to the proration and allocation provisions of the merger agreement). In the case of American Chartered Series D preferred stock, this right is based on the number of shares of American Chartered common stock into which each share of American Chartered Series D preferred stock would otherwise then be convertible. Any share of American Chartered preferred stock that has not been converted into American Chartered common stock prior to the merger, or that will not be converted into the right to receive the same consideration in the merger as the holders of American Chartered common stock as described above, will be converted into the right to receive one share of a newly designated series of preferred stock of MB Financial with terms that are not materially less favorable to the holder than the applicable series of American Chartered preferred stock. Concurrent with the execution of the merger agreement, each holder of American Chartered Series F non-voting preferred stock irrevocably elected and agreed to receive the same consideration in the merger as the holders of American Chartered common stock and waived any rights that such holder might otherwise have had to receive shares of preferred stock of the Company in the merger. The holder of each vested American Chartered stock option that is outstanding immediately prior to the merger will have the right to elect to receive, for the holder's "net option shares," the cash consideration, the stock consideration or a combination of both, subject to the proration and allocation provisions of the merger agreement. The number of "net option shares" per vested option will be determined by dividing (A) (i) the excess, if any, of $9.30 over the per share exercise price of the option, multiplied by (ii) the number of shares subject to the option, by (B) $9.30 . Each unvested American Chartered stock option that is outstanding immediately prior to the merger will be assumed by the Company and converted into the right to receive an option to purchase shares of the Company's common stock, with adjustments to the number of shares underlying the option (determined by multiplying the pre-merger number of option shares by 0.2732 , and rounding down to the nearest whole number of shares of the Company's common stock) and the per share exercise price of the option (determined by dividing the pre-merger exercise price by 0.2732 , and rounding up to the nearest whole cent). Each American Chartered restricted stock award that is outstanding immediately prior to the merger will be assumed by the Company and converted into a Company restricted stock award, with an adjustment to the number of shares subject to the award (determined by multiplying the pre-merger number of shares subject to the award by 0.2732 , and rounding up to the nearest whole share of the Company's common stock). The merger agreement provides that the aggregate cash consideration that will be paid for shares of American Chartered stock and for the net option shares is $100.0 million , with the remaining consideration consisting of shares of Company common stock. If American Chartered shareholders and holders of vested American Chartered stock options elect to receive more of one form of consideration than is available, the available amount will be allocated ratably among the American Chartered shareholders and vested option holders electing to receive that form of consideration, and those shareholders and vested option holders will receive the other form of consideration for the balance of their shares and net option shares, as applicable. The only exception to this is that holders of American Chartered Series D preferred stock who have made a cash election with respect to shares of American Chartered Series D preferred stock will receive the cash consideration for all of such shares (based on the number of shares of American Chartered common stock into which each share of American Chartered Series D preferred stock is then otherwise convertible), regardless of the elections of other shareholders and vested option holders. The transaction, which has been approved by American Chartered's shareholders and is subject to customary regulatory approvals, is expected to close around June 30, 2016. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Available for Sale U.S. Government sponsored agencies and enterprises $ 63,600 $ 1,162 $ — $ 64,762 States and political subdivisions 371,006 27,019 (1 ) 398,024 Residential mortgage-backed securities 709,810 11,249 (790 ) 720,269 Commercial mortgage-backed securities 111,015 3,494 (219 ) 114,290 Corporate bonds 225,657 1,345 (2,472 ) 224,530 Equity securities 10,814 155 — 10,969 Total Available for Sale 1,491,902 44,424 (3,482 ) 1,532,844 Held to Maturity States and political subdivisions 986,340 46,659 (158 ) 1,032,841 Residential mortgage-backed securities 205,570 8,245 — 213,815 Total Held to Maturity 1,191,910 54,904 (158 ) 1,246,656 Total $ 2,683,812 $ 99,328 $ (3,640 ) $ 2,779,500 December 31, 2015 Available for Sale U.S. Government sponsored agencies and enterprises $ 63,805 $ 806 $ — $ 64,611 States and political subdivisions 373,285 23,083 (1 ) 396,367 Residential mortgage-backed securities 759,816 7,363 (3,630 ) 763,549 Commercial mortgage-backed securities 128,509 1,839 (241 ) 130,107 Corporate bonds 222,784 815 (3,971 ) 219,628 Equity securities 10,757 4 — 10,761 Total Available for Sale 1,558,956 33,910 (7,843 ) 1,585,023 Held to Maturity States and political subdivisions 1,016,519 36,874 (638 ) 1,052,755 Residential mortgage-backed securities 214,291 7,721 — 222,012 Total Held to Maturity 1,230,810 44,595 (638 ) 1,274,767 Total $ 2,789,766 $ 78,505 $ (8,481 ) $ 2,859,790 The Company has no direct exposure to the State of Illinois, but approximately 21% of the state and political subdivisions portfolio consisted of securities issued by municipalities located in Illinois as of March 31, 2016 . Approximately 97% of the state and political subdivisions securities were general obligation issues, and 76% were insured as of March 31, 2016 . Unrealized losses on investment securities by length of time in a continuous unrealized loss position and the fair value of the related securities at March 31, 2016 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 $ 328 $ (1 ) $ — $ — $ 328 $ (1 ) Residential mortgage-backed securities 92,516 (495 ) 37,082 (295 ) 129,598 (790 ) Commercial mortgage-backed securities 2,231 (1 ) 11,756 (218 ) 13,987 (219 ) Corporate bonds 46,857 (383 ) 22,109 (2,089 ) 68,966 (2,472 ) Total Available for Sale 141,932 (880 ) 70,947 (2,602 ) 212,879 (3,482 ) Held to Maturity States and political subdivisions 16,883 (105 ) 5,960 (53 ) 22,843 (158 ) Total $ 158,815 $ (985 ) $ 76,907 $ (2,655 ) $ 235,722 $ (3,640 ) 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, 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 $ 219 $ (1 ) $ — $ — $ 219 $ (1 ) Residential mortgage-backed securities 357,877 (2,835 ) 43,566 (795 ) 401,443 (3,630 ) Commercial mortgage-backed securities 2,324 (5 ) 11,809 (236 ) 14,133 (241 ) Corporate bonds 73,774 (1,164 ) 18,286 (2,807 ) 92,060 (3,971 ) Total Available for Sale 434,194 (4,005 ) 73,661 (3,838 ) 507,855 (7,843 ) Held to Maturity States and political subdivisions 66,152 (519 ) 6,190 (119 ) 72,342 (638 ) Total $ 500,346 $ (4,524 ) $ 79,851 $ (3,957 ) $ 580,197 $ (8,481 ) The total number of security positions in the investment portfolio in an unrealized loss position at March 31, 2016 was 115 compared to 193 at December 31, 2015 . This decrease in total number of security positions in a continuous unrealized loss position from December 31, 2015 to March 31, 2016 , 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 March 31, 2016 , management does not have the intent to sell any of the securities in the table above at March 31, 2016 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 March 31, 2016 , management believes the impairments detailed in the table above at March 31, 2016 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 gains (losses) recognized on investment securities available for sale were as follows (in thousands): Three Months Ended March 31, 2016 2015 Realized gains $ 21 $ 759 Realized losses (21 ) (1,219 ) Net gains (losses) $ — $ (460 ) The amortized cost and fair value of investment securities as of March 31, 2016 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 $ 55,844 $ 56,375 Due after one year through five years 246,328 246,516 Due after five years through ten years 42,386 44,414 Due after ten years 315,705 340,011 Equity securities 10,814 10,969 Residential and commercial mortgage-backed securities 820,825 834,559 1,491,902 1,532,844 Held to maturity: Due in one year or less 83,040 83,253 Due after one year through five years 151,088 153,137 Due after five years through ten years 116,361 123,253 Due after ten years 635,851 673,198 Residential mortgage-backed securities 205,570 213,815 1,191,910 1,246,656 Total $ 2,683,812 $ 2,779,500 Investment securities with a carrying amount of $1.1 billion at March 31, 2016 and $1.4 billion at December 31, 2015 were pledged as collateral on public deposits and for other purposes as required or permitted by law, while only $784.4 million and $878.2 million were required to be pledged at March 31, 2016 and December 31, 2015 , respectively. Of those pledged, the Company had investment securities pledged as collateral for advances from the Federal Home Loan Bank of $146 thousand and $108.8 million at March 31, 2016 and December 31, 2015 , respectively. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans | Loans Loans consist of the following at (in thousands): March 31, December 31, Commercial loans $ 3,509,604 $ 3,616,286 Commercial loans collateralized by assignment of lease payments 1,774,104 1,779,072 Commercial real estate 2,831,814 2,695,676 Residential real estate 677,791 628,169 Construction real estate 310,278 252,060 Indirect vehicle 432,915 384,095 Home equity 207,079 216,573 Other consumer loans 77,318 80,661 Total loans, excluding purchased credit-impaired loans 9,820,903 9,652,592 Purchased credit-impaired loans 140,445 141,406 Total loans $ 9,961,348 $ 9,793,998 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 Enterprise Risk Committee of 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 the Company's 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 March 31, 2016 and December 31, 2015 , the Company had $3.3 billion and $3.2 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 $2.2 billion were required to be pledged at March 31, 2016 and December 31, 2015 , respectively. The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of March 31, 2016 and December 31, 2015 (in thousands): Current 30-59 Days 60-89 Days Loans Past Due Total Total March 31, 2016 Commercial $ 3,485,156 $ 7,931 $ 10,033 $ 6,484 $ 24,448 $ 3,509,604 Commercial collateralized by assignment of lease payments 1,756,427 10,405 2,377 4,895 17,677 1,774,104 Commercial real estate: Healthcare 543,296 — — — — 543,296 Industrial 449,746 453 — 757 1,210 450,956 Multifamily 411,571 367 193 914 1,474 413,045 Retail 470,682 691 3,466 13,947 18,104 488,786 Office 238,758 238 168 4,041 4,447 243,205 Other 689,799 1,295 76 1,356 2,727 692,526 Residential real estate 662,752 6,529 488 8,022 15,039 677,791 Construction real estate 310,278 — — — — 310,278 Indirect vehicle 430,388 1,677 391 459 2,527 432,915 Home equity 198,892 2,234 964 4,989 8,187 207,079 Other consumer 77,000 121 125 72 318 77,318 Total loans, excluding purchased credit-impaired loans 9,724,745 31,941 18,281 45,936 96,158 9,820,903 Purchased credit-impaired loans 88,308 6,221 9 45,907 52,137 140,445 Total loans $ 9,813,053 $ 38,162 $ 18,290 $ 91,843 $ 148,295 $ 9,961,348 Non-performing loan aging $ 33,990 $ 8,516 $ 6,431 $ 45,777 $ 60,724 $ 94,714 December 31, 2015 Commercial $ 3,586,372 $ 22,956 $ 97 $ 6,861 $ 29,914 $ 3,616,286 Commercial collateralized by assignment of lease payments 1,758,839 3,399 5,902 10,932 20,233 1,779,072 Commercial real estate: Healthcare 476,939 — — — — 476,939 Industrial 400,182 — — 757 757 400,939 Multifamily 399,333 622 88 934 1,644 400,977 Retail 410,958 6,189 7,411 180 13,780 424,738 Office 223,935 58 — 5,189 5,247 229,182 Other 760,530 622 82 1,667 2,371 762,901 Residential real estate 612,573 5,193 1,729 8,674 15,596 628,169 Construction real estate 252,060 — — — — 252,060 Indirect vehicle 380,899 2,085 698 413 3,196 384,095 Home equity 207,818 1,774 1,398 5,583 8,755 216,573 Other consumer 80,225 254 84 98 436 80,661 Total loans, excluding purchased credit-impaired loans 9,550,663 43,152 17,489 41,288 101,929 9,652,592 Purchased credit-impaired loans 81,250 3,311 4,439 52,406 60,156 141,406 Total loans $ 9,631,913 $ 46,463 $ 21,928 $ 93,694 $ 162,085 $ 9,793,998 Non-performing loan aging $ 44,290 $ 9,827 $ 9,367 $ 41,177 $ 60,371 $ 104,661 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 March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 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 $ 21,458 $ 531 $ 24,689 $ 42 Commercial collateralized by assignment of lease payments 6,445 156 7,027 5,318 Commercial real estate: Healthcare — — — — Industrial 1,106 — 1,136 — Multifamily 3,240 — 3,415 — Office 4,464 57 4,496 693 Retail 17,584 — 17,594 — Other 1,300 35 1,544 195 Residential real estate 18,170 264 17,951 253 Construction real estate — — — — Indirect vehicle 2,024 — 2,046 — Home equity 17,801 — 18,156 — Other consumer 10 69 11 95 Total $ 93,602 $ 1,112 $ 98,065 $ 6,596 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 March 31, 2016 and December 31, 2015 (in thousands): Pass Special Substandard Doubtful Total March 31, 2016 Commercial $ 3,278,544 $ 133,873 $ 97,187 $ — $ 3,509,604 Commercial collateralized by assignment of lease payments 1,751,658 9,398 13,048 — 1,774,104 Commercial real estate: Healthcare 538,702 4,594 — — 543,296 Industrial 430,553 18,731 1,672 — 450,956 Multifamily 408,412 552 4,081 — 413,045 Retail 459,492 11,422 17,872 — 488,786 Office 230,732 3,771 8,702 — 243,205 Other 663,011 6,133 23,382 — 692,526 Construction real estate 309,724 554 — — 310,278 Total $ 8,070,828 $ 189,028 $ 165,944 $ — $ 8,425,800 December 31, 2015 Commercial $ 3,373,943 $ 115,548 $ 126,795 $ — $ 3,616,286 Commercial collateralized by assignment of lease payments 1,760,674 4,367 14,031 — 1,779,072 Commercial real estate: Healthcare 472,599 4,340 — — 476,939 Industrial 380,200 19,011 1,728 — 400,939 Multifamily 396,117 595 4,265 — 400,977 Retail 393,543 13,310 17,885 — 424,738 Office 216,584 3,797 8,801 — 229,182 Other 730,713 6,193 25,995 — 762,901 Construction real estate 252,060 — — — 252,060 Total $ 7,976,433 $ 167,161 $ 199,500 $ — $ 8,343,094 Approximately $55.8 million and $59.6 million of the substandard and doubtful loans were non-performing as of March 31, 2016 and December 31, 2015 , 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 March 31, 2016 and December 31, 2015 (in thousands): Performing Non-performing Total March 31, 2016 Residential real estate $ 659,357 $ 18,434 $ 677,791 Indirect vehicle 430,891 2,024 432,915 Home equity 189,278 17,801 207,079 Other consumer 77,239 79 77,318 Total $ 1,356,765 $ 38,338 $ 1,395,103 December 31, 2015 Residential real estate $ 609,965 $ 18,204 $ 628,169 Indirect vehicle 382,049 2,046 384,095 Home equity 198,417 18,156 216,573 Other consumer 80,555 106 80,661 Total $ 1,270,986 $ 38,512 $ 1,309,498 The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $18.4 million and $20.8 million at March 31, 2016 and December 31, 2015 , respectively. The following tables present loans individually evaluated for impairment by class of loans, excluding purchased credit-impaired loans, as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Three Months Ended Unpaid Recorded Partial Allowance for Average Interest With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Commercial collateralized by assignment of lease payments 2,512 1,433 1,079 — 1,935 — Commercial real estate: Healthcare — — — — — — Industrial 820 757 63 — 776 — Multifamily 2,098 2,098 — — 2,391 — Retail 7,395 5,654 1,741 — 5,838 — Office 1,608 1,031 577 — 1,031 — Other 240 240 — — 240 — Residential real estate — — — — — — Construction real estate — — — — — — Indirect vehicle — — — — — — Home equity 577 577 — — 577 — Other consumer — — — — — — With an allowance recorded: Commercial 31,869 31,869 — 12,174 28,927 — Commercial collateralized by assignment of lease payments 4,121 4,121 — 2,299 3,340 9 Commercial real estate: Healthcare — — — — — — Industrial — — — — — — Multifamily — — — — — — Retail 16,059 16,059 — 4,767 16,542 — Office 2,909 2,909 — 1,705 2,995 — Other 352 352 — 50 352 — Residential real estate 13,047 13,047 — 2,642 13,045 — Construction real estate — — — — — — Indirect vehicle 122 122 — — 285 — Home equity 28,683 28,683 — 3,044 28,788 — Other consumer — — — — — — Total $ 112,412 $ 108,952 $ 3,460 $ 26,681 $ 107,062 $ 9 December 31, 2015 Year Ended Unpaid Recorded Partial Allowance for Average Interest With no related allowance recorded: Commercial $ 11,253 $ 11,253 $ — $ — $ 6,628 $ — Commercial collateralized by assignment of lease payments 3,453 2,949 504 — 1,035 54 Commercial real estate: Healthcare — — — — — — Industrial 820 757 63 — 3,467 — Multifamily 575 575 — — 1,540 17 Retail 7,872 6,131 1,741 — 2,768 — Office 1,608 1,031 577 — 1,663 — Other — — — — 965 — Residential real estate 970 970 — — 717 — Construction real estate — — — — — — Indirect vehicle — — — — — — Home equity 927 927 — — 1,000 — Other consumer — — — — — — With an allowance recorded: Commercial 23,394 23,394 — 7,523 18,820 — Commercial collateralized by assignment of lease payments 3,297 3,297 — 1,790 4,013 104 Commercial real estate: Healthcare — — — — — — Industrial — — — — 228 — Multifamily 2,155 2,155 — 17 3,307 27 Retail 16,034 16,034 — 4,926 8,885 — Office 2,929 2,929 — 1,717 2,457 — Other 592 592 — 199 9,629 — Residential real estate 12,950 12,769 181 2,634 13,484 — Construction real estate — — — — 214 — Indirect vehicle 119 119 — — 287 — Home equity 28,696 28,583 113 3,131 27,747 — Other consumer — — — — — — Total $ 117,644 $ 114,465 $ 3,179 $ 21,937 $ 108,854 $ 202 Impaired loans included accruing restructured loans of $27.3 million and $27.0 million that have been modified and are performing in accordance with those modified terms as of March 31, 2016 and December 31, 2015 , respectively. In addition, impaired loans included $24.0 million and $23.6 million of non-performing restructured loans as of March 31, 2016 and December 31, 2015 , 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 March 31, 2016 and December 31, 2015 , there was one A/B structure with a recorded investment of $971 thousand and $1.0 million , respectively, 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 March 31, 2016 (dollars in thousands): March 31, 2016 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Home equity 2 $ 410 $ 410 $ — Total 2 $ 410 $ 410 $ — Non-Performing: Residential real estate 1 $ 72 $ 72 $ — Indirect vehicle 10 80 80 22 Home equity 9 1,081 1,081 51 Total 20 $ 1,233 $ 1,233 $ 73 The following table presents loans that were restructured during the three months ended March 31, 2015 (dollars in thousands): March 31, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Home equity 6 $ 2,346 $ 2,346 $ — Total 6 $ 2,346 $ 2,346 $ — Non-Performing: Indirect vehicle 3 $ 9 $ 9 $ — Home equity 5 798 798 122 Total 8 $ 807 $ 807 $ 122 Of the troubled debt restructurings entered into during the past twelve months, none subsequently defaulted during the three months ended March 31, 2016 . 