DEI
DEI - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
Entity [Abstract] | |||
Entity Registrant Name | BBVA COMPASS BANCSHARES, INC | ||
Entity Central Index Key | 1,409,775 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 222,950,751 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 1,313,022 | $ 1,284,261 |
Interest bearing deposits with the Federal Reserve | 2,683,769 | 1,830,078 |
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 86,035 | 137,447 |
Cash and cash equivalents | 4,082,826 | 3,251,786 |
Trading account assets | 220,496 | 3,144,600 |
Investment securities available for sale | 12,683,787 | 11,665,055 |
Investment securities held to maturity (fair value of $1,040,543 and $1,182,009 for 2017 and 2016, respectively) | 1,046,093 | 1,203,217 |
Loans held for sale (includes $67,110 and $105,257 measured at fair value for 2017 and 2016, respectively) | 67,110 | 161,849 |
Loans | 61,623,768 | 60,061,263 |
Allowance for loan losses | (842,760) | (838,293) |
Net loans | 60,781,008 | 59,222,970 |
Premises and equipment, net | 1,214,874 | 1,300,054 |
Bank owned life insurance | 722,596 | 711,939 |
Goodwill | 4,983,296 | 4,983,296 |
Other assets | 1,518,493 | 1,435,187 |
Total assets | 87,320,579 | 87,079,953 |
Deposits: | ||
Noninterest bearing | 21,630,694 | 20,332,792 |
Interest bearing | 47,625,619 | 46,946,741 |
Total deposits | 69,256,313 | 67,279,533 |
FHLB and other borrowings | 3,959,930 | 3,001,551 |
Federal funds purchased and securities sold under agreements to repurchase | 19,591 | 39,052 |
Other short-term borrowings | 17,996 | 2,802,977 |
Accrued expenses and other liabilities | 1,053,439 | 1,206,133 |
Total liabilities | 74,307,269 | 74,329,246 |
Shareholder’s Equity: | ||
Preferred stock - $0.01 par value, liquidation preference $200,000 per share, Authorized - 30,000,000 shares, Issued - 1,150 shares | 229,475 | 229,475 |
Common stock - $0.01 par value; Authorized - 300,000,000 shares, Issued - 222,950,751 shares | 2,230 | 2,230 |
Surplus | 14,818,608 | 14,985,673 |
Accumulated deficit | (1,868,659) | (2,327,440) |
Accumulated other comprehensive loss | (197,405) | (168,252) |
Total BBVA Compass Bancshares, Inc. shareholder’s equity | 12,984,249 | 12,721,686 |
Noncontrolling interests | 29,061 | 29,021 |
Total shareholder’s equity | 13,013,310 | 12,750,707 |
Total liabilities and shareholder’s equity | $ 87,320,579 | $ 87,079,953 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity, estimated fair value | $ 1,040,543 | $ 1,182,009 |
Loans held for sale, fair value | $ 67,110 | $ 105,257 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 200,000 | $ 200,000 |
Preferred stock, number of shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, number of shares issued | 1,150 | 1,150 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, number of shares authorized | 300,000,000 | 300,000,000 |
Common stock, number of shares issued | 222,950,751 | 222,950,751 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Interest and fees on loans | $ 2,447,293 | $ 2,236,929 | $ 2,162,145 |
Interest on investment securities available for sale | 224,715 | 191,889 | 192,124 |
Interest on investment securities held to maturity | 27,009 | 26,893 | 27,449 |
Interest on federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 40,277 | 20,939 | 5,622 |
Interest on trading account assets | 27,354 | 53,809 | 50,935 |
Total interest income | 2,766,648 | 2,530,459 | 2,438,275 |
Interest expense: | |||
Interest on deposits | 299,317 | 304,625 | 274,478 |
Interest on FHLB and other borrowings | 93,814 | 82,744 | 89,988 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 16,926 | 21,165 | 8,390 |
Interest on other short-term borrowings | 26,424 | 54,244 | 52,442 |
Total interest expense | 436,481 | 462,778 | 425,298 |
Net interest income | 2,330,167 | 2,067,681 | 2,012,977 |
Provision for loan losses | 287,693 | 302,589 | 193,638 |
Net interest income after provision for loan losses | 2,042,474 | 1,765,092 | 1,819,339 |
Noninterest income: | |||
Service charges on deposit accounts | 222,110 | 214,294 | 216,248 |
Card and merchant processing fees | 128,129 | 123,668 | 112,818 |
Retail investment sales | 109,214 | 102,982 | 101,614 |
Investment banking and advisory fees | 103,701 | 107,116 | 105,235 |
Money transfer income | 101,509 | 104,592 | 93,437 |
Asset management fees | 40,465 | 34,875 | 33,194 |
Corporate and correspondent investment sales | 38,052 | 24,689 | 30,000 |
Mortgage banking income | 14,356 | 21,496 | 27,258 |
Bank owned life insurance | 17,108 | 17,243 | 18,662 |
Investment securities gains, net | 3,033 | 30,037 | 81,656 |
Other | 268,298 | 274,982 | 259,252 |
Total noninterest income | 1,045,975 | 1,055,974 | 1,079,374 |
Noninterest expense: | |||
Salaries, benefits and commissions | 1,131,971 | 1,119,676 | 1,081,475 |
Professional services | 263,490 | 242,206 | 218,584 |
Equipment | 247,891 | 242,273 | 232,050 |
Net occupancy | 166,693 | 160,997 | 161,035 |
Money transfer expense | 65,790 | 67,474 | 60,350 |
FDIC insurance | 64,890 | 80,070 | 64,072 |
Marketing | 52,220 | 50,549 | 41,778 |
Communications | 20,554 | 21,046 | 22,527 |
Amortization of intangibles | 10,099 | 16,373 | 39,208 |
FDIC indemnification expense | 22 | 3,984 | 55,129 |
Goodwill impairment | 0 | 59,901 | 17,000 |
Securities impairment: | |||
Other-than-temporary impairment | 242 | 281 | 1,747 |
Less: non-credit portion recognized in other comprehensive income | 0 | 151 | 87 |
Total securities impairment | 242 | 130 | 1,660 |
Other | 287,725 | 238,843 | 219,985 |
Total noninterest expense | 2,311,587 | 2,303,522 | 2,214,853 |
Net income before income tax expense | 776,862 | 517,544 | 683,860 |
Income tax expense | 316,076 | 146,021 | 176,502 |
Net income | 460,786 | 371,523 | 507,358 |
Less: net income attributable to noncontrolling interests | 2,005 | 2,010 | 2,228 |
Net income attributable to BBVA Compass Bancshares, Inc. | 458,781 | 369,513 | 505,130 |
Less: preferred stock dividends | 14,846 | 13,684 | 0 |
Net income attributable to common shareholder | $ 443,935 | $ 355,829 | $ 505,130 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 460,786 | $ 371,523 | $ 507,358 |
Other comprehensive loss, net of tax: | |||
Unrealized holding losses arising during period from securities available for sale | (14,946) | (48,038) | (16,635) |
Less: reclassification adjustment for net gains on sale of securities available for sale in net income | 2,257 | 18,811 | 52,065 |
Net change in unrealized holding losses on securities available for sale | (17,203) | (66,849) | (68,700) |
Change in unamortized net holding losses on investment securities held to maturity | 3,944 | 3,613 | 7,905 |
Less: non-credit related impairment on investment securities held to maturity | 0 | 96 | 55 |
Change in unamortized non-credit related impairment on investment securities held to maturity | 991 | 951 | 134 |
Net change in unamortized holding losses on securities held to maturity | 4,935 | 4,468 | 7,984 |
Unrealized holding gains (losses) arising during period from cash flow hedge instruments | (14,685) | (3,673) | 1,287 |
Change in defined benefit plans | (2,200) | (2,862) | 11,955 |
Other comprehensive loss, net of tax | (29,153) | (68,916) | (47,474) |
Comprehensive income | 431,633 | 302,607 | 459,884 |
Less: comprehensive income attributable to noncontrolling interests | 2,005 | 2,010 | 2,228 |
Comprehensive income attributable to BBVA Compass Bancshares, Inc. | $ 429,628 | $ 300,597 | $ 457,656 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity Statement - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests |
Balance, beginning of period at Dec. 31, 2014 | $ 12,054,922 | $ 2,230 | $ 15,277,746 | $ (3,202,083) | $ (51,862) | $ 28,891 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 507,358 | 505,130 | 2,228 | ||||
Other comprehensive loss, net of tax | (47,474) | (47,474) | |||||
Issuance of stock | 229,475 | $ 229,475 | |||||
Preferred stock dividends | (2,093) | (2,093) | |||||
Common stock dividends | (95,000) | (95,000) | |||||
Dividend to BBVA Bancomer USA, Inc. | (20,000) | (20,000) | |||||
Vesting of restricted stock | (3,603) | (3,603) | |||||
Restricted stock retained to cover taxes | (3,016) | (3,016) | |||||
Restricted stock tax benefit (deficiency) | 12 | 12 | |||||
Amortization of stock-based deferred compensation | 4,128 | 4,128 | |||||
Balance, end of period at Dec. 31, 2015 | 12,624,709 | 229,475 | 2,230 | 15,160,267 | (2,696,953) | (99,336) | 29,026 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 371,523 | 369,513 | 2,010 | ||||
Other comprehensive loss, net of tax | (68,916) | (68,916) | |||||
Preferred stock dividends | (15,777) | (13,684) | (2,093) | ||||
Common stock dividends | (92,864) | (92,864) | |||||
Dividend to BBVA Bancomer USA, Inc. | (69,151) | (69,151) | |||||
Capital contribution | 78 | 78 | |||||
Vesting of restricted stock | (1,744) | (1,744) | |||||
Restricted stock retained to cover taxes | (630) | (630) | |||||
Restricted stock tax benefit (deficiency) | (468) | (468) | |||||
Amortization of stock-based deferred compensation | 3,947 | 3,947 | |||||
Balance, end of period at Dec. 31, 2016 | 12,750,707 | 229,475 | 2,230 | 14,985,673 | (2,327,440) | (168,252) | 29,021 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 460,786 | 458,781 | 2,005 | ||||
Other comprehensive loss, net of tax | (29,153) | (29,153) | |||||
Preferred stock dividends | (16,939) | (14,846) | (2,093) | ||||
Common stock dividends | (150,000) | (150,000) | |||||
Capital contribution | 128 | 128 | |||||
Vesting of restricted stock | (1,530) | (1,530) | |||||
Restricted stock retained to cover taxes | (689) | (689) | |||||
Balance, end of period at Dec. 31, 2017 | $ 13,013,310 | $ 229,475 | $ 2,230 | $ 14,818,608 | $ (1,868,659) | $ (197,405) | $ 29,061 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Net income | $ 460,786 | $ 371,523 | $ 507,358 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 254,126 | 286,159 | 275,529 |
Goodwill impairment | 0 | 59,901 | 17,000 |
Securities impairment | 242 | 130 | 1,660 |
Amortization of intangibles | 10,099 | 16,373 | 39,208 |
Accretion of discount, loan fees and purchase market adjustments, net | (20,748) | (19,614) | (128,170) |
Net change in FDIC indemnification liability | 22 | 3,984 | 55,129 |
Gain on termination of FDIC shared loss agreement | (1,779) | 0 | 0 |
Provision for loan losses | 287,693 | 302,589 | 193,638 |
Amortization of stock based compensation | 0 | 3,947 | 4,128 |
Net change in trading account assets | 210,903 | (2,503) | (20,180) |
Net change in trading account liabilities | (110,468) | (6,234) | (8,440) |
Net change in loans held for sale | 38,318 | (22,654) | 84,234 |
Deferred tax expense (benefit) | 137,957 | (21,873) | (111,042) |
Investment securities gains, net | (3,033) | (30,037) | (81,656) |
Loss on prepayment of FHLB and other borrowings | 0 | 295 | 8,016 |
(Gain) loss on sale of premises and equipment | (1,210) | 2,220 | 873 |
Net loss (gain) on sale of loans | 527 | (15,551) | (22,091) |
Net loss (gain) on sale of other real estate and other assets | 2,103 | (501) | 508 |
(Increase) decrease in other assets | (253,365) | (60,503) | 179,190 |
Increase (decrease) in other liabilities | 96,147 | (52,212) | (306,546) |
Net cash provided by operating activities | 1,108,320 | 815,439 | 688,346 |
Investing Activities: | |||
Proceeds from sales of investment securities available for sale | 210,906 | 1,849,517 | 3,369,062 |
Proceeds from prepayments, maturities and calls of investment securities available for sale | 3,110,923 | 2,149,427 | 1,564,910 |
Purchases of investment securities available for sale | (4,444,939) | (4,773,027) | (5,856,808) |
Proceeds from prepayments, maturities and calls of investment securities held to maturity | 170,170 | 155,037 | 123,188 |
Purchases of investment securities held to maturity | (6,233) | (28,071) | (85,929) |
Purchases of trading securities | (372,497) | (331,171) | (4,831,626) |
Proceeds from sales of trading securities | 3,085,698 | 1,327,206 | 3,548,071 |
Net change in loan portfolio | (2,002,438) | (83,049) | (4,426,260) |
Purchase of premises and equipment | (126,953) | (177,084) | (161,499) |
Proceeds from sale of premises and equipment | 13,521 | 12,701 | 8,133 |
Net cash paid in acquisition | 0 | 0 | (12,567) |
Proceeds from sales of loans | 204,585 | 1,060,351 | 488,550 |
(Payments to) reimbursements from FDIC for covered assets | (2,832) | 978 | (1,924) |
Net cash paid to the FDIC for termination of shared loss agreements | (131,603) | 0 | 0 |
Proceeds from sales of other real estate owned | 30,717 | 26,486 | 20,011 |
Net cash (used in) provided by investing activities | (260,975) | 1,189,301 | (6,254,688) |
Financing Activities: | |||
Net increase in demand deposits, NOW accounts and savings accounts | 1,522,918 | 1,940,034 | 3,565,248 |
Net increase (decrease) in time deposits | 441,987 | (656,122) | 1,216,581 |
Net decrease in federal funds purchased and securities sold under agreements to repurchase | (19,461) | (711,102) | (379,349) |
Net (decrease) increase in other short-term borrowings | (2,784,981) | (1,229,667) | 1,486,920 |
Proceeds from FHLB and other borrowings | 13,095,563 | 2,630,000 | 5,300,000 |
Repayment of FHLB and other borrowings | (12,103,301) | (5,042,837) | (4,664,941) |
Vesting of restricted stock | (1,530) | (1,744) | (3,603) |
Restricted stock grants retained to cover taxes | (689) | (630) | (3,016) |
Capital contribution for non-controlling interest | 128 | 78 | 0 |
Issuance of preferred stock | 0 | 0 | 229,475 |
Preferred dividends paid | (16,939) | (15,777) | (2,093) |
Common dividends paid | (150,000) | (92,864) | (95,000) |
Dividend paid to BBVA Bancomer USA, Inc. | 0 | (69,151) | (20,000) |
Net cash (used in) provided by financing activities | (16,305) | (3,249,782) | 6,630,222 |
Net increase (decrease) in cash and cash equivalents | 831,040 | (1,245,042) | 1,063,880 |
Cash and cash equivalents at beginning of year | 3,251,786 | 4,496,828 | 3,432,948 |
Cash and cash equivalents at end of year | $ 4,082,826 | $ 3,251,786 | $ 4,496,828 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations BBVA Compass Bancshares, Inc., headquartered in Houston, Texas, is a wholly owned subsidiary of BBVA. The Bank, the Company's largest subsidiary, headquartered in Birmingham, Alabama, operates banking centers in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas. The Bank operates under the brand name BBVA Compass, which is a trade name and trademark of BBVA Compass Bancshares, Inc. The Bank performs banking services customary for full service banks of similar size and character. Such services include receiving demand and time deposits, making personal and commercial loans and furnishing personal and commercial checking accounts. The Bank offers, either directly or through its subsidiaries and affiliates, a variety of services, including portfolio management and administration and investment services to estates and trusts; term life insurance, variable annuities, property and casualty insurance and other insurance products; investment advisory services; a variety of investment services and products to institutional and individual investors; discount brokerage services, mutual funds and fixed-rate annuities; and lease financing services. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries for the years ended December 31, 2017 , 2016 and 2015 . All intercompany accounts and transactions and balances have been eliminated in consolidation. The Company has evaluated subsequent events through the filing date of this Annual Report on Form 10-K, to determine if either recognition or disclosure of significant events or transactions is required. The accounting policies followed by the Company and its subsidiaries and the methods of applying these policies conform with U.S. GAAP and with practices generally accepted within the banking industry. Certain policies that significantly affect the determination of financial position, results of operations and cash flows are summarized below. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, the most significant of which relate to the allowance for loan losses, goodwill impairment, and fair value measurements. Actual results could differ from those estimates. Cash and cash equivalents The Company classifies cash on hand, amounts due from banks, federal funds sold, securities purchased under agreements to resell and interest bearing deposits as cash and cash equivalents. These instruments have original maturities of three months or less. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and securities sold under agreements to repurchase are generally accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were acquired or sold plus accrued interest. The securities pledged or received as collateral are generally U.S. government and federal agency securities. The Company's policy is to take possession of securities purchased under agreements to resell. The fair value of collateral either received from or provided to a third party is continually monitored and adjusted as deemed appropriate. Securities The Company classifies its investment securities into one of three categories based upon management’s intent and ability to hold the investment securities: (i) trading account assets and liabilities, (ii) investment securities held to maturity or (iii) investment securities available for sale. Investment securities held in a trading account are required to be reported at fair value, with unrealized gains and losses included in earnings. The Company classifies purchases, sales, and maturities of trading securities held for investment purposes as cash flows from investing activities. Cash flows related to trading securities held for trading purposes are reported as cash flows from operating activities. Investment securities held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. The related amortization and accretion is determined by the interest method and is included as a noncash adjustment in the net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows. The Company has the ability, and it is management’s intention, to hold such securities to maturity. Investment securities available for sale are recorded at fair value. Increases and decreases in the net unrealized gain or loss on the portfolio of investment securities available for sale are reflected as adjustments to the carrying value of the portfolio and as an adjustment, net of tax, to accumulated other comprehensive income. See Note 20 , Fair Value Measurements , for information on the determination of fair value. Interest earned on trading account assets, investment securities available for sale and investment securities held to maturity is included in interest income in the Company’s Consolidated Statements of Income. Net realized gains and losses on the sale of investment securities available for sale, computed principally on the specific identification method, are shown separately in noninterest income in the Company’s Consolidated Statements of Income. Net gains and losses on the sale of trading account assets and liabilities are recognized as a component of other noninterest income in the Company’s Consolidated Statements of Income. The Company regularly evaluates each held to maturity and available for sale security in an unrealized loss position for OTTI. The Company evaluates for OTTI on a specific identification basis. In its evaluation, the Company considers such factors as the length of time and the extent to which the fair value has been below cost, the financial condition of the issuer, the Company’s intent to hold the security to an expected recovery in fair value and whether it is more likely than not that the Company will have to sell the security before its fair value recovers. The credit loss component of the OTTI on debt and equity securities is recognized in earnings. For debt securities, the portion of OTTI related to all other factors is recognized in other comprehensive income. See Note 3 , Investment Securities Available for Sale and Investment Securities Held to Maturity , for details of OTTI. Loans Held for Sale Loans held for sale are recorded at either estimated fair value, if the fair value option is elected, or the lower of cost or estimated fair value. The Company applies the fair value option accounting guidance codified under the FASB's ASC Topic 825, Financial Instruments, for single family real estate mortgage loans originated for sale in the secondary market. Under the fair value option, all changes in the applicable loans’ fair value are recorded in earnings. Loans classified as held for sale that were not originated for resale in the secondary market are accounted for under the lower of cost or fair value method and are evaluated on an individual basis. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are considered held for investment. Loans are stated at principal outstanding adjusted for charge-offs, deferred loan fees and direct costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income on loans is recognized on the interest method. Loan fees, net of direct costs, and unamortized premiums and discounts are deferred and amortized as an adjustment to the yield of the related loan over the term of the loan and are included as a noncash adjustment in the net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows. For additional information related to the Company’s loan portfolio by type, refer to Note 4 , Loans and Allowance for Loan Losses . It is the general policy of the Company to stop accruing interest income and apply subsequent interest payments as principal reductions when any commercial, industrial, commercial real estate or construction loan is 90 days or more past due as to principal or interest and/or the ultimate collection of either is in doubt, unless collection of both principal and interest is assured by way of collateralization, guarantees or other security, or the loan is accounted for under ASC Subtopic 310-30. Accrual of interest income on consumer loans, including residential real estate loans, is generally suspended when any payment of principal or interest is more than 120 days delinquent or when foreclosure proceedings have been initiated or repossession of the underlying collateral has occurred. When a loan is placed on a nonaccrual status, any interest previously accrued but not collected is reversed against current interest income unless the fair value of the collateral for the loan is sufficient to cover the accrued interest. In general, a loan is returned to accrual status when none of its principal and interest is due and unpaid and the Company expects repayments of the remaining contractual principal and interest or when it is determined to be well secured and in the process of collection. Charge-offs on commercial loans are recognized when available information confirms that some or all of the balance is uncollectible. Consumer loans are subject to mandatory charge-off at a specified delinquency date consistent with regulatory guidelines. In general, charge-offs on consumer loans are recognized at the earlier of the month of liquidation or the month the loan becomes 120 days past due; residential loan deficiencies are charged off in the month the loan becomes 180 days past due; and credit card loans are charged off before the end of the month when the loan becomes 180 days past due with the related interest accrued but not collected reversed against current income. The Company determines past due or delinquency status of a loan based on contractual payment terms. All nonaccrual loans and loans modified in a troubled debt restructuring are considered impaired. The Company’s policy for recognizing interest income on impaired loans classified as nonaccrual is consistent with its nonaccrual policy. The Company’s policy for recognizing interest income on accruing impaired loans is consistent with its interest recognition policy for accruing loans. Troubled Debt Restructurings A loan is accounted for as a TDR if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as establishment of a below market interest rate, a reduction in the principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. The Company’s policy for measuring impairment on TDRs, including TDRs that have defaulted, is consistent with its impairment measurement process for all impaired loans. The Company’s policy for returning nonaccrual TDRs to accrual status is consistent with its return to accrual policy for all other loans. Allowance for Loan Losses The amount of the provision for loan losses charged to income is determined on the basis of numerous factors including actual loss experience, identified loan impairment, current economic conditions and periodic examinations and appraisals of the loan portfolio. Such provisions, less net loan charge-offs, comprise the allowance for loan losses which is deducted from loans and is maintained at a level management considers to be adequate to absorb losses inherent in the portfolio. The Company monitors the entire loan portfolio in an effort to identify problem loans so that risks in the portfolio can be identified on a timely basis and an appropriate allowance maintained. Loan review procedures, including loan grading, periodic credit rescoring and trend analysis of portfolio performance, are utilized by the Company in order to ensure that potential problem loans are identified. Management’s involvement continues throughout the process and includes participation in the work-out process and recovery activity. These formalized procedures are monitored internally and by regulatory agencies. The allowance for loan losses is established as follows: • Loans with outstanding balances greater than $1 million that are nonaccrual and all TDRs are evaluated individually with specific reserves allocated based on the present value of the loan’s expected future cash flows, discounted at the loan’s original effective interest rate, except where foreclosure or liquidation is probable or when the primary source of repayment is provided by real estate collateral. In these circumstances, impairment is measured based upon the fair value less cost to sell of the collateral. In addition, in certain rare circumstances, impairment may be based on the loan’s observable fair value. • Loans in the remainder of the portfolio, including nonaccrual loans with balances of less than $1 million , are collectively evaluated for impairment with the allowance based on historical loss experience which uses historical average net charge-off percentages. In the event the Company believes a specific portfolio's historical loss experience does not adequately capture current inherent losses, the historical loss experience is adjusted. This adjustment to the historical loss experience can be positive or negative and will take into consideration relevant factors to the allowance such as changes in the portfolio composition, the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. The assessment for whether to adjust takes place individually for each loan product. The historical loss methodology uses historical annualized average net charge-off percentage to calculate the provision for loan and lease losses. The factor is calculated by taking the average of the net charge-offs over the credit life cycle available, currently 9 years. For commercial loans, where management has determined to adjust the historical loss experience, the estimate of loss based on pools of loans with similar characteristics is made by applying a PD factor and a LGD factor to each individual loan based on loan grade, using a standardized loan grading system. The PD factor and LGD factor are determined for each loan grade using statistical models based on historical performance data. The PD factor considers on-going reviews of the financial performance of the specific borrower, including cash flow, debt-service coverage ratio, earnings power, debt level and equity position, in conjunction with an assessment of the borrower’s industry and future prospects. The PD factor considers current loan grade unless the account is delinquent over 60 days, in which case a higher PD factor is used. The LGD factor considers analysis of the type of collateral and the relative LTV ratio. These reserve factors are developed based on credit migration models that track historical movements of loans between loan grades over time and long-term average loss experience. The historical time frame currently used for both PDs and LGDs is 9 years. For consumer loans, where management has determined to adjust the historical loss experience, the estimate of loss based on pools of loans with similar characteristics is also made by applying a PD and a LGD factor. The PD factor considers current credit scores unless the account is delinquent over 60 days, in which case a higher PD factor is used. The credit score provides a basis for understanding the borrower’s past and current payment performance. The LGD factor considers analysis of the type of collateral and the relative LTV ratio. Credit scores, models, analyses, and other factors used to determine both the PD and LGD factors are updated frequently to capture the recent behavioral characteristics of the subject portfolios, as well as any changes in loss mitigation or credit origination strategies, and adjustments to the reserve factors are made as required. The historical time frame currently used for both PDs and LGDs is 9 years. Additionally, a portion of the allowance is for probable incurred losses which may not have been captured in the processes described above based on historical loss experience. This portion of the allowance is particularly subjective and requires judgment based upon qualitative factors. Some of the factors considered are changes in credit concentrations, loan mix, changes in underwriting practices, including the extent of portfolios of acquired institutions, historical loss experience and the general economic environment in the Company’s markets. While the total allowance is described as consisting of separate portions, these terms are primarily used to describe a process. All portions of the allowance are available to support probable incurred losses in the loan portfolio. In order to estimate a reserve for unfunded commitments, the Company uses a process consistent with that used in developing the allowance for loan losses. The Company estimates the future funding of current unfunded commitments based on historical funding experience of these commitments before default. Allowance for loan loss factors, which are based on product and loan grade and are consistent with the factors used for portfolio loans, are applied to these funding estimates to arrive at the reserve balance. This reserve for unfunded commitments is recognized in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets with changes recognized in other noninterest expense in the Company’s Consolidated Statements of Income. Premises and Equipment Premises, furniture, fixtures, equipment, assets under capital leases and leasehold improvements are stated at cost less accumulated depreciation or amortization. Land is stated at cost. In addition, purchased software and costs of computer software developed for internal use are capitalized provided certain criteria are met. Depreciation is computed principally using the straight-line method over the estimated useful lives of the related assets, which ranges between 1 and 40 years. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease terms or the estimated useful lives of the improvements. Bank Owned Life Insurance The Company maintains life insurance policies on certain of its executives and employees and is the owner and beneficiary of the policies. The Company invests in these policies, known as BOLI, to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Company records these BOLI policies within bank owned life insurance on the Company’s Consolidated Balance Sheets at each policy’s respective cash surrender value, with changes recorded in noninterest income in the Company’s Consolidated Statements of Income. Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets associated with acquisition transactions. Goodwill is assigned to each of the Company’s reporting units and tested for impairment annually or on an interim basis if events or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The Company has defined its reporting unit structure to include: Commercial Banking and Wealth, Retail Banking, Corporate and Investment Banking, and Simple. The fair value of each reporting unit is estimated using a combination of the present value of future expected cash flows and hypothetical market prices of similar entities and like transactions. Each of the defined reporting units was tested for impairment as of October 31, 2017 . See Note 8 , Goodwill , for a further discussion. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of recorded balance of the loan or fair value less costs to sell of the collateral assets at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, OREO is carried at the lower of carrying amount or fair value less costs to sell and is included in other assets on the Consolidated Balance Sheets. Gains and losses on the sales and write-downs on such properties and operating expenses from these OREO properties are included in other noninterest expense in the Company’s Consolidated Statements of Income. Accounting for Transfers and Servicing of Financial Assets The Company accounts for transfers of financial assets as sales when control over the transferred assets is surrendered. Control is generally considered to have been surrendered when (1) the transferred assets are legally isolated from the Company, even in bankruptcy or other receivership, (2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and (3) the Company does not maintain the obligation or unilateral ability to reclaim or repurchase the assets. If these sale criteria are met, the transferred assets are removed from the Company's balance sheet and a gain or loss on sale is recognized. If not met, the transfer is recorded as a secured borrowing, and the assets remain on the Company's balance sheet, the proceeds from the transaction are recognized as a liability, and gain or loss on sale is deferred until the sale criterion are achieved. The Company has one primary class of MSR related to residential real estate mortgages. These mortgage servicing rights are recorded in other assets on the Consolidated Balance Sheets at fair value with changes in fair value recorded as a component of mortgage banking income in the Company’s Consolidated Statements of Income. See Note 5 , Loan Sales and Servicing , for a further discussion. Advertising Costs Advertising costs are generally expensed as incurred and recorded as marketing expense, a component of noninterest expense in the Company’s Consolidated Statements of Income. Income Taxes The Company and its eligible subsidiaries file a consolidated federal income tax return. The Company files separate tax returns for subsidiaries that are not eligible to be included in the consolidated federal income tax return. Based on the laws of the respective states where it conducts business operations, the Company either files consolidated, combined or separate tax returns. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the tax rates and laws that are expected to be in effect when the differences are anticipated to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period the change is incurred. In evaluating the Company's ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company must consider all available evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and the results of recent operations. A valuation allowance is recognized for a deferred tax asset, if based on the available evidence, it is more likely than not that some portion or all of a deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law. The new legislation included a decrease in the corporate federal income tax rate from 35% to 21% effective January 1, 2018. Under ASC Topic 740, Income Taxes , the effects of the changes in tax rates and laws are recognized in the period in which the new legislation is enacted. In December 2017, the SEC issued SAB 118, which allows companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Cuts and Jobs Act was enacted late in 2017, the Company expects ongoing guidance, analysis, and accounting interpretations, including additional information about facts and circumstances that existed at the enactment date when the Company files its federal tax return for the tax year 2018, which could result in adjustments to the Tax Cuts and Jobs Act accounting effects recorded during 2017. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. The Company recognizes income tax benefits associated with uncertain tax positions, when, in its judgment, it is more likely than not of being sustained on the basis of the technical merits. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of other noninterest expense in the Company’s Consolidated Statements of Income. Accrued interest and penalties are included within accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. Noncontrolling Interests The Company applies the accounting guidance codified in ASC Topic 810, Consolidation , related to the treatment of noncontrolling interests. This guidance requires the amount of consolidated net income attributable to the parent and to the noncontrolling interests be clearly identified and presented on the face of the consolidated financial statements. The noncontrolling interests attributable to the Company's REIT preferred securities and mezzanine investment fund (see Note 12 , Shareholder's Equity , for a discussion of the preferred securities) are reported within shareholder’s equity, separately from the equity attributable to the Company’s shareholder. The dividends paid to the REIT preferred shareholders and other mezzanine investment fund investors are reported as reductions in shareholder’s equity in the Consolidated Statements of Shareholder’s Equity, separately from changes in the equity attributable to the Company’s shareholder. Accounting for Derivatives and Hedging Activities A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an underlying instrument, index or referenced interest rate. These instruments include interest rate swaps, caps, floors, financial forwards and futures contracts, foreign exchange contracts, options written and purchased. The Company mainly uses derivatives to manage economic risk related to commercial loans, long-term debt and other funding sources. The Company also uses derivatives to facilitate transactions on behalf of its customers. All derivative instruments are recognized on the Company’s Consolidated Balance Sheets at their fair value. The Company does not offset fair value amounts under master netting agreements. Fair values are estimated using pricing models and current market data. On the date the derivative instrument contract is entered into, the Company designates the derivative as (1) a fair value hedge, (2) a cash flow hedge, or (3) a free-standing derivative. Changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk (including losses or gains on firm commitments), are recorded in earnings. Changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). Changes in the fair value of a free-standing derivative and settlements on the instruments are reported in earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets and liabilities on the Company’s Consolidated Balance Sheets or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The Company discontinues hedge accounting prospectively when: (1) it is determined that the derivative instrument is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item (including firm commitments or forecasted transactions); (2) the derivative instrument expires or is sold, terminated or exercised; (3) the derivative instrument is de-designated as a hedge instrument because it is unlikely that a forecasted transaction will occur; (4) a hedged firm commitment no longer meets the definition of a firm commitment; or (5) management determines that designation of the derivative instrument as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is determined that the derivative instrument no longer qualifies as an effective fair value or cash flow hedge, the derivative instrument continues to be carried on the Company’s Consolidated Balance Sheets at its fair value, with changes in the fair value included in earnings. Additionally, for fair value hedges, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted as an adjustment to the yield over the remaining life of the asset or liability. For cash flow hedges, when hedge accounting is discontinued, but the hedged cash flows or forecasted transaction are still expected to occur, the unrealized gains and losses that were accumulated in other comprehensive income are recognized in earnings in the same period when the earnings are affected by the hedged cash flows or forecasted transaction. When a cash flow hedge is discontinued, because the hedged cash flows or forecasted transactions are not expected to occur, unrealized gains and losses that were accumulated in other comprehensive income are recognized in earnings immediately. Recently Adopted Accounting Standards Stock Compensation In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The FASB issued this ASU to improve the accounting for share-based payment transactions as part of its simplification initiative. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The adoption of this standard did not have an impact on the financial condition or results of operations of the Company. |
Acquisition Activities
Acquisition Activities | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition Activities | Acquisition Activities On June 6, 2016, the Parent completed the purchase of four subsidiaries (Bancomer Transfer Services, Bancomer Payment Services, Bancomer Foreign Exchange, and Bancomer Financial Services) from BBVA Bancomer USA, Inc. BBVA Bancomer USA, Inc. was a wholly owned subsidiary of BBVA Bancomer, S.A., Mexico City, Mexico and ultimately a wholly owned subsidiary of BBVA. These four subsidiaries engage in money transfer and related services, including money transmission and foreign exchange services and are subsidiaries of BBVA Compass Payments, Inc., a wholly owned subsidiary of the Parent. The transaction was structured as a cash purchase totaling $69.2 million . At December 31, 2015, the four subsidiaries had total assets of approximately $103 million . Because the Company and the acquired subsidiaries were under common control of the ultimate parent, BBVA, this transaction was accounted for in a manner similar to the pooling-of-interest method, which requires the merged entities be combined at their historical cost. The difference between the net carrying amount of the four subsidiaries and the total consideration paid to BBVA Bancomer USA, Inc. was recorded as a capital transaction and is reflected as a dividend to BBVA Bancomer USA, Inc. in the Consolidated Statements of Shareholder's Equity. The Company's consolidated financial statements and related footnotes are presented as if the transaction occurred at the beginning of the earliest date presented and the prior periods have been retrospectively adjusted. |
Investment Securities Available
Investment Securities Available for Sale and Investment Securities Held to Maturity | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities Available for Sale and Investment Securities Held to Maturity | Investment Securities Available for Sale and Investment Securities Held to Maturity The following table presents the adjusted cost and approximate fair value of investment securities available for sale and investment securities held to maturity. December 31, 2017 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 4,265,296 $ 996 $ 61,854 $ 4,204,438 Agency mortgage-backed securities 2,841,584 14,312 43,096 2,812,800 Agency collateralized mortgage obligations 5,302,531 4,203 106,723 5,200,011 States and political subdivisions 2,278 105 — 2,383 Equity securities 464,143 134 122 464,155 Total $ 12,875,832 $ 19,750 $ 211,795 $ 12,683,787 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 64,140 $ 5,262 $ 1,605 $ 67,797 Asset-backed securities 9,308 1,747 628 10,427 States and political subdivisions 911,393 3,951 12,853 902,491 Other 61,252 243 1,667 59,828 Total $ 1,046,093 $ 11,203 $ 16,753 $ 1,040,543 December 31, 2016 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 2,409,141 $ 2,390 $ 37,200 $ 2,374,331 Agency mortgage-backed securities 3,796,270 12,869 45,801 3,763,338 Agency collateralized mortgage obligations 5,200,241 5,292 106,605 5,098,928 States and political subdivisions 8,457 184 — 8,641 Equity securities 419,869 90 142 419,817 Total $ 11,833,978 $ 20,825 $ 189,748 $ 11,665,055 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 83,087 $ 5,265 $ 3,278 $ 85,074 Asset-backed securities 15,118 1,982 1,081 16,019 States and political subdivisions 1,040,716 2,309 25,518 1,017,507 Other 64,296 1,143 2,030 63,409 Total $ 1,203,217 $ 10,699 $ 31,907 $ 1,182,009 In the above table, equity securities include $450 million and $403 million at December 31, 2017 and 2016 , respectively, of FHLB and Federal Reserve stock carried at par. At December 31, 2017 , approximately $553 million of investment securities available for sale were pledged to secure public deposits, securities sold under agreements to repurchase and FHLB advances and for other purposes as required or permitted by law. The investments held within the states and political subdivision caption of investment securities held to maturity relate to private placement transactions underwritten as loans by the Company but that meet the definition of a debt security within ASC Topic 320, Investments – Debt and Equity Securities . At December 31, 2017 , approximately 99.9% of the debt securities classified within available for sale are rated “AAA,” the highest possible rating by nationally recognized rating agencies. The remainder of the investment securities classified within available for sale are either Federal Reserve stock, FHLB stock or money market funds. The following table discloses the fair value and the gross unrealized losses of the Company’s available for sale securities and held to maturity securities that were in a loss position at December 31, 2017 and 2016 . This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position. December 31, 2017 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 2,532,439 $ 28,308 $ 1,325,975 $ 33,546 $ 3,858,414 $ 61,854 Agency mortgage-backed securities 390,106 2,731 1,666,045 40,365 2,056,151 43,096 Agency collateralized mortgage obligations 1,244,416 6,522 3,297,278 100,201 4,541,694 106,723 Equity securities 3,871 55 1,055 67 4,926 122 Total $ 4,170,832 $ 37,616 $ 6,290,353 $ 174,179 $ 10,461,185 $ 211,795 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 9,776 $ 25 $ 22,439 $ 1,580 $ 32,215 $ 1,605 Asset-backed securities — — 6,243 628 6,243 628 States and political subdivisions 236,207 4,365 341,090 8,488 577,297 12,853 Other 19,048 98 20,736 1,569 39,784 1,667 Total $ 265,031 $ 4,488 $ 390,508 $ 12,265 $ 655,539 $ 16,753 December 31, 2016 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 1,277,341 $ 23,862 $ 609,078 $ 13,338 $ 1,886,419 $ 37,200 Agency mortgage-backed securities 1,425,743 15,235 1,368,957 30,566 2,794,700 45,801 Agency collateralized mortgage obligations 3,527,757 99,477 782,849 7,128 4,310,606 106,605 Equity securities 3,849 77 1,057 65 4,906 142 Total $ 6,234,690 $ 138,651 $ 2,761,941 $ 51,097 $ 8,996,631 $ 189,748 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 3,847 $ 527 $ 40,083 $ 2,751 $ 43,930 $ 3,278 Asset-backed securities 343 1 9,238 1,080 9,581 1,081 States and political subdivisions 532,090 13,043 313,803 12,475 845,893 25,518 Other 16,578 174 3,587 1,856 20,165 2,030 Total $ 552,858 $ 13,745 $ 366,711 $ 18,162 $ 919,569 $ 31,907 As indicated in the previous table, at December 31, 2017 , the Company held certain investment securities in unrealized loss positions. The Company does not have the intent to sell these securities and believes it is not more likely than not that it will be required to sell these securities before their anticipated recovery. Management does not believe that any individual unrealized loss in the Company’s investment securities available for sale or held to maturity portfolios, presented in the preceding tables, represents an OTTI at either December 31, 2017 or 2016 , other than those noted below. The following table discloses activity related to credit losses for debt securities where a portion of the OTTI was recognized in other comprehensive income. Years Ended December 31, 2017 2016 2015 (In Thousands) Balance, at beginning of year $ 22,582 $ 22,452 $ 21,123 Reductions for securities paid off during the period (realized) — — (331 ) Additions for the credit component on debt securities in which OTTI was not previously recognized 242 — 1,013 Additions for the credit component on debt securities in which OTTI was previously recognized — 130 647 Balance, at end of year $ 22,824 $ 22,582 $ 22,452 During the years ended December 31, 2017 , 2016 and 2015 , OTTI recognized on held to maturity securities totaled $242 thousand , $130 thousand and $1.7 million , respectively. The investment securities impacted by credit impairment are held to maturity non-agency collateralized mortgage obligations. The contractual maturities of the securities portfolios are presented in the following table. Amortized Cost Fair Value December 31, 2017 (In Thousands) Investment securities available for sale: Maturing within one year $ 211,721 $ 210,736 Maturing after one but within five years 1,586,822 1,565,281 Maturing after five but within ten years 1,591,646 1,575,186 Maturing after ten years 877,385 855,618 4,267,574 4,206,821 Agency mortgage-backed securities and agency collateralized mortgage obligations 8,144,115 8,012,811 Equity securities 464,143 464,155 Total $ 12,875,832 $ 12,683,787 Investment securities held to maturity: Maturing within one year $ 102,858 $ 102,889 Maturing after one but within five years 190,487 190,294 Maturing after five but within ten years 214,204 211,758 Maturing after ten years 474,404 467,805 981,953 972,746 Non-agency collateralized mortgage obligations 64,140 67,797 Total $ 1,046,093 $ 1,040,543 The gross realized gains and losses recognized on sales of investment securities available for sale are shown in the table below. Years Ended December 31, 2017 2016 2015 (In Thousands) Gross gains $ 3,033 $ 30,037 $ 83,488 Gross losses — — 1,832 Net realized gains $ 3,033 $ 30,037 $ 81,656 During 2008, the Company transferred securities with a carrying value and market value of $1.1 billion and $859 million , respectively, from investment securities available for sale to investment securities held to maturity. At December 31, 2017 and 2016 there were $10 million and $13 million , respectively, of unrealized losses, net of tax related to these securities in accumulated other comprehensive income, which are being amortized over the remaining life of those securities. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The following table presents the composition of the loan portfolio. December 31, 2017 2016 (In Thousands) Commercial loans: Commercial, financial and agricultural $ 25,749,949 $ 25,122,002 Real estate – construction 2,273,539 2,125,316 Commercial real estate – mortgage 11,724,158 11,210,660 Total commercial loans 39,747,646 38,457,978 Consumer loans: Residential real estate – mortgage 13,365,747 13,259,994 Equity lines of credit 2,653,105 2,543,778 Equity loans 363,264 445,709 Credit card 639,517 604,881 Consumer direct 1,690,383 1,254,641 Consumer indirect 3,164,106 3,134,948 Total consumer loans 21,876,122 21,243,951 Covered loans (1) — 359,334 Total loans $ 61,623,768 $ 60,061,263 (1) Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. The loss sharing agreements provide for FDIC loss sharing for five years for commercial loans and 10 years for single family residential loans. The loss sharing agreement for commercial loans expired in the fourth quarter of 2014. In July 2017, the Company terminated the single family residential loss share agreement with the FDIC ahead of the contractual maturity. Loans no longer covered under a loss share agreement were reclassified to their appropriate loan type. Total loans includes unearned income totaling $257.9 million and $260.5 million at December 31, 2017 and 2016 , respectively; and unamortized deferred costs totaling $343.9 million and $322.9 million at December 31, 2017 and 2016 , respectively. The loan portfolio is diversified geographically, by product type and by industry exposure. Geographically, the portfolio is predominantly in the Sunbelt states, including Alabama, Arizona, Colorado, Florida, New Mexico and Texas, as well as growing but modest exposure in northern and southern California. The loan portfolio’s most significant geographic presence is within Texas. The Company monitors its exposure to various industries and adjusts loan production based on current and anticipated changes in the macro-economic environment as well as specific structural, legal and business conditions affecting each broad industry category. At December 31, 2017 , approximately $14.1 billion of loans were pledged to secure deposits and FHLB advances and for other purposes as required or permitted by law. Allowance for Loan Losses and Credit Quality The following table, which excludes loans held for sale, presents a summary of the activity in the allowance for loan losses. The portion of the allowance that has not been identified by the Company as related to specific loan categories has been allocated to the individual loan categories on a pro rata basis for purposes of the table below: Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Covered Total Loans (In Thousands) Year Ended December 31, 2017 Allowance for loan losses: Beginning balance $ 458,580 $ 116,937 $ 119,484 $ 143,292 $ — $ 838,293 Provision (credit) for loan losses 49,528 6,195 (874 ) 232,875 (31 ) 287,693 Loans charged off (106,570 ) (9,983 ) (21,287 ) (221,212 ) — (359,052 ) Loan recoveries 19,097 4,984 12,533 39,181 31 75,826 Net (charge-offs) recoveries (87,473 ) (4,999 ) (8,754 ) (182,031 ) 31 (283,226 ) Ending balance $ 420,635 $ 118,133 $ 109,856 $ 194,136 $ — $ 842,760 Year Ended December 31, 2016 Allowance for loan losses: Beginning balance $ 402,113 $ 122,068 $ 132,104 $ 104,948 $ 1,440 $ 762,673 Provision (credit) for loan losses 129,646 (5,502 ) (4,156 ) 182,558 43 302,589 Loans charged off (84,218 ) (4,866 ) (19,946 ) (180,573 ) (1,484 ) (291,087 ) Loan recoveries 11,039 5,237 11,482 36,359 1 64,118 Net (charge-offs) recoveries (73,179 ) 371 (8,464 ) (144,214 ) (1,483 ) (226,969 ) Ending balance $ 458,580 $ 116,937 $ 119,484 $ 143,292 $ — $ 838,293 Year Ended December 31, 2015 Allowance for loan losses: Beginning balance $ 299,482 $ 138,233 $ 154,627 $ 89,891 $ 2,808 $ 685,041 Provision (credit) for loan losses 116,272 (17,975 ) (9,711 ) 104,195 857 193,638 Loans charged off (25,831 ) (3,882 ) (26,630 ) (115,113 ) (2,228 ) (173,684 ) Loan recoveries 12,190 5,692 13,818 25,975 3 57,678 Net (charge-offs) recoveries (13,641 ) 1,810 (12,812 ) (89,138 ) (2,225 ) (116,006 ) Ending balance $ 402,113 $ 122,068 $ 132,104 $ 104,948 $ 1,440 $ 762,673 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. The table below provides a summary of the allowance for loan losses and related loan balances by portfolio. Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Covered Total Loans (In Thousands) December 31, 2017 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 61,705 $ 9,864 $ 30,613 $ 2,203 $ — $ 104,385 Collectively evaluated for impairment 358,930 108,269 79,243 191,933 — 738,375 Total allowance for loan losses $ 420,635 $ 118,133 $ 109,856 $ 194,136 $ — $ 842,760 Loans: Ending balance of loans: Individually evaluated for impairment $ 307,680 $ 85,180 $ 172,857 $ 3,577 $ — $ 569,294 Collectively evaluated for impairment 25,442,269 13,912,517 16,209,259 5,490,429 — 61,054,474 Total loans $ 25,749,949 $ 13,997,697 $ 16,382,116 $ 5,494,006 $ — $ 61,623,768 December 31, 2016 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 99,932 $ 4,037 $ 32,016 $ 2,223 $ — $ 138,208 Collectively evaluated for impairment 358,648 112,900 87,468 141,069 — 700,085 Total allowance for loan losses $ 458,580 $ 116,937 $ 119,484 $ 143,292 $ — $ 838,293 Loans: Ending balance of loans: Individually evaluated for impairment $ 719,468 $ 44,258 $ 186,338 $ 3,042 $ — $ 953,106 Collectively evaluated for impairment 24,402,534 13,291,718 16,063,143 4,991,428 359,334 59,108,157 Total loans $ 25,122,002 $ 13,335,976 $ 16,249,481 $ 4,994,470 $ 359,334 $ 60,061,263 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. The following table presents information on individually evaluated impaired loans, by loan class. December 31, 2017 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ 142,908 $ 175,743 $ — $ 164,772 $ 175,512 $ 61,705 Real estate – construction 2,849 2,858 — 130 130 7 Commercial real estate – mortgage 35,140 36,415 — 47,061 55,122 9,857 Residential real estate – mortgage — — — 117,751 117,751 10,214 Equity lines of credit — — — 19,183 19,188 16,021 Equity loans — — — 35,923 36,765 4,378 Credit card — — — — — — Consumer direct — — — 2,545 2,545 1,254 Consumer indirect — — — 1,032 1,032 949 Total loans $ 180,897 $ 215,016 $ — $ 388,397 $ 408,045 $ 104,385 December 31, 2016 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ 375,957 $ 396,294 $ — $ 343,511 $ 371,085 $ 99,932 Real estate – construction — — — 344 459 344 Commercial real estate – mortgage 19,235 20,177 — 24,679 24,865 3,693 Residential real estate – mortgage — — — 119,986 119,986 7,529 Equity lines of credit — — — 24,591 25,045 19,083 Equity loans — — — 41,761 42,561 5,404 Credit card — — — — — — Consumer direct — — — 745 745 59 Consumer indirect — — — 2,297 2,297 2,164 Total loans $ 395,192 $ 416,471 $ — $ 557,914 $ 587,043 $ 138,208 The following table presents information on individually evaluated impaired loans, by loan class. Years Ended December 31, 2017 2016 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In Thousands) Commercial, financial and agricultural $ 426,809 $ 947 $ 632,319 $ 1,221 $ 113,844 $ 1,118 Real estate – construction 1,874 11 1,734 8 5,391 100 Commercial real estate – mortgage 72,692 1,071 44,530 1,195 84,565 2,200 Residential real estate – mortgage 115,583 2,676 109,792 2,672 110,251 2,786 Equity lines of credit 21,458 871 26,638 1,025 27,108 1,124 Equity loans 38,090 1,312 44,051 1,490 49,336 1,638 Credit card — — — — — — Consumer direct 1,629 27 833 28 657 17 Consumer indirect 1,553 10 2,221 13 1,694 7 Total loans $ 679,688 $ 6,925 $ 862,118 $ 7,652 $ 392,846 $ 8,990 The Company monitors the credit quality of its commercial portfolio using an internal dual risk rating, which considers both the obligor and the facility. The obligor risk ratings are defined by ranges of default probabilities of the borrowers, through internally assigned letter grades AAA through D2, and the facility risk ratings are defined by ranges of the loss given default. The combination of those two approaches results in the assessment of the likelihood of loss and it is mapped to the regulatory classifications. The Company assigns internal risk ratings at loan origination and at regular intervals subsequent to origination. Loan review intervals are dependent on the size and risk grade of the loan, and are generally conducted at least annually. Additional reviews are conducted when information affecting the loan’s risk grade becomes available. The general characteristics of the risk grades are as follows: • The Company’s internally assigned letter grades “AAA” through “B-” correspond to the regulatory classification “Pass.” These loans do not have any identified potential or well-defined weaknesses and have a high likelihood of orderly repayment. Exceptions exist when either the facility is fully secured by a CD and held at the Company or the facility is secured by properly margined and controlled marketable securities. • Internally assigned letter grades “CCC+” through “CCC” correspond to the regulatory classification “Special Mention.” Loans within this classification have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Internally assigned letter grades “CCC-” through “D1” correspond to the regulatory classification “Substandard.” A loan classified as substandard is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. • The internally assigned letter grade “D2” corresponds to the regulatory classification “Doubtful.” Loans classified as doubtful have all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable or improbable. The Company considers payment history as the best indicator of credit quality for the consumer portfolio. Nonperforming loans in the tables below include loans classified as nonaccrual, loans 90 days or more past due and loans modified in a TDR 90 days or more past due. The following tables, which exclude loans held for sale and covered loans, illustrate the credit quality indicators associated with the Company’s loans, by loan class. Commercial December 31, 2017 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Pass $ 24,387,737 $ 2,257,659 $ 11,309,484 Special Mention 614,006 12,401 215,076 Substandard 623,672 3,479 187,049 Doubtful 124,534 — 12,549 $ 25,749,949 $ 2,273,539 $ 11,724,158 December 31, 2016 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Pass $ 23,142,975 $ 2,055,483 $ 10,898,877 Special Mention 758,417 60,826 187,182 Substandard 1,081,439 9,007 106,183 Doubtful 139,171 — 18,418 $ 25,122,002 $ 2,125,316 $ 11,210,660 Consumer December 31, 2017 Residential Real Estate -Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Performing $ 13,182,760 $ 2,616,825 $ 350,531 $ 627,588 $ 1,681,246 $ 3,147,223 Nonperforming 182,987 36,280 12,733 11,929 9,137 16,883 $ 13,365,747 $ 2,653,105 $ 363,264 $ 639,517 $ 1,690,383 $ 3,164,106 December 31, 2016 Residential Real Estate -Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Performing $ 13,115,936 $ 2,507,375 $ 431,417 $ 593,927 $ 1,249,370 $ 3,121,825 Nonperforming 144,058 36,403 14,292 10,954 5,271 13,123 $ 13,259,994 $ 2,543,778 $ 445,709 $ 604,881 $ 1,254,641 $ 3,134,948 The following tables present an aging analysis of the Company’s past due loans excluding loans classified as held for sale. December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due and Impaired Not Past Due or Impaired Total (In Thousands) Commercial, financial and agricultural $ 14,804 $ 3,753 $ 18,136 $ 310,059 $ 1,213 $ 347,965 $ 25,401,984 $ 25,749,949 Real estate – construction 12,293 70 1,560 5,381 101 19,405 2,254,134 2,273,539 Commercial real estate – mortgage 10,473 3,270 927 111,982 4,155 130,807 11,593,351 11,724,158 Residential real estate – mortgage 69,474 34,440 8,572 173,843 64,898 351,227 13,014,520 13,365,747 Equity lines of credit 10,956 7,556 2,259 34,021 237 55,029 2,598,076 2,653,105 Equity loans 4,170 657 995 11,559 30,105 47,486 315,778 363,264 Credit card 6,710 4,804 11,929 — — 23,443 616,074 639,517 Consumer direct 19,766 7,020 6,712 2,425 534 36,457 1,653,926 1,690,383 Consumer indirect 92,017 26,460 7,288 9,595 — 135,360 3,028,746 3,164,106 Covered loans — — — — — — — — Total loans $ 240,663 $ 88,030 $ 58,378 $ 658,865 $ 101,243 $ 1,147,179 $ 60,476,589 $ 61,623,768 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due and Impaired Not Past Due or Impaired Total (In Thousands) Commercial, financial and agricultural $ 23,788 $ 6,581 $ 2,891 $ 596,454 $ 8,726 $ 638,440 $ 24,483,562 $ 25,122,002 Real estate – construction 918 50 2,007 1,239 2,393 6,607 2,118,709 2,125,316 Commercial real estate – mortgage 3,791 3,474 — 71,921 4,860 84,046 11,126,614 11,210,660 Residential real estate – mortgage 57,359 28,450 3,356 140,303 59,893 289,361 12,970,633 13,259,994 Equity lines of credit 7,922 4,583 2,950 33,453 — 48,908 2,494,870 2,543,778 Equity loans 5,615 1,843 467 13,635 34,746 56,306 389,403 445,709 Credit card 6,411 5,042 10,954 — — 22,407 582,474 604,881 Consumer direct 13,338 4,563 4,482 789 704 23,876 1,230,765 1,254,641 Consumer indirect 85,198 22,833 7,197 5,926 — 121,154 3,013,794 3,134,948 Covered loans 7,311 1,351 27,238 730 — 36,630 322,704 359,334 Total loans $ 211,651 $ 78,770 $ 61,542 $ 864,450 $ 111,322 $ 1,327,735 $ 58,733,528 $ 60,061,263 It is the Company’s policy to classify TDRs that are not accruing interest as nonaccrual loans. It is also the Company’s policy to classify TDR past due loans that are accruing interest as TDRs and not according to their past due status. The tables above reflect this policy. Within each of the Company’s loan classes, TDRs typically involve modification of the loan interest rate to a below market rate or an extension or deferment of the loan. During the year ended December 31, 2017 , $7 million of TDR modifications included an interest rate concession and $246 million of TDR modifications resulted from modifications to the loan’s structure. During the year ended December 31, 2016 , $5 million of TDR modifications included an interest rate concession and $65 million of TDR modifications resulted from modifications to the loan’s structure. During the year ended December 31, 2015 , $4 million of TDR modifications included an interest rate concession and $22 million of TDR modifications resulted from modifications to the loan’s structure. The following table presents an analysis of the types of loans that were restructured and classified as TDRs, excluding loans classified as held for sale. December 31, 2017 December 31, 2016 December 31, 2015 Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Commercial, financial and agricultural 26 $ 232,511 10 $ 44,569 6 $ 384 Real estate – construction — — 2 3,504 — — Commercial real estate – mortgage 3 1,223 5 1,431 7 4,478 Residential real estate – mortgage 66 15,714 70 13,211 46 9,709 Equity lines of credit 41 1,858 82 3,869 115 6,482 Equity loans 30 1,246 17 1,369 35 2,586 Credit card — — — — — — Consumer direct — — 4 35 23 1,210 Consumer indirect 14 209 128 2,148 74 1,298 Covered loans 2 103 — — 3 29 Charge-offs and changes to the allowance related to modifications classified as TDRs were approximately $27.1 million for the year ended December 31, 2017 . For the years ended December 31, 2016 and 2015 , charge-offs and changes to the allowance related to modifications classified as TDRs were not material. The Company considers TDRs aged 90 days or more past due, charged off or classified as nonaccrual subsequent to modification, where the loan was not classified as a nonperforming loan at the time of modification, as subsequently defaulted. The following tables provide a summary of initial subsequent defaults that occurred within one year of the restructure date. The table excludes loans classified as held for sale as of period-end and includes loans no longer in default as of year-end. Years Ended December 31, 2017 2016 2015 Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default (Dollars in Thousands) Commercial, financial and agricultural 1 $ 686 — $ — — $ — Real estate – construction — — — — 1 377 Commercial real estate – mortgage — — — — 1 178 Residential real estate – mortgage 1 505 — — 7 987 Equity lines of credit — — 8 204 1 — Equity loans 2 51 3 293 3 216 Credit card — — — — — — Consumer direct — — — — 1 100 Consumer indirect 1 22 2 32 1 18 Covered loans — — — — 2 24 All commercial and consumer loans modified in a TDR are considered to be impaired, even if they maintain their accrual status. At December 31, 2017 and 2016 , there were $15.9 million and $12.6 million , respectively, of commitments to lend additional funds to borrowers whose terms have been modified in a TDR. Foreclosure Proceedings Other real estate owned, a component of other assets in the Company's Consolidated Balance Sheets, totaled $17 million and $21 million at December 31, 2017 and 2016 , respectively. Other real estate owned included $12 million and $18 million of foreclosed residential real estate properties at December 31, 2017 and 2016 , respectively. As of December 31, 2017 and 2016 , there were $57 million and $48 million , respectively, of residential real estate loans secured by residential real estate properties for which formal foreclosure proceedings were in process. |
Loan Sales and Servicing
Loan Sales and Servicing | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Loan Sales and Servicing | Loan Sales and Servicing Loans held for sale were $67 million and $162 million at December 31, 2017 and 2016 , respectively. At December 31, 2017 loans held for sale were comprised entirely of residential real estate - mortgage loans. At December 31, 2016 loans held for sale were comprised of $57 million of commercial, financial and agricultural loans and $105 million of residential real estate - mortgage loans. The following table summarizes the Company's activity in the loans held for sale portfolio and loan sales, excluding activity related to loans originated for sale in the secondary market. 2017 2016 2015 (In Thousands) Loans transferred from held for investment to held for sale $ — $ 820,615 $ 907,414 Charge-offs on loans recognized at transfer from held for investment to held for sale — 8,295 — Loans and loans held for sale sold 204,058 1,044,800 466,459 The following table summarizes the Company's sales of loans originated for sale in the secondary market. 2017 2016 2015 (In Thousands) Residential real estate loans originated for sale in the secondary market sold (1) $ 660,484 $ 682,115 $ 1,521,424 Net gains recognized on sales of residential real estate loans originated for sale in the secondary market (2) 25,576 28,207 41,913 (1) Includes loans originated for sale where the Company retained servicing responsibilities. (2) Net gains were recorded in mortgage banking income in the Company's Consolidated Statements of Income. Residential Real Estate Mortgage Loans Sold with Retained Servicing The following table summarizes the Company's activity related to residential real estate mortgage loans sold with retained servicing. 2017 2016 2015 (In Thousands) Residential real estate mortgage loans sold with retained servicing (1) $ 660,484 $ 997,956 $ 1,521,424 Servicing fees recognized (2) 25,521 25,772 22,087 (1) There is no recourse to the Company for the failures of borrowers to pay loans when due. (2) Recorded as a component of other noninterest income in the Company's Consolidated Statements of Income. The following table provides the recorded balance of loans sold with retained servicing and the related MSRs. December 31, 2017 December 31, 2016 (In Thousands) Recorded balance of residential real estate mortgage loans sold with retained servicing (1) $ 4,635,334 $ 4,684,899 MSRs (2) 49,597 51,428 (1) These loans are not included in loans on the Company's Consolidated Balance Sheets. (2) Recorded under the fair value method and included in other assets on the Company's Consolidated Balance Sheets. The fair value of MSRs is significantly affected by mortgage interest rates available in the marketplace, which influence mortgage loan prepayment speeds. In general, during periods of declining rates, the fair value of MSRs declines due to increasing prepayments attributable to increased mortgage-refinance activity. During periods of rising interest rates, the fair value of MSRs generally increases due to reduced refinance activity. The Company maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the fair value of the MSR portfolio. This strategy includes the purchase of various trading securities. The interest income, mark-to-market adjustments and gain or loss from sale activities associated with these securities are expected to economically hedge a portion of the change in the fair value of the MSR portfolio. The following table is an analysis of the activity in the Company’s MSRs. Years Ended December 31, 2017 2016 2015 (In Thousands) Carrying value, at beginning of year $ 51,428 $ 44,541 $ 35,488 Additions 7,098 10,118 15,922 Increase (decrease) in fair value: Due to changes in valuation inputs or assumptions 2,233 7,093 (2,193 ) Due to other changes in fair value (1) (11,162 ) (10,324 ) (4,676 ) Carrying value, at end of year $ 49,597 $ 51,428 $ 44,541 (1) Represents the realization of expected net servicing cash flows, expected borrower repayments and the passage of time. See Note 20 , Fair Value Measurements , for additional disclosures related to the assumptions and estimates used in determining fair value of residential MSRs. At December 31, 2017 and 2016 , the sensitivity of the current fair value of the residential MSRs to immediate 10% and 20% adverse changes in key economic assumptions are included in the following table: December 31, 2017 2016 (Dollars in Thousands) Fair value of MSRs $ 49,597 $ 51,428 Composition of residential loans serviced for others: Fixed rate mortgage loans 97.4 % 97.3 % Adjustable rate mortgage loans 2.6 2.7 Total 100.0 % 100.0 % Weighted average life (in years) 6.6 6.5 Prepayment speed: 9.7 % 15.7 % Effect on fair value of a 10% increase (1,582 ) (1,646 ) Effect on fair value of a 20% increase (3,068 ) (3,184 ) Weighted average option adjusted spread 8.2 % 8.1 % Effect on fair value of a 10% increase (1,568 ) (1,758 ) Effect on fair value of a 20% increase (3,031 ) (3,402 ) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be and should not be considered to be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment A summary of the Company’s premises and equipment is presented below. December 31, 2017 2016 (In Thousands) Land $ 304,160 $ 311,384 Buildings 595,865 594,426 Furniture, fixtures and equipment 440,659 428,326 Software 897,587 800,297 Leasehold improvements 187,398 170,523 Construction / projects in progress 91,839 158,682 2,517,508 2,463,638 Less: Accumulated depreciation and amortization 1,302,634 1,163,584 Total premises and equipment $ 1,214,874 $ 1,300,054 The Company recognized $194.3 million , $188.7 million and $181.4 million of depreciation expense related to the above premises and equipment for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Bank Owned Life Insurance
Bank Owned Life Insurance | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company maintains life insurance policies on certain of its executives and employees. At December 31, 2017 and 2016 , the cash surrender values on the underlying life insurance policies totaled $723 million and $712 million , respectively, which are recorded as bank owned life insurance on the Company’s Consolidated Balance Sheets. These cash surrender values are classified separately from related split dollar life insurance arrangements of $8 million and $7 million at December 31, 2017 and 2016 , respectively, which are recorded on the Company’s Consolidated Balance Sheets as accrued expenses and other liabilities. Changes to the underlying cash surrender value are recorded in noninterest income in the Company’s Consolidated Statements of Income and for the years ended December 31, 2017 , 2016 and 2015 totaled $17.1 million , $17.2 million and $18.7 million , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A summary of the activity related to the Company’s goodwill follows. Years Ended December 31, 2017 2016 (In Thousands) Balance, at beginning of year Goodwill $ 9,835,400 $ 9,835,400 Accumulated impairment losses (4,852,104 ) (4,792,203 ) Goodwill, net at beginning of year 4,983,296 5,043,197 Annual activity: Goodwill acquired during the year — — Disposition adjustments — — Impairment losses — (59,901 ) Balance, at end of year Goodwill 9,835,400 9,835,400 Accumulated impairment losses (4,852,104 ) (4,852,104 ) Goodwill, net at end of year $ 4,983,296 $ 4,983,296 During the Company's 2016 annual goodwill impairment test $60 million of goodwill attributable to the Simple reporting unit was determined to be impaired. Goodwill is allocated to each of the Company's segments (each a reporting unit: Commercial Banking and Wealth, Retail Banking, Corporate and Investment Banking, and Simple). Refer to Note 22 , Segment Information , for a discussion of the reorganization of the Company's reporting structuring during 2017 and, accordingly, its segment reporting structure and goodwill reporting units. In connection with the reorganization, the Company reallocated goodwill to the new reporting unit using a relative fair value approach. In accordance with the applicable accounting guidance, the Company performs annual tests to identify potential impairment of goodwill. The tests are required to be performed annually and more frequently if events or circumstances indicate a potential impairment may exist. In Step One of the impairment test, the Company compares the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, Step Two of the impairment test is required to be performed to measure the amount of impairment loss, if any. Step Two compares the implied fair value of goodwill attributable to each reporting unit to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination; an entity allocates the fair value determined in Step One for the reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill in Step Two, an impairment loss is recognized in an amount equal to that excess. The Company tests its identified reporting units with goodwill for impairment on an annual basis or more often if events and circumstances indicate impairment may exist. The most recent goodwill impairment test occurred as of October 31, 2017 . For the Company's three reporting units with goodwill, the most recent goodwill impairment test indicated that no goodwill impairment existed at that time. At December 31, 2017 , the goodwill, net of accumulated impairment losses, attributable to each of the Company’s three identified reporting units is as follows: Commercial Banking and Wealth - $2.7 billion , Retail Banking - $1.4 billion , and Corporate and Investment Banking - $896 million . Through December 31, 2017 , the Company had recognized accumulated goodwill impairment losses of $2.5 billion , $1.4 billion , and $249 million within the Commercial Banking and Wealth, Retail Banking, and Corporate and Investment Banking reporting units, respectively. In addition, the Company has previously recognized $784 million of accumulated goodwill impairment losses from reporting units that no longer have a goodwill balance. The Step One fair values of the reporting units are based upon management’s estimates and assumptions. Although management has used the estimates and assumptions it believes to be most appropriate in the circumstances, it should be noted that even relatively minor changes in certain valuation assumptions used in management’s calculations could result in significant differences in the results of the impairment tests. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits Time deposits of $250,000 or less totaled $11.1 billion at December 31, 2017 , while time deposits of more than $250,000 totaled $2.8 billion . At December 31, 2017 , the scheduled maturities of time deposits were as follows. (In Thousands) 2018 $ 11,243,000 2019 2,018,572 2020 413,615 2021 76,311 2022 66,537 Thereafter 63,697 Total $ 13,881,732 At December 31, 2017 and 2016 , demand deposit overdrafts reclassified to loans totaled $20 million and $15 million , respectively. In addition to the securities and loans the Company has pledged as collateral to secure public deposits and FHLB advances at December 31, 2017 , the Company also had $6.6 billion of standby letters of credit issued by the FHLB to secure public deposits. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings The short-term borrowings table below shows the distribution of the Company’s short-term borrowed funds. Ending Balance Ending Average Interest Rate Average Balance Maximum Outstanding Balance (Dollars in Thousands) As of and for the year ended December 31, 2017 Federal funds purchased $ 1,710 1.50 % $ 402 $ 1,710 Securities sold under agreements to repurchase 17,881 1.23 58,222 114,361 Total 19,591 58,624 116,071 Other short-term borrowings 17,996 1.48 1,703,738 2,771,539 Total short-term borrowings $ 37,587 $ 1,762,362 $ 2,887,610 As of and for the year ended December 31, 2016 Federal funds purchased $ 12,885 0.39 % $ 372,355 $ 766,095 Securities sold under agreements to repurchase 26,167 0.55 79,625 148,291 Total 39,052 451,980 914,386 Other short-term borrowings 2,802,977 1.68 3,778,752 4,497,354 Total short-term borrowings $ 2,842,029 $ 4,230,732 $ 5,411,740 |
FHLB and Other Borrowings
FHLB and Other Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
FHLB and Other Borrowings | FHLB and Other Borrowings The following table details the Company’s FHLB advances and other borrowings including maturities and interest rates as of December 31, 2017 . December 31, Maturity Dates 2017 2016 (In Thousands) FHLB advances: LIBOR-based floating rate (weighted average rate of 1.58%) 2021 $ 120,000 $ 120,000 Fixed rate (weighted average rate of 2.00%) 2018-2025 1,510,328 410,529 Total FHLB advances 1,630,328 530,529 Senior notes and subordinated debentures: 1.85% senior notes 2017 — 400,000 2.75% senior notes 2019 600,000 600,000 2.88% senior notes 2022 750,000 — 6.40% subordinated debentures 2017 — 350,000 5.50% subordinated debentures 2020 227,764 227,764 3.88% subordinated debentures 2025 700,000 700,000 5.90% subordinated debentures 2026 71,086 71,086 Fair value of hedged senior notes and subordinated debentures (867 ) 36,800 Net unamortized discount (18,381 ) (18,298 ) Total senior notes and subordinated debentures 2,329,602 2,367,352 Capital securities: LIBOR plus 3.05% floating rate debentures payable to State National Capital Trust I 2033 — 15,470 LIBOR plus 2.85% floating rate debentures payable to Texas Regional Statutory Trust I 2034 — 51,547 LIBOR plus 2.60% floating rate debentures payable to TexasBanc Capital Trust I 2034 — 25,774 LIBOR plus 2.79% floating rate debentures payable to State National Statutory Trust II 2034 — 10,310 Unamortized premium — 569 Total capital securities — 103,670 Total FHLB and other borrowings $ 3,959,930 $ 3,001,551 During 2017 , the Company's 1.85% senior notes with an aggregate principal amount of $400 million and its 6.40% subordinated debentures with an aggregate principal amount of $350 million matured. In June 2017 , the Bank issued $750 million aggregate principal amount of its unsecured senior notes due 2022 that pay a fixed annual coupon of 2.875% . During 2017 , the Company redeemed all of the Trust Preferred Securities issued by its four subsidiary business trusts (TexasBanc Capital Trust I, State National Capital Trust I, State National Statutory Trust II and Texas Regional Statutory Trust I). The aggregate principal amount of these notes was approximately $104 million . The following table presents maturity information for the Company’s FHLB and other borrowings, including the fair value of hedged senior notes and subordinated debentures as well as unamortized discounts and premiums, as of December 31, 2017 . FHLB Advances Senior Notes and Subordinated Debentures (In Thousands) Maturing: 2018 $ 300,000 $ — 2019 1,150,000 598,055 2020 — 237,946 2021 120,000 — 2022 — 733,927 Thereafter 60,328 759,674 Total $ 1,630,328 $ 2,329,602 |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholder's Equity | Shareholder's Equity Series A Preferred Stock In December 2015 , the Company completed the sale of 1,150 shares of its Floating Non-Cumulative Perpetual Preferred Stock, Series A at a per share prices of $200,000 to BBVA. As the holder of the Series A Preferred Stock, BBVA will be entitled to receive dividend payments only when, as and if declared by the Company’s Board of Directors or a duly authorized committee thereof. Any such dividends will be payable from the date of original issue at a floating rate per annum equal to the three-month U.S. dollar LIBOR as determined on the relevant dividend determination date plus 5.24% . Any such dividends will be payable on a non-cumulative basis, quarterly in arrears on March 1, June 1, September 1 and December 1, commencing March 1, 2016 . Payment of dividends on the Series A Preferred Stock is subject to certain legal, regulatory and other restrictions. Redemption is solely at the Company's option. The Company may, at its option, redeem the Series A Preferred Stock (i) in whole or in part, from time to time, on any dividend payment date on or after December 1, 2022 or (ii) in whole but not in part at any time within 90 days of certain changes to regulatory capital requirements. At both December 31, 2017 and 2016 , the carrying amount of the Series A Preferred Stock, including related surplus, net of issuance costs was approximately $229 million . Class B Preferred Stock In December 2000 , a subsidiary of the Bank issued $21 million of Class B Preferred Stock. The Preferred Stock outstanding was approximately $23 million at both December 31, 2017 and 2016 and is classified as noncontrolling interests on the Company’s Consolidated Balance Sheets. The Preferred Stock qualifies as Tier 1 capital under Federal Reserve guidelines. The Preferred Stock dividends are preferential, non-cumulative and payable semi-annually in arrears on June 15 and December 15 of each year, commencing June 15, 2001 , at a rate per annum equal to 9.875% of the liquidation preference of $1,000 per share when and if declared by the board of directors of the subsidiary, in its sole discretion, out of funds legally available for such payment. The Preferred Stock is redeemable for cash, at the option of the subsidiary, in whole or in part, at any time on or after June 15, 2021 . Prior to June 15, 2021 , the Preferred Stock is not redeemable, except that prior to such date, the Preferred Stock may be redeemed for cash, at the option of the subsidiary, in whole but not in part, only upon the occurrence of certain tax or regulatory events. Any such redemption is subject to the prior approval of the Federal Reserve. The Preferred Stock is not redeemable at the option of the holders thereof at any time. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income | C omprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances arising from nonowner sources. The following summarizes the change in the components of other comprehensive income (loss). December 31, 2017 Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive loss: Unrealized holding losses arising during period from securities available for sale $ (20,089 ) $ (5,143 ) $ (14,946 ) Less: reclassification adjustment for net gains on sale of securities in net income 3,033 776 2,257 Net change in unrealized losses on securities available for sale (23,122 ) (5,919 ) (17,203 ) Change in unamortized net holding losses on investment securities held to maturity 5,076 1,132 3,944 Change in unamortized non-credit related impairment on investment securities held to maturity 1,556 565 991 Net change in unamortized holding losses on securities held to maturity 6,632 1,697 4,935 Unrealized holding gains (losses) arising during period from cash flow hedge instruments (35,768 ) (21,083 ) (14,685 ) Change in defined benefit plans (3,501 ) (1,301 ) (2,200 ) Other comprehensive loss $ (55,759 ) $ (26,606 ) $ (29,153 ) December 31, 2016 Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive loss: Unrealized holding losses arising during period from securities available for sale $ (76,706 ) $ (28,668 ) $ (48,038 ) Less: reclassification adjustment for net gains on sale of securities in net income 30,037 11,226 18,811 Net change in unrealized losses on securities available for sale (106,743 ) (39,894 ) (66,849 ) Change in unamortized net holding losses on investment securities held to maturity 5,848 2,235 3,613 Less: non-credit related impairment on investment securities held to maturity 151 55 96 Change in unamortized non-credit related impairment on investment securities held to maturity 1,438 487 951 Net change in unamortized holding losses on securities held to maturity 7,135 2,667 4,468 Unrealized holding losses arising during period from cash flow hedge instruments (5,882 ) (2,209 ) (3,673 ) Change in defined benefit plans (4,826 ) (1,964 ) (2,862 ) Other comprehensive loss $ (110,316 ) $ (41,400 ) $ (68,916 ) December 31, 2015 Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive loss: Unrealized holding losses arising during period from securities available for sale $ (26,090 ) $ (9,455 ) $ (16,635 ) Less: reclassification adjustment for net gains on sale of securities in net income 81,656 29,591 52,065 Net change in unrealized losses on securities available for sale (107,746 ) (39,046 ) (68,700 ) Change in unamortized net holding losses on investment securities held to maturity 10,948 3,043 7,905 Less: non-credit related impairment on investment securities held to maturity 87 32 55 Change in unamortized non-credit related impairment on investment securities held to maturity 1,661 1,527 134 Net change in unamortized holding losses on securities held to maturity 12,522 4,538 7,984 Unrealized holding gains arising during period from cash flow hedge instruments 3,141 1,854 1,287 Change in defined benefit plans 18,971 7,016 11,955 Other comprehensive loss $ (73,112 ) $ (25,638 ) $ (47,474 ) Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity Accumulated Gains (Losses) on Cash Flow Hedging Instruments Defined Benefit Plan Adjustment Unamortized Impairment Losses on Investment Securities Held to Maturity Total (In Thousands) Balance, December 31, 2015 $ (56,326 ) $ (6,407 ) $ (29,166 ) $ (7,437 ) $ (99,336 ) Other comprehensive loss before reclassifications (48,038 ) (1,337 ) — (96 ) (49,471 ) Amounts reclassified from accumulated other comprehensive income (loss) (15,198 ) (2,336 ) (2,862 ) 951 (19,445 ) Net current period other comprehensive income (loss) (63,236 ) (3,673 ) (2,862 ) 855 (68,916 ) Balance, December 31, 2016 $ (119,562 ) $ (10,080 ) $ (32,028 ) $ (6,582 ) $ (168,252 ) Balance, December 31, 2016 $ (119,562 ) $ (10,080 ) $ (32,028 ) $ (6,582 ) $ (168,252 ) Other comprehensive loss before reclassifications (14,946 ) (14,252 ) — — (29,198 ) Amounts reclassified from accumulated other comprehensive income (loss) 1,687 (433 ) (2,200 ) 991 45 Net current period other comprehensive income (loss) (13,259 ) (14,685 ) (2,200 ) 991 (29,153 ) Balance, December 31, 2017 $ (132,821 ) $ (24,765 ) $ (34,228 ) $ (5,591 ) $ (197,405 ) The following table presents information on reclassifications out of accumulated other comprehensive income. Details About Accumulated Other Comprehensive Income Components Amounts Reclassified From Accumulated Other Comprehensive Income (1) Consolidated Statement of Income Caption December 31, 2017 December 31, 2016 December 31, 2015 (In Thousands) Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity $ 3,033 $ 30,037 $ 81,656 Investment securities gains, net (5,076 ) (5,848 ) (10,948 ) Interest on investment securities held to maturity (2,043 ) 24,189 70,708 356 (8,991 ) (26,548 ) Income tax (expense) benefit $ (1,687 ) $ 15,198 $ 44,160 Net of tax Accumulated Gains (Losses) on Cash Flow Hedging Instruments $ 3,496 $ 8,370 $ 13,056 Interest and fees on loans (2,441 ) (4,629 ) (6,934 ) Interest and fees on FHLB advances 1,055 3,741 6,122 (622 ) (1,405 ) (4,261 ) Income tax expense $ 433 $ 2,336 $ 1,861 Net of tax Defined Benefit Plan Adjustment $ 3,501 $ 4,826 $ (18,971 ) (2) (1,301 ) (1,964 ) 7,016 Income tax (expense) benefit $ 2,200 $ 2,862 $ (11,955 ) Net of tax Unamortized Impairment Losses on Investment Securities Held to Maturity $ (1,556 ) $ (1,438 ) $ (1,661 ) Interest on investment securities held to maturity 565 487 1,527 Income tax benefit $ (991 ) $ (951 ) $ (134 ) Net of tax (1) Amounts in parentheses indicate debits to the Consolidated Statements of Income. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18 , Benefit Plans , for additional details). |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging The Company is a party to derivative instruments in the normal course of business for trading purposes and for purposes other than trading to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. The Company has made an accounting policy decision to not offset derivative fair value amounts under master netting agreements. See Note 1 , Summary of Significant Accounting Policies , for additional information on the Company’s accounting policies related to derivative instruments and hedging activities. For derivatives cleared through central clearing houses the variation margin payments made during 2017 are legally characterized as settlements of the derivatives. As a result, these variation margin payments are netted against the fair value of the respective derivative contracts in the balance sheet and related disclosures. The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Consolidated Balance Sheets on a gross basis. December 31, 2017 December 31, 2016 Fair Value Fair Value Notional Amount Derivative Assets (1) Derivative Liabilities (2) Notional Amount Derivative Assets (1) Derivative Liabilities (2) (In Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 2,223,950 $ 19,399 $ 16,831 $ 2,123,950 $ 38,890 $ 14,226 Total fair value hedges 19,399 16,831 38,890 14,226 Cash flow hedges: Interest rate contracts: Swaps related to commercial loans 9,075,000 325 2 7,625,000 2,340 11,570 Swaps related to FHLB advances 120,000 — 4,424 120,000 — 7,093 Foreign currency contracts: Forwards related to currency fluctuations 3,220 — 144 3,618 — 380 Total cash flow hedges 325 4,570 2,340 19,043 Total derivatives designated as hedging instruments $ 19,724 $ 21,401 $ 41,230 $ 33,269 Free-standing derivatives not designated as hedging instruments: Interest rate contracts: Forward contracts related to held for sale mortgages $ 141,000 $ 85 $ 130 $ 251,500 $ 2,479 $ 493 Option contracts related to mortgage servicing rights 40,000 38 — — — — Interest rate lock commitments 114,184 2,416 — 150,616 2,424 32 Equity contracts: Purchased equity option related to equity-linked CDs 810,011 39,791 — 833,763 57,198 — Written equity option related to equity-linked CDs 718,428 — 35,562 770,632 — 53,044 Foreign exchange contracts: Forwards related to commercial loans 358,729 291 3,501 424,155 3,741 1,723 Spots related to commercial loans 83,338 84 245 54,599 134 — Swap associated with sale of Visa, Inc. Class B shares 99,826 — 2,496 68,308 — 1,708 Futures contracts (3) 1,449,000 — — 104,000 — — Trading account assets and liabilities: Interest rate contracts for customers 30,472,359 133,516 134,073 28,000,014 290,238 228,748 Foreign exchange contracts for customers 514,185 12,149 10,524 870,084 28,367 26,317 Total trading account assets and liabilities 145,665 144,597 318,605 255,065 Total free-standing derivative instruments not designated as hedging instruments $ 188,370 $ 186,531 $ 384,581 $ 312,065 (1) Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Consolidated Balance Sheets, are recorded in other assets on the Company’s Consolidated Balance Sheets. (2) Derivative liabilities are recorded in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets . (3) Changes in fair value are cash settled daily; therefore, there is no ending balance at any given reporting period. Hedging Derivatives The Company uses derivative instruments to manage the risk of earnings fluctuations caused by interest rate volatility. For those financial instruments that qualify and are designated as a hedging relationship, either a fair value hedge or cash flow hedge, the effect of interest rate movements on the hedged assets or liabilities will generally be offset by the derivative instrument. See Note 1 , Summary of Significant Accounting Policies , for additional information on the Company’s accounting policies related to derivative instruments and hedging activities. Fair Value Hedges The Company enters into fair value hedging relationships using interest rate swaps to mitigate the Company’s exposure to losses in value as interest rates change. Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps that relate to the pricing of specific balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable rate interest payments between two parties, based on a common notional principal amount and maturity date. Interest rate swaps are used to convert the Company’s fixed rate long-term debt to a variable rate. The critical terms of the interest rate swaps match the terms of the corresponding hedged items. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. The Company recognized no gains or losses for the years ended December 31, 2017 , 2016 and 2015 related to hedged firm commitments no longer qualifying as a fair value hedge. At December 31, 2017 , the fair value hedges had a weighted average expected remaining term of 4.6 years. The following table reflects the change in fair value for interest rate contracts and the related hedged items as well as other gains and losses related to fair value hedges including gains and losses recognized because of hedge ineffectiveness. Gain (Loss) for the Years Ended December 31, Consolidated Statements of Income Caption 2017 2016 2015 (In Thousands) Change in fair value of interest rate contracts: Interest rate swaps hedging long term debt Interest on FHLB and other borrowings $ (33,092 ) $ (25,906 ) $ (19,130 ) Hedged long term debt Interest on FHLB and other borrowings 34,839 25,411 15,395 Other gains on interest rate contracts: Interest and amortization related to interest rate swaps on hedged long term debt Interest on FHLB and other borrowings 29,483 41,391 46,559 Cash Flow Hedges The Company enters into cash flow hedging relationships using interest rate swaps and options, such as caps and floors, to mitigate exposure to the variability in future cash flows or other forecasted transactions associated with its floating rate assets and liabilities. The Company uses interest rate swaps and options to hedge the repricing characteristics of its floating rate commercial loans and FHLB advances. The Company also uses foreign currency forward contracts to hedge its exposure to fluctuations in foreign currency exchange rates due to a portion of the money transfer expense being denominated in foreign currency. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. The initial assessment of expected hedge effectiveness is based on regression analysis. The ongoing periodic measures of hedge ineffectiveness are based on the expected change in cash flows of the hedged item caused by changes in the benchmark interest rate. There were no gains or losses reclassified from other comprehensive income (loss) because of the discontinuance of cash flow hedges related to certain forecasted transactions that are probable of not occurring for the years ended December 31, 2017 , 2016 and 2015 . At December 31, 2017 , cash flow hedges not terminated had a net fair value of $(4.2) million and a weighted average life of 1.1 years. Net losses of $37.5 million are expected to be reclassified to income over the next 12 months as net settlements occur. The maximum length of time over which the entity is hedging its exposure to the variability in future cash flows for forecasted transactions is 3.6 years. The following table presents the effect of derivative instruments designated and qualifying as cash flow hedges on the Company’s Consolidated Balance Sheets and the Company’s Consolidated Statements of Income. Gain (Loss) for the Years Ended December 31, 2017 2016 2015 (In Thousands) Interest rate and foreign currency exchange contracts: Net change in amount recognized in other comprehensive income $ (14,685 ) $ (3,673 ) $ 1,287 Amount reclassified from accumulated other comprehensive income (loss) into net income 1,055 3,741 6,122 Amount of ineffectiveness recognized in net income 13 (714 ) — Derivatives Not Designated As Hedges Derivatives not designated as hedges include those that are entered into as either economic hedges as part of the Company’s overall risk management strategy or to facilitate client needs. Economic hedges are those that are not designated as a fair value hedge, cash flow hedge or foreign currency hedge for accounting purposes, but are necessary to economically manage the risk exposure associated with the assets and liabilities of the Company. The Company also enters into a variety of interest rate contracts and foreign exchange contracts in its trading activities. The primary purpose for using these derivative instruments in the trading account is to facilitate customer transactions. The trading interest rate contract portfolio is actively managed and hedged with similar products to limit market value risk of the portfolio. Changes in the estimated fair value of contracts in the trading account along with the related interest settlements on the contracts are recorded in noninterest income as corporate and correspondent investment sales in the Company’s Consolidated Statements of Income. The Company enters into forward contracts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking income in the Company’s Consolidated Statements of Income. Interest rate lock commitments issued on residential mortgage loan commitments that will be held for resale are also considered free-standing derivative instruments, and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking income in the Company’s Consolidated Statements of Income. In conjunction with the sale of its Visa, Inc. Class B shares in 2009 , the Company entered into a total return swap in which the Company will make or receive payments based on subsequent changes in the conversion rate of the Class B shares into Class A shares. This total return swap is accounted for as a free-standing derivative. The Company offers its customers equity-linked CDs that have a return linked to individual equities and equity indices. Under appropriate accounting guidance, a CD that pays interest based on changes in an equity index is a hybrid instrument that requires separation into a host contract (the CD) and an embedded derivative contract (written equity call option). The Company has entered into an offsetting derivative contract in order to economically hedge the exposure related to the issuance of equity-linked CDs. Both the embedded derivative and derivative contract entered into by the Company are classified as free-standing derivative instruments. The Company also enters into foreign currency contracts to hedge its exposure to fluctuations in foreign currency exchange rates due to its funding of commercial loans in foreign currencies. The net gains and losses recorded in the Company’s Consolidated Statements of Income from free-standing derivative instruments not designated as hedging instruments are summarized in the following table. Gain (Loss) for the Years Ended December 31, Consolidated Statements of Income Caption 2017 2016 2015 (In Thousands) Futures contracts Mortgage banking income and corporate and correspondent investment sales $ 123 $ (138 ) $ (12 ) Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking income (2,030 ) 857 3,801 Interest rate lock commitments Mortgage banking income 24 (482 ) 556 Interest rate contracts for customers Corporate and correspondent investment sales 29,155 24,507 28,533 Option contracts related to mortgage servicing rights Corporate and correspondent investment sales (605 ) (264 ) (195 ) Commodity contracts: Commodity contracts for customers Corporate and correspondent investment sales — (6 ) 6 Equity contracts: Purchased equity option related to equity-linked CDs Other expense (18,704 ) (2,178 ) (17,112 ) Written equity option related to equity-linked CDs Other expense 18,581 3,515 17,761 Foreign currency contracts: Swap and forward contracts related to commercial loans Other income (38,885 ) 12,368 54,441 Spot contracts related to commercial loans Other income 5,512 451 (9,366 ) Foreign currency exchange contracts for customers Corporate and correspondent investment sales 10,451 3,971 2,656 Derivatives Credit and Market Risks By using derivative instruments, the Company is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the extent of the Company’s fair value gain in a derivative. When the fair value of a derivative instrument contract is positive, this indicates that the counterparty owes the Company and, therefore, creates a credit risk for the Company. When the fair value of a derivative instrument contract is negative, the Company owes the counterparty and, therefore, it has no credit risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties that are continually reviewed. Credit losses are also mitigated through collateral agreements and other contract provisions with derivative counterparties. Market risk is the adverse effect that a change in interest rates and foreign currency rates or implied volatility rates has on the value of a financial instrument. The Company manages the market risk associated with interest rate and foreign currency contracts by establishing and monitoring limits as to the types and degree of risk that may be undertaken. The Company’s derivatives activities are monitored by its Asset/Liability Committee as part of its risk-management oversight. The Company’s Asset/Liability Committee is responsible for mandating various hedging strategies that are developed through its analysis of data from financial simulation models and other internal and industry sources. The resulting hedging strategies are then incorporated into the Company’s overall interest rate risk management strategy. Entering into interest rate swap agreements and options involves not only the risk of dealing with counterparties and their ability to meet the terms of the contracts but also interest rate risk associated with unmatched positions. At December 31, 2017 , interest rate swap agreements and options classified as trading were substantially matched. The Company had credit risk of $146 million related to derivative instruments in the trading account portfolio, which does not take into consideration master netting arrangements or the value of the collateral. There were no net credit losses associated with derivative instruments classified as trading at December 31, 2017 . There were $2.5 million and $9 thousand in net credit losses associated with derivative instruments classified as trading for the years ended December 31, 2016 and 2015 , respectively. At December 31, 2017 and 2016 , there were no material nonperforming derivative positions classified as trading. The Company’s derivative positions held for hedging purposes are primarily executed in the over-the-counter market. These positions have credit risk of $20 million , which does not take into consideration master netting arrangements or the value of the collateral. There were no credit losses associated with derivative instruments classified as nontrading for the years ended December 31, 2017 , 2016 and 2015 . At December 31, 2017 and 2016 , there were no nonperforming derivative positions classified as nontrading. As of December 31, 2017 and 2016 , the Company had recorded the right to reclaim cash collateral of $92 million and $103 million , respectively, within other assets on the Company’s Consolidated Balance Sheets and had recorded the obligation to return cash collateral of $24 million and $37 million , respectively, within deposits on the Company’s Consolidated Balance Sheets. Contingent Features Certain of the Company’s derivative instruments contain provisions that require the Company’s debt to maintain a certain credit rating from each of the major credit rating agencies. If the Company’s debt were to fall below this rating, it would be in violation of these provisions, and the counterparties to the derivative instruments could demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on December 31, 2017 was $31 million for which the Company has collateral requirements of $30 million in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2017 , the Company’s collateral requirements to its counterparties would increase by $1 million . The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on December 31, 2016 was $30 million for which the Company had collateral requirements of $29 million in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2016 , the Company’s collateral requirements to its counterparties would have increased by $1 million . Netting of Derivative Instruments The Company is party to master netting arrangements with its financial institution counterparties for some of its derivative and hedging activities. The Company does not offset assets and liabilities under these master netting arrangements for financial statement presentation purposes. The master netting arrangements provide for single net settlement of all derivative instrument arrangements, as well as collateral, in the event of default, or termination of, any one contract with the respective counterparties. Cash collateral is usually posted by the counterparty with a net liability position in accordance with contract thresholds. The following represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement. Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Collateral Received/ Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) December 31, 2017 Derivative financial assets: Subject to a master netting arrangement $ 93,409 $ — $ 93,409 $ — $ 21,423 $ 71,986 Not subject to a master netting arrangement 114,685 — 114,685 — — 114,685 Total derivative financial assets $ 208,094 $ — $ 208,094 $ — $ 21,423 $ 186,671 Derivative financial liabilities: Subject to a master netting arrangement $ 108,955 $ — $ 108,955 $ 4,545 $ 92,396 $ 12,014 Not subject to a master netting arrangement 98,977 — 98,977 — — 98,977 Total derivative financial liabilities $ 207,932 $ — $ 207,932 $ 4,545 $ 92,396 $ 110,991 December 31, 2016 Derivative financial assets: Subject to a master netting arrangement $ 234,002 $ — $ 234,002 $ — $ 33,212 $ 200,790 Not subject to a master netting arrangement 191,809 — 191,809 — — 191,809 Total derivative financial assets $ 425,811 $ — $ 425,811 $ — $ 33,212 $ 392,599 Derivative financial liabilities: Subject to a master netting arrangement $ 248,669 $ — $ 248,669 $ 9,685 $ 102,603 $ 136,381 Not subject to a master netting arrangement 96,665 — 96,665 — — 96,665 Total derivative financial liabilities $ 345,334 $ — $ 345,334 $ 9,685 $ 102,603 $ 233,046 (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activities