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 three months ended March 31, 2016 (in thousands): Performing Non-performing Beginning balance $ 26,991 $ 23,619 Additions 410 1,233 Charge-offs — (46 ) Principal payments, net (103 ) (226 ) Removals (379 ) (155 ) Transfer to other real estate owned — (108 ) Transfers in 411 61 Transfers out (61 ) (411 ) Ending balance $ 27,269 $ 23,967 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 three months ended March 31, 2016 (in thousands): March 31, 2016 Extended Maturity, Amortization Extended and Reduction Maturity and/or Extended of Interest Rate Amortization Maturity Total Residential real estate — 72 — 72 Indirect vehicle — — 80 80 Home equity 1,392 99 — 1,491 Total $ 1,392 $ 171 $ 80 $ 1,643 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 March 31, 2016 and 2015 (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 March 31, 2016 Allowance for credit losses: Three Months Ended Beginning balance $ 39,316 $ 10,434 $ 45,475 $ 5,734 $ 15,113 $ 2,418 $ 7,374 $ 2,276 $ 3,368 $ 131,508 Charge-offs 713 574 352 368 — 931 238 412 — 3,588 Recoveries 380 50 594 24 27 463 318 393 — 2,249 Provision 7,979 595 1,068 206 (526 ) 782 (2,432 ) 20 (129 ) 7,563 Ending balance $ 46,962 $ 10,505 $ 46,785 $ 5,596 $ 14,614 $ 2,732 $ 5,022 $ 2,277 $ 3,239 $ 137,732 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 12,174 $ 2,299 $ 6,522 $ 2,642 $ — $ — $ 3,044 $ — $ 1,205 $ 27,886 Collectively evaluated for impairment 34,282 8,206 39,273 2,954 14,520 2,732 1,978 2,277 2,034 108,256 Acquired and accounted for under ASC 310-30 (1) 506 — 990 — 94 — — — — 1,590 Total ending allowance balance $ 46,962 $ 10,505 $ 46,785 $ 5,596 $ 14,614 $ 2,732 $ 5,022 $ 2,277 $ 3,239 $ 137,732 Loans: Individually evaluated for impairment $ 31,869 $ 5,554 $ 29,100 $ 13,047 $ — $ 122 $ 29,260 $ — $ — $ 108,952 Collectively evaluated for impairment 3,477,735 1,768,550 2,802,714 664,744 310,278 432,793 177,819 77,318 — 9,711,951 Acquired and accounted for under ASC 310-30 (1) 25,924 — 29,325 55,397 13,859 — 13,353 2,587 — 140,445 Total ending loans balance $ 3,535,528 $ 1,774,104 $ 2,861,139 $ 733,188 $ 324,137 $ 432,915 $ 220,432 $ 79,905 $ — $ 9,961,348 March 31, 2015 Allowance for credit losses: Three 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 569 — 2,034 579 3 874 444 424 — 4,927 Recoveries 242 749 1,375 72 2 475 101 69 — 3,085 Provision 3,583 (886 ) 791 621 556 427 (333 ) 469 (254 ) 4,974 Ending balance $ 32,827 $ 9,825 $ 41,958 $ 6,760 $ 9,473 $ 1,715 $ 8,780 $ 2,074 $ 3,777 $ 117,189 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 2,051 $ 1,534 $ 1,911 $ 3,045 $ 162 $ 14 $ 2,348 $ — $ 1,333 $ 12,398 Collectively evaluated for impairment 30,320 8,291 39,435 3,715 9,305 1,701 6,432 2,074 2,444 103,717 Acquired and accounted for under ASC 310-30 (1) 456 — 612 — 6 — — — — 1,074 Total ending allowance balance $ 32,827 $ 9,825 $ 41,958 $ 6,760 $ 9,473 $ 1,715 $ 8,780 $ 2,074 $ 3,777 $ 117,189 Loans: Individually evaluated for impairment $ 15,389 $ 3,653 $ 36,152 $ 15,123 $ 337 $ 164 $ 27,979 $ — $ — $ 98,797 Collectively evaluated for impairment 3,243,263 1,624,378 2,489,488 490,435 183,768 272,941 213,099 77,645 — 8,595,017 Acquired and accounted for under ASC 310-30 (1) 84,564 — 75,008 19,265 28,801 — 75 19,801 — 227,514 Total ending loans balance $ 3,343,216 $ 1,628,031 $ 2,600,648 $ 524,823 $ 212,906 $ 273,105 $ 241,153 $ 97,446 $ — $ 8,921,328 (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 and the principal outstanding is accreted over the remaining life of the loans. In accordance with ASC 310-30, for both purchased non-impaired loans and purchased credit-impaired loans, the loans are pooled by loan type and 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 pools 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 three months ended March 31, 2016 , there was a negative provision for credit losses of $753 thousand and net recoveries of $266 thousand in relation to purchased loans. There was $1.6 million and $2.1 million in allowance for loan and lease losses related to these purchased loans at March 31, 2016 and December 31, 2015 , 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 three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Balance at beginning of period $ 12,596 $ 7,434 Accretion (2,210 ) (1,930 ) Other (1) 3,584 863 Balance at end of period $ 13,970 $ 6,367 (1) Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools 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-down after the transfer to covered foreclosed real estate is reversed. In both scenarios, the clawback liability (the amount the FDIC requires the Company to pay back if certain thresholds are met) will increase or decrease accordingly. For other loans acquired through business combinations, the fair value of purchased 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. The carrying amount of loans acquired through a business combination by loan pool type are as follows (in thousands): March 31, 2016 Purchased Purchased Non-Credit-Impaired Total Covered loans: Consumer related $ 18,826 $ — $ 18,826 Non-covered loans: Commercial loans 25,924 529,600 555,524 Commercial loans collateralized by assignment of lease payments — 84,903 84,903 Commercial real estate 29,325 597,186 626,511 Construction real estate 13,859 9,174 23,033 Consumer related 52,511 170,490 223,001 Total non-covered loans 121,619 1,391,353 1,512,972 Total acquired $ 140,445 $ 1,391,353 $ 1,531,798 Effective April 1, 2014, the losses on commercial related loans (commercial, commercial real estate and construction real estate) acquired in connection with the Heritage Community Bank ("Heritage") FDIC-assisted transaction ceased being covered under the loss-share agreement for that transaction. The carrying amount of those loans was $2.2 million as of March 31, 2016 . Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to April 1, 2014 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreement) through March 31, 2017. The losses on consumer related loans acquired in connection with the Heritage FDIC-assisted transaction will continue to be covered under the loss-share agreement through March 31, 2019. The losses on commercial related loans acquired in connection with the Benchmark Bank ("Benchmark") FDIC-assisted transaction ceased to be covered under the loss-share agreement for that transaction effective January 1, 2015. The carrying amount of those loans was $1.8 million as of March 31, 2016 . Any recoveries, net of expenses, received on commercial related loans on which losses were incurred prior to January 1, 2015 will continue to be covered (and any such net recoveries must be shared with the FDIC in accordance with the loss-share agreements) through December 31, 2017. The losses on consumer relat |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 or 2015 . The carrying amount of goodwill was $725.1 million at March 31, 2016 and December 31, 2015 . The following table presents the changes in the carrying amount of goodwill for the three months ended March 31, 2016 (in thousands): Banking Leasing Mortgage Banking Total Balance at beginning of period $ 684,430 $ 40,640 $ — $ 725,070 Goodwill from business combinations (1) (2 ) — — (2 ) Balance at end of period $ 684,428 $ 40,640 $ — $ 725,068 (1) Due to the adjustments recognized for the MSA acquisition. The Company has other intangible assets consisting of core deposit and client relationship intangibles that had a remaining weighted average amortization period of approximately six years as of March 31, 2016 . The following table presents the changes during the three months ended March 31, 2016 in the carrying amount of core deposit and client relationship intangibles, and the gross carrying amount, accumulated amortization, and net book value as of March 31, 2016 (in thousands): March 31, 2016 Balance at beginning of period $ 44,812 Amortization expense (1,626 ) Balance at end of period $ 43,186 Gross carrying amount $ 93,292 Accumulated amortization (50,106 ) Net book value $ 43,186 The following presents the estimated future amortization expense of other intangible assets (in thousands): Year ending December 31, Amount 2016 $ 4,781 2017 5,738 2018 5,242 2019 3,685 2020 3,232 Thereafter 20,508 $ 43,186 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The composition of deposits was as follows as of March 31, 2016 and December 31, 2015 (in thousands): March 31, December 31, 2016 2015 Demand deposit accounts, non-interest bearing $ 4,667,410 $ 4,627,184 NOW, money market and interest bearing deposits 4,048,054 4,144,633 Savings accounts 991,300 974,555 Certificates of deposit, $250,000 or more 953,265 877,352 Other certificates of deposit 873,797 881,491 Total $ 11,533,826 $ 11,505,215 Certificates of deposit of $250,000 or more included $569.0 million and $500.2 million of brokered deposits at March 31, 2016 and December 31, 2015 , 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 | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings were as follows as of March 31, 2016 and December 31, 2015 (dollars in thousands): March 31, 2016 December 31, 2015 Weighted Average Interest Rate Amount Weighted Average Interest Rate Amount Customer repurchase agreements 0.20 % $ 177,271 0.20 % $ 201,207 Federal Home Loan Bank advances 0.22 675,000 0.17 775,000 Federal funds purchased 0.50 6,830 0.09 4,530 Line of credit 2.18 25,000 2.18 25,000 Total 0.27 % $ 884,101 0.23 % $ 1,005,737 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 $675.0 million and $775.0 million at March 31, 2016 and December 31, 2015 , respectively. At March 31, 2016 , the interest rate on the advances outstanding on that date had rates ranging from 0.22% to 0.24% with maturities from April 1, 2016 to December 12, 2016 . 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 December 18, 2015, 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 + 1.75% . As of March 31, 2016 and December 31, 2015 , $25.0 million was outstanding and the line of credit is scheduled to mature on December 17, 2016. |
Long-term Borrowings
Long-term Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
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 $380.2 million at March 31, 2016 and $305.2 million at December 31, 2015 . As of March 31, 2016 , the advances had fixed terms with effective interest rates, net of discounts, ranging from 0.23% to 5.87% and maturities ranging from March 2017 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 $59.4 million and $55.0 million at March 31, 2016 and December 31, 2015 , respectively, which as of March 31, 2016 , were accruing interest at rates ranging from 2.25% to 7.40% , with a weighted average rate of 4.30% . Lease investments includes equipment with an amortized cost of $70.3 million and $65.8 million at March 31, 2016 and December 31, 2015 , respectively, that is pledged as collateral on these notes. The Company had a $40.0 million 10 -year structured repurchase agreement as of December 31, 2015 , which had a fixed interest rate of 4.75% and matured in March 2016. |
Junior Subordinated Notes Issue
Junior Subordinated Notes Issued to Capital Trusts | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
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 March 31, 2016 (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 Group, Inc. (“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 $7.0 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands): Contractual Amount March 31, 2016 December 31, 2015 Commitments to extend credit: Home equity lines $ 181,284 $ 187,478 Other commitments 3,140,728 3,049,152 Letters of credit: Standby 134,178 137,945 Commercial 3,591 1,108 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 March 31, 2016 , 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 March 31, 2016 , 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 $1.3 million to $137.8 million from $139.1 million at December 31, 2015 . Of the $137.8 million in commitments outstanding at March 31, 2016 , approximately $25.4 million of the letters of credit have been issued or renewed since December 31, 2015 . 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 March 31, 2016 , the Company had approximately $3.6 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 March 31, 2016 , approximately 21% 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 March 31, 2016 . 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. In addition, our mortgage segment originates loans to borrowers 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 is not 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 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. Material 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 March 31, 2016 and December 31, 2015 , 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) March 31, 2016 Financial assets Securities available for sale: U.S Government sponsored agencies and enterprises $ 64,762 $ — $ 64,762 $ — States and political subdivisions 398,024 — 397,607 417 Residential mortgage-backed securities 720,269 — 719,996 273 Commercial mortgage-backed securities 114,290 — 114,290 — Corporate bonds 224,530 — 224,530 — Equity securities 10,969 10,969 — — Loans held for sale 632,196 — 632,196 — Loans 25,177 — 25,177 — Mortgage servicing rights 145,800 — — 145,800 Assets held in trust for deferred compensation 17,720 17,720 — — Derivative financial instruments 99,311 715 90,377 8,219 Financial liabilities Other liabilities (1) 17,720 17,720 — — Derivative financial instruments 66,046 6,027 60,019 — December 31, 2015 Financial assets Securities available for sale: U.S. Government sponsored agencies and enterprises $ 64,611 $ — $ 64,611 $ — States and political subdivisions 396,367 — 395,950 417 Residential mortgage-backed securities 763,549 — 763,193 356 Commercial mortgage-backed securities 130,107 — 130,107 — Corporate bonds 219,628 — 219,628 — Equity securities 10,761 10,761 — — Loans held for sale 744,727 — 744,727 — Loans 25,869 — 25,869 — Mortgage servicing rights 168,162 — — 168,162 Assets held in trust for deferred compensation 16,820 16,820 — — Derivative financial instruments 42,846 5,118 33,906 3,822 Financial liabilities Other liabilities (1) 16,333 16,333 — — Derivative financial instruments 36,974 6,050 30,924 — (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 March 31, 2016 Valuation Technique Unobservable Input Range (in thousands) States and political subdivisions $ 417 Discounted cash flows Credit assumption 45% Loss Residential mortgage-backed securities 273 Discounted cash flows Constant pre-payment rates (CPR) 1% - 3% Mortgage servicing rights 145,800 Discounted cash flows CPR 11.3% - 17.6% Discount rate 9.50 - 12.00 Maturity (months) 327 - 357 Delinquencies 0.51 - 3.78 Costs to service $ 63 - $ 160 Costs to service - delinquent $ 150 - $ 1,000 Derivative financial instruments (mortgage 8,219 Sales cash flows Expected closing ratio 60% - 95% interest rate lock commitments) Expected delivery price 99.39 bps - 108.70 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 March 31, 2016 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) March 31, 2016 Weighted average CPR 14.90 % Impact on fair value of 10% adverse change $ (7,098 ) Impact on fair value of 20% adverse change (13,594 ) Weighted average discount rate 9.77 % Impact on fair value of 10% adverse change $ (4,759 ) Impact on fair value of 20% adverse change (9,218 ) Weighted average delinquency rate 1.45 % Impact on fair value of 10% adverse change $ (902 ) Impact on fair value of 20% adverse change (1,878 ) Weighted average costs to service $ 84 Impact on fair value of 10% adverse change (2,671 ) Impact on fair value of 20% adverse change (5,343 ) The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2016 . 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): Three Months Ended March 31, 2016 2015 2016 2015 2016 2015 (in thousands) Investment Securities Mortgage Servicing Rights Derivatives Balance, beginning of period $ 773 $ 973 $ 168,162 $ 235,402 $ 3,822 $ 5,074 Purchases — — 154 85 — — Originations — — 11,856 16,560 — — Included in earnings — — (34,372 ) (32,793 ) 4,397 6,140 Principal payments (83 ) (38 ) — — — — Balance, ending of period $ 690 $ 935 $ 145,800 $ 219,254 $ 8,219 $ 11,214 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 ( 100% at March 31, 2016 ), 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 March 31, 2016 and December 31, 2015 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) March 31, 2016 Financial assets: Impaired loans $ 74,006 $ — $ — $ 74,006 Non-financial assets: Foreclosed assets 38,893 — — 38,893 December 31, 2015 Financial assets: Impaired loans $ 76,203 $ — $ — $ 76,203 Non-financial assets: Foreclosed assets 42,351 — — 42,351 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 March 31, 2016 Technique Input Range (in thousands) Impaired loans $ 74,006 Appraisal of collateral Appraisal adjustments 5% - 10% Foreclosed assets 38,893 Appraisal of collateral Appraisal adjustments 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): March 31, 2016 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 $ 271,732 $ 271,732 $ 271,732 $ — $ — Interest earning deposits with banks 113,785 113,785 113,785 — — Investment securities available for sale 1,532,844 1,532,844 10,969 1,521,185 690 Investment securities held to maturity 1,191,910 1,246,656 — 1,246,656 — Non-marketable securities - FHLB and FRB stock 121,750 121,750 — — 121,750 Loans held for sale 632,196 632,196 — 632,196 — Loans, net 9,826,855 9,842,009 — 25,177 9,816,832 Accrued interest receivable 52,830 52,830 52,830 — — Derivative financial instruments 99,311 99,311 715 90,377 8,219 Financial Liabilities: Non-interest bearing deposits $ 4,667,410 $ 4,667,410 $ 4,667,410 $ — $ — Interest bearing deposits 6,866,416 6,870,938 — — 6,870,938 Short-term borrowings 884,101 884,079 — — 884,079 Long-term borrowings 439,615 440,970 — — 440,970 Junior subordinated notes issued to capital trusts 185,820 112,371 — — 112,371 Accrued interest payable 3,140 3,140 3,140 — — Derivative financial instruments 66,046 66,046 6,027 60,019 — December 31, 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 $ 307,869 $ 307,869 $ 307,869 $ — $ — Interest earning deposits with banks 73,572 73,572 73,572 — — Investment securities available for sale 1,585,023 1,585,023 10,761 1,573,489 773 Investment securities held to maturity 1,230,810 1,274,767 — 1,274,767 — Non-marketable securities - FHLB and FRB stock 114,233 114,233 — — 114,233 Loans held for sale 744,727 744,727 — 744,727 — Loans, net 9,665,858 9,626,344 — 25,869 9,600,475 Accrued interest receivable 53,457 53,457 53,457 — — Derivative financial instruments 42,846 42,846 5,118 33,906 3,822 Financial Liabilities: Non-interest bearing deposits $ 4,627,184 $ 4,627,184 $ 4,627,184 $ — $ — Interest bearing deposits 6,878,031 6,875,411 — — 6,875,411 Short-term borrowings 1,005,737 1,005,705 — — 1,005,705 Long-term borrowings 400,274 401,539 — — 401,539 Junior subordinated notes issued to capital trusts 186,164 122,696 — — 122,696 Accrued interest payable 3,186 3,186 3,186 — — Derivative financial instruments 36,974 36,974 6,050 30,924 — |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Total cost of share-based payment plans during the period $ 4,051 $ 3,605 Amount of related income tax benefit recognized in income 1,583 1,412 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 March 31, 2016 , there were 3,910,381 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 changes in stock options for the three months ended March 31, 2016 : 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, 2015 2,192,431 $ 27.77 4.44 Granted 346,319 30.40 Exercised (16,067 ) 20.34 Expired — — Forfeited or cancelled (14,343 ) 30.69 Options outstanding as of March 31, 2016 2,508,340 $ 28.17 4.70 $ 12,153 Options exercisable as of March 31, 2016 1,782,457 $ 27.59 3.35 $ 10,077 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 three months ended March 31, 2016 : March 31, 2016 Risk-free interest rate 1.50 % Expected volatility of Company’s stock 28.81 % Expected dividend yield 2.24 % Expected life of options 5.9 years Weighted average fair value per option of options granted during the year $ 6.89 The total intrinsic value of options exercised during the three months ended March 31, 2016 and 2015 was $170 thousand and $81 thousand , respectively. The following is a summary of changes in restricted shares and units for the three months ended March 31, 2016 : Number of Shares and Units Weighted Average Grant Date Fair Value Shares and units outstanding at December 31, 2015 945,506 $ 29.92 Granted 464,387 31.07 Vested (192,521 ) 30.59 Forfeited or cancelled (11,752 ) 29.92 Shares and units outstanding at March 31, 2016 1,205,620 30.26 The total intrinsic value of restricted shares that vested during the three months ended March 31, 2016 and 2015 was $6.0 million and $3.0 million , respectively. The Company issued 80,780 , 71,560 , 48,569 and 56,752 market-based restricted stock units in 2016, 2015, 2014 and 2013, 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 March 31, 2016 , there was $30.6 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 March 31, 2016 , the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 2.6 years. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 its qualifying 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 March 31, 2016 was approximately $1 thousand , and the net amount payable as of December 31, 2015 was approximately $1 thousand . The Company's credit exposure on interest rate swaps is limited to the Company's net favorable value and interest payments of all swaps to each counterparty. In such cases, collateral is generally required from the counterparties involved if the net value of the swaps exceeds a nominal amount. At March 31, 2016 , the Company’s credit exposure relating to interest rate swaps was approximately $42.2 million , which is secured by the underlying collateral on customer loans. The Company also enters into mortgage banking derivatives which are classified as non-designated hedging 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 $143 thousand at March 31, 2016 . 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 March 31, 2016 and December 31, 2015 (in thousands): Asset Derivatives Liability Derivatives March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 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) $ — $ — $ — $ — $ 143 $ (8 ) $ 154 $ (9 ) Stand-alone derivative instruments: (2) Interest rate swap contracts 1,099,425 44,455 1,034,298 27,856 1,099,425 (44,455 ) 1,025,186 (27,899 ) Interest rate options contracts 245,992 917 222,585 628 245,992 (917 ) 190,622 (585 ) Foreign exchange contracts 82,022 3,786 72,529 3,970 80,313 (3,484 ) 63,339 (3,671 ) Spot foreign exchange contracts 473 6 328 5 408 (1 ) 132 — Mortgage related derivatives: Interest rate swap contracts 1,363,000 41,213 898,000 4,928 225,000 (11,154 ) 665,000 (3,723 ) Interest rate options contracts 130,000 520 35,000 33 — — — — Treasury futures contracts 12,500 195 — — 25,000 (78 ) — — Forward loan sale commitments — — 503,500 1,604 921,000 (5,949 ) 475,500 (1,087 ) Interest rate lock commitments 822,998 8,219 622,906 3,822 — — — — Total stand-alone derivative instruments 3,756,410 99,311 3,389,146 42,846 2,597,138 (66,038 ) 2,419,779 (36,965 ) Total $ 3,756,410 $ 99,311 $ 3,389,146 $ 42,846 $ 2,597,281 $ (66,046 ) $ 2,419,933 $ (36,974 ) (1) Derivative instruments designated to hedge 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 March 31, 2016 2015 Derivative instruments designated as hedges of fair value: Interest rate swap contracts $ 1 $ 1 Stand-alone derivative instruments: Interest rate swap contracts 2,338 842 Interest rate options contracts 36 15 Foreign exchange contracts 128 285 Spot foreign exchange contracts 303 230 Mortgage related derivatives 23,711 15,088 Total stand-alone derivative instruments 26,516 16,460 Total $ 26,517 $ 16,461 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 March 31, 2016 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 swap contracts, caps and floors $ 391 $ — $ 391 $ 44,988 $ — $ 44,988 Foreign exchange contracts 2,542 — 2,542 1,927 — 1,927 Mortgage related derivatives 41,991 — 41,991 17,493 — 17,493 Total derivatives 44,924 — 44,924 64,408 — 64,408 Repurchase agreements — — — 177,271 — 177,271 Total $ 44,924 $ — $ 44,924 $ 241,679 $ — $ 241,679 Financial Assets Financial Liabilities Net Amount Recognized Financial Instruments Collateral Net Amount Net Amount Recognized Financial Instruments Collateral Net Amount Derivatives: Counterparty A $ 32,861 $ (16,111 ) $ — $ 16,750 $ 16,111 $ (16,111 ) $ — $ — Counterparty B 6,975 (6,975 ) — — 17,521 (6,975 ) (10,546 ) — Counterparty C 6 (6 ) — — 9,343 (6 ) (9,337 ) — Other counterparties 5,082 (4,758 ) — 324 21,433 (4,758 ) (16,618 ) 57 Total derivatives 44,924 (27,850 ) — 17,074 64,408 (27,850 ) (36,501 ) 57 Repurchase agreements — — — — 177,271 — (177,271 ) — Total $ 44,924 $ (27,850 ) $ — $ 17,074 $ 241,679 $ (27,850 ) $ (213,772 ) $ 57 Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 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 swap contracts, caps and floors $ 5,698 $ — $ 5,698 $ 31,446 $ — $ 31,446 Foreign exchange contracts 2,728 — 2,728 1,805 — 1,805 Mortgage related derivatives 1,636 — 1,636 1,087 — 1,087 Total derivatives 10,062 — 10,062 34,338 — 34,338 Repurchase agreements — — — 201,207 — 201,207 Total $ 10,062 $ — $ 10,062 $ 235,545 $ — $ 235,545 Financial Assets Financial Liabilities Net Amount Recognized Financial Instruments Collateral Net Amount Net Amount Recognized Financial Instruments Collateral Net Amount Derivatives: Counterparty A $ 3,810 $ (3,810 ) $ — $ — $ 11,137 $ (3,810 ) $ (7,327 ) $ — Counterparty B 6 (6 ) — — 7,808 (6 ) (7,802 ) — Counterparty C 3,477 (3,477 ) — — 4,963 (3,477 ) (1,486 ) — Other counterparties 2,769 (2,230 ) — 539 10,430 (2,230 ) (8,034 ) 166 Total derivatives 10,062 (9,523 ) — 539 34,338 (9,523 ) (24,649 ) 166 Repurchase agreements — — — — 201,207 — (201,207 ) — Total $ 10,062 $ (9,523 ) $ — $ 539 $ 235,545 $ (9,523 ) $ (225,856 ) $ 166 |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2016 | |
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, deposit gathering and fee business 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 depositors and other customers, federal deposit insurance funds and the banking system as a whole. 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. The leasing subsidiaries invest directly in equipment that the Company leases (referred to as direct finance, leveraged or operating leases) to "Fortune 1000," 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 March 31, 2016 Net interest income $ 109,608 $ 2,423 $ 7,273 $ 119,304 Provision for credit losses 7,001 437 125 7,563 Non-interest income 35,019 19,195 27,479 81,693 Non-interest expense (1) 90,640 12,186 32,974 135,800 Income tax expense 14,350 3,509 661 18,520 Net income $ 32,636 $ 5,486 $ 992 $ 39,114 Total assets $ 13,235,848 $ 1,045,117 $ 1,294,688 $ 15,575,653 Three months ended March 31, 2015 Net interest income $ 104,126 $ 3,015 $ 6,254 $ 113,395 Provision for credit losses 4,974 — — 4,974 Non-interest income 31,517 25,203 24,548 81,268 Non-interest expense (1) 95,334 13,656 30,930 139,920 Income tax expense 9,962 5,747 (51 ) 15,658 Net income $ 25,373 $ 8,815 $ (77 ) $ 34,111 Total assets $ 12,246,659 $ 937,903 $ 1,143,748 $ 14,328,310 (1) Includes merger related and repositioning expenses of $3.3 million and $8.1 million in the Banking Segment for the three months ended March 31, 2016 and 2015 , respectively. |
Preferred Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2016 | |
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 callable in February 2018. The Company Series A Preferred Stock is included in Tier 1 capital for regulatory capital purposes. |
New Authoritative Accounting 26
New Authoritative Accounting Guidance (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Authoritative Accounting Pronouncements | 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 Company adopted this new authoritative guidance on January 1, 2016, and it did not have an 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 Company adopted this new authoritative guidance on January 1, 2016, and it did not have an impact on the Company's statements of operations or financial condition. ASC Topic 805 "Business Combinations." New authoritative accounting guidance under ASC Topic 805, "Business Combinations" amended prior guidance to require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The new guidance requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. It also requires an entity to present separately on the face of the statement of operations or disclose in the notes the portion of the amount recorded in current-period earnings by line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of acquisition date. The Company adopted this new authoritative guidance on January 1, 2016, and it did not have an impact on the Company's statements of operations or financial condition. ASC Topic 606 "Revenue from Contracts with Customers." New authoritative accounting guidance under ASC Topic 606, "Revenue from Contracts with Customers" amended prior guidance to require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new authoritative guidance was initially effective for reporting periods after January 1, 2017 but was deferred to January 1, 2018. The Company is evaluating the new guidance but does not expect it to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 825 "Financial Instruments." New authoritative accounting guidance under ASC Topic 825 "Financial Instruments" amended prior guidance to require equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. An entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The new guidance simplifies the impairment assessment of equity investments without readily determinable fair values, requires public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from changes in the instrument-specific credit risk when the entity has selected the fair value option for financial instruments and requires separate presentation of financial assets and liabilities by measurement category and form of financial asset. The new authoritative guidance will be effective for reporting periods after January 1, 2018 and is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 405 "Liabilities-Extinguishment of Liabilities." New authoritative accounting guidance under ASC Topic 405, "Liabilities-Extinguishment of Liabilities" amended prior guidance to clarify that liabilities related to the sale of prepaid store-value products within the scope of this guidance are financial liabilities and that breakage for those liabilities are to be accounted for consistent with the breakage guidance in ASC Topic 606 "Revenue from Contracts with Customers." The new authoritative guidance will be effective for reporting periods after January 1, 2018. The Company is evaluating the new guidance but does not expect it to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 842 "Leases." New authoritative accounting guidance under ASC Topic 842 "Leases" amended prior guidance to require lessees to recognize the assets and liabilities arising from all leases on the balance sheet. The new authoritative guidance defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In addition, the qualifications for a sale and leaseback transaction have been amended. The new authoritative guidance also requires qualitative and quantitative disclosures by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The new authoritative guidance will be effective for reporting periods after January 1, 2019. The Company is evaluating the new guidance and its impact on the Company's statements of operations and financial condition. ASC Topic 815 "Derivatives and Hedging." New authoritative accounting guidance under ASC Topic 815 "Derivatives and Hedging" amended prior guidance to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. An entity has an option to apply the amendments in this new authoritative guidance on either a prospective basis or a modified retrospective basis. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition. New authoritative accounting guidance under ASC Topic 815 "Derivatives and Hedging" amended prior guidance to clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. An entity is required to consider whether (1) the payoff is adjusted based on changes in an index, (2) the payoff is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount, and (4) the call (put) option is contingently exercisable. An entity should apply this new authoritative guidance on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 323 "Investment - Equity Method and Joint Ventures." New authoritative accounting guidance under ASC Topic 323 "Investment - Equity Method and Joint Ventures" amended prior guidance to eliminate the requirement to retroactively adopt the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The new authoritative guidance required that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. This new authoritative guidance is not expected to have a significant impact on the Company's statements of operations or financial condition. ASC Topic 718 "Compensation - Stock Compensation." New authoritative accounting guidance under ASC Topic 718 "Compensation - Stock Compensation" amended prior guidance on several aspects, including the income tax consequences, classification of awards as either equity or liability, and classification on the statement of cash flows. The new authoritative guidance allows for all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. For the statement of cash flows, excess tax benefits should be classified along with other income tax cash flows as an operating activity, and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The new authoritative guidance also allows an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. The new authoritative guidance will be effective for reporting periods after January 1, 2017 and early adoption is permitted. The Company is evaluating the new guidance and its impact on the Company's statements of operations or financial condition. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Number of Shares Used in the Calculation of Basic and Diluted Earnings Per Common Share | The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (amounts in thousands, except share and per share data). Three Months Ended March 31, 2016 2015 Distributed earnings allocated to common stock $ 12,654 $ 10,610 Undistributed earnings 26,460 23,501 Net income 39,114 34,111 Less: preferred stock dividends 2,000 2,000 Net income available to common stockholders 37,114 32,111 Less: earnings allocated to participating securities 2 1 Earnings allocated to common stockholders $ 37,112 $ 32,110 Weighted average shares outstanding for basic earnings per common share 73,330,731 74,567,104 Dilutive effect of equity awards 636,204 597,612 Weighted average shares outstanding for diluted earnings per common share 73,966,935 75,164,716 Basic earnings per common share $ 0.51 $ 0.43 Diluted earnings per common share 0.50 0.43 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of 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 March 31, 2016 Available for Sale U.S. Government sponsored agencies and enterprises $ 63,600 $ 1,162 $ — $ 64,762 States and political subdivisions 371,006 27,019 (1 ) 398,024 Residential mortgage-backed securities 709,810 11,249 (790 ) 720,269 Commercial mortgage-backed securities 111,015 3,494 (219 ) 114,290 Corporate bonds 225,657 1,345 (2,472 ) 224,530 Equity securities 10,814 155 — 10,969 Total Available for Sale 1,491,902 44,424 (3,482 ) 1,532,844 Held to Maturity States and political subdivisions 986,340 46,659 (158 ) 1,032,841 Residential mortgage-backed securities 205,570 8,245 — 213,815 Total Held to Maturity 1,191,910 54,904 (158 ) 1,246,656 Total $ 2,683,812 $ 99,328 $ (3,640 ) $ 2,779,500 December 31, 2015 Available for Sale U.S. Government sponsored agencies and enterprises $ 63,805 $ 806 $ — $ 64,611 States and political subdivisions 373,285 23,083 (1 ) 396,367 Residential mortgage-backed securities 759,816 7,363 (3,630 ) 763,549 Commercial mortgage-backed securities 128,509 1,839 (241 ) 130,107 Corporate bonds 222,784 815 (3,971 ) 219,628 Equity securities 10,757 4 — 10,761 Total Available for Sale 1,558,956 33,910 (7,843 ) 1,585,023 Held to Maturity States and political subdivisions 1,016,519 36,874 (638 ) 1,052,755 Residential mortgage-backed securities 214,291 7,721 — 222,012 Total Held to Maturity 1,230,810 44,595 (638 ) 1,274,767 Total $ 2,789,766 $ 78,505 $ (8,481 ) $ 2,859,790 |
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 March 31, 2016 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 $ 328 $ (1 ) $ — $ — $ 328 $ (1 ) Residential mortgage-backed securities 92,516 (495 ) 37,082 (295 ) 129,598 (790 ) Commercial mortgage-backed securities 2,231 (1 ) 11,756 (218 ) 13,987 (219 ) Corporate bonds 46,857 (383 ) 22,109 (2,089 ) 68,966 (2,472 ) Total Available for Sale 141,932 (880 ) 70,947 (2,602 ) 212,879 (3,482 ) Held to Maturity States and political subdivisions 16,883 (105 ) 5,960 (53 ) 22,843 (158 ) Total $ 158,815 $ (985 ) $ 76,907 $ (2,655 ) $ 235,722 $ (3,640 ) 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, 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 $ 219 $ (1 ) $ — $ — $ 219 $ (1 ) Residential mortgage-backed securities 357,877 (2,835 ) 43,566 (795 ) 401,443 (3,630 ) Commercial mortgage-backed securities 2,324 (5 ) 11,809 (236 ) 14,133 (241 ) Corporate bonds 73,774 (1,164 ) 18,286 (2,807 ) 92,060 (3,971 ) Total Available for Sale 434,194 (4,005 ) 73,661 (3,838 ) 507,855 (7,843 ) Held to Maturity States and political subdivisions 66,152 (519 ) 6,190 (119 ) 72,342 (638 ) Total $ 500,346 $ (4,524 ) $ 79,851 $ (3,957 ) $ 580,197 $ (8,481 ) |
Summary of Realized Gains on the Sale of Investment Securities Available for Sale | Net gains (losses) recognized on investment securities available for sale were as follows (in thousands): Three Months Ended March 31, 2016 2015 Realized gains $ 21 $ 759 Realized losses (21 ) (1,219 ) Net gains (losses) $ — $ (460 ) |
Schedule of Remaining Contractual Maturities of Securities Included in the Securities Portfolio | The amortized cost and fair value of investment securities as of March 31, 2016 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 $ 55,844 $ 56,375 Due after one year through five years 246,328 246,516 Due after five years through ten years 42,386 44,414 Due after ten years 315,705 340,011 Equity securities 10,814 10,969 Residential and commercial mortgage-backed securities 820,825 834,559 1,491,902 1,532,844 Held to maturity: Due in one year or less 83,040 83,253 Due after one year through five years 151,088 153,137 Due after five years through ten years 116,361 123,253 Due after ten years 635,851 673,198 Residential mortgage-backed securities 205,570 213,815 1,191,910 1,246,656 Total $ 2,683,812 $ 2,779,500 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Composition of Loans | Loans consist of the following at (in thousands): March 31, December 31, Commercial loans $ 3,509,604 $ 3,616,286 Commercial loans collateralized by assignment of lease payments 1,774,104 1,779,072 Commercial real estate 2,831,814 2,695,676 Residential real estate 677,791 628,169 Construction real estate 310,278 252,060 Indirect vehicle 432,915 384,095 Home equity 207,079 216,573 Other consumer loans 77,318 80,661 Total loans, excluding purchased credit-impaired loans 9,820,903 9,652,592 Purchased credit-impaired loans 140,445 141,406 Total loans $ 9,961,348 $ 9,793,998 |
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 March 31, 2016 and December 31, 2015 (in thousands): Current 30-59 Days 60-89 Days Loans Past Due Total Total March 31, 2016 Commercial $ 3,485,156 $ 7,931 $ 10,033 $ 6,484 $ 24,448 $ 3,509,604 Commercial collateralized by assignment of lease payments 1,756,427 10,405 2,377 4,895 17,677 1,774,104 Commercial real estate: Healthcare 543,296 — — — — 543,296 Industrial 449,746 453 — 757 1,210 450,956 Multifamily 411,571 367 193 914 1,474 413,045 Retail 470,682 691 3,466 13,947 18,104 488,786 Office 238,758 238 168 4,041 4,447 243,205 Other 689,799 1,295 76 1,356 2,727 692,526 Residential real estate 662,752 6,529 488 8,022 15,039 677,791 Construction real estate 310,278 — — — — 310,278 Indirect vehicle 430,388 1,677 391 459 2,527 432,915 Home equity 198,892 2,234 964 4,989 8,187 207,079 Other consumer 77,000 121 125 72 318 77,318 Total loans, excluding purchased credit-impaired loans 9,724,745 31,941 18,281 45,936 96,158 9,820,903 Purchased credit-impaired loans 88,308 6,221 9 45,907 52,137 140,445 Total loans $ 9,813,053 $ 38,162 $ 18,290 $ 91,843 $ 148,295 $ 9,961,348 Non-performing loan aging $ 33,990 $ 8,516 $ 6,431 $ 45,777 $ 60,724 $ 94,714 December 31, 2015 Commercial $ 3,586,372 $ 22,956 $ 97 $ 6,861 $ 29,914 $ 3,616,286 Commercial collateralized by assignment of lease payments 1,758,839 3,399 5,902 10,932 20,233 1,779,072 Commercial real estate: Healthcare 476,939 — — — — 476,939 Industrial 400,182 — — 757 757 400,939 Multifamily 399,333 622 88 934 1,644 400,977 Retail 410,958 6,189 7,411 180 13,780 424,738 Office 223,935 58 — 5,189 5,247 229,182 Other 760,530 622 82 1,667 2,371 762,901 Residential real estate 612,573 5,193 1,729 8,674 15,596 628,169 Construction real estate 252,060 — — — — 252,060 Indirect vehicle 380,899 2,085 698 413 3,196 384,095 Home equity 207,818 1,774 1,398 5,583 8,755 216,573 Other consumer 80,225 254 84 98 436 80,661 Total loans, excluding purchased credit-impaired loans 9,550,663 43,152 17,489 41,288 101,929 9,652,592 Purchased credit-impaired loans 81,250 3,311 4,439 52,406 60,156 141,406 Total loans $ 9,631,913 $ 46,463 $ 21,928 $ 93,694 $ 162,085 $ 9,793,998 Non-performing loan aging $ 44,290 $ 9,827 $ 9,367 $ 41,177 $ 60,371 $ 104,661 |
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 March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 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 $ 21,458 $ 531 $ 24,689 $ 42 Commercial collateralized by assignment of lease payments 6,445 156 7,027 5,318 Commercial real estate: Healthcare — — — — Industrial 1,106 — 1,136 — Multifamily 3,240 — 3,415 — Office 4,464 57 4,496 693 Retail 17,584 — 17,594 — Other 1,300 35 1,544 195 Residential real estate 18,170 264 17,951 253 Construction real estate — — — — Indirect vehicle 2,024 — 2,046 — Home equity 17,801 — 18,156 — Other consumer 10 69 11 95 Total $ 93,602 $ 1,112 $ 98,065 $ 6,596 |
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 March 31, 2016 and December 31, 2015 (in thousands): Pass Special Substandard Doubtful Total March 31, 2016 Commercial $ 3,278,544 $ 133,873 $ 97,187 $ — $ 3,509,604 Commercial collateralized by assignment of lease payments 1,751,658 9,398 13,048 — 1,774,104 Commercial real estate: Healthcare 538,702 4,594 — — 543,296 Industrial 430,553 18,731 1,672 — 450,956 Multifamily 408,412 552 4,081 — 413,045 Retail 459,492 11,422 17,872 — 488,786 Office 230,732 3,771 8,702 — 243,205 Other 663,011 6,133 23,382 — 692,526 Construction real estate 309,724 554 — — 310,278 Total $ 8,070,828 $ 189,028 $ 165,944 $ — $ 8,425,800 December 31, 2015 Commercial $ 3,373,943 $ 115,548 $ 126,795 $ — $ 3,616,286 Commercial collateralized by assignment of lease payments 1,760,674 4,367 14,031 — 1,779,072 Commercial real estate: Healthcare 472,599 4,340 — — 476,939 Industrial 380,200 19,011 1,728 — 400,939 Multifamily 396,117 595 4,265 — 400,977 Retail 393,543 13,310 17,885 — 424,738 Office 216,584 3,797 8,801 — 229,182 Other 730,713 6,193 25,995 — 762,901 Construction real estate 252,060 — — — 252,060 Total $ 7,976,433 $ 167,161 $ 199,500 $ — $ 8,343,094 |
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 March 31, 2016 and December 31, 2015 (in thousands): Performing Non-performing Total March 31, 2016 Residential real estate $ 659,357 $ 18,434 $ 677,791 Indirect vehicle 430,891 2,024 432,915 Home equity 189,278 17,801 207,079 Other consumer 77,239 79 77,318 Total $ 1,356,765 $ 38,338 $ 1,395,103 December 31, 2015 Residential real estate $ 609,965 $ 18,204 $ 628,169 Indirect vehicle 382,049 2,046 384,095 Home equity 198,417 18,156 216,573 Other consumer 80,555 106 80,661 Total $ 1,270,986 $ 38,512 $ 1,309,498 |
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 March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Three Months Ended Unpaid Recorded Partial Allowance for Average Interest With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Commercial collateralized by assignment of lease payments 2,512 1,433 1,079 — 1,935 — Commercial real estate: Healthcare — — — — — — Industrial 820 757 63 — 776 — Multifamily 2,098 2,098 — — 2,391 — Retail 7,395 5,654 1,741 — 5,838 — Office 1,608 1,031 577 — 1,031 — Other 240 240 — — 240 — Residential real estate — — — — — — Construction real estate — — — — — — Indirect vehicle — — — — — — Home equity 577 577 — — 577 — Other consumer — — — — — — With an allowance recorded: Commercial 31,869 31,869 — 12,174 28,927 — Commercial collateralized by assignment of lease payments 4,121 4,121 — 2,299 3,340 9 Commercial real estate: Healthcare — — — — — — Industrial — — — — — — Multifamily — — — — — — Retail 16,059 16,059 — 4,767 16,542 — Office 2,909 2,909 — 1,705 2,995 — Other 352 352 — 50 352 — Residential real estate 13,047 13,047 — 2,642 13,045 — Construction real estate — — — — — — Indirect vehicle 122 122 — — 285 — Home equity 28,683 28,683 — 3,044 28,788 — Other consumer — — — — — — Total $ 112,412 $ 108,952 $ 3,460 $ 26,681 $ 107,062 $ 9 December 31, 2015 Year Ended Unpaid Recorded Partial Allowance for Average Interest With no related allowance recorded: Commercial $ 11,253 $ 11,253 $ — $ — $ 6,628 $ — Commercial collateralized by assignment of lease payments 3,453 2,949 504 — 1,035 54 Commercial real estate: Healthcare — — — — — — Industrial 820 757 63 — 3,467 — Multifamily 575 575 — — 1,540 17 Retail 7,872 6,131 1,741 — 2,768 — Office 1,608 1,031 577 — 1,663 — Other — — — — 965 — Residential real estate 970 970 — — 717 — Construction real estate — — — — — — Indirect vehicle — — — — — — Home equity 927 927 — — 1,000 — Other consumer — — — — — — With an allowance recorded: Commercial 23,394 23,394 — 7,523 18,820 — Commercial collateralized by assignment of lease payments 3,297 3,297 — 1,790 4,013 104 Commercial real estate: Healthcare — — — — — — Industrial — — — — 228 — Multifamily 2,155 2,155 — 17 3,307 27 Retail 16,034 16,034 — 4,926 8,885 — Office 2,929 2,929 — 1,717 2,457 — Other 592 592 — 199 9,629 — Residential real estate 12,950 12,769 181 2,634 13,484 — Construction real estate — — — — 214 — Indirect vehicle 119 119 — — 287 — Home equity 28,696 28,583 113 3,131 27,747 — Other consumer — — — — — — Total $ 117,644 $ 114,465 $ 3,179 $ 21,937 $ 108,854 $ 202 |