Securities Financing Activities | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Securities Financing Activities | Securities Financing Activities Netting of Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase The Company has various financial asset and liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar transactions are discussed in Note 14 , Derivatives and Hedging . The Company enters into agreements under which it purchases or sells securities subject to an obligation to resell or repurchase the same or similar securities. Securities purchased under agreements to resell and securities sold under agreements to repurchase are generally accounted for as collateralized financing transactions and recorded at the amounts at which the securities were purchased or sold plus accrued interest. The securities pledged as collateral are generally U.S. Treasury and other U.S. government agencies securities and mortgage-backed securities. Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by an MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received or pledged. The Company offsets the assets and liabilities under netting arrangements for the balance sheet presentation of securities purchased under agreements to resell and securities sold under agreements to repurchase provided certain criteria are met that permit balance sheet netting. Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Collateral Received/ Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) December 31, 2017 (2) Securities purchased under agreement to resell: Subject to a master netting arrangement $ 93,664 $ 67,751 $ 25,913 $ 25,913 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 85,632 $ 67,751 $ 17,881 $ 17,881 $ — $ — December 31, 2016 (2) Securities purchased under agreement to resell: Subject to a master netting arrangement $ 3,164,039 $ 3,069,489 $ 94,550 $ 94,550 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 3,095,655 $ 3,069,488 $ 26,167 $ 26,167 $ — $ — (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. (2) The decrease in gross amounts recognized from December 31, 2016 to December 31, 2017, relates to a reduction in securities purchased under agreements to resell and securities sold under agreements to repurchase held by BSI. Collateral Associated with Securities Financing Activities Securities sold under agreements to repurchase are accounted for as secured borrowings. The following table presents the Company's related activity, by collateral type and remaining contractual maturity. Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total (In Thousands) December 31, 2017 Securities sold under agreements repurchase: U.S. Treasury and other U.S. government agencies securities $ 4,906 $ — $ 12,900 $ 4,981 $ 22,787 Mortgage-backed securities — — 62,845 — 62,845 Total $ 4,906 $ — $ 75,745 $ 4,981 $ 85,632 December 31, 2016 Securities sold under agreements repurchase: U.S. Treasury and other U.S. government agencies securities $ 1,408,736 $ 806,526 $ 798,089 $ — $ 3,013,351 Mortgage-backed securities — — 82,304 — 82,304 Total $ 1,408,736 $ 806,526 $ 880,393 $ — $ 3,095,655 In the event of a significant decline in fair value of the collateral pledged for the securities sold under agreements to repurchase, the Company would be required to provide additional collateral. The Company mitigates the risk by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. At December 31, 2017 , the fair value of collateral received related to securities purchased under agreements to resell was $94 million and the fair value of collateral pledged for securities sold under agreements to repurchase was $91 million . At December 31, 2016 , the fair value of collateral received related to securities purchased under agreements to resell was $3.1 billion and the fair value of collateral pledged for securities sold under agreements to repurchase was $3.1 billion . |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Lease Commitments The Company leases certain facilities and equipment for use in its businesses. The leases for facilities are generally for periods of 10 to 20 years with various renewal options, while leases for equipment generally have terms not in excess of five years. The majority of the leases for facilities contain rental escalation clauses tied to changes in price indices. Certain real property leases contain purchase options. Management expects that most leases will be renewed or replaced with new leases in the normal course of business. At December 31, 2017 , the Company had $25.3 million of assets recorded as capital leases for which $14.5 million of accumulated depreciation had been recognized. The following table provides the annual future minimum payments under capital leases and noncancelable operating leases at December 31, 2017 : Operating Lease Capital Lease (In Thousands) 2018 $ 66,172 $ 2,155 2019 63,864 2,191 2020 55,868 2,227 2021 49,831 2,136 2022 42,993 1,904 Thereafter 156,456 8,524 Total $ 435,184 $ 19,137 The Company incurred lease expense of $84.3 million , $81.0 million and $75.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company received lease income of $6.8 million , $6.6 million and $5.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to space leased to third parties. Commitments to Extend Credit & Standby and Commercial Letters of Credit The following represents the Company’s commitments to extend credit, standby letters of credit and commercial letters of credit. December 31, 2017 2016 (In Thousands) Commitments to extend credit $ 27,743,387 $ 27,070,935 Standby and commercial letters of credit 1,446,903 1,474,405 Commitments to extend credit are agreements to lend to customers on certain terms and conditions as long as all conditions are satisfied and there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby and commercial letters of credit are commitments issued by the Company to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions, and expire in decreasing amounts with terms ranging from one to four years. The credit risk involved in issuing letters of credit and commitments is essentially the same as that involved in extending loan facilities to customers. The fair value of the letters of credit and commitments typically approximates the fee received from the customer for issuing such commitments. These fees are deferred and are recognized over the commitment period. At December 31, 2017 and 2016 , the recorded amount of these deferred fees was $9 million and $8 million , respectively. The Company holds various assets as collateral supporting those commitments for which collateral is deemed necessary. At December 31, 2017 , the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit was $1.4 billion . At December 31, 2017 and 2016 , the Company had reserves related to letters of credit and unfunded commitments recorded in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheet of $83 million and $77 million , respectively. Loan Sale Recourse The Company has potential recourse related to FNMA securitizations. At both December 31, 2017 and 2016 , the amount of potential recourse was $19 million , of which the Company had reserved $793 thousand and $681 thousand , respectively, which is recorded in accrued expenses and other liabilities on its Consolidated Balance Sheets for the respective years. The Company also issues standard representations and warranties related to mortgage loan sales to government-sponsored agencies. Although these agreements often do not specify limitations, the Company does not believe that any payments related to these warranties would materially change the financial condition or results of operations of the Company. At both December 31, 2017 and 2016 , the Company recorded $1 million of reserves in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets related to potential losses from loans sold. Loss Sharing Agreement In connection with the Guaranty acquisition, the Bank entered into loss sharing agreements with the FDIC. In accordance with the terms of the loss sharing agreements, the FDIC's obligation to reimburse the Bank for losses with respect to the acquired loans and acquired OREO begins with the first dollar of incurred losses, as defined in the loss sharing agreements. The loss sharing agreements provide for FDIC loss sharing for five years for commercial loans and 10 years for single family residential loans. The loss sharing agreement for commercial loans expired in the fourth quarter of 2014. On July 12, 2017, the Company terminated the loss share agreement with the FDIC ahead of the contractual maturity. Under the terms of the agreement, the Company made a net payment of $132 million to the FDIC in July as consideration for early termination of the shared-loss agreement and settlement of the FDIC indemnification liability. The termination resulted in a $1.8 million gain for the year ended December 31, 2017 which was recorded in other noninterest income in the Company's Consolidated Statements of Income. Low Income Housing Tax Credit Partnerships The Company has committed to make certain equity investments in various limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments will be to facilitate the sale of additional affordable housing product offerings and to assist in achieving goals associated with the Community Reinvestment Act, and to achieve a satisfactory return on capital. The total unfunded commitment associated with these investments at December 31, 2017 and 2016 were $373 million and $289 million , respectively. Legal and Regulatory Proceedings In the ordinary course of business, the Company is subject to legal proceedings, including claims, litigation, investigations and administrative proceedings, all of which are considered incidental to the normal conduct of business. The Company believes it has substantial defenses to the claims asserted against it in its currently outstanding legal proceedings and, with respect to such legal proceedings, intends to defend itself vigorously. Set forth below are descriptions of certain of the Company’s legal proceedings. In June 2013 , Compass Bank (“BBVA Compass”) was named as a defendant in a lawsuit filed in the United States District Court of the Northern District of Alabama, Intellectual Ventures II, LLC v. BBVA Compass Bancshares, Inc. and BBVA Compass , wherein the plaintiff alleges that BBVA Compass is infringing five patents owned by the plaintiff and related to the security infrastructure for BBVA Compass’ online banking services. The plaintiff seeks unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In January 2014 , BBVA Compass was named as a defendant in a lawsuit filed in the District Court of Dallas County, Texas, David Bagwell, individually and as Trustee of the David S. Bagwell Trust, et al. v. BBVA Compass, et al. , wherein the plaintiffs (who are the borrowers and guarantors of the underlying loans) allege that BBVA Compass wrongfully sold their loans to a third party after representing that it would not do so. The plaintiffs seek unspecified monetary relief. The estimated exposure in this lawsuit was upgraded in July 2017 after the Company received the plaintiff’s revised damages allegations. Following trial in December 2017 , the jury rendered a verdict in favor of the plaintiffs totaling $98 million . Plaintiffs have requested a judgment in the amount of $79 million plus interest, but the court has not yet entered a judgment. BBVA Compass will vigorously contest the verdict and judgment in post-trial motions and on appeal. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In January 2016 , BBVA Securities Inc. (“BSI”) was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Southern District of Texas, In re Plains All American Pipeline, L.P. Securities Litigation , wherein the plaintiffs challenge statements made in registration materials and prospectuses filed with the Securities and Exchange Commission in connection with eight securities offerings of stock and notes issued by Plains GP Holdings and Plains All American Pipeline and underwritten by BSI, among others. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In March 2016 , BBVA Compass was named as a defendant in a lawsuit filed in the United States District Court of the Southern District of Texas, Lomix Limited Partnership, et al. v. BBVA Compass , wherein the plaintiffs (who are the borrower and guarantors of the underlying loan) allege that BBVA Compass wrongfully sold their loan to a third party, and wrongfully disclosed the guarantors’ personal financial information in connection with the sale of the loan. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In October 2016 , BSI was named as a defendant in a putative class action lawsuit filed in the District Court of Harris County, Texas, and subsequently removed to the United States District Court for the Southern District of Texas, St. Lucie County Fire District Firefighters' Pension Trust, individually and on behalf of all others similarly situated v. Southwestern Energy Company, et al. , wherein the plaintiffs allege that Southwestern Energy Company, its officers and directors, and the underwriting defendants (including BSI) made inaccurate and misleading statements in the registration statement and prospectus related to a securities offering. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In December 2016 , BBVA Compass was named as a defendant in an adversary proceeding filed in the United States Bankruptcy Court for the Southern District of New York, In re: SunEdison, Inc., et al. // Official Committee of Unsecured Creditors v. BBVA Compass, et al. , wherein the plaintiffs allege that the first-lien lenders (including BBVA Compass) exercised undue influence and control over SunEdison’s bankruptcy, that SunEdison improperly incurred secured debt through second-lien secured notes to the detriment of SunEdison’s unsecured creditors shortly before SunEdison filed its bankruptcy petition, and that the second-lien notes constitute avoidable fraudulent transfers under the Bankruptcy Code. The plaintiffs seek unspecified monetary relief. The parties reached a settlement that was approved by the Bankruptcy Court as part of an overall plan that was implemented in December 2017 . Under the terms of that settlement, there is not a material adverse impact to the Company. In December 2016 , BBVA Compass was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Northern District of Alabama, Robert Hossfeld, individually and on behalf of all others similarly situated v. BBVA Compass and MSR Group, LLC , alleging violations of the Telephone Consumer Protection Act in the context of customer satisfaction survey calls to the cell phones of individuals who have not given, or who have withdrawn, consent to receive calls on their cell phones. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In August 2017 , BSI was named as a defendant in a putative class action lawsuit filed in the United States District Court for the District of Connecticut, Ontario Teachers’ Pension Plan Board, individually and on behalf of all others similarly situated v. Teva Pharmaceutical Industries Ltd., et al. , wherein the plaintiffs allege that Teva Pharmaceutical Industries Ltd. (“Teva”), its officers and directors, and the underwriting defendants (including BSI) made inaccurate and misleading statements in the offering materials related to Teva’s role in an alleged conspiracy to inflate the market prices of certain generic drug products. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In August 2017 , BBVA Compass was named as a defendant in a lawsuit filed in the United States District Court for the Northern District of Texas, United States of America ex rel. Edward Hendrickson v. BBVA Compass, et al. , alleging that the defendant banks, including BBVA Compass, violated the federal False Claims Act by accepting federal agency benefit payments into the accounts of deceased customers. Hendrickson seeks unspecified monetary relief on behalf of the United States government. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In September 2017 , BBVA Compass was named as a defendant in putative class action lawsuit filed in the United States District Court for the Northern District of Illinois, Lara Bellissimo, individually and on behalf of similarly situated individuals v. BBVA Compass , alleging violations of the Telephone Consumer Protection Act in the context of collections calls to the cell phones of individuals who were not the individuals that provided the phone numbers to BBVA Compass. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In November 2017 , BBVA Compass was named as a defendant in a lawsuit filed in the United States District Court for the Southern District of New York, Stabilis Fund II, LLC v. BBVA Compass , alleging that BBVA Compass fraudulently induced the plaintiff to purchase a loan that subsequently became the subject of litigation. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In January 2018 , BBVA Compass was named as a defendant in putative class action lawsuit filed in the United States District Court for the Northern District of Illinois, Petra Lopez and Colea Wright, on behalf of themselves and all others similarly situated v. BBVA Compass , challenging BBVA Compass’ assessment of certain overdraft fees. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In January 2018 , BBVA Compass was named as a defendant in putative class action lawsuit filed in the United States District Court for the Western District of Texas, Daniel Andrade, Sr. and Elizabeth M. Andrade, individually and as the representative of a class of similarly situated persons v. BBVA Compass and Taherzadeh, PLLC , alleging that BBVA Compass improperly assesses default rate interest on HELOCs prior to default and without prior notice. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. The Company is or may become involved from time to time in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies, law enforcement authorities and self-regulatory bodies regarding the Company’s business. Such matters may result in material adverse consequences, including without limitation adverse judgments, settlements, fines, penalties, orders, injunctions, alterations in the Company’s business practices or other actions, and could result in additional expenses and collateral costs, including reputational damage, which could have a material adverse impact on the Company’s business, consolidated financial position, results of operations or cash flows. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments. Where a loss is not probable or the amount of a probable loss is not reasonably estimable, the Company does not accrue legal reserves. At December 31, 2017, the Company had accrued legal reserves in the amount of $29 million . Additionally, for those matters where a loss is reasonably possible and the amount of loss is reasonably estimable, the Company estimates the amount of losses that it could incur beyond the accrued legal reserves. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote if “the chance of the future event or events occurring is slight.” For a limited number of legal matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses in excess of related reserves, if any. Management currently estimates these losses to range from $0 to approximately $76 million . This estimated range of reasonably possible losses is based on information available at December 31, 2017 . The matters underlying the estimated range will change from time to time, and the actual results may vary significantly from this estimate. Those matters for which an estimate is not possible are not included within this estimated range; therefore, this estimated range does not represent the Company’s maximum loss exposure. While the outcome of legal proceedings and the timing of the ultimate resolution are inherently difficult to predict, based on information currently available, advice of counsel and available insurance coverage, the Company believes that it has established adequate legal reserves. Further, based upon available information, the Company is of the opinion that these legal proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s financial condition or results of operations. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Company’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period. Income Tax Review The Company is subject to review and examination from various tax authorities. The Company is currently under examination by a number of states, and has received notices of proposed adjustments related to state income taxes due for prior years. Management believes that adequate provisions for income taxes have been recorded. Refer to Note 19 , Income Taxes , for additional information on various tax audits. |
Regulatory Capital Requirements
Regulatory Capital Requirements and Dividends from Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements and Dividends from Subsidiaries | Regulatory Capital Requirements and Dividends from Subsidiaries The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. Under capital adequacy guidelines, the regulatory framework for prompt corrective action and the Gramm-Leach-Bliley Act, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of each entity's assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank are also subject to qualitative judgments by the regulators about capital components, risk weightings and other factors. At December 31, 2017 , the Company and the Bank, remain above the applicable U.S. regulatory capital requirements. Under the U.S. Basel III capital rule, the current minimum required regulatory capital ratios under Transition Requirements to which the Company and the Bank were subject are as follows: 2017 (1) 2016 (2) CET1 Risk-Based Capital Ratio 5.750 % 5.125 % Tier 1 Risk-Based Capital Ratio 7.250 6.625 Total Risk-Based Capital Ratio 9.250 8.625 Tier 1 Leverage Ratio 4.000 4.000 (1) At December 31, 2017 , under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements include a capital conservation buffer of 1.250% . (2) At December 31, 2016 , under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements include a capital conservation buffer of 0.625% . The following table presents the Transitional Basel III regulatory capital ratios at December 31, 2017 and 2016 for the Company and the Bank. Amount Ratios 2017 2016 2017 2016 (Dollars in Thousands) Risk-based capital CET1: BBVA Compass Bancshares, Inc. $ 7,964,877 $ 7,669,118 11.80 % 11.49 % Compass Bank 7,301,630 7,272,273 10.88 10.93 Tier 1: BBVA Compass Bancshares, Inc. 8,199,077 7,907,518 12.15 11.85 Compass Bank 7,305,830 7,280,673 10.89 10.95 Total: BBVA Compass Bancshares, Inc. 9,689,834 9,550,482 14.36 14.31 Compass Bank 9,007,719 9,020,099 13.43 13.56 Leverage: BBVA Compass Bancshares, Inc. 8,199,077 7,907,518 9.98 9.46 Compass Bank 7,305,830 7,280,673 9.10 9.14 Dividends paid by the Bank are the primary source of funds available to the Parent for payment of dividends to its shareholder and other needs. Applicable federal and state statutes and regulations impose restrictions on the amount of dividends that may be declared by the Bank. In addition to the formal statutes and regulations, regulatory authorities also consider the adequacy of each bank’s total capital in relation to its assets, deposits and other such items. Capital adequacy considerations could further limit the availability of dividends from the Bank. The Bank could have paid additional dividends to the Parent in the amount of $1.9 billion while continuing to meet the capital requirements for “well-capitalized” banks at December 31, 2017 ; however, due to the net earnings restrictions on dividend distributions, the Bank did not have the ability to pay any dividends at December 31, 2017 without regulatory approval. The Bank is required to maintain cash balances with the Federal Reserve. The average amount of these balances approximated $2.8 billion and $1.9 billion for the years ended December 31, 2017 and 2016 , respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Defined Benefit Plan The Company sponsors a defined benefit pension plan that is intended to qualify under the Internal Revenue Code. At the beginning of 2003 , the pension plan was closed to new participants, with existing participants being offered the option to remain in the pension plan or move to an employer funded defined contribution plan. Benefits under the pension plan are based on years of service and the employee's highest consecutive five years of compensation during employment. During 2014 , the Company announced to all active participants the sunsetting of the pension plan on December 31, 2017 . Beginning on this date, active participants will no longer be credited with future service but rather will be transitioned into the employer funded portion of the Company's defined contribution plan. The following tables summarize the Company’s defined benefit pension plan. Obligations and Funded Status Years Ended December 31, 2017 2016 (In Thousands) Change in benefit obligation: Benefit obligation, at beginning of year $ 340,191 $ 329,736 Service cost 3,542 3,784 Interest cost 11,685 11,668 Actuarial (gain) loss 22,171 8,374 Benefits paid (13,737 ) (13,371 ) Benefit obligation, at end of year 363,852 340,191 Change in plan assets: Fair value of plan assets, at beginning of year 336,627 338,266 Actual return on plan assets 26,035 11,732 Benefits paid (13,737 ) (13,371 ) Fair value of plan assets, at end of year 348,925 336,627 Funded status (14,927 ) (3,565 ) Net actuarial loss 43,430 37,445 Net amount recognized $ 28,503 $ 33,880 Amounts recognized on the Company’s Consolidated Balance Sheets consist of: December 31, 2017 2016 (In Thousands) Accrued expenses and other liabilities $ (14,927 ) $ (3,565 ) Deferred tax – other assets 10,267 13,907 Accumulated other comprehensive loss 33,163 23,538 Net amount recognized $ 28,503 $ 33,880 The accumulated benefit obligation for the Company’s defined benefit pension plan was $364 million and $338 million at December 31, 2017 and 2016 , respectively. The Company anticipates amortizing $546 thousand of the actuarial loss from accumulated other comprehensive income over the next twelve months. The components of net periodic benefit cost recognized in the Company’s Consolidated Statements of Income are as follows. Years Ended December 31, 2017 2016 2015 (In Thousands) Service cost $ 3,542 $ 3,784 $ 4,754 Interest cost 11,685 11,668 14,459 Expected return on plan assets (10,087 ) (10,446 ) (10,537 ) Recognized actuarial loss — — 563 Net periodic benefit cost $ 5,140 $ 5,006 $ 9,239 The following table provides additional information related to the Company’s defined benefit pension plan. Years Ended December 31, 2017 2016 (Dollars in Thousands) Change in defined benefit plan included in other comprehensive income $ 9,625 $ 4,416 Weighted average assumptions used to determine benefit obligation at December 31: Discount rate 3.57 % 4.04 % Rate of compensation increase N/A 3.00 % Weighted average assumptions used to determine net pension income for year ended December 31: Discount rate - benefit obligations 4.04 % 4.29 % Discount rate - service cost 4.22 % 4.52 % Discount rate - interest cost 3.51 % 3.62 % Expected return on plan assets 3.06 % 3.15 % Rate of compensation increase 3.00 % 3.00 % To establish the discount rate utilized, the Company performs an analysis of matching anticipated cash flows for the duration of the plan liabilities to third party forward discount curves. To develop the expected return on plan assets, the Company considers the current level of expected returns on risk free investments (primarily government bonds), the historical level of risk premium associated with other asset classes in which plan assets are invested, and the expectations for future returns of each asset class. The expected return for each asset class is then weighted based on the target asset allocation, and a range of expected return on plan assets is developed. Based on this information, the plan’s Retirement Committee sets the discount rate and expected rate of return assumption. Future Benefit Payments The following table summarizes the estimated benefits to be paid in the following periods. (In Thousands) 2018 $ 14,753 2019 15,348 2020 16,255 2021 17,072 2022 17,992 2023-2027 99,976 The expected benefits above were estimated based on the same assumptions used to measure the Company’s benefit obligation at December 31, 2017 and include benefits attributable to estimated future employee service. Plan Assets The Company’s Retirement Committee sets the investment policy for the defined benefit pension plan and reviews investment performance and asset allocation on a quarterly basis. The current asset allocation for the plan is entirely allocated to fixed income securities, including U.S. Treasury and other U.S. government securities, corporate debt securities and municipal debt securities, as well as cash and cash equivalent securities. The following table presents the fair value of the Company’s defined benefit pension plan assets. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2017 Assets: Cash and cash equivalents $ 18,985 $ 18,985 $ — $ — Fixed income securities: U.S. Treasury and other U.S. government agencies 235,621 218,200 17,421 — States and political subdivisions 6,401 — 6,401 — Corporate bonds 87,918 — 87,918 — Total fixed income securities 329,940 218,200 111,740 — Fair value of plan assets $ 348,925 $ 237,185 $ 111,740 $ — December 31, 2016 Assets: Cash and cash equivalents $ 12,463 $ 12,463 $ — $ — Fixed income securities: U.S. Treasury and other U.S. government agencies 221,242 200,391 20,851 — States and political subdivisions 6,771 — 6,771 — Corporate bonds 96,151 — 96,151 — Total fixed income securities 324,164 200,391 123,773 — Fair value of plan assets $ 336,627 $ 212,854 $ 123,773 $ — In general, the fair value applied to the Company’s defined benefit pension plan assets is based upon quoted market prices or Level 1 measurements, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use observable market based parameters as inputs, or Level 2 measurements. Level 3 measurements include discounted cash flow analyses based on assumptions that are not readily observable in the market place, such as projections of future cash flows, loss assumptions and discount rates. See Note 20 , Fair Value Measurements , for a further discussion of the fair value hierarchy. Supplemental Retirement Plans The Company maintains unfunded defined benefit plans for certain key executives that are intended to meet the requirements of Section 409A of the Internal Revenue Code and provide additional retirement benefits not otherwise provided through the Company’s basic retirement benefit plans. These plans had unfunded projected benefit obligations and net plan liabilities of $33 million at both December 31, 2017 and 2016 , which are reflected on the Company’s Consolidated Balance Sheets as accrued expenses and other liabilities. Net periodic expenses of these plans were $1.5 million , $2.0 million and $2.0 million for each of the years ended December 31, 2017 , 2016 and 2015 , respectively. At December 31, 2017 and 2016 , the Company had $11.6 million and $9.0 million , respectively, recognized in accumulated other comprehensive income, net of tax, related to these plans. Defined Contribution Plan The Company sponsors a defined contribution plan comprised of a traditional employee defined contribution component with matching employer contributions and an employer funded defined contribution component. Under the traditional employee portion of the defined contribution plan, employees may contribute up to 75% of their compensation on a pretax basis subject to statutory limits. The Company makes matching contributions equal to 100% of the first 3% of compensation deferred plus 50% of the next 2% of compensation deferred. The Company may also make voluntary non-matching contributions to the plan. Under the employer funded portion of the defined contribution plan, the Company makes contributions on behalf of certain employees based on pay and years of service. The Company's contributions range from 2% to 4% of the employee's base pay based on the employee's years of service. Participation in this portion of the defined contribution plan was limited to employees hired after January 1, 2002 and those participants in the defined benefit pension plan who, in 2002 , chose to forgo future accumulation of benefit service. In aggregate, the Company recognized $38.1 million , $37.2 million , and $34.8 million of expense recorded in salaries, benefits and commissions in the Company's Consolidated Statements of Income related to this defined contribution plan for the years ended December 31, 2017 , 2016 , and 2015 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense consisted of the following: Years Ended December 31, 2017 2016 2015 (In Thousands) Current income tax expense: Federal $ 158,531 $ 154,572 $ 275,135 State 19,588 13,322 12,409 Total 178,119 167,894 287,544 Deferred income tax expense (benefit): Federal 141,093 (19,973 ) (102,070 ) State (3,136 ) (1,900 ) (8,972 ) Total 137,957 (21,873 ) (111,042 ) Total income tax expense $ 316,076 $ 146,021 $ 176,502 Income tax expense differed from the amount computed by applying the federal statutory income tax rate to pretax earnings for the following reasons: Years Ended December 31, 2017 2016 2015 Amount Percent of Pretax Earnings Amount Percent of Pretax Earnings Amount Percent of Pretax Earnings (Dollars in Thousands) Income tax expense at federal statutory rate $ 271,902 35.0 % $ 181,140 35.0 % $ 239,351 35.0 % Increase (decrease) resulting from: Goodwill impairment — — 20,965 4.0 5,950 0.9 Tax-exempt interest income (56,814 ) (7.3 ) (51,246 ) (9.9 ) (49,170 ) (7.2 ) Change in valuation allowance (1,167 ) (0.2 ) 402 0.1 (2,029 ) (0.3 ) Bank owned life insurance (5,988 ) (0.8 ) (6,035 ) (1.2 ) (6,082 ) (0.9 ) Income tax credits (25,635 ) (3.3 ) (11,257 ) (2.2 ) (10,238 ) (1.5 ) State income tax, net of federal income taxes 14,118 1.8 7,106 1.4 4,154 0.6 Revaluation of net deferred tax assets (1) 121,244 15.7 — — — — Other (1,584 ) (0.2 ) 4,946 1.0 (5,434 ) (0.8 ) Income tax expense $ 316,076 40.7 % $ 146,021 28.2 % $ 176,502 25.8 % (1) Includes approximately $40 million of expense related to items in accumulated other comprehensive income in which the related tax effects were originally recognized in other comprehensive income. On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act into legislation, which reduces the corporate tax rate from 35% to 21% effective January 1, 2018. ASC Topic 740, Income Taxes , requires the effect of a change in tax laws or rates to be recognized as of the date of enactment. The Company has recorded tax expense of $121.2 million , primarily due to the remeasurement of deferred tax assets and liabilities at the federal tax rate of 21% . At December 31, 2017, the Company has recorded the effects of the change in tax law for the deferred tax assets and tax liabilities for which the accounting is complete and reported provisional amounts for the effects of the tax law changes for the deferred tax assets and liabilities for which the accounting is not complete, but for which a reasonable estimate can be determined. The Company may have to adjust the provisional amounts when it obtains, prepares or analyzes additional information about facts and circumstances that existed at the enactment date when the Company files its federal tax return for the tax year 2018 but no later than the measurement period of one year. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below. December 31, 2017 2016 (In Thousands) Deferred tax assets: Allowance for loan losses $ 197,563 $ 309,655 Accrued expenses 89,847 121,459 Loan valuation — 48,880 Net unrealized losses on investment securities available for sale, hedging instruments and defined benefit plan adjustment 73,424 98,916 Other real estate owned 467 567 Nonaccrual interest 17,737 22,707 Federal net operating loss carryforwards 6,906 15,041 Other 35,416 57,216 Gross deferred taxes 421,360 674,441 Valuation allowance (11,641 ) (14,639 ) Total deferred tax assets 409,719 659,802 Deferred tax liabilities: Premises and equipment 147,542 243,113 Core deposit and other acquired intangibles 6,864 13,117 Capitalized loan costs 32,584 47,527 Loan valuation 1,648 — Other 12,832 24,309 Total deferred tax liabilities 201,470 328,066 Net deferred tax asset $ 208,249 $ 331,736 As of December 31, 2017 and 2016 , the Company has approximately $14.1 million and $24.1 million of federal net operating loss carryforwards for future utilization, primarily attributable to Simple in 2017 and 2016 . These losses begin to expire in 2034 . The Company believes that it is more likely than not that the benefit from these deferred tax assets will be realized. A real estate investment subsidiary of the Company has net operating loss carryforwards of approximately $18.8 million at both December 31, 2017 and 2016 . These losses begin to expire in 2030 . The Company has determined that it is more likely than not the benefit from this deferred tax asset will not be realized in the carryforward period and has recorded a full valuation allowance of approximately $4.0 million and $6.6 million against the assets at December 31, 2017 and 2016 , respectively. Additionally, the Company has state net operating loss carryforwards of approximately $231.0 million and $238.0 million at December 31, 2017 and 2016 , respectively. These state net operating losses expire in years 2018 through 2034 . The Company believes it is more likely than not the benefit from certain state net operating loss carryforwards will not be realized, and, accordingly, has established a valuation allowance associated with these net operating loss carryforwards. The Company had recorded a valuation allowance of approximately $7.7 million and $8.0 million at December 31, 2017 and 2016 , respectively, related to these state net operating loss carryforwards. The following is a tabular reconciliation of the total amounts of the gross unrecognized tax benefits. Years Ended December 31, 2017 2016 2015 (In Thousands) Unrecognized income tax benefits, at beginning of year $ 13,615 $ 16,552 $ 28,286 Increases for tax positions related to: Prior years 414 — 58 Current year 2,196 1,933 1,537 Decreases for tax positions related to: Prior years — (2,185 ) (85 ) Current year — — — Settlement with taxing authorities — (1,174 ) (583 ) Expiration of applicable statutes of limitation (1,309 ) (1,511 ) (12,661 ) Unrecognized income tax benefits, at end of year $ 14,916 $ 13,615 $ 16,552 During the years ended December 31, 2017 , 2016 and 2015 , the Company recognized benefits of $(872) thousand , $(1.8) million and $(3.2) million , respectively, for interest and penalties related to the unrecognized tax benefits noted above. At December 31, 2017 and 2016 , the Company had approximately $4.3 million and $5.1 million , respectively, of accrued interest and penalties recognized related to unrecognized tax benefits within accrued expenses and other liabilities. Included in the balance of unrecognized tax benefits at December 31, 2017 , 2016 and 2015 were $14.9 million , $13.6 million and $16.6 million , respectively, of tax benefits that, if recognized after the balance sheet date, would affect the effective tax rate. The Company and its subsidiaries are routinely examined by various taxing authorities. The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: Jurisdictions Open Tax Years Federal 2014-2017 Various states (1) 2006-2017 (1) Major state tax jurisdictions include Alabama, California, Texas and New York. The Company believes that it has adequately reserved on federal and state issues and any variance on final resolution, whether over or under the reserve amount, would be immaterial to the financial statements. It is reasonably possible that the above unrecognized tax benefits could be reduced by approximately $7 million in 2018 due to statute expiration and audit settlement. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value Measurements The Company applies the fair value accounting guidance required under ASC Topic 820 which establishes a framework for measuring fair value. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within this fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows. • Level 1 – Fair value is based on quoted prices in an active market for identical assets or liabilities. • Level 2 – Fair value is based on quoted market prices for similar instruments traded in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – Fair value is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities would include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar pricing techniques based on the Company’s own assumptions about what market participants would use to price the 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 under the fair value hierarchy, is set forth below. These valuation methodologies were applied to the Company’s financial assets and financial liabilities carried at fair value. 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 observable market based parameters as inputs. 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 and the Company’s creditworthiness, among other things, as well as other unobservable parameters. Any such valuation adjustments are applied consistently over time. 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. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. Financial Instruments Measured at Fair Value on a Recurring Basis Trading account assets and liabilities, securities available for sale, certain mortgage loans held for sale, derivative assets and liabilities, and mortgage servicing rights are recorded at fair value on a recurring basis. The following is a description of the valuation methodologies for these assets and liabilities. Trading account assets and liabilities and investment securities available for sale – Trading account assets and liabilities and investment securities available for sale consist of U.S. Treasury securities and other U.S. government agency securities, mortgage-backed securities, collateralized mortgage obligations, debt obligations of state and political subdivisions, other debt and equity securities, and derivative contracts. • U.S. Treasury securities and other U.S. government agency securities are valued based on quoted market prices of identical assets on active exchanges (Level 1 measurements) or are valued based on a market approach using observable inputs such as benchmark yields, reported trades, broker/dealer quotes, benchmark securities, and bids/offers of government-sponsored enterprise securities (Level 2 measurements). • Mortgage-backed securities are primarily valued using market-based pricing matrices that are based on observable inputs including benchmark To Be Announced security prices, U.S. Treasury yields, U.S. dollar swap yields, and benchmark floating-rate indices. Mortgage-backed securities pricing may also give consideration to pool-specific data such as prepayment history and collateral characteristics. Valuations for mortgage-backed securities are therefore classified as Level 2 measurements. • Collateralized mortgage obligations are valued using market-based pricing matrices that are based on observable inputs including reported trades, bids, offers, dealer quotes, U.S. Treasury yields, U.S. dollar swap yields, market convention prepayment speeds, tranche-specific characteristics, prepayment history, and collateral characteristics. Fair value measurements for collateralized mortgage obligations are classified as Level 2 measurements. • Debt obligations of states and political subdivisions are primarily valued using market-based pricing matrices that are based on observable inputs including Municipal Securities Rulemaking Board reported trades, issuer spreads, material event notices, and benchmark yield curves. These valuations are Level 2 measurements. • Other debt and equity securities consist of mutual funds, foreign and corporate debt, and U.S. government agency equity securities. Mutual funds are valued based on quoted market prices of identical assets trading on active exchanges. These valuations are Level 1 measurements. Foreign and corporate debt valuations are based on information and assumptions that are observable in the market place. The valuations for these securities are therefore classified as Level 2. U.S. government agency equity securities are valued based on quoted market prices of identical assets trading on active exchanges. These valuations thus qualify as Level 1 measurements. • Other derivative assets and liabilities consist primarily of interest rate contracts. The Company’s interest rate contracts are valued utilizing Level 2 observable inputs (yield curves and volatilities) to determine a current market price for each interest rate contract. These valuations are classified as Level 2 measurements. • Other trading assets primarily consist of interest-only strips which are valued by an independent third-party. The independent third-party values the assets on a loan-by-loan basis using a discounted cash flow analysis that employs prepayment assumptions, discount rate assumptions, and default curves. The prepayment assumptions are created from actual SBA pool prepayment history. The discount rates are derived from actual SBA loan secondary market transactions. The default curves are created using historical observable and unobservable inputs. As such, interest-only strips are classified as Level 3 measurements. The Company’s SBA department is responsible for ensuring the appropriate application of the valuation, capitalization, and amortization policies of the Company’s interest-only strips. The department performs independent, internal valuations of the interest-only strips on a quarterly basis, which are then reconciled to the third-party valuations to ensure their validity. Loans held for sale – The Company has elected to apply the fair value option for single family real estate mortgage loans originated for resale in the secondary market. The election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other loans held for sale primarily because they are not economically hedged using derivative instruments. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. The changes in fair value of these assets are largely driven by changes in interest rates subsequent to loan funding and changes in the fair value of servicing associated with the mortgage loan held for sale. Both the mortgage loans held for sale and the related forward contracts are classified as Level 2 measurements. At both December 31, 2017 and 2016 , no loans held for sale for which the fair value option was elected were 90 days or more past due or were in nonaccrual. Interest income on mortgage loans held for sale is recognized based on contractual rates and is reflected in interest and fees on loans in the Consolidated Statements of Income. Net gains (losses) of $748 thousand , $(658) thousand and $(4.2) million resulting from changes in fair value of these loans were recorded in noninterest income during the years ended December 31, 2017 , 2016 , and 2015 , respectively. The Company also had fair value changes on forward contracts related to residential mortgage loans held for sale of approximately $(2.0) million , $857 thousand and $3.8 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk. The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value. Aggregate Fair Value Aggregate Unpaid Principal Balance Difference (In Thousands) December 31, 2017 Residential mortgage loans held for sale $ 67,110 $ 64,992 $ 2,118 December 31, 2016 Residential mortgage loans held for sale $ 105,257 $ 103,886 $ 1,371 Derivative assets and liabilities – Derivative assets and liabilities are measured using models that primarily use market observable inputs, such as quoted security prices, and are accordingly classified as Level 2. The derivative assets and liabilities classified within Level 3 of the fair value hierarchy were comprised of interest rate lock commitments that are valued using third-party software that calculates fair market value considering current quoted TBA and other market based prices and then applies closing ratio assumptions based on software-produced pull through ratios that are generated using the Company’s historical fallout activity. Based upon this process, the fair value measurement obtained for these financial instruments is deemed a Level 3 classification. The Company's Secondary Marketing Committee is responsible for the appropriate application of the valuation policies and procedures surrounding the Company’s interest rate lock commitments. Policies established to govern mortgage pipeline risk management activities must be approved by the Company’s Asset Liability Committee on an annual basis. Other assets - MSR – A component of other assets measured at fair value on a recurring basis and classified within Level 3 of the fair value hierarchy are MSRs that are valued through a discounted cash flow analysis using a third-party commercial valuation system. The MSR valuation takes into consideration the objective characteristics of the MSR portfolio, such as loan amount, note rate, service fee, loan term, and common industry assumptions, such as servicing costs, ancillary income, prepayment estimates, earning rates, cost of fund rates, option-adjusted spreads, etc. The Company’s portfolio-specific factors are also considered in calculating the fair value of MSRs to the extent one can reasonably assume a buyer would also incorporate these factors. Examples of such factors are geographical concentrations of the portfolio, liquidity consideration, or additional views of risk not inherently accounted for in prepayment assumptions. Product liquidity and these other risks are generally incorporated through adjustment of discount factors applied to forecasted cash flows. Based on this method of pricing MSRs, the fair value measurement obtained for these financial instruments is deemed a Level 3 classification. The value of the MSR is calculated by a third-party firm that specializes in the MSR market and valuation services. Additionally, the Company obtains a valuation from an independent party to compare for reasonableness. The Company’s Secondary Marketing Committee is responsible for ensuring the appropriate application of valuation, capitalization, and fair value decay policies for the MSR portfolio. The Committee meets at least monthly to review the MSR portfolio. Other assets - SBIC – A component of other assets measured at fair value on a recurring basis and classified within Level 3 of the fair value hierarchy are SBIC investments. The SBIC investments are valued initially based upon transaction price. Valuation factors such as recent or proposed purchase or sale of debt or equity of the issuer, pricing by other dealers in similar securities, size of position held, liquidity of the market, and changes in economic conditions affecting the issuer, are used in the determination of estimated fair value. The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies securities $ 74,195 $ 74,195 $ — $ — State and political subdivisions securities 557 — 557 — Other debt securities 79 — 79 — Interest rate contracts 133,516 — 133,516 — Foreign exchange contracts 12,149 — 12,149 — Total trading account assets 220,496 74,195 146,301 — Investment securities available for sale: U.S. Treasury and other U.S. government agencies 4,204,438 3,248,898 955,540 — Agency mortgage-backed securities 2,812,800 — 2,812,800 — Agency collateralized mortgage obligations 5,200,011 — 5,200,011 — States and political subdivisions 2,383 — 2,383 — Equity securities (1) 13,930 13,577 — 353 Total investment securities available for sale 12,233,562 3,262,475 8,970,734 353 Loans held for sale 67,110 — 67,110 — Derivative assets: Interest rate contracts 22,263 38 19,809 2,416 Equity contracts 39,791 — 39,791 — Foreign exchange contracts 375 — 375 — Total derivative assets 62,429 38 59,975 2,416 Other assets - MSR 49,597 — — 49,597 Other assets - SBIC 45,042 — — 45,042 Liabilities: Trading account liabilities: U.S. Treasury and other U.S. government agencies securities $ 17,996 $ 17,996 $ — $ — Interest rate contracts 134,073 — 134,073 — Foreign exchange contracts 10,524 — 10,524 — Total trading account liabilities 162,593 17,996 144,597 — Derivative liabilities: Interest rate contracts 21,387 — 21,387 — Equity contracts 35,562 — 35,562 — Foreign exchange contracts 3,890 — 3,890 — Total derivative liabilities 60,839 — 60,839 — (1) Excludes $450 million of FHLB and Federal Reserve stock required to be owned by the Company at December 31, 2017 . These securities are carried at par. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies securities $ 2,820,797 $ 2,820,797 $ — $ — State and political subdivisions securities 219 — 219 — Other debt securities 4,120 — 4,120 — Interest rate contracts 290,238 — 290,238 — Foreign exchange contracts 28,367 — 28,367 — Other trading assets 859 — — 859 Total trading account assets 3,144,600 2,820,797 322,944 859 Investment securities available for sale: U.S. Treasury and other U.S. government agencies 2,374,331 1,266,564 1,107,767 — Agency mortgage-backed securities 3,763,338 — 3,763,338 — Agency collateralized mortgage obligations 5,098,928 — 5,098,928 — States and political subdivisions 8,641 — 8,641 — Equity securities (1) 16,565 16,272 — 293 Total investment securities available for sale 11,261,803 1,282,836 9,978,674 293 Loans held for sale 105,257 — 105,257 — Derivative assets: Interest rate contracts 46,133 — 43,709 2,424 Equity contracts 57,198 — 57,198 — Foreign exchange contracts 3,875 — 3,875 — Total derivative assets 107,206 — 104,782 2,424 Other assets - MSR 51,428 — — 51,428 Other assets - SBIC 15,639 — — 15,639 Liabilities: Trading account liabilities: U.S. Treasury and other U.S. government agencies $ 2,750,085 $ 2,750,085 $ — $ — Other debt securities 2,892 — 2,892 — Interest rate contracts 228,748 — 228,748 — Foreign exchange contracts 26,317 — 26,317 — Total trading account liabilities 3,008,042 2,750,085 257,957 — Derivative liabilities: Interest rate contracts 33,414 — 33,382 32 Equity contracts 53,044 — 53,044 — Foreign exchange contracts 2,103 — 2,103 — Total derivative liabilities 88,561 — 88,529 32 (1) Excludes $403 million of FHLB and Federal Reserve stock required to be owned by the Company at December 31, 2016 . These securities are carried at par. There were no transfers between Levels 1 or 2 of the fair value hierarchy for the years ended December 31, 2017 and 2016 . It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. The following table reconciles the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Other Trading Assets Equity Securities Interest Rate Contracts, net Other Assets - MSR Other Assets - SBIC (In Thousands) Balance, December 31, 2015 $ 1,117 $ 253 $ 2,874 $ 44,541 $ — Transfers into Level 3 — — — — — Transfers out of Level 3 — — — — — Total gains or losses (realized/unrealized): Included in earnings (1) (258 ) — (482 ) (3,231 ) — Included in other comprehensive income — — — — — Purchases, issuances, sales and settlements: Purchases — 41 — — 15,639 Issuances — — — 10,118 — Sales — (1 ) — — — Settlements — — — — — Balance, December 31, 2016 $ 859 $ 293 $ 2,392 $ 51,428 $ 15,639 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2016 $ (258 ) $ — $ (482 ) $ (3,231 ) $ — Balance, December 31, 2016 $ 859 $ 293 $ 2,392 $ 51,428 $ 15,639 Transfers into Level 3 — — — — — Transfers out of Level 3 — — — — — Total gains or losses (realized/unrealized): Included in earnings (1) (859 ) — 24 (8,929 ) 10,088 Included in other comprehensive income — — — — — Purchases, issuances, sales and settlements: Purchases — 63 — — 19,315 Issuances — — — 7,098 — Sales — (3 ) — — — Settlements — — — — — Balance, December 31, 2017 $ — $ 353 $ 2,416 $ 49,597 $ 45,042 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2017 $ (859 ) $ — $ 24 $ (8,929 ) $ 10,088 (1) Included in noninterest income in the Consolidated Statements of Income. Assets Measured at Fair Value on a Nonrecurring Basis Periodically, certain assets may be recorded at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets due to impairment. The following table represents those assets that were subject to fair value adjustments during the years ended December 31, 2017 and 2016 and still held as of the end of the year, and the related losses from fair value adjustments on assets sold during the year as well as assets still held as of the end of the year. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) December 31, 2017 (Level 1) (Level 2) (Level 3) December 31, 2017 (In Thousands) Nonrecurring fair value measurements Assets: Investment securities held to maturity $ 1,659 $ — $ — $ 1,659 $ (242 ) Impaired loans (1) 70,749 — — 70,749 (90,553 ) OREO 17,278 — — 17,278 (5,577 ) Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) December 31, 2016 (Level 1) (Level 2) (Level 3) December 31, 2016 (In Thousands) Nonrecurring fair value measurements Assets: Investment securities held to maturity $ 2,550 $ — $ — $ 2,550 $ (130 ) Loans held for sale 56,592 — 56,592 — (8,295 ) Impaired loans (1) 59,807 — — 59,807 (69,051 ) OREO 21,112 — — 21,112 (3,438 ) (1) Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral. The following is a description of the methodologies applied for valuing these assets: Investment securities held to maturity – Nonrecurring fair value adjustments on investment securities held to maturity reflect impairment write-downs which the Company believes are other than temporary. For analyzing these securities, the Company has retained a third-party valuation firm. Impairment is determined through the use of cash flow models that estimate cash flows on the underlying mortgages using security-specific collateral and the transaction structure. The cash flow models incorporate the remaining cash flows which are adjusted for future expected credit losses. Future expected credit losses are determined by using various assumptions such as current default rates, prepayment rates, and loss severities. The Company develops these assumptions through the use of market data published by third-party sources in addition to historical analysis which includes actual delinquency and default information through the current period. The expected cash flows are then discounted at the interest rate used to recognize interest income on the security to arrive at a present value amount. As the fair value assessments are derived using a discounted cash flow modeling approach, the nonrecurring fair value adjustments are classified as Level 3 measurements. Impaired Loans – Impaired loans measured at fair value on a non-recurring basis represent the carrying value of impaired loans for which adjustments are based on the appraised value of the collateral. Nonrecurring fair value adjustments to impaired loans reflect full or partial write-downs that are generally based on the fair value of the underlying collateral supporting the loan. Loans subjected to nonrecurring fair value adjustments based on the current estimated fair value of the collateral are classified as Level 3 measurements. OREO – OREO is recorded at the lower of recorded balance or fair value, which is based on appraisals and third-party price opinions, less estimated costs to sell. The fair value is classified as Level 3 measurements. The tables below present quantitative information about the significant unobservable inputs for material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring and nonrecurring basis. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs December 31, 2017 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Interest rate contracts $ 2,416 Discounted cash flow Closing ratios (pull-through) 24.9% - 99.3% (66.1%) Cap grids 0.2% - 2.3% (0.9%) Other assets - MSRs 49,597 Discounted cash flow Option adjusted spread 4.6% - 17.2% (8.2%) Constant prepayment rate or life speed 0.0% - 46.7% (8.6%) Cost to service $65 - $4,000 ($81) Other assets - SBIC investments 45,042 Transaction price Transaction price N/A Nonrecurring fair value measurements: Investment securities held to maturity $ 1,659 Discounted cash flow Prepayment rate 5.1% Default rate 4.8% Loss severity 70.6% Impaired loans 70,749 Appraised value Appraised value 0.0% - 100.0% (19.2%) OREO 17,278 Appraised value Appraised value 8.0% (1) (1) Represents discounts to appraised value for estimated costs to sell. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs December 31, 2016 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Other trading assets $ 859 Discounted cash flow Default rate 10.1% Prepayment rate 6.2% - 11.1% (8.2%) Interest rate contracts 2,392 Discounted cash flow Closing ratios (pull-through) 18.6% - 99.1% (68.5%) Cap grids 0.1% - 2.3% (1.1%) Other assets - MSRs 51,428 Discounted cash flow Option adjusted spread 6.1% - 18.6% (8.1%) Constant prepayment rate or life speed 1.3% - 62.0% (15.7%) Cost to service $65 - $4,000 ($79) Other assets - SBIC investments 15,639 Transaction price Transaction price N/A Nonrecurring fair value measurements: Investment securities held to maturity $ 2,550 Discounted cash flow Prepayment rate 10.9% Default rate 9.2% Loss severity 63.7% Impaired loans 59,807 Appraised value Appraised value 0.0% - 80.0% (31.9%) OREO 21,112 Appraised value Appraised value 8.0% (1) (1) Represents discounts to appraised value for estimated costs to sell. The following provides a description of the sensitivity of the valuation technique to changes in unobservable inputs for recurring fair value measurements. Recurring Fair Value Measurements Using Significant Unobservable Inputs Trading Account Assets – Interest-Only Strips Significant unobservable inputs used in the valuation of the Company’s interest-only strips include default rates and prepayment assumptions. Significant increases in either of these inputs in isolation would result in significantly lower fair value measurements. Generally, a change in the assumption used for the probability of default is accompanied by a directionally opposite change in the assumption used for prepayment rates. Interest Rate Contracts - Interest Rate Lock Commitments Significant unobservable inputs used in the valuation of interest rate contracts are pull-through and cap grids. Increases or decreases in the pull-through or cap grids will have a corresponding impact in the value of interest rate contracts. Other Assets - MSRs The significant unobservable inputs used in the fair value measurement of MSRs are option-adjusted spreads, constant prepayment rate or life speed, and cost to service assumptions. The impact of prepayments and changes in the option-adjusted spread are based on a variety of underlying inputs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The impact of the costs to service assumption will have a directionally opposite change in the fair value of the MSR asset. Other Assets - SBIC Investments The significant unobservable inputs used in the fair value measurement of SBIC Investments are initially based upon transaction price. Increases or decreases in valuation factors such as recent or proposed purchase or sale of debt or equity of the issuer, pricing by other dealers in similar securities, size of position held, liquidity of the market will have a corresponding impact in the value of SBIC investments. Fair Value of Financial Instruments The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows: December 31, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 4,082,826 $ 4,082,826 $ 4,082,826 $ — $ — Investment securities held to maturity 1,046,093 1,040,543 — — 1,040,543 Loans, net 60,781,008 57,906,982 — — 57,906,982 Liabilities: Deposits $ 69,256,313 $ 69,302,597 $ — $ 69,302,597 $ — FHLB and other borrowings 3,959,930 4,010,308 — 4,010,308 — Federal funds purchased and securities sold under agreements to repurchase 19,591 19,591 — 19,591 — December 31, 2016 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 3,251,786 $ 3,251,786 $ 3,251,786 $ — $ — Investment securities held to maturity 1,203,217 1,182,009 — — 1,182,009 Loans, net 59,222,970 56,283,761 — — 56,283,761 Liabilities: Deposits $ 67,279,533 $ 67,359,299 $ — $ 67,359,299 $ — FHLB and other borrowings 3,001,551 3,001,836 — 3,001,836 — Federal funds purchased and securities sold under agreements to repurchase 39,052 39,052 — 39,052 — Other short-term borrowings 50,000 50,000 — 50,000 — The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments not carried at fair value: Cash and cash equivalents : Cash and cash equivalents have maturities of three months or less. Accordingly, the carrying amount approximates fair value. Because these amounts generally relate to either currency or highly liquid assets, these are considered a Level 1 measurement. Investment securities held to maturity: The fair values of securities held to maturity are estimated using a discounted cash flow approach. The discounted cash flow model uses inputs such as estimated prepayment speed, loss rates, and default rates. They are considered a Level 3 measurement as the valuation employs significant unobservable inputs. Loans : Loans are presented net of the allowance for loan losses and are valued using discounted cash flows. The discount rates used to determine the present value of these loans are based on current market interest rates for loans with similar credit risk and term. They are considered a Level 3 measurement as the valuation employs significant unobservable inputs. Deposits : The fair values of demand deposits are equal to the carrying amounts. Demand deposits include noninterest bearing demand deposits, savings accounts, NOW accounts and money market demand accounts. Discounted cash flows have been used to value fixed rate term deposits. The discount rate used is based on interest rates currently being offered by the Company on comparable deposits as to amount and term. They are considered a Level 2 measurement as the valuation primarily employs observable inputs for similar instruments. FHLB and other borrowings : The fair value of the Company’s fixed rate borrowings, which includes the Company’s Capital Securities, are estimated using discounted cash flows, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The carrying amount of the Company’s variable rate borrowings approximates fair value. As such, these borrowings are considered a Level 2 measurement as the valuation primarily employs observable inputs for similar instruments. Federal fund purchased, securities sold under agreements to repurchase and short-term borrowings : The carrying amounts of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings approximates fair value. They are therefore considered a Level 2 measurement. |
Supplemental Disclosure for Sta
Supplemental Disclosure for Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure for Statement of Cash Flows | Supplemental Disclosure for Statement of Cash Flows The following table presents the Company’s noncash investing and financing activities. Years Ended December 31, 2017 2016 2015 (In Thousands) Supplemental disclosures of cash flow information: Interest paid $ 458,660 $ 460,766 $ 405,548 Net income taxes paid 164,875 163,917 273,578 Supplemental schedule of noncash investing and financing activities: Transfer of loans and loans held for sale to OREO $ 28,986 $ 26,235 $ 20,781 Transfer of loans to loans held for sale — 828,910 906,857 Transfer of loans held for sale to loans — — 511,400 Issuance of restricted stock, net of cancellations (689 ) (1,686 ) 2,595 Business combinations: Assets acquired $ — $ — $ 14,327 Liabilities assumed — — 977 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operating segments are based on the Company's lines of business. Each line of business is a strategic unit that serves a particular group of customers with certain common characteristics by offering various products and services. The segment results include certain overhead allocations and intercompany transactions. All intercompany transactions have been eliminated to determine the consolidated balances. The Company operates primarily in the United States, and, accordingly, the geographic distribution of revenue and assets is not significant. There are no individual customers whose revenues exceeded 10% of consolidated revenue. During the fourth quarter of 2017, the Company reorganized its segment reporting structure. As a result of this reorganization the Consumer and Commercial Banking segment was divided into two operating segments: (1) Commercial Banking and Wealth and (2) Retail Banking. At December 31, 2017 , the Company’s operating segments consisted of Commercial Banking and Wealth, Retail Banking, Corporate and Investment Banking, and Treasury. The Commercial Banking and Wealth segment serves the Company’s commercial customers through its wide array of banking and investment services to businesses in the Company’s markets. The segment also provides private banking and wealth management services to high net worth individuals, including specialized investment portfolio management, traditional credit products, traditional trust and estate services, investment advisory services, financial counseling and customized services to companies and their employees. The Commercial Banking and Wealth segment also supports its commercial customers with capabilities in treasury management, accounts receivable purchasing, asset-based lending, international services, and insurance and interest rate protection and investment products. The Commercial Banking and Wealth segment is also responsible for the Company's small business customers and indirect automobile portfolio. The Retail Banking segment serves the Company’s consumer customers through its full-service banking centers, private client offices throughout the U.S., and alternative delivery channels such as internet, mobile ATMs and telephone banking. The Retail Banking segment provides individuals with comprehensive products and services including home mortgages, consumer loans, credit and debit cards, and deposit accounts. The Corporate and Investment Banking segment is responsible for providing a wide array of banking and investment services to corporate and institutional clients. In addition to traditional credit and deposit products, the Corporate and Investment Banking segment also supports its customers with capabilities in treasury management, accounts receivable purchasing, asset-based lending, foreign-exchange and international services, and interest rate protection and investment products. The Treasury segment's primary function is to manage the liquidity and funding positions of the Company, the interest rate sensitivity of the Company's balance sheet and the investment securities portfolio. Corporate Support and Other includes activities that are not directly attributable to the operating segments, such as, the activities of the Parent and corporate support functions that are not directly attributable to a strategic business segment, as well as the elimination of intercompany transactions. Corporate Support and Other also includes the activities associated with Simple. The following table presents the segment information for the Company’s segments. December 31, 2017 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income $ 1,114,619 $ 947,687 $ 158,000 $ 26,753 $ 83,108 $ 2,330,167 Allocated provision for loan losses 70,748 171,949 6,906 — 38,090 287,693 Noninterest income 209,261 457,216 195,434 12,074 171,990 1,045,975 Noninterest expense 632,824 1,164,927 148,754 24,921 340,161 2,311,587 Net income (loss) before income tax expense (benefit) 620,308 68,027 197,774 13,906 (123,153 ) 776,862 Income tax expense 217,108 23,809 69,221 4,867 1,071 316,076 Net income (loss) 403,200 44,218 128,553 9,039 (124,224 ) 460,786 Less: net income attributable to noncontrolling interests 299 — — 1,685 21 2,005 Net income (loss) attributable to BBVA Compass Bancshares, Inc. $ 402,901 $ 44,218 $ 128,553 $ 7,354 $ (124,245 ) $ 458,781 Average total assets $ 35,874,760 $ 18,084,514 $ 10,072,542 $ 15,475,862 $ 7,850,620 $ 87,358,298 December 31, 2016 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 1,140,639 $ 905,460 $ 158,347 $ (14,257 ) $ (122,508 ) $ 2,067,681 Allocated provision for loan losses 124,054 96,428 56,963 — 25,144 302,589 Noninterest income 204,387 457,975 187,782 54,228 151,602 1,055,974 Noninterest expense 629,931 1,148,818 181,635 21,096 322,042 2,303,522 Net income (loss) before income tax expense (benefit) 591,041 118,189 107,531 18,875 (318,092 ) 517,544 Income tax expense (benefit) 206,865 41,366 37,636 6,606 (146,452 ) 146,021 Net income (loss) 384,176 76,823 69,895 12,269 (171,640 ) 371,523 Less: net income attributable to noncontrolling interests 310 — — 1,713 (13 ) 2,010 Net income (loss) attributable to BBVA Compass Bancshares, Inc. $ 383,866 $ 76,823 $ 69,895 $ 10,556 $ (171,627 ) $ 369,513 Average total assets $ 36,499,711 $ 17,513,245 $ 13,332,010 $ 16,220,449 $ 7,498,945 $ 91,064,360 December 31, 2015 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 1,025,130 $ 828,335 $ 173,840 $ 24,221 $ (38,549 ) $ 2,012,977 Allocated provision for loan losses 88,882 46,636 58,337 — (217 ) 193,638 Noninterest income 204,956 469,430 165,656 91,439 147,893 1,079,374 Noninterest expense 594,582 1,143,441 159,524 20,119 297,187 2,214,853 Net income (loss) before income tax expense (benefit) 546,622 107,688 121,635 95,541 (187,626 ) 683,860 Income tax expense (benefit) 191,318 37,691 42,572 33,439 (128,518 ) 176,502 Net income (loss) 355,304 69,997 79,063 62,102 (59,108 ) 507,358 Less: net income attributable to noncontrolling interests 488 — — 1,740 — 2,228 Net income (loss) attributable to BBVA Compass Bancshares, Inc. $ 354,816 $ 69,997 $ 79,063 $ 60,362 $ (59,108 ) $ 505,130 Average total assets $ 35,000,182 $ 17,845,225 $ 13,901,379 $ 14,520,289 $ 7,122,104 $ 88,389,179 The financial information presented was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting policies that have been developed to reflect the underlying economics of the businesses. These policies address the methodologies applied and include policies related to funds transfer pricing, cost allocations and capital allocations. Funds transfer pricing was used in the determination of net interest income earned primarily on loans and deposits. The method employed for funds transfer pricing is a matched funding concept whereby lines of business which are fund providers are credited and those that are fund users are charged based on maturity, prepayment and/or repricing characteristics applied on an instrument level. Costs for centrally managed operations are generally allocated to the lines of business based on the utilization of services provided or other appropriate indicators. Capital is allocated to the lines of business based upon the underlying risks in each business considering economic and regulatory capital standards. The development and application of these methodologies is a dynamic process. Accordingly, prior period financial results have been revised to reflect management accounting enhancements and changes in the Company's organizational structure. The 2016 and 2015 segment information has been revised to conform to the 2017 presentation. In addition, unlike financial accounting, there is no authoritative literature for management accounting similar to U.S. GAAP. Consequently, reported results are not necessarily comparable with those presented by other financial institutions. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements The condensed financial information for BBVA Compass Bancshares, Inc. (Parent company only) is presented as follows: Parent Company Balance Sheets December 31, 2017 2016 (In Thousands) Assets: Cash and cash equivalents $ 276,223 $ 222,314 Investment securities available for sale 209,458 200,045 Investments in subsidiaries: Banks 12,092,248 12,096,195 Non-banks 395,806 288,900 Other assets 52,943 48,900 Total assets $ 13,026,678 $ 12,856,354 Liabilities and Shareholder’s Equity: Accrued expenses and other liabilities $ 42,429 $ 134,668 Shareholder’s equity 12,984,249 12,721,686 Total liabilities and shareholder’s equity $ 13,026,678 $ 12,856,354 Parent Company Statements of Income Years Ended December 31, 2017 2016 2015 (In Thousands) Income: Dividends from banking subsidiaries $ 400,000 $ 270,000 $ 101,000 Dividends from non-bank subsidiaries 112 110 20,098 Other 6,333 2,743 318 Total income 406,445 272,853 121,416 Expense: Salaries and employee benefits 3,898 1,877 — Other 10,603 12,521 8,927 Total expense 14,501 14,398 8,927 Income before income tax benefit and equity in undistributed earnings of subsidiaries 391,944 258,455 112,489 Income tax benefit (979 ) (5,028 ) (3,866 ) Income before equity in undistributed earnings of subsidiaries 392,923 263,483 116,355 Equity in undistributed earnings of subsidiaries 65,858 106,030 388,775 Net income $ 458,781 $ 369,513 $ 505,130 Other comprehensive loss (1) (29,153 ) (68,916 ) (47,474 ) Comprehensive income $ 429,628 $ 300,597 $ 457,656 (1) See Consolidated Statement of Comprehensive Income detail. Parent Company Statements of Cash Flows Years Ended December 31, 2017 2016 2015 (In Thousands) Operating Activities: Net income $ 458,781 $ 369,513 $ 505,130 Adjustments to reconcile net income to cash provided by operations: Amortization of stock based compensation — 3,947 4,128 Depreciation 1,272 68 54 Equity in undistributed earnings of subsidiaries (65,858 ) (106,030 ) (388,775 ) Increase in other assets (3,827 ) (2,723 ) (2,832 ) Increase in accrued expenses and other liabilities 11,406 5,823 3,202 Net cash provided by operating activities 401,774 270,598 120,907 Investing Activities: Purchases of investment securities available for sale (99,991 ) (311,441 ) (100,024 ) Sales and maturities of investment securities available for sale 90,000 210,000 — Purchase of premises and equipment (955 ) (8,732 ) (182 ) Contributions to subsidiaries (69,317 ) (24,746 ) — Net cash used in investing activities (80,263 ) (134,919 ) (100,206 ) Financing Activities: Repayment of other borrowings (100,537 ) — — Vesting of restricted stock (1,530 ) (1,744 ) (3,603 ) Restricted stock grants retained to cover taxes (689 ) (630 ) (3,016 ) Issuance of preferred stock — — 229,475 Dividends paid (164,846 ) (175,699 ) (115,000 ) Net cash (used in) provided by financing activities (267,602 ) (178,073 ) 107,856 Net increase (decrease) in cash and cash equivalents 53,909 (42,394 ) 128,557 Cash and cash equivalents at beginning of year 222,314 264,708 136,151 Cash and cash equivalents at end of year $ 276,223 $ 222,314 $ 264,708 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company enters into various contracts with BBVA that affect the Company’s business and operations. The following discloses the significant transactions between the Company and BBVA during 2017 , 2016 and 2015 . The Company believes all of the transactions entered into between the Company and BBVA were transacted on terms that were no more or less beneficial to the Company than similar transactions entered into with unrelated market participants, including interest rates and transaction costs. The Company foresees executing similar transactions with BBVA in the future. Derivatives The Company has entered into various derivative contracts as noted below with BBVA as the upstream counterparty. The total notional amount of outstanding derivative contracts between the Company and BBVA are $4.8 billion and $5.2 billion as of December 31, 2017 and 2016 , respectively. The net fair value of outstanding derivative contracts between the Company and BBVA are detailed below. December 31, 2017 2016 (In Thousands) Derivative contracts: Fair value hedges $ (15,991 ) $ (14,225 ) Cash flow hedges (144 ) (380 ) Free-standing derivative instruments not designated as hedging instruments 7,777 (14,326 ) Securities Purchased Under Agreements to Resell/Securities Sold Under Agreements to Repurchase The Company enters into agreements with BBVA as the counterparty under which it purchases/sells securities subject to an obligation to resell/repurchase the same or similar securities. The following represents the amount of securities purchased under agreements to resell and securities sold under agreements to repurchase where BBVA is the counterparty. December 31, 2017 2016 (In Thousands) Securities purchased under agreements to resell $ — $ 8,330 Securities sold under agreements to repurchase 17,881 23,397 Borrowings BSI, a wholly owned subsidiary of the Company, had a $420 million revolving note and cash subordination agreement with BBVA that was executed on March 16, 2012 with an original maturity date of March 16, 2018 . On March 16, 2017 , the agreement was amended to increase the available amount to $450 million and the maturity date was extended to March 16, 2023 . BSI also had a $150 million line of credit with BBVA that was initiated on August 1, 2014 . This agreement was terminated on July 13, 2017 . On March 16, 2017 , BSI entered into an uncommitted demand facility agreement with BBVA for a revolving loan facility up to $1 billion to be used for trade settlement purposes. BSI has not drawn against this facility in 2017 . At December 31, 2017 there was no amount outstanding under the revolving note and cash subordination agreement. At December 31, 2016 there was $50 million outstanding on the line of credit agreement and no amount outstanding under the revolving note and cash subordination agreement. Interest expense related to these agreements was $931 thousand , $3.1 million , and $2.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are included in interest on other short term borrowings within the Company's Consolidated Statements of Income. Service and Referral Agreements The Company and its affiliates entered into or were subject to various service and referral agreements with BBVA and its affiliates. Each of the agreements was done in the ordinary course of business and on market terms. Income associated with these agreements was $45.0 million , $27.2 million , and $21.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and is recorded as a component of noninterest income within the Company's Consolidated Statements of Income. Expenses associated with these agreements were $28.5 million , $23.7 million , and $25.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are recorded as a component of noninterest expense within the Company's Consolidated Statements of Income. Series A Preferred Stock BBVA is the sole holder of the Series A Preferred Stock that the Company issued in December 2015 . At both December 31, 2017 and 2016 , the carrying amount of the Series A Preferred Stock was approximately $229 million . During the years ended December 31, 2017 and 2016 , the Company paid $14.8 million and $13.7 million , respectively, of preferred stock dividends to BBVA. Loan Sales to Related Parties During the year ended December 31, 2016 , the Company sold approximately $444 million of commercial loans to BBVA and recognized a gain on sale of $1.5 million that was recorded as a component of other noninterest income within the Company's Consolidated Statements of Income. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of Estimates The preparation of the Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, the most significant of which relate to the allowance for loan losses, goodwill impairment, and fair value measurements. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents The Company classifies cash on hand, amounts due from banks, federal funds sold, securities purchased under agreements to resell and interest bearing deposits as cash and cash equivalents. These instruments have original maturities of three months or less. |
Securities purchased under agreements to resell and securities sold under agreements to repurchase | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and securities sold under agreements to repurchase are generally accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were acquired or sold plus accrued interest. The securities pledged or received as collateral are generally U.S. government and federal agency securities. The Company's policy is to take possession of securities purchased under agreements to resell. The fair value of collateral either received from or provided to a third party is continually monitored and adjusted as deemed appropriate. Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by an MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received or pledged. The Company offsets the assets and liabilities under netting arrangements for the balance sheet presentation of securities purchased under agreements to resell and securities sold under agreements to repurchase provided certain criteria are met that permit balance sheet netting. |
Securities | Securities The Company classifies its investment securities into one of three categories based upon management’s intent and ability to hold the investment securities: (i) trading account assets and liabilities, (ii) investment securities held to maturity or (iii) investment securities available for sale. Investment securities held in a trading account are required to be reported at fair value, with unrealized gains and losses included in earnings. The Company classifies purchases, sales, and maturities of trading securities held for investment purposes as cash flows from investing activities. Cash flows related to trading securities held for trading purposes are reported as cash flows from operating activities. Investment securities held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. The related amortization and accretion is determined by the interest method and is included as a noncash adjustment in the net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows. The Company has the ability, and it is management’s intention, to hold such securities to maturity. Investment securities available for sale are recorded at fair value. Increases and decreases in the net unrealized gain or loss on the portfolio of investment securities available for sale are reflected as adjustments to the carrying value of the portfolio and as an adjustment, net of tax, to accumulated other comprehensive income. See Note 20 , Fair Value Measurements , for information on the determination of fair value. Interest earned on trading account assets, investment securities available for sale and investment securities held to maturity is included in interest income in the Company’s Consolidated Statements of Income. Net realized gains and losses on the sale of investment securities available for sale, computed principally on the specific identification method, are shown separately in noninterest income in the Company’s Consolidated Statements of Income. Net gains and losses on the sale of trading account assets and liabilities are recognized as a component of other noninterest income in the Company’s Consolidated Statements of Income. The Company regularly evaluates each held to maturity and available for sale security in an unrealized loss position for OTTI. The Company evaluates for OTTI on a specific identification basis. In its evaluation, the Company considers such factors as the length of time and the extent to which the fair value has been below cost, the financial condition of the issuer, the Company’s intent to hold the security to an expected recovery in fair value and whether it is more likely than not that the Company will have to sell the security before its fair value recovers. The credit loss component of the OTTI on debt and equity securities is recognized in earnings. For debt securities, the portion of OTTI related to all other factors is recognized in other comprehensive income. See Note 3 , Investment Securities Available for Sale and Investment Securities Held to Maturity , for details of OTTI. |