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 March 31, 2016 (dollars in thousands): March 31, 2016 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Home equity 2 $ 410 $ 410 $ — Total 2 $ 410 $ 410 $ — Non-Performing: Residential real estate 1 $ 72 $ 72 $ — Indirect vehicle 10 80 80 22 Home equity 9 1,081 1,081 51 Total 20 $ 1,233 $ 1,233 $ 73 The following table presents loans that were restructured during the three months ended March 31, 2015 (dollars in thousands): March 31, 2015 Number of Pre-Modification Recorded Post-Modification Recorded Charge-offs and Performing: Home equity 6 $ 2,346 $ 2,346 $ — Total 6 $ 2,346 $ 2,346 $ — Non-Performing: Indirect vehicle 3 $ 9 $ 9 $ — Home equity 5 798 798 122 Total 8 $ 807 $ 807 $ 122 |
Troubled Debt Restructuring Activity Rollforward | The following table presents the troubled debt restructurings activity during the three months ended March 31, 2016 (in thousands): Performing Non-performing Beginning balance $ 26,991 $ 23,619 Additions 410 1,233 Charge-offs — (46 ) Principal payments, net (103 ) (226 ) Removals (379 ) (155 ) Transfer to other real estate owned — (108 ) Transfers in 411 61 Transfers out (61 ) (411 ) Ending balance $ 27,269 $ 23,967 |
Type of Financing Receivable Modifications and Restructuring | The following table presents the type of modification for loans that have been restructured during the three months ended March 31, 2016 (in thousands): March 31, 2016 Extended Maturity, Amortization Extended and Reduction Maturity and/or Extended of Interest Rate Amortization Maturity Total Residential real estate — 72 — 72 Indirect vehicle — — 80 80 Home equity 1,392 99 — 1,491 Total $ 1,392 $ 171 $ 80 $ 1,643 |
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 March 31, 2016 and 2015 (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 March 31, 2016 Allowance for credit losses: Three Months Ended Beginning balance $ 39,316 $ 10,434 $ 45,475 $ 5,734 $ 15,113 $ 2,418 $ 7,374 $ 2,276 $ 3,368 $ 131,508 Charge-offs 713 574 352 368 — 931 238 412 — 3,588 Recoveries 380 50 594 24 27 463 318 393 — 2,249 Provision 7,979 595 1,068 206 (526 ) 782 (2,432 ) 20 (129 ) 7,563 Ending balance $ 46,962 $ 10,505 $ 46,785 $ 5,596 $ 14,614 $ 2,732 $ 5,022 $ 2,277 $ 3,239 $ 137,732 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 12,174 $ 2,299 $ 6,522 $ 2,642 $ — $ — $ 3,044 $ — $ 1,205 $ 27,886 Collectively evaluated for impairment 34,282 8,206 39,273 2,954 14,520 2,732 1,978 2,277 2,034 108,256 Acquired and accounted for under ASC 310-30 (1) 506 — 990 — 94 — — — — 1,590 Total ending allowance balance $ 46,962 $ 10,505 $ 46,785 $ 5,596 $ 14,614 $ 2,732 $ 5,022 $ 2,277 $ 3,239 $ 137,732 Loans: Individually evaluated for impairment $ 31,869 $ 5,554 $ 29,100 $ 13,047 $ — $ 122 $ 29,260 $ — $ — $ 108,952 Collectively evaluated for impairment 3,477,735 1,768,550 2,802,714 664,744 310,278 432,793 177,819 77,318 — 9,711,951 Acquired and accounted for under ASC 310-30 (1) 25,924 — 29,325 55,397 13,859 — 13,353 2,587 — 140,445 Total ending loans balance $ 3,535,528 $ 1,774,104 $ 2,861,139 $ 733,188 $ 324,137 $ 432,915 $ 220,432 $ 79,905 $ — $ 9,961,348 March 31, 2015 Allowance for credit losses: Three 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 569 — 2,034 579 3 874 444 424 — 4,927 Recoveries 242 749 1,375 72 2 475 101 69 — 3,085 Provision 3,583 (886 ) 791 621 556 427 (333 ) 469 (254 ) 4,974 Ending balance $ 32,827 $ 9,825 $ 41,958 $ 6,760 $ 9,473 $ 1,715 $ 8,780 $ 2,074 $ 3,777 $ 117,189 Ending allowance balance attributable to loans: Individually evaluated for impairment $ 2,051 $ 1,534 $ 1,911 $ 3,045 $ 162 $ 14 $ 2,348 $ — $ 1,333 $ 12,398 Collectively evaluated for impairment 30,320 8,291 39,435 3,715 9,305 1,701 6,432 2,074 2,444 103,717 Acquired and accounted for under ASC 310-30 (1) 456 — 612 — 6 — — — — 1,074 Total ending allowance balance $ 32,827 $ 9,825 $ 41,958 $ 6,760 $ 9,473 $ 1,715 $ 8,780 $ 2,074 $ 3,777 $ 117,189 Loans: Individually evaluated for impairment $ 15,389 $ 3,653 $ 36,152 $ 15,123 $ 337 $ 164 $ 27,979 $ — $ — $ 98,797 Collectively evaluated for impairment 3,243,263 1,624,378 2,489,488 490,435 183,768 272,941 213,099 77,645 — 8,595,017 Acquired and accounted for under ASC 310-30 (1) 84,564 — 75,008 19,265 28,801 — 75 19,801 — 227,514 Total ending loans balance $ 3,343,216 $ 1,628,031 $ 2,600,648 $ 524,823 $ 212,906 $ 273,105 $ 241,153 $ 97,446 $ — $ 8,921,328 (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 three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Balance at beginning of period $ 12,596 $ 7,434 Accretion (2,210 ) (1,930 ) Other (1) 3,584 863 Balance at end of period $ 13,970 $ 6,367 (1) Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools acquired and accounted for under ASC 310-30. |
Purchased Loans Disclosures | The carrying amount of loans acquired through a business combination by loan pool type are as follows (in thousands): March 31, 2016 Purchased Purchased Non-Credit-Impaired Total Covered loans: Consumer related $ 18,826 $ — $ 18,826 Non-covered loans: Commercial loans 25,924 529,600 555,524 Commercial loans collateralized by assignment of lease payments — 84,903 84,903 Commercial real estate 29,325 597,186 626,511 Construction real estate 13,859 9,174 23,033 Consumer related 52,511 170,490 223,001 Total non-covered loans 121,619 1,391,353 1,512,972 Total acquired $ 140,445 $ 1,391,353 $ 1,531,798 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount of Goodwill | The following table presents the changes in the carrying amount of goodwill for the three months ended March 31, 2016 (in thousands): Banking Leasing Mortgage Banking Total Balance at beginning of period $ 684,430 $ 40,640 $ — $ 725,070 Goodwill from business combinations (1) (2 ) — — (2 ) Balance at end of period $ 684,428 $ 40,640 $ — $ 725,068 (1) Due to the adjustments recognized for the MSA acquisition. |
Changes in the Carrying Amount of Core Deposit and Client Relationship Intangibles | The following table presents the changes during the three months ended March 31, 2016 in the carrying amount of core deposit and client relationship intangibles, and the gross carrying amount, accumulated amortization, and net book value as of March 31, 2016 (in thousands): March 31, 2016 Balance at beginning of period $ 44,812 Amortization expense (1,626 ) Balance at end of period $ 43,186 Gross carrying amount $ 93,292 Accumulated amortization (50,106 ) Net book value $ 43,186 |
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 2016 $ 4,781 2017 5,738 2018 5,242 2019 3,685 2020 3,232 Thereafter 20,508 $ 43,186 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Composition of Deposits | The composition of deposits was as follows as of March 31, 2016 and December 31, 2015 (in thousands): March 31, December 31, 2016 2015 Demand deposit accounts, non-interest bearing $ 4,667,410 $ 4,627,184 NOW, money market and interest bearing deposits 4,048,054 4,144,633 Savings accounts 991,300 974,555 Certificates of deposit, $250,000 or more 953,265 877,352 Other certificates of deposit 873,797 881,491 Total $ 11,533,826 $ 11,505,215 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Short-Term Borrowings | Short-term borrowings were as follows as of March 31, 2016 and December 31, 2015 (dollars in thousands): March 31, 2016 December 31, 2015 Weighted Average Interest Rate Amount Weighted Average Interest Rate Amount Customer repurchase agreements 0.20 % $ 177,271 0.20 % $ 201,207 Federal Home Loan Bank advances 0.22 675,000 0.17 775,000 Federal funds purchased 0.50 6,830 0.09 4,530 Line of credit 2.18 25,000 2.18 25,000 Total 0.27 % $ 884,101 0.23 % $ 1,005,737 |
Junior Subordinated Notes Iss33
Junior Subordinated Notes Issued to Capital Trusts (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
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 March 31, 2016 (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 Group, Inc. (“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 $7.0 million . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Outstanding Financial Instruments, Contractual Amounts of Off-Balance Sheet Credit Risk | At March 31, 2016 and December 31, 2015 , the following financial instruments were outstanding, the contractual amounts of which represent off-balance sheet credit risk (in thousands): Contractual Amount March 31, 2016 December 31, 2015 Commitments to extend credit: Home equity lines $ 181,284 $ 187,478 Other commitments 3,140,728 3,049,152 Letters of credit: Standby 134,178 137,945 Commercial 3,591 1,108 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , 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) March 31, 2016 Financial assets Securities available for sale: U.S Government sponsored agencies and enterprises $ 64,762 $ — $ 64,762 $ — States and political subdivisions 398,024 — 397,607 417 Residential mortgage-backed securities 720,269 — 719,996 273 Commercial mortgage-backed securities 114,290 — 114,290 — Corporate bonds 224,530 — 224,530 — Equity securities 10,969 10,969 — — Loans held for sale 632,196 — 632,196 — Loans 25,177 — 25,177 — Mortgage servicing rights 145,800 — — 145,800 Assets held in trust for deferred compensation 17,720 17,720 — — Derivative financial instruments 99,311 715 90,377 8,219 Financial liabilities Other liabilities (1) 17,720 17,720 — — Derivative financial instruments 66,046 6,027 60,019 — December 31, 2015 Financial assets Securities available for sale: U.S. Government sponsored agencies and enterprises $ 64,611 $ — $ 64,611 $ — States and political subdivisions 396,367 — 395,950 417 Residential mortgage-backed securities 763,549 — 763,193 356 Commercial mortgage-backed securities 130,107 — 130,107 — Corporate bonds 219,628 — 219,628 — Equity securities 10,761 10,761 — — Loans held for sale 744,727 — 744,727 — Loans 25,869 — 25,869 — Mortgage servicing rights 168,162 — — 168,162 Assets held in trust for deferred compensation 16,820 16,820 — — Derivative financial instruments 42,846 5,118 33,906 3,822 Financial liabilities Other liabilities (1) 16,333 16,333 — — Derivative financial instruments 36,974 6,050 30,924 — (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 March 31, 2016 Valuation Technique Unobservable Input Range (in thousands) States and political subdivisions $ 417 Discounted cash flows Credit assumption 45% Loss Residential mortgage-backed securities 273 Discounted cash flows Constant pre-payment rates (CPR) 1% - 3% Mortgage servicing rights 145,800 Discounted cash flows CPR 11.3% - 17.6% Discount rate 9.50 - 12.00 Maturity (months) 327 - 357 Delinquencies 0.51 - 3.78 Costs to service $ 63 - $ 160 Costs to service - delinquent $ 150 - $ 1,000 Derivative financial instruments (mortgage 8,219 Sales cash flows Expected closing ratio 60% - 95% interest rate lock commitments) Expected delivery price 99.39 bps - 108.70 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 March 31, 2016 Technique Input Range (in thousands) Impaired loans $ 74,006 Appraisal of collateral Appraisal adjustments 5% - 10% Foreclosed assets 38,893 Appraisal of collateral Appraisal adjustments 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 March 31, 2016 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) March 31, 2016 Weighted average CPR 14.90 % Impact on fair value of 10% adverse change $ (7,098 ) Impact on fair value of 20% adverse change (13,594 ) Weighted average discount rate 9.77 % Impact on fair value of 10% adverse change $ (4,759 ) Impact on fair value of 20% adverse change (9,218 ) Weighted average delinquency rate 1.45 % Impact on fair value of 10% adverse change $ (902 ) Impact on fair value of 20% adverse change (1,878 ) Weighted average costs to service $ 84 Impact on fair value of 10% adverse change (2,671 ) Impact on fair value of 20% adverse change (5,343 ) |
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): Three Months Ended March 31, 2016 2015 2016 2015 2016 2015 (in thousands) Investment Securities Mortgage Servicing Rights Derivatives Balance, beginning of period $ 773 $ 973 $ 168,162 $ 235,402 $ 3,822 $ 5,074 Purchases — — 154 85 — — Originations — — 11,856 16,560 — — Included in earnings — — (34,372 ) (32,793 ) 4,397 6,140 Principal payments (83 ) (38 ) — — — — Balance, ending of period $ 690 $ 935 $ 145,800 $ 219,254 $ 8,219 $ 11,214 |
Assets Measured at Fair Value on a Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis as of March 31, 2016 and December 31, 2015 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) March 31, 2016 Financial assets: Impaired loans $ 74,006 $ — $ — $ 74,006 Non-financial assets: Foreclosed assets 38,893 — — 38,893 December 31, 2015 Financial assets: Impaired loans $ 76,203 $ — $ — $ 76,203 Non-financial assets: Foreclosed assets 42,351 — — 42,351 |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are as follows (in thousands): March 31, 2016 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 $ 271,732 $ 271,732 $ 271,732 $ — $ — Interest earning deposits with banks 113,785 113,785 113,785 — — Investment securities available for sale 1,532,844 1,532,844 10,969 1,521,185 690 Investment securities held to maturity 1,191,910 1,246,656 — 1,246,656 — Non-marketable securities - FHLB and FRB stock 121,750 121,750 — — 121,750 Loans held for sale 632,196 632,196 — 632,196 — Loans, net 9,826,855 9,842,009 — 25,177 9,816,832 Accrued interest receivable 52,830 52,830 52,830 — — Derivative financial instruments 99,311 99,311 715 90,377 8,219 Financial Liabilities: Non-interest bearing deposits $ 4,667,410 $ 4,667,410 $ 4,667,410 $ — $ — Interest bearing deposits 6,866,416 6,870,938 — — 6,870,938 Short-term borrowings 884,101 884,079 — — 884,079 Long-term borrowings 439,615 440,970 — — 440,970 Junior subordinated notes issued to capital trusts 185,820 112,371 — — 112,371 Accrued interest payable 3,140 3,140 3,140 — — Derivative financial instruments 66,046 66,046 6,027 60,019 — December 31, 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 $ 307,869 $ 307,869 $ 307,869 $ — $ — Interest earning deposits with banks 73,572 73,572 73,572 — — Investment securities available for sale 1,585,023 1,585,023 10,761 1,573,489 773 Investment securities held to maturity 1,230,810 1,274,767 — 1,274,767 — Non-marketable securities - FHLB and FRB stock 114,233 114,233 — — 114,233 Loans held for sale 744,727 744,727 — 744,727 — Loans, net 9,665,858 9,626,344 — 25,869 9,600,475 Accrued interest receivable 53,457 53,457 53,457 — — Derivative financial instruments 42,846 42,846 5,118 33,906 3,822 Financial Liabilities: Non-interest bearing deposits $ 4,627,184 $ 4,627,184 $ 4,627,184 $ — $ — Interest bearing deposits 6,878,031 6,875,411 — — 6,875,411 Short-term borrowings 1,005,737 1,005,705 — — 1,005,705 Long-term borrowings 400,274 401,539 — — 401,539 Junior subordinated notes issued to capital trusts 186,164 122,696 — — 122,696 Accrued interest payable 3,186 3,186 3,186 — — Derivative financial instruments 36,974 36,974 6,050 30,924 — |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Total cost of share-based payment plans during the period $ 4,051 $ 3,605 Amount of related income tax benefit recognized in income 1,583 1,412 |
Schedule of Share-Based Compensation, Stock Options, Activity | The following table summarizes changes in stock options for the three months ended March 31, 2016 : 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, 2015 2,192,431 $ 27.77 4.44 Granted 346,319 30.40 Exercised (16,067 ) 20.34 Expired — — Forfeited or cancelled (14,343 ) 30.69 Options outstanding as of March 31, 2016 2,508,340 $ 28.17 4.70 $ 12,153 Options exercisable as of March 31, 2016 1,782,457 $ 27.59 3.35 $ 10,077 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used for options granted during the three months ended March 31, 2016 : March 31, 2016 Risk-free interest rate 1.50 % Expected volatility of Company’s stock 28.81 % Expected dividend yield 2.24 % Expected life of options 5.9 years Weighted average fair value per option of options granted during the year $ 6.89 |
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 three months ended March 31, 2016 : Number of Shares and Units Weighted Average Grant Date Fair Value Shares and units outstanding at December 31, 2015 945,506 $ 29.92 Granted 464,387 31.07 Vested (192,521 ) 30.59 Forfeited or cancelled (11,752 ) 29.92 Shares and units outstanding at March 31, 2016 1,205,620 30.26 |
Derivative Financial Instrume37
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments | The Company’s derivative financial instruments are summarized below as of March 31, 2016 and December 31, 2015 (in thousands): Asset Derivatives Liability Derivatives March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 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) $ — $ — $ — $ — $ 143 $ (8 ) $ 154 $ (9 ) Stand-alone derivative instruments: (2) Interest rate swap contracts 1,099,425 44,455 1,034,298 27,856 1,099,425 (44,455 ) 1,025,186 (27,899 ) Interest rate options contracts 245,992 917 222,585 628 245,992 (917 ) 190,622 (585 ) Foreign exchange contracts 82,022 3,786 72,529 3,970 80,313 (3,484 ) 63,339 (3,671 ) Spot foreign exchange contracts 473 6 328 5 408 (1 ) 132 — Mortgage related derivatives: Interest rate swap contracts 1,363,000 41,213 898,000 4,928 225,000 (11,154 ) 665,000 (3,723 ) Interest rate options contracts 130,000 520 35,000 33 — — — — Treasury futures contracts 12,500 195 — — 25,000 (78 ) — — Forward loan sale commitments — — 503,500 1,604 921,000 (5,949 ) 475,500 (1,087 ) Interest rate lock commitments 822,998 8,219 622,906 3,822 — — — — Total stand-alone derivative instruments 3,756,410 99,311 3,389,146 42,846 2,597,138 (66,038 ) 2,419,779 (36,965 ) Total $ 3,756,410 $ 99,311 $ 3,389,146 $ 42,846 $ 2,597,281 $ (66,046 ) $ 2,419,933 $ (36,974 ) (1) Derivative instruments designated to hedge 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 March 31, 2016 2015 Derivative instruments designated as hedges of fair value: Interest rate swap contracts $ 1 $ 1 Stand-alone derivative instruments: Interest rate swap contracts 2,338 842 Interest rate options contracts 36 15 Foreign exchange contracts 128 285 Spot foreign exchange contracts 303 230 Mortgage related derivatives 23,711 15,088 Total stand-alone derivative instruments 26,516 16,460 Total $ 26,517 $ 16,461 |
Schedule of Derivative Instruments | Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of March 31, 2016 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 swap contracts, caps and floors $ 391 $ — $ 391 $ 44,988 $ — $ 44,988 Foreign exchange contracts 2,542 — 2,542 1,927 — 1,927 Mortgage related derivatives 41,991 — 41,991 17,493 — 17,493 Total derivatives 44,924 — 44,924 64,408 — 64,408 Repurchase agreements — — — 177,271 — 177,271 Total $ 44,924 $ — $ 44,924 $ 241,679 $ — $ 241,679 Financial Assets Financial Liabilities Net Amount Recognized Financial Instruments Collateral Net Amount Net Amount Recognized Financial Instruments Collateral Net Amount Derivatives: Counterparty A $ 32,861 $ (16,111 ) $ — $ 16,750 $ 16,111 $ (16,111 ) $ — $ — Counterparty B 6,975 (6,975 ) — — 17,521 (6,975 ) (10,546 ) — Counterparty C 6 (6 ) — — 9,343 (6 ) (9,337 ) — Other counterparties 5,082 (4,758 ) — 324 21,433 (4,758 ) (16,618 ) 57 Total derivatives 44,924 (27,850 ) — 17,074 64,408 (27,850 ) (36,501 ) 57 Repurchase agreements — — — — 177,271 — (177,271 ) — Total $ 44,924 $ (27,850 ) $ — $ 17,074 $ 241,679 $ (27,850 ) $ (213,772 ) $ 57 Information about the Company's financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 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 swap contracts, caps and floors $ 5,698 $ — $ 5,698 $ 31,446 $ — $ 31,446 Foreign exchange contracts 2,728 — 2,728 1,805 — 1,805 Mortgage related derivatives 1,636 — 1,636 1,087 — 1,087 Total derivatives 10,062 — 10,062 34,338 — 34,338 Repurchase agreements — — — 201,207 — 201,207 Total $ 10,062 $ — $ 10,062 $ 235,545 $ — $ 235,545 Financial Assets Financial Liabilities Net Amount Recognized Financial Instruments Collateral Net Amount Net Amount Recognized Financial Instruments Collateral Net Amount Derivatives: Counterparty A $ 3,810 $ (3,810 ) $ — $ — $ 11,137 $ (3,810 ) $ (7,327 ) $ — Counterparty B 6 (6 ) — — 7,808 (6 ) (7,802 ) — Counterparty C 3,477 (3,477 ) — — 4,963 (3,477 ) (1,486 ) — Other counterparties 2,769 (2,230 ) — 539 10,430 (2,230 ) (8,034 ) 166 Total derivatives 10,062 (9,523 ) — 539 34,338 (9,523 ) (24,649 ) 166 Repurchase agreements — — — — 201,207 — (201,207 ) — Total $ 10,062 $ (9,523 ) $ — $ 539 $ 235,545 $ (9,523 ) $ (225,856 ) $ 166 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Net interest income $ 109,608 $ 2,423 $ 7,273 $ 119,304 Provision for credit losses 7,001 437 125 7,563 Non-interest income 35,019 19,195 27,479 81,693 Non-interest expense (1) 90,640 12,186 32,974 135,800 Income tax expense 14,350 3,509 661 18,520 Net income $ 32,636 $ 5,486 $ 992 $ 39,114 Total assets $ 13,235,848 $ 1,045,117 $ 1,294,688 $ 15,575,653 Three months ended March 31, 2015 Net interest income $ 104,126 $ 3,015 $ 6,254 $ 113,395 Provision for credit losses 4,974 — — 4,974 Non-interest income 31,517 25,203 24,548 81,268 Non-interest expense (1) 95,334 13,656 30,930 139,920 Income tax expense 9,962 5,747 (51 ) 15,658 Net income $ 25,373 $ 8,815 $ (77 ) $ 34,111 Total assets $ 12,246,659 $ 937,903 $ 1,143,748 $ 14,328,310 (1) Includes merger related and repositioning expenses of $3.3 million and $8.1 million in the Banking Segment for the three months ended March 31, 2016 and 2015 , respectively. |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 39,114 | $ 34,111 |
Less: preferred stock dividends | 2,000 | 2,000 |
Net income available to common stockholders | 37,114 | 32,111 |
Earnings allocated to common stockholders | $ 37,112 | $ 32,110 |
Weighted average shares outstanding for basic earnings per common share | 73,330,731 | 74,567,104 |
Weighted average shares outstanding for diluted earnings per common share | 73,966,935 | 75,164,716 |
Basic earnings per common share | $ 0.51 | $ 0.43 |
Diluted earnings per common share | $ 0.50 | $ 0.43 |
Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Distributed earnings allocated to common stock | $ 12,654 | $ 10,610 |
Undistributed earnings | 26,460 | 23,501 |
Net income | 39,114 | 34,111 |
Net income available to common stockholders | $ 37,114 | $ 32,111 |
Weighted average shares outstanding for basic earnings per common share | 73,330,731 | 74,567,104 |
Dilutive effect of equity awards | 636,204 | 597,612 |
Weighted average shares outstanding for diluted earnings per common share | 73,966,935 | 75,164,716 |
Participating Securities | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Less: earnings allocated to participating securities | $ 2 | $ 1 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Goodwill | $ 725,068 | $ 725,070 |
MSA Holdings, LLC | ||
Business Acquisition [Line Items] | ||
Percent of business acquired | 100.00% | |
Goodwill | $ 13,500 | |
Core deposit intangible | $ 8,800 |
Business Combinations (Details
Business Combinations (Details 2) | Nov. 20, 2015USD ($)officeshares | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||
Amount called by each warrant or right (in dollars per share) | $ 9.30 | ||
Number of securities called by each warrant | shares | 0.2732 | ||
American Chartered Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Number of banking offices | office | 15 | ||
Business combination, total assets | $ 2,800,000,000 | ||
Business combination, loans | 2,000,000,000 | ||
Business combination, deposits | $ 2,400,000,000 | ||
Amount called by each warrant or right (in dollars per share) | $ 9.30 | ||
American Chartered Bancorp, Inc. | Common Stock | |||
Business Acquisition [Line Items] | |||
Number of securities called by each warrant | shares | 0.2732 | ||
Scenario, Forecast | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 100,000,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Available for Sale | ||
Amortized Cost | $ 1,491,902 | $ 1,558,956 |
Gross Unrealized Gains | 44,424 | 33,910 |
Gross Unrealized Losses | (3,482) | (7,843) |
Fair Value | 1,532,844 | 1,585,023 |
Held to Maturity | ||
Amortized Cost | 1,191,910 | 1,230,810 |
Gross Unrealized Gains | 54,904 | 44,595 |
Gross Unrealized Losses | (158) | (638) |
Fair Value | 1,246,656 | 1,274,767 |
Total Available for Sale and Held to Maturity Investment Securities | ||
Amortized Cost | 2,683,812 | 2,789,766 |
Gross Unrealized Gains | 99,328 | 78,505 |
Gross Unrealized Losses | (3,640) | (8,481) |
Fair Value | 2,779,500 | 2,859,790 |
U.S. Government sponsored agencies and enterprises | ||
Available for Sale | ||
Amortized Cost | 63,600 | 63,805 |
Gross Unrealized Gains | 1,162 | 806 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 64,762 | 64,611 |
States and political subdivisions | ||
Available for Sale | ||
Amortized Cost | 371,006 | 373,285 |
Gross Unrealized Gains | 27,019 | 23,083 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 398,024 | 396,367 |
Held to Maturity | ||
Amortized Cost | 986,340 | 1,016,519 |
Gross Unrealized Gains | 46,659 | 36,874 |
Gross Unrealized Losses | (158) | (638) |
Fair Value | $ 1,032,841 | 1,052,755 |
Total Available for Sale and Held to Maturity Investment Securities | ||
Percentage of securities consisting general obligation issues | 97.00% | |
Percentage of securities insured | 76.00% | |
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 | 21.00% | |
Residential mortgage-backed securities | ||
Available for Sale | ||
Amortized Cost | $ 709,810 | 759,816 |
Gross Unrealized Gains | 11,249 | 7,363 |
Gross Unrealized Losses | (790) | (3,630) |
Fair Value | 720,269 | 763,549 |
Held to Maturity | ||
Amortized Cost | 205,570 | 214,291 |
Gross Unrealized Gains | 8,245 | 7,721 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 213,815 | 222,012 |
Commercial mortgage-backed securities | ||
Available for Sale | ||
Amortized Cost | 111,015 | 128,509 |
Gross Unrealized Gains | 3,494 | 1,839 |
Gross Unrealized Losses | (219) | (241) |
Fair Value | 114,290 | 130,107 |
Corporate bonds | ||
Available for Sale | ||
Amortized Cost | 225,657 | 222,784 |
Gross Unrealized Gains | 1,345 | 815 |
Gross Unrealized Losses | (2,472) | (3,971) |
Fair Value | 224,530 | 219,628 |
Equity securities | ||
Available for Sale | ||
Amortized Cost | 10,814 | 10,757 |
Gross Unrealized Gains | 155 | 4 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 10,969 | $ 10,761 |
Investment Securities (Details
Investment Securities (Details 2) $ in Thousands | Mar. 31, 2016USD ($)Security_Position | Dec. 31, 2015USD ($)Security_Position |
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 141,932 | $ 434,194 |
Less Than 12 Months, Unrealized Losses | (880) | (4,005) |
12 Months or More, Fair Value | 70,947 | 73,661 |
12 Months or More, Unrealized Losses | (2,602) | (3,838) |
Total Fair Value | 212,879 | 507,855 |
Total Unrealized Losses | (3,482) | (7,843) |
Total | ||
Less Than 12 Months, Fair Value | 158,815 | 500,346 |
Less Than 12 Months, Unrealized Losses | (985) | (4,524) |
12 Months or More, Fair Value | 76,907 | 79,851 |
12 Months or More, Unrealized Losses | (2,655) | (3,957) |
Total Fair Value | 235,722 | 580,197 |
Total Unrealized Losses | $ (3,640) | $ (8,481) |
Number of security positions in the investment portfolio in an unrealized loss position | Security_Position | 115 | 193 |
States and political subdivisions | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 328 | $ 219 |
Less Than 12 Months, Unrealized Losses | (1) | (1) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total Fair Value | 328 | 219 |
Total Unrealized Losses | (1) | (1) |
Held to Maturity | ||
Less Than 12 Months, Fair Value | 16,883 | 66,152 |
Less Than 12 Months, Unrealized Losses | (105) | (519) |
12 Months or More, Fair Value | 5,960 | 6,190 |
12 Months or More, Unrealized Losses | (53) | (119) |
Total Fair Value | 22,843 | 72,342 |
Total Unrealized Losses | (158) | (638) |
Residential mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 92,516 | 357,877 |
Less Than 12 Months, Unrealized Losses | (495) | (2,835) |
12 Months or More, Fair Value | 37,082 | 43,566 |
12 Months or More, Unrealized Losses | (295) | (795) |
Total Fair Value | 129,598 | 401,443 |
Total Unrealized Losses | (790) | (3,630) |
Commercial mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 2,231 | 2,324 |
Less Than 12 Months, Unrealized Losses | (1) | (5) |
12 Months or More, Fair Value | 11,756 | 11,809 |
12 Months or More, Unrealized Losses | (218) | (236) |
Total Fair Value | 13,987 | 14,133 |
Total Unrealized Losses | (219) | (241) |
Corporate bonds | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | 46,857 | 73,774 |
Less Than 12 Months, Unrealized Losses | (383) | (1,164) |
12 Months or More, Fair Value | 22,109 | 18,286 |
12 Months or More, Unrealized Losses | (2,089) | (2,807) |
Total Fair Value | 68,966 | 92,060 |
Total Unrealized Losses | $ (2,472) | $ (3,971) |
Investment Securities (Detail44
Investment Securities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Amortized cost and fair value of investment securities by contractual maturity | |||
Realized gains | $ 21 | $ 759 | |
Realized losses | (21) | (1,219) | |
Net gains (losses) | 0 | $ (460) | |
Amortized Cost, Available for sale | |||
Due in one year or less | 55,844 | ||
Due after one year through five years | 246,328 | ||
Due after five years through ten years | 42,386 | ||
Due after ten years | 315,705 | ||
Amortized Cost | 1,491,902 | $ 1,558,956 | |
Fair Value, Available for sale | |||
Due in one year or less | 56,375 | ||
Due after one year through five years | 246,516 | ||
Due after five years through ten years | 44,414 | ||
Due after ten years | 340,011 | ||
Fair Value | 1,532,844 | 1,585,023 | |
Amortized Cost, Held to maturity | |||
Due in one year or less | 83,040 | ||
Due after one year through five years | 151,088 | ||
Due after five years through ten years | 116,361 | ||
Due after ten years | 635,851 | ||
Investment securities held to maturity | 1,191,910 | 1,230,810 | |
Fair value, Held to maturity | |||
Due in one year or less | 83,253 | ||
Due after one year through five years | 153,137 | ||
Due after five years through ten years | 123,253 | ||
Due after ten years | 673,198 | ||
Fair Value | 1,246,656 | 1,274,767 | |
Total Available for Sale and Held to Maturity Investment Securities | |||
Amortized Cost | 2,683,812 | 2,789,766 | |
Fair Value | 2,779,500 | 2,859,790 | |
Pledged financial instruments, not separately reported, securities | 1,100,000 | 1,400,000 | |
Pledged financial instruments, not separately reported, securities required to be pledged | 784,400 | 878,200 | |
Investment securities pledged as collateral for long-term Federal Home Loan Bank advances | 146 | 108,800 | |
Equity securities | |||
Amortized Cost, Available for sale | |||
Amortized Cost | 10,814 | 10,757 | |
Fair Value, Available for sale | |||
Fair Value | 10,969 | 10,761 | |
Residential and commercial mortgage-backed securities | |||
Amortized Cost, Available for sale | |||
Amortized Cost | 820,825 | ||
Fair Value, Available for sale | |||
Fair Value | 834,559 | ||
Residential mortgage-backed securities | |||
Amortized Cost, Available for sale | |||
Amortized Cost | 709,810 | 759,816 | |
Fair Value, Available for sale | |||
Fair Value | 720,269 | 763,549 | |
Amortized Cost, Held to maturity | |||
Investment securities held to maturity | 205,570 | 214,291 | |
Fair value, Held to maturity | |||
Fair Value | $ 213,815 | $ 222,012 |
Loans (Details)
Loans (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)investmentrating | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | |
Loans | |||
Loans | $ 9,820,903 | $ 9,652,592 | |
Purchased credit-impaired loans | 140,445 | 141,406 | |
Total loans | $ 9,961,348 | 9,793,998 | $ 8,921,328 |
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 | 3,200,000 | |
Loans required to be pledged as collateral for long-term Federal Home Loan Bank advances | 2,300,000 | 2,200,000 | |
Commercial loans | |||
Loans | |||
Loans | 3,509,604 | 3,616,286 | |
Total loans | 3,535,528 | 3,343,216 | |
Commercial loans collateralized by assignment of lease payments | |||
Loans | |||
Loans | 1,774,104 | 1,779,072 | |
Total loans | 1,774,104 | 1,628,031 | |
Commercial real estate | |||
Loans | |||
Loans | 2,831,814 | 2,695,676 | |
Total loans | 2,861,139 | 2,600,648 | |
Residential real estate | |||
Loans | |||
Loans | 677,791 | 628,169 | |
Total loans | 733,188 | 524,823 | |
Construction real estate | |||
Loans | |||
Loans | 310,278 | 252,060 | |
Total loans | 324,137 | 212,906 | |
Indirect vehicle | |||
Loans | |||
Loans | 432,915 | 384,095 | |
Total loans | 432,915 | 273,105 | |
Home equity lines | |||
Loans | |||
Loans | 207,079 | 216,573 | |
Total loans | 220,432 | 241,153 | |
Other consumer loans | |||
Loans | |||
Loans | 77,318 | $ 80,661 | |
Total loans | $ 79,905 | $ 97,446 |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | $ 9,820,903 | $ 9,652,592 | |
Total loans | $ 9,961,348 | 9,793,998 | $ 8,921,328 |
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 | |||
Contractual aging of the recorded investment in loans | |||
Current | $ 3,485,156 | 3,586,372 | |
Past Due | 24,448 | 29,914 | |
Total loans, excluding covered loans | 3,509,604 | 3,616,286 | |
Total loans | 3,535,528 | 3,343,216 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 21,458 | 24,689 | |
Loans past due 90 days or more and still accruing | 531 | 42 | |
Commercial loans collateralized by assignment of lease payments | |||
Contractual aging of the recorded investment in loans | |||
Current | 1,756,427 | 1,758,839 | |
Past Due | 17,677 | 20,233 | |
Total loans, excluding covered loans | 1,774,104 | 1,779,072 | |
Total loans | 1,774,104 | 1,628,031 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 6,445 | 7,027 | |
Loans past due 90 days or more and still accruing | 156 | 5,318 | |
Commercial real estate | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 2,831,814 | 2,695,676 | |
Total loans | 2,861,139 | 2,600,648 | |
Healthcare | |||
Contractual aging of the recorded investment in loans | |||
Current | 543,296 | 476,939 | |
Past Due | 0 | 0 | |
Total loans, excluding covered loans | 543,296 | 476,939 | |
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 | 449,746 | 400,182 | |
Past Due | 1,210 | 757 | |
Total loans, excluding covered loans | 450,956 | 400,939 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 1,106 | 1,136 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Multifamily | |||
Contractual aging of the recorded investment in loans | |||
Current | 411,571 | 399,333 | |
Past Due | 1,474 | 1,644 | |
Total loans, excluding covered loans | 413,045 | 400,977 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 3,240 | 3,415 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Retail | |||
Contractual aging of the recorded investment in loans | |||
Current | 470,682 | 410,958 | |
Past Due | 18,104 | 13,780 | |
Total loans, excluding covered loans | 488,786 | 424,738 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 17,584 | 17,594 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Office | |||
Contractual aging of the recorded investment in loans | |||
Current | 238,758 | 223,935 | |
Past Due | 4,447 | 5,247 | |
Total loans, excluding covered loans | 243,205 | 229,182 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 4,464 | 4,496 | |
Loans past due 90 days or more and still accruing | 57 | 693 | |
Other | |||
Contractual aging of the recorded investment in loans | |||
Current | 689,799 | 760,530 | |
Past Due | 2,727 | 2,371 | |
Total loans, excluding covered loans | 692,526 | 762,901 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 1,300 | 1,544 | |
Loans past due 90 days or more and still accruing | 35 | 195 | |
Residential real estate | |||
Contractual aging of the recorded investment in loans | |||
Current | 662,752 | 612,573 | |
Past Due | 15,039 | 15,596 | |
Total loans, excluding covered loans | 677,791 | 628,169 | |
Total loans | 733,188 | 524,823 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 18,170 | 17,951 | |
Loans past due 90 days or more and still accruing | 264 | 253 | |
Construction real estate | |||
Contractual aging of the recorded investment in loans | |||
Current | 310,278 | 252,060 | |
Past Due | 0 | 0 | |
Total loans, excluding covered loans | 310,278 | 252,060 | |
Total loans | 324,137 | 212,906 | |
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 | |
Indirect vehicle | |||
Contractual aging of the recorded investment in loans | |||
Current | 430,388 | 380,899 | |
Past Due | 2,527 | 3,196 | |
Total loans, excluding covered loans | 432,915 | 384,095 | |
Total loans | 432,915 | 273,105 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 2,024 | 2,046 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Home equity lines | |||
Contractual aging of the recorded investment in loans | |||
Current | 198,892 | 207,818 | |
Past Due | 8,187 | 8,755 | |
Total loans, excluding covered loans | 207,079 | 216,573 | |
Total loans | 220,432 | 241,153 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 17,801 | 18,156 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Other consumer | |||
Contractual aging of the recorded investment in loans | |||
Current | 77,000 | 80,225 | |
Past Due | 318 | 436 | |
Total loans, excluding covered loans | 77,318 | 80,661 | |
Total loans | 79,905 | $ 97,446 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 10 | 11 | |
Loans past due 90 days or more and still accruing | 69 | 95 | |
Total loans, excluding purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Current | 9,724,745 | 9,550,663 | |
Past Due | 96,158 | 101,929 | |
Total loans, excluding covered loans | 9,820,903 | 9,652,592 | |
Purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Current | 88,308 | 81,250 | |
Past Due | 52,137 | 60,156 | |
Total loans | 140,445 | 141,406 | |
Total loans | |||
Contractual aging of the recorded investment in loans | |||
Current | 9,813,053 | 9,631,913 | |
Past Due | 148,295 | 162,085 | |
Total loans | 9,961,348 | 9,793,998 | |
Recorded investment in nonaccrual loans and loans past due ninety days or more and still accruing | |||
Non-accrual | 93,602 | 98,065 | |
Loans past due 90 days or more and still accruing | 1,112 | 6,596 | |
Non-performing loan aging | |||
Contractual aging of the recorded investment in loans | |||
Current | 33,990 | 44,290 | |
Past Due | 60,724 | 60,371 | |
Total loans | 94,714 | 104,661 | |
Non-performing loan aging | Residential real estate | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 18,434 | 18,204 | |
Non-performing loan aging | Indirect vehicle | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 2,024 | 2,046 | |
Non-performing loan aging | Home equity lines | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 17,801 | 18,156 | |
Non-performing loan aging | Other consumer | |||
Contractual aging of the recorded investment in loans | |||
Total loans, excluding covered loans | 79 | 106 | |
30-59 Days Past Due | Commercial | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 7,931 | 22,956 | |
30-59 Days Past Due | Commercial loans collateralized by assignment of lease payments | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 10,405 | 3,399 | |
30-59 Days Past Due | Healthcare | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 0 | 0 | |
30-59 Days Past Due | Industrial | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 453 | 0 | |
30-59 Days Past Due | Multifamily | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 367 | 622 | |
30-59 Days Past Due | Retail | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 691 | 6,189 | |
30-59 Days Past Due | Office | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 238 | 58 | |
30-59 Days Past Due | Other | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 1,295 | 622 | |
30-59 Days Past Due | Residential real estate | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 6,529 | 5,193 | |
30-59 Days Past Due | Construction real estate | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 0 | 0 | |
30-59 Days Past Due | Indirect vehicle | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 1,677 | 2,085 | |
30-59 Days Past Due | Home equity lines | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 2,234 | 1,774 | |
30-59 Days Past Due | Other consumer | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 121 | 254 | |
30-59 Days Past Due | Total loans, excluding purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 31,941 | 43,152 | |
30-59 Days Past Due | Purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 6,221 | 3,311 | |
30-59 Days Past Due | Total loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 38,162 | 46,463 | |
30-59 Days Past Due | Non-performing loan aging | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 8,516 | 9,827 | |
60-89 Days Past Due | Commercial | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 10,033 | 97 | |
60-89 Days Past Due | Commercial loans collateralized by assignment of lease payments | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 2,377 | 5,902 | |
60-89 Days Past Due | Healthcare | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 0 | 0 | |
60-89 Days Past Due | Industrial | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 0 | 0 | |
60-89 Days Past Due | Multifamily | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 193 | 88 | |
60-89 Days Past Due | Retail | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 3,466 | 7,411 | |
60-89 Days Past Due | Office | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 168 | 0 | |
60-89 Days Past Due | Other | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 76 | 82 | |
60-89 Days Past Due | Residential real estate | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 488 | 1,729 | |
60-89 Days Past Due | Construction real estate | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 0 | 0 | |
60-89 Days Past Due | Indirect vehicle | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 391 | 698 | |
60-89 Days Past Due | Home equity lines | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 964 | 1,398 | |
60-89 Days Past Due | Other consumer | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 125 | 84 | |
60-89 Days Past Due | Total loans, excluding purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 18,281 | 17,489 | |
60-89 Days Past Due | Purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 9 | 4,439 | |
60-89 Days Past Due | Total loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 18,290 | 21,928 | |
60-89 Days Past Due | Non-performing loan aging | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 6,431 | 9,367 | |
Loans Past Due 90 Days or More | Commercial | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 6,484 | 6,861 | |
Loans Past Due 90 Days or More | Commercial loans collateralized by assignment of lease payments | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 4,895 | 10,932 | |
Loans Past Due 90 Days or More | Healthcare | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 0 | 0 | |
Loans Past Due 90 Days or More | Industrial | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 757 | 757 | |
Loans Past Due 90 Days or More | Multifamily | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 914 | 934 | |
Loans Past Due 90 Days or More | Retail | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 13,947 | 180 | |
Loans Past Due 90 Days or More | Office | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 4,041 | 5,189 | |
Loans Past Due 90 Days or More | Other | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 1,356 | 1,667 | |
Loans Past Due 90 Days or More | Residential real estate | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 8,022 | 8,674 | |
Loans Past Due 90 Days or More | Construction real estate | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 0 | 0 | |
Loans Past Due 90 Days or More | Indirect vehicle | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 459 | 413 | |
Loans Past Due 90 Days or More | Home equity lines | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 4,989 | 5,583 | |
Loans Past Due 90 Days or More | Other consumer | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 72 | 98 | |
Loans Past Due 90 Days or More | Total loans, excluding purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 45,936 | 41,288 | |
Loans Past Due 90 Days or More | Purchased credit-impaired loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 45,907 | 52,406 | |
Loans Past Due 90 Days or More | Total loans | |||
Contractual aging of the recorded investment in loans | |||
Past Due | 91,843 | 93,694 | |
Loans Past Due 90 Days or More | Non-performing loan aging | |||
Contractual aging of the recorded investment in loans | |||
Past Due | $ 45,777 | $ 41,177 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 9,820,903 | $ 9,652,592 |
Substandard and doubtful loans non-performing | 55,800 | 59,600 |
Commercial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 3,509,604 | 3,616,286 |
Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,774,104 | 1,779,072 |
Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 543,296 | 476,939 |
Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 450,956 | 400,939 |
Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 413,045 | 400,977 |
Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 488,786 | 424,738 |
Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 243,205 | 229,182 |
Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 692,526 | 762,901 |
Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 310,278 | 252,060 |
Pass | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 8,070,828 | 7,976,433 |
Pass | Commercial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 3,278,544 | 3,373,943 |
Pass | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,751,658 | 1,760,674 |
Pass | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 538,702 | 472,599 |
Pass | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 430,553 | 380,200 |
Pass | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 408,412 | 396,117 |
Pass | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 459,492 | 393,543 |
Pass | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 230,732 | 216,584 |
Pass | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 663,011 | 730,713 |
Pass | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 309,724 | 252,060 |
Special Mention | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 189,028 | 167,161 |
Special Mention | Commercial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 133,873 | 115,548 |
Special Mention | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 9,398 | 4,367 |
Special Mention | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 4,594 | 4,340 |
Special Mention | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 18,731 | 19,011 |
Special Mention | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 552 | 595 |
Special Mention | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 11,422 | 13,310 |
Special Mention | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 3,771 | 3,797 |
Special Mention | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 6,133 | 6,193 |
Special Mention | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 554 | 0 |
Substandard | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 165,944 | 199,500 |
Substandard | Commercial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 97,187 | 126,795 |
Substandard | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 13,048 | 14,031 |
Substandard | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Substandard | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,672 | 1,728 |
Substandard | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 4,081 | 4,265 |
Substandard | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 17,872 | 17,885 |
Substandard | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 8,702 | 8,801 |
Substandard | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 23,382 | 25,995 |
Substandard | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 0 | 0 |
Doubtful | Commercial | ||
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 |
Total | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 8,425,800 | 8,343,094 |
Total | Commercial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 3,509,604 | 3,616,286 |
Total | Commercial loans collateralized by assignment of lease payments | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,774,104 | 1,779,072 |
Total | Healthcare | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 543,296 | 476,939 |
Total | Industrial | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 450,956 | 400,939 |
Total | Multifamily | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 413,045 | 400,977 |
Total | Retail | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 488,786 | 424,738 |
Total | Office | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 243,205 | 229,182 |
Total | Other | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 692,526 | 762,901 |
Total | Construction real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 310,278 | $ 252,060 |
Loans (Details 4)
Loans (Details 4) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 9,820,903 | $ 9,652,592 |
Mortgage loans in process of foreclosure | 18,400 | 20,800 |
Residential real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 677,791 | 628,169 |
Indirect vehicle | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 432,915 | 384,095 |
Home equity | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 207,079 | 216,573 |
Other consumer loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 77,318 | 80,661 |
Total | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,395,103 | 1,309,498 |
Performing | Residential real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 659,357 | 609,965 |
Performing | Indirect vehicle | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 430,891 | 382,049 |
Performing | Home equity | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 189,278 | 198,417 |
Performing | Other consumer loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 77,239 | 80,555 |
Performing | Total | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 1,356,765 | 1,270,986 |
Non-performing loan aging | Residential real estate | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 18,434 | 18,204 |
Non-performing loan aging | Indirect vehicle | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 2,024 | 2,046 |
Non-performing loan aging | Home equity | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 17,801 | 18,156 |
Non-performing loan aging | Other consumer loans | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | 79 | 106 |
Non-performing loan aging | Total | ||
Loans | ||
Total loans, excluding purchased credit impaired loans | $ 38,338 | $ 38,512 |
Loans (Details 5)
Loans (Details 5) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | $ 112,412 | $ 117,644 |
Recorded Investment | 108,952 | 114,465 |
Partial Charge-offs | 3,460 | 3,179 |
Allowance for Loan Losses Allocated | 26,681 | 21,937 |
Average Recorded Investment | 107,062 | 108,854 |
Interest Income Recognized | 9 | $ 202 |
Restructured loans | $ 1,643 | |
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 |
Restructured loans representing A And B structures | $ 971 | $ 1,000 |
Residential real estate | ||
Loans individually evaluated for impairment by class of loans | ||
Restructured loans | 72 | |
Indirect vehicle | ||
Loans individually evaluated for impairment by class of loans | ||
Restructured loans | 80 | |
Home equity lines | ||
Loans individually evaluated for impairment by class of loans | ||
Restructured loans | 1,491 | |
Impaired Financing Receivable With No Allowance | Commercial | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 11,253 |
Recorded Investment | 0 | 11,253 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 6,628 |
Interest Income Recognized | 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 | 2,512 | 3,453 |
Recorded Investment | 1,433 | 2,949 |
Partial Charge-offs | 1,079 | 504 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 1,935 | 1,035 |
Interest Income Recognized | 0 | 54 |
Impaired Financing Receivable With No Allowance | Healthcare | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Industrial | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 820 | 820 |
Recorded Investment | 757 | 757 |
Partial Charge-offs | 63 | 63 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 776 | 3,467 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Multifamily | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 2,098 | 575 |
Recorded Investment | 2,098 | 575 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 2,391 | 1,540 |
Interest Income Recognized | 0 | 17 |
Impaired Financing Receivable With No Allowance | Retail | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 7,395 | 7,872 |
Recorded Investment | 5,654 | 6,131 |
Partial Charge-offs | 1,741 | 1,741 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 5,838 | 2,768 |
Interest Income Recognized | 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 |
Recorded Investment | 1,031 | 1,031 |
Partial Charge-offs | 577 | 577 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 1,031 | 1,663 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Other | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 240 | 0 |
Recorded Investment | 240 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 240 | 965 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Residential real estate | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 970 |
Recorded Investment | 0 | 970 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 717 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Construction real estate | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Indirect vehicle | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Home equity lines | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 577 | 927 |
Recorded Investment | 577 | 927 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 577 | 1,000 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Allowance | Other consumer | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Commercial | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 31,869 | 23,394 |
Recorded Investment | 31,869 | 23,394 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 12,174 | 7,523 |
Average Recorded Investment | 28,927 | 18,820 |
Interest Income Recognized | 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 | 4,121 | 3,297 |
Recorded Investment | 4,121 | 3,297 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 2,299 | 1,790 |
Average Recorded Investment | 3,340 | 4,013 |
Interest Income Recognized | 9 | 104 |
Impaired Financing Receivable With Allowance | Healthcare | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Industrial | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 228 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Multifamily | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 2,155 |
Recorded Investment | 0 | 2,155 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 17 |
Average Recorded Investment | 0 | 3,307 |
Interest Income Recognized | 0 | 27 |
Impaired Financing Receivable With Allowance | Retail | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 16,059 | 16,034 |
Recorded Investment | 16,059 | 16,034 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 4,767 | 4,926 |
Average Recorded Investment | 16,542 | 8,885 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Office | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 2,909 | 2,929 |
Recorded Investment | 2,909 | 2,929 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 1,705 | 1,717 |
Average Recorded Investment | 2,995 | 2,457 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Other | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 352 | 592 |
Recorded Investment | 352 | 592 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 50 | 199 |
Average Recorded Investment | 352 | 9,629 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Residential real estate | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 13,047 | 12,950 |
Recorded Investment | 13,047 | 12,769 |
Partial Charge-offs | 0 | 181 |
Allowance for Loan Losses Allocated | 2,642 | 2,634 |
Average Recorded Investment | 13,045 | 13,484 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Construction real estate | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 214 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Indirect vehicle | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 122 | 119 |
Recorded Investment | 122 | 119 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 285 | 287 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Home equity lines | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 28,683 | 28,696 |
Recorded Investment | 28,683 | 28,583 |
Partial Charge-offs | 0 | 113 |
Allowance for Loan Losses Allocated | 3,044 | 3,131 |
Average Recorded Investment | 28,788 | 27,747 |
Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With Allowance | Other consumer | ||
Loans individually evaluated for impairment by class of loans | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Partial Charge-offs | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Performing | ||
Loans individually evaluated for impairment by class of loans | ||
Restructured loans | 27,300 | 27,000 |
Non-performing loan aging | ||
Loans individually evaluated for impairment by class of loans | ||
Restructured loans | $ 24,000 | $ 23,600 |
Loans (Details 6)
Loans (Details 6) | 3 Months Ended | |
Mar. 31, 2016USD ($)loan | Mar. 31, 2015USD ($)loan | |
Restructured loans | ||
Redefaulted loans | $ 0 | |
Period past due of recorded redefaulted loans (in days) | 90 days | 90 days |
Performing | ||
Restructured loans | ||
Number of Loans | loan | 2 | 6 |
Pre-Modification Recorded Investment | $ 410,000 | $ 2,346,000 |
Post-Modification Recorded Investment | 410,000 | 2,346,000 |
Charge-offs and Specific Reserves | $ 0 | $ 0 |
Performing | Home equity | ||
Restructured loans | ||
Number of Loans | loan | 2 | 6 |
Pre-Modification Recorded Investment | $ 410,000 | $ 2,346,000 |
Post-Modification Recorded Investment | 410,000 | 2,346,000 |
Charge-offs and Specific Reserves | $ 0 | $ 0 |
Non-performing loan aging | ||
Restructured loans | ||
Number of Loans | loan | 20 | 8 |
Pre-Modification Recorded Investment | $ 1,233,000 | $ 807,000 |
Post-Modification Recorded Investment | 1,233,000 | 807,000 |
Charge-offs and Specific Reserves | $ 73,000 | $ 122,000 |
Non-performing loan aging | Residential real estate | ||
Restructured loans | ||
Number of Loans | loan | 1 | |
Pre-Modification Recorded Investment | $ 72,000 | |
Post-Modification Recorded Investment | 72,000 | |
Charge-offs and Specific Reserves | $ 0 | |
Non-performing loan aging | Indirect vehicle | ||
Restructured loans | ||
Number of Loans | loan | 10 | 3 |
Pre-Modification Recorded Investment | $ 80,000 | $ 9,000 |
Post-Modification Recorded Investment | 80,000 | 9,000 |
Charge-offs and Specific Reserves | $ 22,000 | $ 0 |
Non-performing loan aging | Home equity | ||
Restructured loans | ||
Number of Loans | loan | 9 | 5 |
Pre-Modification Recorded Investment | $ 1,081,000 | $ 798,000 |
Post-Modification Recorded Investment | 1,081,000 | 798,000 |
Charge-offs and Specific Reserves | $ 51,000 | $ 122,000 |
Loans (Details 7)
Loans (Details 7) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward] | |
Ending balance | $ 1,643 |
Performing | |
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward] | |
Beginning balance | 26,991 |
Additions | 410 |
Charge-offs | 0 |
Principal payments, net | (103) |
Removals | (379) |
Transfer to other real estate owned | 0 |
Transfers in | 411 |
Transfers out | (61) |
Ending balance | 27,269 |
Non-performing loan aging | |
Financing Receivable, Modifications, Post Modification Recorded Investment [Roll Forward] | |
Beginning balance | 23,619 |
Additions | 1,233 |
Charge-offs | (46) |
Principal payments, net | (226) |
Removals | (155) |
Transfer to other real estate owned | (108) |
Transfers in | 61 |
Transfers out | (411) |
Ending balance | $ 23,967 |
Loans (Details 8)
Loans (Details 8) $ in Thousands | Mar. 31, 2016USD ($) |
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 | $ 1,392 |
Extended Maturity and/or Amortization | 171 |
Financing Receivable Modifications, Extended Maturity | 80 |
Total | 1,643 |
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 | 0 |
Extended Maturity and/or Amortization | 72 |
Financing Receivable Modifications, Extended Maturity | 0 |
Total | 72 |
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 |
Financing Receivable Modifications, Extended Maturity | 80 |
Total | 80 |
Home equity | |
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 | 1,392 |
Extended Maturity and/or Amortization | 99 |
Financing Receivable Modifications, Extended Maturity | 0 |
Total | $ 1,491 |
Loans (Details 9)
Loans (Details 9) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | $ 128,140 | |||
Ending balance | 134,493 | |||
Ending allowance balance attributable to loans: | ||||
Acquired and accounted for under ASC 310-30 | [1] | 1,590 | $ 1,074 | |
Unfunded Commitments | ||||
Allowance for unfunded credit commitments, beginning balance | 3,368 | 4,031 | ||
Allowance for unfunded commitments, Provision | (129) | (254) | ||
Individually evaluated for impairment for unfunded commitments | 1,205 | 1,333 | ||
Unfunded commitments collectively evaluated for impairment | 2,034 | 2,444 | ||
Allowance for unfunded credit commitments, ending balance | 3,239 | 3,777 | ||
Allowance for credit losses | ||||
Allowance for credit losses, beginning balance | 131,508 | 114,057 | ||
Allowance for loan losses and unfunded commitments charge offs | 3,588 | 4,927 | ||
Allowance for loan losses and unfunded commitments recoveries | 2,249 | 3,085 | ||
Allowance for loan losses and unfunded commitments provision | 7,563 | 4,974 | ||
Allowance for credit losses, individually evaluated for impairment | 27,886 | 12,398 | ||
Allowance for credit losses, collectively evaluated for impairment | 108,256 | 103,717 | ||
Acquired and accounted for under ASC 310-30 | [1] | 1,590 | 1,074 | |
Allowance for credit losses, ending balance | 137,732 | 117,189 | ||
Loans: | ||||
Individually evaluated for impairment | 108,952 | 98,797 | ||
Collectively evaluated for impairment | 9,711,951 | 8,595,017 | ||
Acquired and accounted for under ASC 310-30 | [1] | 140,445 | 227,514 | |
Total loans | 9,961,348 | 8,921,328 | $ 9,793,998 | |
Commercial loans | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 39,316 | 29,571 | ||
Charge-offs | 713 | 569 | ||
Recoveries | 380 | 242 | ||
Provision | 7,979 | 3,583 | ||
Ending balance | 46,962 | 32,827 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 12,174 | 2,051 | ||
Collectively evaluated for impairment | 34,282 | 30,320 | ||
Acquired and accounted for under ASC 310-30 | [1] | 506 | 456 | |
Allowance for credit losses | ||||
Acquired and accounted for under ASC 310-30 | [1] | 506 | 456 | |
Loans: | ||||
Individually evaluated for impairment | 31,869 | 15,389 | ||
Collectively evaluated for impairment | 3,477,735 | 3,243,263 | ||
Acquired and accounted for under ASC 310-30 | [1] | 25,924 | 84,564 | |
Total loans | 3,535,528 | 3,343,216 | ||
Commercial loans collateralized by assignment of lease payments | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 10,434 | 9,962 | ||
Charge-offs | 574 | |||
Recoveries | 50 | 749 | ||
Provision | 595 | (886) | ||
Ending balance | 10,505 | 9,825 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 2,299 | 1,534 | ||
Collectively evaluated for impairment | 8,206 | 8,291 | ||
Loans: | ||||
Individually evaluated for impairment | 5,554 | 3,653 | ||
Collectively evaluated for impairment | 1,768,550 | 1,624,378 | ||
Total loans | 1,774,104 | 1,628,031 | ||
Commercial real estate | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 45,475 | 41,826 | ||
Charge-offs | 352 | 2,034 | ||
Recoveries | 594 | 1,375 | ||
Provision | 1,068 | 791 | ||
Ending balance | 46,785 | 41,958 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 6,522 | 1,911 | ||
Collectively evaluated for impairment | 39,273 | 39,435 | ||
Acquired and accounted for under ASC 310-30 | [1] | 990 | 612 | |
Allowance for credit losses | ||||
Acquired and accounted for under ASC 310-30 | [1] | 990 | 612 | |
Loans: | ||||
Individually evaluated for impairment | 29,100 | 36,152 | ||
Collectively evaluated for impairment | 2,802,714 | 2,489,488 | ||
Acquired and accounted for under ASC 310-30 | [1] | 29,325 | 75,008 | |
Total loans | 2,861,139 | 2,600,648 | ||
Allowance for loan losses and unfunded commitments acquired with deteriorated credit quality | 1,600 | $ 2,100 | ||
Residential real estate | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 5,734 | 6,646 | ||
Charge-offs | 368 | 579 | ||
Recoveries | 24 | 72 | ||
Provision | 206 | 621 | ||
Ending balance | 5,596 | 6,760 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 2,642 | 3,045 | ||
Collectively evaluated for impairment | 2,954 | 3,715 | ||
Acquired and accounted for under ASC 310-30 | [1] | 0 | ||
Allowance for credit losses | ||||
Acquired and accounted for under ASC 310-30 | [1] | 0 | ||
Loans: | ||||
Individually evaluated for impairment | 13,047 | 15,123 | ||
Collectively evaluated for impairment | 664,744 | 490,435 | ||
Acquired and accounted for under ASC 310-30 | [1] | 55,397 | 19,265 | |
Total loans | 733,188 | 524,823 | ||
Construction real estate | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 15,113 | 8,918 | ||
Charge-offs | 0 | 3 | ||
Recoveries | 27 | 2 | ||
Provision | (526) | 556 | ||
Ending balance | 14,614 | 9,473 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 162 | ||
Collectively evaluated for impairment | 14,520 | 9,305 | ||
Acquired and accounted for under ASC 310-30 | [1] | 94 | 6 | |
Allowance for credit losses | ||||
Acquired and accounted for under ASC 310-30 | [1] | 94 | 6 | |
Loans: | ||||
Individually evaluated for impairment | 0 | 337 | ||
Collectively evaluated for impairment | 310,278 | 183,768 | ||
Acquired and accounted for under ASC 310-30 | [1] | 13,859 | 28,801 | |
Total loans | 324,137 | 212,906 | ||
Indirect vehicle | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 2,418 | 1,687 | ||
Charge-offs | 931 | 874 | ||
Recoveries | 463 | 475 | ||
Provision | 782 | 427 | ||
Ending balance | 2,732 | 1,715 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 14 | |||
Collectively evaluated for impairment | 2,732 | 1,701 | ||
Loans: | ||||
Individually evaluated for impairment | 122 | 164 | ||
Collectively evaluated for impairment | 432,793 | 272,941 | ||
Total loans | 432,915 | 273,105 | ||
Home equity | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 7,374 | 9,456 | ||
Charge-offs | 238 | 444 | ||
Recoveries | 318 | 101 | ||
Provision | (2,432) | (333) | ||
Ending balance | 5,022 | 8,780 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 3,044 | 2,348 | ||
Collectively evaluated for impairment | 1,978 | 6,432 | ||
Loans: | ||||
Individually evaluated for impairment | 29,260 | 27,979 | ||
Collectively evaluated for impairment | 177,819 | 213,099 | ||
Acquired and accounted for under ASC 310-30 | [1] | 13,353 | 75 | |
Total loans | 220,432 | 241,153 | ||
Other consumer | ||||
Allowance for credit losses [Roll Forward] | ||||
Beginning balance | 2,276 | 1,960 | ||
Charge-offs | 412 | 424 | ||
Recoveries | 393 | 69 | ||
Provision | 20 | 469 | ||
Ending balance | 2,277 | 2,074 | ||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 2,277 | 2,074 | ||
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 77,318 | 77,645 | ||
Acquired and accounted for under ASC 310-30 | [1] | 2,587 | 19,801 | |
Total loans | 79,905 | $ 97,446 | ||
Purchased loans | ||||
Allowance for credit losses [Roll Forward] | ||||
Provision | (753) | |||
Loans: | ||||
Allowance for loan losses and unfunded commitments write offs net of recoveries | $ (266) | |||
[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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Changes in the accretable yield for purchased credit-impaired loans | |||
Balance at beginning of period | $ 12,596 | $ 7,434 | |
Accretion | (2,210) | (1,930) | |
Other | [1] | 3,584 | 863 |
Balance at end of period | $ 13,970 | $ 6,367 | |
[1] | Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools acquired and accounted for under ASC 310-30. |
Loans (Details 11)
Loans (Details 11) $ in Thousands | Mar. 31, 2016USD ($) |
Loans | |
Non covered loans | $ 1,512,972 |
Total acquired | 1,531,798 |
Purchased Credit-Impaired Loans | |
Loans | |
Non covered loans | 121,619 |
Total acquired | 140,445 |
Purchased Non-Credit-Impaired Loans | |
Loans | |
Non covered loans | 1,391,353 |
Total acquired | 1,391,353 |
Commercial loans | |
Loans | |
Non covered loans | 555,524 |
Commercial loans | Purchased Credit-Impaired Loans | |
Loans | |
Non covered loans | 25,924 |
Commercial loans | Purchased Non-Credit-Impaired Loans | |
Loans | |
Non covered loans | 529,600 |
Commercial loans collateralized by assignment of lease payments | |
Loans | |
Non covered loans | 84,903 |
Commercial loans collateralized by assignment of lease payments | Purchased Credit-Impaired Loans | |
Loans | |
Non covered loans | 0 |
Commercial loans collateralized by assignment of lease payments | Purchased Non-Credit-Impaired Loans | |
Loans | |
Non covered loans | 84,903 |
Commercial real estate | |
Loans | |
Non covered loans | 626,511 |
Commercial real estate | Purchased Credit-Impaired Loans | |
Loans | |
Non covered loans | 29,325 |
Commercial real estate | Purchased Non-Credit-Impaired Loans | |
Loans | |
Non covered loans | 597,186 |
Construction real estate | |
Loans | |
Non covered loans | 23,033 |
Construction real estate | Purchased Credit-Impaired Loans | |
Loans | |
Non covered loans | 13,859 |
Construction real estate | Purchased Non-Credit-Impaired Loans | |
Loans | |
Non covered loans | 9,174 |
Consumer related | |
Loans | |
Covered loans | 18,826 |
Non covered loans | 223,001 |
Consumer related | Purchased Credit-Impaired Loans | |
Loans | |
Covered loans | 18,826 |
Non covered loans | 52,511 |
Consumer related | Purchased Non-Credit-Impaired Loans | |
Loans | |
Covered loans | 0 |
Non covered loans | 170,490 |
Heritage | Commercial loans, commercial real estate receivable and construction loans | |
Loans | |
Loans not covered under the loss share agreement | 2,200 |
Benchmark | Commercial loans, commercial real estate receivable and construction loans | |
Loans | |
Loans not covered under the loss share agreement | 1,800 |
Broadway and New Century | Commercial loans, commercial real estate receivable and construction loans | |
Loans | |
Loans not covered under the loss share agreement | $ 10,400 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of operating segments | segment | 3 | ||
Impairment loss | $ 0 | $ 0 | |
Goodwill | $ 725,068,000 | $ 725,070,000 | |
Weighted average amortization period (in years) | 6 years |
Goodwill and Intangibles (Det57
Goodwill and Intangibles (Details 2) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 725,070 |
Goodwill from business combinations | (2) |
Balance at end of period | 725,068 |
Banking | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 684,430 |
Goodwill from business combinations | (2) |
Balance at end of period | 684,428 |
Leasing | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 40,640 |
Goodwill from business combinations | 0 |
Balance at end of period | 40,640 |
Mortgage Banking | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 0 |
Goodwill from business combinations | 0 |
Balance at end of period | $ 0 |
Goodwill and Intangibles (Det58
Goodwill and Intangibles (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Changes in the carrying amount of core deposit and client relationship intangibles | |||
Balance at beginning of period | $ 44,812 | ||
Amortization expense | (1,626) | $ (1,518) | |
Balance at end of period | 43,186 | ||
Gross carrying amount | $ 93,292 | ||
Accumulated amortization | (50,106) | ||
Net book value | $ 44,812 | $ 43,186 |
Goodwill and Intangibles (Det59
Goodwill and Intangibles (Details 4) $ in Thousands | Mar. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 4,781 |
2,017 | 5,738 |
2,018 | 5,242 |
2,019 | 3,685 |
2,020 | 3,232 |
Thereafter | 20,508 |
Total estimated future amortization expense | $ 43,186 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Demand deposit accounts, noninterest bearing | $ 4,667,410 | $ 4,627,184 |
NOW and money market accounts | 4,048,054 | 4,144,633 |
Savings accounts | 991,300 | 974,555 |
Certificates of deposit, $250,000 or more | 953,265 | 877,352 |
Other certificates of deposit | 873,797 | 881,491 |
Total deposits | 11,533,826 | 11,505,215 |
Brokered deposits | $ 569,000 | $ 500,200 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term borrowings | ||
Weighted Average Interest Rate | 0.27% | 0.23% |
Amount | $ 884,101 | $ 1,005,737 |
Customer repurchase agreements | ||
Short-term borrowings | ||
Weighted Average Interest Rate | 0.20% | 0.20% |
Amount | $ 177,271 | $ 201,207 |
Federal Home Loan Bank advances | ||
Short-term borrowings | ||
Weighted Average Interest Rate | 0.22% | 0.17% |
Amount | $ 675,000 | $ 775,000 |
Federal funds purchased | ||
Short-term borrowings | ||
Weighted Average Interest Rate | 0.50% | 0.09% |
Amount | $ 6,830 | $ 4,530 |
Line of Credit | ||
Short-term borrowings | ||
Weighted Average Interest Rate | 2.18% | 2.18% |
Amount | $ 25,000 | $ 25,000 |
Short-Term Borrowings (Details
Short-Term Borrowings (Details 2) - USD ($) | Dec. 18, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term borrowings | |||
Fixed interest rate Federal Home Loan Bank advances | $ 675,000,000 | $ 775,000,000 | |
Short-term borrowings | $ 884,101,000 | 1,005,737,000 | |
Minimum | |||
Short-term borrowings | |||
Effective interest rate of amounts due within one year | 0.22% | ||
Maximum | |||
Short-term borrowings | |||
Effective interest rate of amounts due within one year | 0.24% | ||
Line of Credit | |||
Short-term borrowings | |||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||
Description of annual interest rate basis | one month LIBOR | ||
Short-term borrowings | $ 25,000,000 | $ 25,000,000 | |
Libor | Line of Credit | |||
Short-term borrowings | |||
Basis spread on variable rate | 1.75% |
Long-term Borrowings (Details)
Long-term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2016 | |
Long-term borrowings | ||
Federal Home Loan Bank advances | $ 305,200 | $ 380,200 |
Long-term borrowings | 400,274 | 439,615 |
Notes payable to banks | ||
Long-term borrowings | ||
Long-term borrowings | 55,000 | $ 59,400 |
Weighted average interest rate (as a percent) | 4.30% | |
Equipment pledged as collateral | 65,800 | $ 70,300 |
Structured repurchase agreement | ||
Long-term borrowings | ||
Long-term borrowings | $ 40,000 | |
Term of structured repurchase agreement (in years) | 10 years | |
Fixed interest rate, if option not exercised (as a percent) | 4.75% | |
Minimum | ||
Long-term borrowings | ||
Interest rate | 0.23% | |
Minimum | Notes payable to banks | ||
Long-term borrowings | ||
Interest rate | 2.25% | |
Maximum | ||
Long-term borrowings | ||
Interest rate | 5.87% | |
Maximum | Notes payable to banks | ||
Long-term borrowings | ||
Interest rate | 7.40% |
Junior Subordinated Notes Iss64
Junior Subordinated Notes Issued to Capital Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Junior Subordinated Notes | |||
Principal balance | $ 185,820 | $ 186,164 | |
Junior Subordinated Notes | Maximum | |||
Investment Owned, Balance [Abstract] | |||
Period for deferment of payment of interest on notes (in years) | 5 years | ||
Coal City Capital Trust I | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | $ 25,774 | ||
Basis spread on variable rate | 1.80% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
MB Financial Capital Trust II | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | $ 36,083 | ||
Basis spread on variable rate | 1.40% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
MB Financial Capital Trust III | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | $ 10,310 | ||
Basis spread on variable rate | 1.50% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
MB Financial Capital Trust IV | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | $ 20,619 | ||
Basis spread on variable rate | 1.52% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
MB Financial Capital Trust V | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | $ 30,928 | ||
Basis spread on variable rate | 1.30% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
MB Financial Capital Trust VI | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | $ 23,196 | ||
Basis spread on variable rate | 1.30% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
FOBB Statutory Trust III | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | [1] | $ 5,155 | |
Basis spread on variable rate | [1] | 2.80% | |
Description of annual interest rate basis | [1] | 3-mo LIBOR | |
TAYC Capital Trust II | |||
Investment Owned, Balance [Abstract] | |||
Purchase accounting adjustments discount | $ 7,000 | ||
TAYC Capital Trust II | Junior Subordinated Notes | |||
Junior Subordinated Notes | |||
Principal balance | [2] | $ 41,238 | |
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 | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 1.80% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
Face Value | $ 25,000 | ||
Trust Preferred Securities | MB Financial Capital Trust II | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 1.40% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
Face Value | $ 35,000 | ||
Trust Preferred Securities | MB Financial Capital Trust III | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 1.50% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
Face Value | $ 10,000 | ||
Trust Preferred Securities | MB Financial Capital Trust IV | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 1.52% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
Face Value | $ 20,000 | ||
Trust Preferred Securities | MB Financial Capital Trust V | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 1.30% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
Face Value | $ 30,000 | ||
Trust Preferred Securities | MB Financial Capital Trust VI | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 1.30% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
Face Value | $ 22,500 | ||
Trust Preferred Securities | FOBB Statutory Trust III | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 2.80% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
Face Value | [1] | $ 5,000 | |
Trust Preferred Securities | TAYC Capital Trust II | |||
Junior Subordinated Notes | |||
Basis spread on variable rate | 2.68% | ||
Description of annual interest rate basis | 3-mo LIBOR | ||
Investment Owned, Balance [Abstract] | |||
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 Group, Inc. (“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 $7.0 million. |
Commitments and Contingencies65
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commitments [Abstract] | ||
Maximum maturity period for letters of credit (in years) | 5 years | |
Decrease in maximum potential amount of future payments under letters of credit | $ (1,300) | |
Dollar amount of letters of credit outstanding | 137,800 | $ 139,100 |
Letters of credit issued or renewed | 25,400 | |
Capital expenditure commitments outstanding | 3,600 | |
Home equity lines | ||
Long-term Purchase Commitment [Line Items] | ||
Dollar amount of line of credit outstanding | 181,284 | 187,478 |
Other commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Dollar amount of line of credit outstanding | 3,140,728 | 3,049,152 |
Standby | ||
Long-term Purchase Commitment [Line Items] | ||
Dollar amount of line of credit outstanding | 134,178 | 137,945 |
Commercial | ||
Long-term Purchase Commitment [Line Items] | ||
Dollar amount of line of credit outstanding | $ 3,591 | $ 1,108 |
Commitments and Contingencies66
Commitments and Contingencies (Details 2) | 3 Months Ended |
Mar. 31, 2016 | |
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 | 21.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | $ 1,532,844 | $ 1,585,023 | |
Loans held for sale | 632,196 | 744,727 | |
Loans | 9,820,903 | 9,652,592 | |
Mortgage servicing rights | 145,800 | 168,162 | |
Derivative financial instruments | 44,924 | 10,062 | |
Derivative financial instruments | 64,408 | 34,338 | |
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 | 64,762 | 64,611 | |
States and political subdivisions | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 398,024 | 396,367 | |
Residential mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 720,269 | 763,549 | |
Commercial mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 114,290 | 130,107 | |
Corporate bonds | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 224,530 | 219,628 | |
Equity securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 10,969 | 10,761 | |
Recurring basis | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Loans held for sale | 632,196 | 744,727 | |
Loans | 25,177 | 25,869 | |
Assets held in trust for deferred compensation | 17,720 | 16,820 | |
Other liabilities | [1] | 17,720 | 16,333 |
Derivative financial instruments | 66,046 | 36,974 | |
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 | 64,762 | 64,611 | |
Recurring basis | States and political subdivisions | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 398,024 | 396,367 | |
Recurring basis | Residential mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 720,269 | 763,549 | |
Recurring basis | Commercial mortgage-backed securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 114,290 | 130,107 | |
Recurring basis | Corporate bonds | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 224,530 | 219,628 | |
Recurring basis | Equity securities | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Investment securities available for sale | 10,969 | 10,761 | |
Recurring basis | Mortgage servicing rights | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Mortgage servicing rights | 145,800 | 168,162 | |
Recurring basis | Derivative financial instruments | |||
Financial assets and financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments | 99,311 | 42,846 | |
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 | 10,969 | 10,761 | |
Loans held for sale | 0 | 0 | |
Assets held in trust for deferred compensation | 17,720 | 16,820 | |
Derivative financial instruments | 715 | 5,118 | |
Other liabilities | [1] | 17,720 | 16,333 |
Derivative financial instruments | 6,027 | 6,050 | |
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 | 10,969 | 10,761 | |
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 | 715 | 5,118 | |
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 | 1,521,185 | 1,573,489 | |
Loans held for sale | 632,196 | 744,727 | |
Loans | 25,177 | 25,869 | |
Derivative financial instruments | 90,377 | 33,906 | |
Derivative financial instruments | 60,019 | 30,924 | |
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 | 64,762 | 64,611 | |
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 | 397,607 | 395,950 | |
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 | 719,996 | 763,193 | |
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 | 114,290 | 130,107 | |
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 | 224,530 | 219,628 | |
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 | 90,377 | 33,906 | |
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 | 690 | 773 | |
Loans held for sale | 0 | 0 | |
Derivative financial instruments | 8,219 | 3,822 | |
Derivative financial instruments | 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 | 417 | 417 | |
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 | 273 | 356 | |
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 | 145,800 | 168,162 | |
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 | $ 8,219 | $ 3,822 | |
[1] | Liabilities associated with assets held in trust for deferred compensation |
Fair Value Measurements (Deta68
Fair Value Measurements (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | $ 1,532,844,000 | $ 1,585,023,000 |
Mortgage servicing rights | 145,800,000 | 168,162,000 |
Derivative financial instruments | 44,924,000 | 10,062,000 |
States and political subdivisions | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 398,024,000 | 396,367,000 |
Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 720,269,000 | 763,549,000 |
Recurring basis | States and political subdivisions | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 398,024,000 | 396,367,000 |
Recurring basis | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Investment securities available for sale | 720,269,000 | 763,549,000 |
Recurring basis | Mortgage servicing rights | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Mortgage servicing rights | 145,800,000 | 168,162,000 |
Recurring basis | Derivative financial instruments | ||
Financial assets and financial liabilities measured at fair value on a recurring basis | ||
Derivative financial instruments | 99,311,000 | 42,846,000 |
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 | 690,000 | 773,000 |
Derivative financial instruments | 8,219,000 | 3,822,000 |
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 | $ 417,000 | 417,000 |
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 | $ 273,000 | 356,000 |
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 | 145,800,000 | 168,162,000 |
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 | $ 8,219,000 | $ 3,822,000 |
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) | 11.30% | |
Discount rate | 9.50% | |
Maturity (months) | 327 months | |
Delinquencies | 0.51% | |
Costs to service | $ 63 | |
Costs to service - delinquent | $ 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 | 60.00% | |
Expected delivery price | 0.9939% | |
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) | 17.60% | |
Discount rate | 12.00% | |
Maturity (months) | 357 months | |
Delinquencies | 3.78% | |
Costs to service | $ 160 | |
Costs to service - delinquent | $ 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 | 1.087% |
Fair Value Measurements (Deta69
Fair Value Measurements (Details 3) - Mortgage servicing rights | 3 Months Ended |
Mar. 31, 2016USD ($) | |
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, CPR | $ (7,098,000) |
Impact on fair value of 20% adverse change, CPR | (13,594,000) |
Impact on fair value of 10% adverse change, discount rate | (4,759,000) |
Impact on fair value of 20% adverse change, discount rate | (9,218,000) |
Impact on fair value of 10% adverse change, delinquency rate | (902,000) |
Impact on fair value of 20% adverse change, deliquency rate | (1,878,000) |
Impact on fair value of 10% adverse change, costs to service | (2,671,000) |
Impact on fair value of 20% adverse change, costs to service | $ (5,343,000) |
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 | 14.90% |
Weighted average discount rate | 9.77% |
Weighted average delinquency rate | 1.45% |
Weighted average costs to service | $ 84 |
Fair Value Measurements (Deta70
Fair Value Measurements (Details 4) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 100.00% | |
Investment Securities | ||
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Balance, beginning of period | $ 773 | $ 973 |
Purchases | 0 | 0 |
Originations | 0 | 0 |
Included in earnings | 0 | 0 |
Principal payments | (83) | (38) |
Balance, ending of period | 690 | 935 |
Mortgage Servicing Rights | ||
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Balance, beginning of period | 168,162 | 235,402 |
Purchases | 154 | 85 |
Originations | 11,856 | 16,560 |
Included in earnings | (34,372) | (32,793) |
Principal payments | 0 | 0 |
Balance, ending of period | 145,800 | 219,254 |
Derivatives | ||
Financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Balance, beginning of period | 3,822 | 5,074 |
Purchases | 0 | 0 |
Originations | 0 | 0 |
Included in earnings | 4,397 | 6,140 |
Principal payments | 0 | 0 |
Balance, ending of period | $ 8,219 | $ 11,214 |
Fair Value Measurements (Deta71
Fair Value Measurements (Details 5) - Nonrecurring basis - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial Assets: | ||
Impaired loans | $ 74,006 | $ 76,203 |
Foreclosed assets | 38,893 | 42,351 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Impaired loans | 74,006 | 76,203 |
Foreclosed assets | $ 38,893 | $ 42,351 |
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% | |
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% |
Fair Value Measurements (Deta72
Fair Value Measurements (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | $ 271,732 | $ 307,869 |
Interest earning deposits with banks | 113,785 | 73,572 |
Investment securities available for sale | 1,532,844 | 1,585,023 |
Investment securities held to maturity | 1,246,656 | 1,274,767 |
Non-marketable securities - FHLB and FRB stock | 121,750 | 114,233 |
Loans held for sale | 632,196 | 744,727 |
Derivative financial instruments | 44,924 | 10,062 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,667,410 | 4,627,184 |
Interest bearing deposits | 6,866,416 | 6,878,031 |
Short-term borrowings | 884,101 | 1,005,737 |
Junior subordinated notes issued to capital trusts | 185,820 | 186,164 |
Derivative financial instruments | 64,408 | 34,338 |
Carrying Amount | ||
Financial Assets: | ||
Cash and due from banks | 271,732 | 307,869 |
Interest earning deposits with banks | 113,785 | 73,572 |
Investment securities available for sale | 1,532,844 | 1,585,023 |
Investment securities held to maturity | 1,191,910 | 1,230,810 |
Non-marketable securities - FHLB and FRB stock | 121,750 | 114,233 |
Loans held for sale | 632,196 | 744,727 |
Loans, net | 9,826,855 | 9,665,858 |
Accrued interest receivable | 52,830 | 53,457 |
Derivative financial instruments | 99,311 | 42,846 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,667,410 | 4,627,184 |
Interest bearing deposits | 6,866,416 | 6,878,031 |
Short-term borrowings | 884,101 | 1,005,737 |
Long-term borrowings | 439,615 | 400,274 |
Junior subordinated notes issued to capital trusts | 185,820 | 186,164 |
Accrued interest payable | 3,140 | 3,186 |
Derivative financial instruments | 66,046 | 36,974 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 271,732 | 307,869 |
Interest earning deposits with banks | 113,785 | 73,572 |
Investment securities available for sale | 1,532,844 | 1,585,023 |
Investment securities held to maturity | 1,246,656 | 1,274,767 |
Non-marketable securities - FHLB and FRB stock | 121,750 | 114,233 |
Loans held for sale | 632,196 | 744,727 |
Loans, net | 9,842,009 | 9,626,344 |
Accrued interest receivable | 52,830 | 53,457 |
Derivative financial instruments | 99,311 | 42,846 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,667,410 | 4,627,184 |
Interest bearing deposits | 6,870,938 | 6,875,411 |
Short-term borrowings | 884,079 | 1,005,705 |
Long-term borrowings | 440,970 | 401,539 |
Junior subordinated notes issued to capital trusts | 112,371 | 122,696 |
Accrued interest payable | 3,140 | 3,186 |
Derivative financial instruments | 66,046 | 36,974 |
Recurring basis | ||
Financial Assets: | ||
Loans held for sale | 632,196 | 744,727 |
Financial Liabilities: | ||
Derivative financial instruments | 66,046 | 36,974 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets: | ||
Cash and due from banks | 271,732 | 307,869 |
Interest earning deposits with banks | 113,785 | 73,572 |
Investment securities available for sale | 10,969 | 10,761 |
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 | 52,830 | 53,457 |
Derivative financial instruments | 715 | 5,118 |
Financial Liabilities: | ||
Non-interest bearing deposits | 4,667,410 | 4,627,184 |
Interest bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Accrued interest payable | 3,140 | 3,186 |
Derivative financial instruments | 6,027 | 6,050 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest earning deposits with banks | 0 | 0 |
Investment securities available for sale | 1,521,185 | 1,573,489 |
Investment securities held to maturity | 1,246,656 | 1,274,767 |
Non-marketable securities - FHLB and FRB stock | 0 | 0 |
Loans held for sale | 632,196 | 744,727 |
Loans, net | 25,177 | 25,869 |
Accrued interest receivable | 0 | 0 |
Derivative financial instruments | 90,377 | 33,906 |
Financial Liabilities: | ||
Non-interest bearing deposits | 0 | 0 |
Interest bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative financial instruments | 60,019 | 30,924 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest earning deposits with banks | 0 | 0 |
Investment securities available for sale | 690 | 773 |
Investment securities held to maturity | 0 | 0 |
Non-marketable securities - FHLB and FRB stock | 121,750 | 114,233 |
Loans held for sale | 0 | 0 |
Loans, net | 9,816,832 | 9,600,475 |
Accrued interest receivable | 0 | 0 |
Derivative financial instruments | 8,219 | 3,822 |
Financial Liabilities: | ||
Non-interest bearing deposits | 0 | 0 |
Interest bearing deposits | 6,870,938 | 6,875,411 |
Short-term borrowings | 884,079 | 1,005,705 |
Long-term borrowings | 440,970 | 401,539 |
Junior subordinated notes issued to capital trusts | 112,371 | 122,696 |
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 | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Impact of the share-based payment plans in the financial statements | |||
Total cost of share-based payment plans during the period | $ 4,051 | $ 3,605 | |
Amount of related income tax benefit recognized in income | $ 1,583 | $ 1,412 | |
Employee stock options | |||
Number of Options | |||
Outstanding, beginning balance (in shares) | 2,192,431 | ||
Granted (in shares) | 346,319 | ||
Exercised (in shares) | (16,067) | ||
Expired (in shares) | 0 | ||
Forfeited or cancelled (in shares) | (14,343) | ||
Outstanding, ending balance (in shares) | 2,508,340 | 2,192,431 | |
Options exercisable (in shares) | 1,782,457 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 27.77 | ||
Granted (in dollars per share) | 30.40 | ||
Exercised (in dollars per share) | 20.34 | ||
Expired (in dollars per share) | 0 | ||
Forfeited or cancelled (in dollars per share) | 30.69 | ||
Outstanding, ending balance (in dollars per share) | 28.17 | $ 27.77 | |
Options exercisable (in dollars per share) | $ 27.59 | ||
Weighted Average Remaining Contractual Term (In Years) | |||
Outstanding, beginning balance (in years) | 4 years 8 months 13 days | 4 years 5 months 10 days | |
Outstanding, ending balance (in years) | 4 years 8 months 13 days | 4 years 5 months 10 days | |
Options exercisable (in years) | 3 years 4 months 6 days | ||
Aggregate Intrinsic Value (in thousands) | |||
Options outstanding | $ 12,153 | ||
Options exercisable | $ 10,077 | ||
Fair value assumptions | |||
Risk-free interest rate | 1.50% | ||
Expected volatility of Company’s stock | 28.81% | ||
Expected dividend yield | 2.24% | ||
Expected life of options | 5 years 11 months | ||
Weighted average fair value per option of options granted during the year | $ 6.89 | ||
Restricted shares | |||
Number of Shares and Units | |||
Shares and units outstanding, beginning balance (in shares) | 945,506 | ||
Granted (in shares) | 464,387 | ||
Vested (in shares) | (192,521) | ||
Forfeited or cancelled (in shares) | (11,752) | ||
Shares and units outstanding, ending balance (in shares) | 1,205,620 | 945,506 | |
Weighted Average Grant Date Fair Value | |||
Shares Outstanding, Beginning balance (in dollars per share) | $ 29.92 | ||
Granted (in dollars per share) | 31.07 | ||
Vested (in dollars per share) | 30.59 | ||
Forfeited or cancelled (in dollars per share) | 29.92 | ||
Shares Outstanding, Ending balance (in dollars per share) | $ 30.26 | $ 29.92 |
Stock Incentive Plans (Details
Stock Incentive Plans (Details 2) - USD ($) $ in Thousands | Aug. 18, 2014 | May. 28, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Stock-based compensation | |||||||
Grants beyond threshold limit count numerator | 2 | ||||||
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 | 3,910,381 | ||||||
Unrecognized compensation cost related to nonvested share-based compensation | $ 30,600 | ||||||
Period for recognition | 2 years 7 months | ||||||
Employee stock options | |||||||
Stock-based compensation | |||||||
Award requisite service period | 4 years | ||||||
Expiration term of options | 10 years | ||||||
Intrinsic value of options exercised | $ 170 | $ 81 | |||||
Restricted shares | |||||||
Stock-based compensation | |||||||
Intrinsic value of restricted shares that vested | $ 6,000 | $ 3,000 | |||||
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) | 80,780 | 71,560 | 48,569 | 56,752 | |||
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 Instrume75
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Derivative [Line Items] | ||||
Net amount payable under interest rate swap | $ 1 | $ 1 | ||
Interest rate swap credit risk exposure | 42,200 | |||
Asset Derivatives, Notional Amount | 3,756,410 | 3,389,146 | ||
Asset Derivatives, Estimated Fair Value | 99,311 | 42,846 | ||
Liability Derivatives, Notional Amount | 2,597,281 | 2,419,933 | ||
Liability Derivatives, Estimated Fair Value | (66,046) | (36,974) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Amounts of gain or (loss) recognized in income on derivatives | 26,517 | $ 16,461 | ||
Stand-alone derivative instruments | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 3,756,410 | 3,389,146 | |
Asset Derivatives, Estimated Fair Value | [1] | 99,311 | 42,846 | |
Liability Derivatives, Notional Amount | [1] | 2,597,138 | 2,419,779 | |
Liability Derivatives, Estimated Fair Value | [1] | (66,038) | (36,965) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Amounts of gain or (loss) recognized in income on derivatives | 26,516 | 16,460 | ||
Commercial loan interest rate swaps | ||||
Derivative [Line Items] | ||||
Liability Derivatives, Notional Amount | 143 | |||
Interest rate swap contracts | Derivative instruments designated as hedges of fair value | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [2] | 0 | 0 | |
Asset Derivatives, Estimated Fair Value | [2] | 0 | 0 | |
Liability Derivatives, Notional Amount | [2] | 143 | 154 | |
Liability Derivatives, Estimated Fair Value | [2] | (8) | (9) | |
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 | 1 | ||
Interest rate swap contracts | Stand-alone derivative instruments | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 1,099,425 | 1,034,298 | |
Asset Derivatives, Estimated Fair Value | [1] | 44,455 | 27,856 | |
Liability Derivatives, Notional Amount | [1] | 1,099,425 | 1,025,186 | |
Liability Derivatives, Estimated Fair Value | [1] | (44,455) | (27,899) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Amounts of gain or (loss) recognized in income on derivatives | 2,338 | 842 | ||
Interest rate swap contracts | Stand-alone derivative instruments | Mortgage Banking | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 1,363,000 | 898,000 | |
Asset Derivatives, Estimated Fair Value | [1] | 41,213 | 4,928 | |
Liability Derivatives, Notional Amount | [1] | 225,000 | 665,000 | |
Liability Derivatives, Estimated Fair Value | [1] | (11,154) | (3,723) | |
Interest rate options contracts | Stand-alone derivative instruments | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 245,992 | 222,585 | |
Asset Derivatives, Estimated Fair Value | [1] | 917 | 628 | |
Liability Derivatives, Notional Amount | [1] | 245,992 | 190,622 | |
Liability Derivatives, Estimated Fair Value | [1] | (917) | (585) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Amounts of gain or (loss) recognized in income on derivatives | 36 | 15 | ||
Interest rate options contracts | Stand-alone derivative instruments | Mortgage Banking | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 130,000 | 35,000 | |
Asset Derivatives, Estimated Fair Value | [1] | 520 | 33 | |
Liability Derivatives, Notional Amount | [1] | 0 | 0 | |
Liability Derivatives, Estimated Fair Value | [1] | 0 | 0 | |
Treasury futures contracts | Stand-alone derivative instruments | Mortgage Banking | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 12,500 | 0 | |
Asset Derivatives, Estimated Fair Value | [1] | 195 | 0 | |
Liability Derivatives, Notional Amount | [1] | 25,000 | 0 | |
Liability Derivatives, Estimated Fair Value | [1] | (78) | 0 | |
Foreign exchange contracts | Stand-alone derivative instruments | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 82,022 | 72,529 | |
Asset Derivatives, Estimated Fair Value | [1] | 3,786 | 3,970 | |
Liability Derivatives, Notional Amount | [1] | 80,313 | 63,339 | |
Liability Derivatives, Estimated Fair Value | [1] | (3,484) | (3,671) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Amounts of gain or (loss) recognized in income on derivatives | 128 | 285 | ||
Spot foreign exchange contracts | Stand-alone derivative instruments | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 473 | 328 | |
Asset Derivatives, Estimated Fair Value | [1] | 6 | 5 | |
Liability Derivatives, Notional Amount | [1] | 408 | 132 | |
Liability Derivatives, Estimated Fair Value | [1] | (1) | 0 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Amounts of gain or (loss) recognized in income on derivatives | 303 | 230 | ||
Mortgage related derivatives | Stand-alone derivative instruments | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Amounts of gain or (loss) recognized in income on derivatives | 23,711 | $ 15,088 | ||
Forward loan sale commitments | Stand-alone derivative instruments | Mortgage Banking | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 0 | 503,500 | |
Asset Derivatives, Estimated Fair Value | [1] | 0 | 1,604 | |
Liability Derivatives, Notional Amount | [1] | 921,000 | 475,500 | |
Liability Derivatives, Estimated Fair Value | [1] | (5,949) | (1,087) | |
Interest rate lock commitments | Stand-alone derivative instruments | Mortgage Banking | ||||
Derivative [Line Items] | ||||
Asset Derivatives, Notional Amount | [1] | 822,998 | 622,906 | |
Asset Derivatives, Estimated Fair Value | [1] | 8,219 | 3,822 | |
Liability Derivatives, Notional Amount | [1] | 0 | 0 | |
Liability Derivatives, Estimated Fair Value | [1] | $ 0 | $ 0 | |
[1] | These portfolio swaps are not designated as hedging instruments under ASC Topic 815. | |||
[2] | Derivative instruments designated to hedge fixed-rate commercial real estate loans. |
Derivative Financial Instrume76
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | $ 44,924 | $ 10,062 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 44,924 | 10,062 |
Financial Liabilities, Gross Amount Recognized | 64,408 | 34,338 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 64,408 | 34,338 |
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 | 177,271 | 201,207 |
Repurchase Agreements, Financial Liabilities, Gross Amount Offset | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Net Amount Recognized | 177,271 | 201,207 |
Total Financial Assets, Gross Amount Recognized | 44,924 | 10,062 |
Total Financial Assets, Gross Amount Offset | 0 | 0 |
Total Financial Assets, Net Amount Recognized | 44,924 | 10,062 |
Total Financial Liabilities, Gross Amount Recognized | 241,679 | 235,545 |
Total Financial Liabilities, Gross Amount Offset | 0 | 0 |
Total Financial Liabilities, Net Amount Recognized | 241,679 | 235,545 |
Interest rate swap contracts, caps and floors | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 391 | 5,698 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 391 | 5,698 |
Financial Liabilities, Gross Amount Recognized | 44,988 | 31,446 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 44,988 | 31,446 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 2,542 | 2,728 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 2,542 | 2,728 |
Financial Liabilities, Gross Amount Recognized | 1,927 | 1,805 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 1,927 | 1,805 |
Mortgage related derivatives | ||
Derivative [Line Items] | ||
Financial Assets, Gross Amount Recognized | 41,991 | 1,636 |
Financial Assets, Gross Amount Offset | 0 | 0 |
Financial Assets, Net Amount Recognized | 41,991 | 1,636 |
Financial Liabilities, Gross Amount Recognized | 17,493 | 1,087 |
Financial Liabilities, Gross Amount Offset | 0 | 0 |
Financial Liabilities, Net Amount Recognized | $ 17,493 | $ 1,087 |
Derivative Financial Instrume77
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | $ 44,924 | $ 10,062 |
Financial Assets, Financial Instruments | (27,850) | (9,523) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 17,074 | 539 |
Financial Liabilities, Net Amount Recognized | 64,408 | 34,338 |
Financial Liabilities, Financial Instruments | (27,850) | (9,523) |
Financial Liabilities, Collateral | (36,501) | (24,649) |
Financial Liabilities, Net Amount | 57 | 166 |
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 | 177,271 | 201,207 |
Repurchase Agreements, Financial Liabilities, Financial Instruments | 0 | 0 |
Repurchase Agreements, Financial Liabilities, Financial Instruments | (177,271) | (201,207) |
Repurchase Agreements, Financial Liabilities, Collateral | 0 | 0 |
Total Financial Assets, Net Amount Recognized | 44,924 | 10,062 |
Total Financial Assets, Financial Instruments | (27,850) | (9,523) |
Total Financial Assets, Collateral | 0 | 0 |
Total Financial Assets, Net Amount | 17,074 | 539 |
Total Financial Liabilities, Net Amount Recognized | 241,679 | 235,545 |
Total Financial Liabilities, Financial Instruments | (27,850) | (9,523) |
Total Financial Liabilities, Collateral | (213,772) | (225,856) |
Total Financial Liabilities, Net Amount | 57 | 166 |
Counterparty A | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 32,861 | 3,810 |
Financial Assets, Financial Instruments | (16,111) | (3,810) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 16,750 | 0 |
Financial Liabilities, Net Amount Recognized | 16,111 | 11,137 |
Financial Liabilities, Financial Instruments | (16,111) | (3,810) |
Financial Liabilities, Collateral | 0 | (7,327) |
Financial Liabilities, Net Amount | 0 | 0 |
Counterparty B | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 6,975 | 6 |
Financial Assets, Financial Instruments | (6,975) | (6) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 17,521 | 7,808 |
Financial Liabilities, Financial Instruments | (6,975) | (6) |
Financial Liabilities, Collateral | (10,546) | (7,802) |
Financial Liabilities, Net Amount | 0 | 0 |
Counterparty C | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 6 | 3,477 |
Financial Assets, Financial Instruments | (6) | (3,477) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 0 | 0 |
Financial Liabilities, Net Amount Recognized | 9,343 | 4,963 |
Financial Liabilities, Financial Instruments | (6) | (3,477) |
Financial Liabilities, Collateral | (9,337) | (1,486) |
Financial Liabilities, Net Amount | 0 | 0 |
Other counterparties | ||
Derivative [Line Items] | ||
Financial Assets, Net Amount Recognized | 5,082 | 2,769 |
Financial Assets, Financial Instruments | (4,758) | (2,230) |
Financial Assets, Collateral | 0 | 0 |
Financial Assets, Net Amount | 324 | 539 |
Financial Liabilities, Net Amount Recognized | 21,433 | 10,430 |
Financial Liabilities, Financial Instruments | (4,758) | (2,230) |
Financial Liabilities, Collateral | (16,618) | (8,034) |
Financial Liabilities, Net Amount | $ 57 | $ 166 |
Operating Segments (Details)
Operating Segments (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Number of segments | segment | 3 | |||
Net interest income | $ 119,304 | $ 113,395 | ||
Provision for credit losses | 7,563 | 4,974 | ||
Non-interest income | 81,693 | 81,268 | ||
Non-interest expense | [1] | 135,800 | 139,920 | |
Income tax expense | 18,520 | 15,658 | ||
Net income | 39,114 | 34,111 | ||
Total assets | 15,575,653 | 14,328,310 | $ 15,585,007 | |
Taylor Capital Group, Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Pretax merger related costs | 3,300 | 8,100 | ||
Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 109,608 | 104,126 | ||
Provision for credit losses | 7,001 | 4,974 | ||
Non-interest income | 35,019 | 31,517 | ||
Non-interest expense | [1] | 90,640 | 95,334 | |
Income tax expense | 14,350 | 9,962 | ||
Net income | 32,636 | 25,373 | ||
Total assets | 13,235,848 | 12,246,659 | ||
Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 2,423 | 3,015 | ||
Provision for credit losses | 437 | 0 | ||
Non-interest income | 19,195 | 25,203 | ||
Non-interest expense | [1] | 12,186 | 13,656 | |
Income tax expense | 3,509 | 5,747 | ||
Net income | 5,486 | 8,815 | ||
Total assets | 1,045,117 | 937,903 | ||
Mortgage Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 7,273 | 6,254 | ||
Provision for credit losses | 125 | 0 | ||
Non-interest income | 27,479 | 24,548 | ||
Non-interest expense | [1] | 32,974 | 30,930 | |
Income tax expense | 661 | (51) | ||
Net income | 992 | (77) | ||
Total assets | $ 1,294,688 | $ 1,143,748 | ||
[1] | Includes merger related and repositioning expenses of $3.3 million and $8.1 million in the Banking Segment for the three months ended March 31, 2016 and 2015, respectively. |
Preferred Stock (Details)
Preferred Stock (Details) | Aug. 18, 2014shares | Mar. 31, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares |
Equity [Abstract] | |||
Stock conversion | 1 | ||
Preferred stock, shares outstanding | shares | 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% |