Loans held for sale | Loans Held for Sale Loans held for sale are recorded at either estimated fair value, if the fair value option is elected, or the lower of cost or estimated fair value. The Company applies the fair value option accounting guidance codified under the FASB's ASC Topic 825, Financial Instruments, for single family real estate mortgage loans originated for sale in the secondary market. Under the fair value option, all changes in the applicable loans’ fair value are recorded in earnings. Loans classified as held for sale that were not originated for resale in the secondary market are accounted for under the lower of cost or fair value method and are evaluated on an individual basis. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are considered held for investment. Loans are stated at principal outstanding adjusted for charge-offs, deferred loan fees and direct costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income on loans is recognized on the interest method. Loan fees, net of direct costs, and unamortized premiums and discounts are deferred and amortized as an adjustment to the yield of the related loan over the term of the loan and are included as a noncash adjustment in the net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows. For additional information related to the Company’s loan portfolio by type, refer to Note 4 , Loans and Allowance for Loan Losses . It is the general policy of the Company to stop accruing interest income and apply subsequent interest payments as principal reductions when any commercial, industrial, commercial real estate or construction loan is 90 days or more past due as to principal or interest and/or the ultimate collection of either is in doubt, unless collection of both principal and interest is assured by way of collateralization, guarantees or other security, or the loan is accounted for under ASC Subtopic 310-30. Accrual of interest income on consumer loans, including residential real estate loans, is generally suspended when any payment of principal or interest is more than 120 days delinquent or when foreclosure proceedings have been initiated or repossession of the underlying collateral has occurred. When a loan is placed on a nonaccrual status, any interest previously accrued but not collected is reversed against current interest income unless the fair value of the collateral for the loan is sufficient to cover the accrued interest. In general, a loan is returned to accrual status when none of its principal and interest is due and unpaid and the Company expects repayments of the remaining contractual principal and interest or when it is determined to be well secured and in the process of collection. Charge-offs on commercial loans are recognized when available information confirms that some or all of the balance is uncollectible. Consumer loans are subject to mandatory charge-off at a specified delinquency date consistent with regulatory guidelines. In general, charge-offs on consumer loans are recognized at the earlier of the month of liquidation or the month the loan becomes 120 days past due; residential loan deficiencies are charged off in the month the loan becomes 180 days past due; and credit card loans are charged off before the end of the month when the loan becomes 180 days past due with the related interest accrued but not collected reversed against current income. The Company determines past due or delinquency status of a loan based on contractual payment terms. All nonaccrual loans and loans modified in a troubled debt restructuring are considered impaired. The Company’s policy for recognizing interest income on impaired loans classified as nonaccrual is consistent with its nonaccrual policy. The Company’s policy for recognizing interest income on accruing impaired loans is consistent with its interest recognition policy for accruing loans. |
Troubled debt restructuring | Troubled Debt Restructurings A loan is accounted for as a TDR if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as establishment of a below market interest rate, a reduction in the principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. The Company’s policy for measuring impairment on TDRs, including TDRs that have defaulted, is consistent with its impairment measurement process for all impaired loans. The Company’s policy for returning nonaccrual TDRs to accrual status is consistent with its return to accrual policy for all other loans. |
Allowance for loan losses | Allowance for Loan Losses The amount of the provision for loan losses charged to income is determined on the basis of numerous factors including actual loss experience, identified loan impairment, current economic conditions and periodic examinations and appraisals of the loan portfolio. Such provisions, less net loan charge-offs, comprise the allowance for loan losses which is deducted from loans and is maintained at a level management considers to be adequate to absorb losses inherent in the portfolio. The Company monitors the entire loan portfolio in an effort to identify problem loans so that risks in the portfolio can be identified on a timely basis and an appropriate allowance maintained. Loan review procedures, including loan grading, periodic credit rescoring and trend analysis of portfolio performance, are utilized by the Company in order to ensure that potential problem loans are identified. Management’s involvement continues throughout the process and includes participation in the work-out process and recovery activity. These formalized procedures are monitored internally and by regulatory agencies. The allowance for loan losses is established as follows: • Loans with outstanding balances greater than $1 million that are nonaccrual and all TDRs are evaluated individually with specific reserves allocated based on the present value of the loan’s expected future cash flows, discounted at the loan’s original effective interest rate, except where foreclosure or liquidation is probable or when the primary source of repayment is provided by real estate collateral. In these circumstances, impairment is measured based upon the fair value less cost to sell of the collateral. In addition, in certain rare circumstances, impairment may be based on the loan’s observable fair value. • Loans in the remainder of the portfolio, including nonaccrual loans with balances of less than $1 million , are collectively evaluated for impairment with the allowance based on historical loss experience which uses historical average net charge-off percentages. In the event the Company believes a specific portfolio's historical loss experience does not adequately capture current inherent losses, the historical loss experience is adjusted. This adjustment to the historical loss experience can be positive or negative and will take into consideration relevant factors to the allowance such as changes in the portfolio composition, the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. The assessment for whether to adjust takes place individually for each loan product. The historical loss methodology uses historical annualized average net charge-off percentage to calculate the provision for loan and lease losses. The factor is calculated by taking the average of the net charge-offs over the credit life cycle available, currently 9 years. For commercial loans, where management has determined to adjust the historical loss experience, the estimate of loss based on pools of loans with similar characteristics is made by applying a PD factor and a LGD factor to each individual loan based on loan grade, using a standardized loan grading system. The PD factor and LGD factor are determined for each loan grade using statistical models based on historical performance data. The PD factor considers on-going reviews of the financial performance of the specific borrower, including cash flow, debt-service coverage ratio, earnings power, debt level and equity position, in conjunction with an assessment of the borrower’s industry and future prospects. The PD factor considers current loan grade unless the account is delinquent over 60 days, in which case a higher PD factor is used. The LGD factor considers analysis of the type of collateral and the relative LTV ratio. These reserve factors are developed based on credit migration models that track historical movements of loans between loan grades over time and long-term average loss experience. The historical time frame currently used for both PDs and LGDs is 9 years. For consumer loans, where management has determined to adjust the historical loss experience, the estimate of loss based on pools of loans with similar characteristics is also made by applying a PD and a LGD factor. The PD factor considers current credit scores unless the account is delinquent over 60 days, in which case a higher PD factor is used. The credit score provides a basis for understanding the borrower’s past and current payment performance. The LGD factor considers analysis of the type of collateral and the relative LTV ratio. Credit scores, models, analyses, and other factors used to determine both the PD and LGD factors are updated frequently to capture the recent behavioral characteristics of the subject portfolios, as well as any changes in loss mitigation or credit origination strategies, and adjustments to the reserve factors are made as required. The historical time frame currently used for both PDs and LGDs is 9 years. Additionally, a portion of the allowance is for probable incurred losses which may not have been captured in the processes described above based on historical loss experience. This portion of the allowance is particularly subjective and requires judgment based upon qualitative factors. Some of the factors considered are changes in credit concentrations, loan mix, changes in underwriting practices, including the extent of portfolios of acquired institutions, historical loss experience and the general economic environment in the Company’s markets. While the total allowance is described as consisting of separate portions, these terms are primarily used to describe a process. All portions of the allowance are available to support probable incurred losses in the loan portfolio. In order to estimate a reserve for unfunded commitments, the Company uses a process consistent with that used in developing the allowance for loan losses. The Company estimates the future funding of current unfunded commitments based on historical funding experience of these commitments before default. Allowance for loan loss factors, which are based on product and loan grade and are consistent with the factors used for portfolio loans, are applied to these funding estimates to arrive at the reserve balance. This reserve for unfunded commitments is recognized in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets with changes recognized in other noninterest expense in the Company’s Consolidated Statements of Income. |
Premises and equipment | Premises and Equipment Premises, furniture, fixtures, equipment, assets under capital leases and leasehold improvements are stated at cost less accumulated depreciation or amortization. Land is stated at cost. In addition, purchased software and costs of computer software developed for internal use are capitalized provided certain criteria are met. Depreciation is computed principally using the straight-line method over the estimated useful lives of the related assets, which ranges between 1 and 40 years. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease terms or the estimated useful lives of the improvements. |
Bank owned life insurance | Bank Owned Life Insurance The Company maintains life insurance policies on certain of its executives and employees and is the owner and beneficiary of the policies. The Company invests in these policies, known as BOLI, to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Company records these BOLI policies within bank owned life insurance on the Company’s Consolidated Balance Sheets at each policy’s respective cash surrender value, with changes recorded in noninterest income in the Company’s Consolidated Statements of Income. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets associated with acquisition transactions. Goodwill is assigned to each of the Company’s reporting units and tested for impairment annually or on an interim basis if events or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The Company has defined its reporting unit structure to include: Commercial Banking and Wealth, Retail Banking, Corporate and Investment Banking, and Simple. The fair value of each reporting unit is estimated using a combination of the present value of future expected cash flows and hypothetical market prices of similar entities and like transactions. Each of the defined reporting units was tested for impairment as of October 31, 2017 . See Note 8 , Goodwill , for a further discussion. |
Other real estate owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of recorded balance of the loan or fair value less costs to sell of the collateral assets at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, OREO is carried at the lower of carrying amount or fair value less costs to sell and is included in other assets on the Consolidated Balance Sheets. Gains and losses on the sales and write-downs on such properties and operating expenses from these OREO properties are included in other noninterest expense in the Company’s Consolidated Statements of Income. |
Accounting for Transfers and Servicing of Financial Assets | Accounting for Transfers and Servicing of Financial Assets The Company accounts for transfers of financial assets as sales when control over the transferred assets is surrendered. Control is generally considered to have been surrendered when (1) the transferred assets are legally isolated from the Company, even in bankruptcy or other receivership, (2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and (3) the Company does not maintain the obligation or unilateral ability to reclaim or repurchase the assets. If these sale criteria are met, the transferred assets are removed from the Company's balance sheet and a gain or loss on sale is recognized. If not met, the transfer is recorded as a secured borrowing, and the assets remain on the Company's balance sheet, the proceeds from the transaction are recognized as a liability, and gain or loss on sale is deferred until the sale criterion are achieved. The Company has one primary class of MSR related to residential real estate mortgages. These mortgage servicing rights are recorded in other assets on the Consolidated Balance Sheets at fair value with changes in fair value recorded as a component of mortgage banking income in the Company’s Consolidated Statements of Income. See Note 5 , Loan Sales and Servicing , for a further discussion. |
Advertising costs | Advertising Costs Advertising costs are generally expensed as incurred and recorded as marketing expense, a component of noninterest expense in the Company’s Consolidated Statements of Income. |
Income taxes | Income Taxes The Company and its eligible subsidiaries file a consolidated federal income tax return. The Company files separate tax returns for subsidiaries that are not eligible to be included in the consolidated federal income tax return. Based on the laws of the respective states where it conducts business operations, the Company either files consolidated, combined or separate tax returns. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the tax rates and laws that are expected to be in effect when the differences are anticipated to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period the change is incurred. In evaluating the Company's ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company must consider all available evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and the results of recent operations. A valuation allowance is recognized for a deferred tax asset, if based on the available evidence, it is more likely than not that some portion or all of a deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law. The new legislation included a decrease in the corporate federal income tax rate from 35% to 21% effective January 1, 2018. Under ASC Topic 740, Income Taxes , the effects of the changes in tax rates and laws are recognized in the period in which the new legislation is enacted. In December 2017, the SEC issued SAB 118, which allows companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Cuts and Jobs Act was enacted late in 2017, the Company expects ongoing guidance, analysis, and accounting interpretations, including additional information about facts and circumstances that existed at the enactment date when the Company files its federal tax return for the tax year 2018, which could result in adjustments to the Tax Cuts and Jobs Act accounting effects recorded during 2017. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. The Company recognizes income tax benefits associated with uncertain tax positions, when, in its judgment, it is more likely than not of being sustained on the basis of the technical merits. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of other noninterest expense in the Company’s Consolidated Statements of Income. Accrued interest and penalties are included within accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. |
Noncontrolling interests | Noncontrolling Interests The Company applies the accounting guidance codified in ASC Topic 810, Consolidation , related to the treatment of noncontrolling interests. This guidance requires the amount of consolidated net income attributable to the parent and to the noncontrolling interests be clearly identified and presented on the face of the consolidated financial statements. The noncontrolling interests attributable to the Company's REIT preferred securities and mezzanine investment fund (see Note 12 , Shareholder's Equity , for a discussion of the preferred securities) are reported within shareholder’s equity, separately from the equity attributable to the Company’s shareholder. The dividends paid to the REIT preferred shareholders and other mezzanine investment fund investors are reported as reductions in shareholder’s equity in the Consolidated Statements of Shareholder’s Equity, separately from changes in the equity attributable to the Company’s shareholder. |
Accounting for derivatives and hedging activities | Accounting for Derivatives and Hedging Activities A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an underlying instrument, index or referenced interest rate. These instruments include interest rate swaps, caps, floors, financial forwards and futures contracts, foreign exchange contracts, options written and purchased. The Company mainly uses derivatives to manage economic risk related to commercial loans, long-term debt and other funding sources. The Company also uses derivatives to facilitate transactions on behalf of its customers. All derivative instruments are recognized on the Company’s Consolidated Balance Sheets at their fair value. The Company does not offset fair value amounts under master netting agreements. Fair values are estimated using pricing models and current market data. On the date the derivative instrument contract is entered into, the Company designates the derivative as (1) a fair value hedge, (2) a cash flow hedge, or (3) a free-standing derivative. Changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk (including losses or gains on firm commitments), are recorded in earnings. Changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). Changes in the fair value of a free-standing derivative and settlements on the instruments are reported in earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets and liabilities on the Company’s Consolidated Balance Sheets or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The Company discontinues hedge accounting prospectively when: (1) it is determined that the derivative instrument is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item (including firm commitments or forecasted transactions); (2) the derivative instrument expires or is sold, terminated or exercised; (3) the derivative instrument is de-designated as a hedge instrument because it is unlikely that a forecasted transaction will occur; (4) a hedged firm commitment no longer meets the definition of a firm commitment; or (5) management determines that designation of the derivative instrument as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is determined that the derivative instrument no longer qualifies as an effective fair value or cash flow hedge, the derivative instrument continues to be carried on the Company’s Consolidated Balance Sheets at its fair value, with changes in the fair value included in earnings. Additionally, for fair value hedges, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted as an adjustment to the yield over the remaining life of the asset or liability. For cash flow hedges, when hedge accounting is discontinued, but the hedged cash flows or forecasted transaction are still expected to occur, the unrealized gains and losses that were accumulated in other comprehensive income are recognized in earnings in the same period when the earnings are affected by the hedged cash flows or forecasted transaction. When a cash flow hedge is discontinued, because the hedged cash flows or forecasted transactions are not expected to occur, unrealized gains and losses that were accumulated in other comprehensive income are recognized in earnings immediately. The Company has made an accounting policy decision to not offset derivative fair value amounts under master netting agreements |
Recently adopted accounting standards | Recently Adopted Accounting Standards Stock Compensation In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The FASB issued this ASU to improve the accounting for share-based payment transactions as part of its simplification initiative. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The adoption of this standard did not have an impact on the financial condition or results of operations of the Company. |
Investment Securities Availab33
Investment Securities Available for Sale and Investment Securities Held to Maturity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of adjusted cost and approximate fair value of investment securities available for sale and investments held to maturity | The following table presents the adjusted cost and approximate fair value of investment securities available for sale and investment securities held to maturity. December 31, 2017 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 4,265,296 $ 996 $ 61,854 $ 4,204,438 Agency mortgage-backed securities 2,841,584 14,312 43,096 2,812,800 Agency collateralized mortgage obligations 5,302,531 4,203 106,723 5,200,011 States and political subdivisions 2,278 105 — 2,383 Equity securities 464,143 134 122 464,155 Total $ 12,875,832 $ 19,750 $ 211,795 $ 12,683,787 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 64,140 $ 5,262 $ 1,605 $ 67,797 Asset-backed securities 9,308 1,747 628 10,427 States and political subdivisions 911,393 3,951 12,853 902,491 Other 61,252 243 1,667 59,828 Total $ 1,046,093 $ 11,203 $ 16,753 $ 1,040,543 December 31, 2016 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 2,409,141 $ 2,390 $ 37,200 $ 2,374,331 Agency mortgage-backed securities 3,796,270 12,869 45,801 3,763,338 Agency collateralized mortgage obligations 5,200,241 5,292 106,605 5,098,928 States and political subdivisions 8,457 184 — 8,641 Equity securities 419,869 90 142 419,817 Total $ 11,833,978 $ 20,825 $ 189,748 $ 11,665,055 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 83,087 $ 5,265 $ 3,278 $ 85,074 Asset-backed securities 15,118 1,982 1,081 16,019 States and political subdivisions 1,040,716 2,309 25,518 1,017,507 Other 64,296 1,143 2,030 63,409 Total $ 1,203,217 $ 10,699 $ 31,907 $ 1,182,009 |
Schedule of fair value and gross unrealized losses of available for sale and held to maturity securities that were in a loss position | The following table discloses the fair value and the gross unrealized losses of the Company’s available for sale securities and held to maturity securities that were in a loss position at December 31, 2017 and 2016 . This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position. December 31, 2017 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 2,532,439 $ 28,308 $ 1,325,975 $ 33,546 $ 3,858,414 $ 61,854 Agency mortgage-backed securities 390,106 2,731 1,666,045 40,365 2,056,151 43,096 Agency collateralized mortgage obligations 1,244,416 6,522 3,297,278 100,201 4,541,694 106,723 Equity securities 3,871 55 1,055 67 4,926 122 Total $ 4,170,832 $ 37,616 $ 6,290,353 $ 174,179 $ 10,461,185 $ 211,795 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 9,776 $ 25 $ 22,439 $ 1,580 $ 32,215 $ 1,605 Asset-backed securities — — 6,243 628 6,243 628 States and political subdivisions 236,207 4,365 341,090 8,488 577,297 12,853 Other 19,048 98 20,736 1,569 39,784 1,667 Total $ 265,031 $ 4,488 $ 390,508 $ 12,265 $ 655,539 $ 16,753 December 31, 2016 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Investment securities available for sale: Debt securities: U.S. Treasury and other U.S. government agencies $ 1,277,341 $ 23,862 $ 609,078 $ 13,338 $ 1,886,419 $ 37,200 Agency mortgage-backed securities 1,425,743 15,235 1,368,957 30,566 2,794,700 45,801 Agency collateralized mortgage obligations 3,527,757 99,477 782,849 7,128 4,310,606 106,605 Equity securities 3,849 77 1,057 65 4,906 142 Total $ 6,234,690 $ 138,651 $ 2,761,941 $ 51,097 $ 8,996,631 $ 189,748 Investment securities held to maturity: Non-agency collateralized mortgage obligations $ 3,847 $ 527 $ 40,083 $ 2,751 $ 43,930 $ 3,278 Asset-backed securities 343 1 9,238 1,080 9,581 1,081 States and political subdivisions 532,090 13,043 313,803 12,475 845,893 25,518 Other 16,578 174 3,587 1,856 20,165 2,030 Total $ 552,858 $ 13,745 $ 366,711 $ 18,162 $ 919,569 $ 31,907 |
Schedule of activity related to credit losses for debt securities where other than temporary impairments was recognized in other comprehensive income | The following table discloses activity related to credit losses for debt securities where a portion of the OTTI was recognized in other comprehensive income. Years Ended December 31, 2017 2016 2015 (In Thousands) Balance, at beginning of year $ 22,582 $ 22,452 $ 21,123 Reductions for securities paid off during the period (realized) — — (331 ) Additions for the credit component on debt securities in which OTTI was not previously recognized 242 — 1,013 Additions for the credit component on debt securities in which OTTI was previously recognized — 130 647 Balance, at end of year $ 22,824 $ 22,582 $ 22,452 |
Schedule of investments classified by contractual maturity date | The contractual maturities of the securities portfolios are presented in the following table. Amortized Cost Fair Value December 31, 2017 (In Thousands) Investment securities available for sale: Maturing within one year $ 211,721 $ 210,736 Maturing after one but within five years 1,586,822 1,565,281 Maturing after five but within ten years 1,591,646 1,575,186 Maturing after ten years 877,385 855,618 4,267,574 4,206,821 Agency mortgage-backed securities and agency collateralized mortgage obligations 8,144,115 8,012,811 Equity securities 464,143 464,155 Total $ 12,875,832 $ 12,683,787 Investment securities held to maturity: Maturing within one year $ 102,858 $ 102,889 Maturing after one but within five years 190,487 190,294 Maturing after five but within ten years 214,204 211,758 Maturing after ten years 474,404 467,805 981,953 972,746 Non-agency collateralized mortgage obligations 64,140 67,797 Total $ 1,046,093 $ 1,040,543 |
Schedule of realized gain (loss) on investments | The gross realized gains and losses recognized on sales of investment securities available for sale are shown in the table below. Years Ended December 31, 2017 2016 2015 (In Thousands) Gross gains $ 3,033 $ 30,037 $ 83,488 Gross losses — — 1,832 Net realized gains $ 3,033 $ 30,037 $ 81,656 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of composition of loan portfolio | The following table presents the composition of the loan portfolio. December 31, 2017 2016 (In Thousands) Commercial loans: Commercial, financial and agricultural $ 25,749,949 $ 25,122,002 Real estate – construction 2,273,539 2,125,316 Commercial real estate – mortgage 11,724,158 11,210,660 Total commercial loans 39,747,646 38,457,978 Consumer loans: Residential real estate – mortgage 13,365,747 13,259,994 Equity lines of credit 2,653,105 2,543,778 Equity loans 363,264 445,709 Credit card 639,517 604,881 Consumer direct 1,690,383 1,254,641 Consumer indirect 3,164,106 3,134,948 Total consumer loans 21,876,122 21,243,951 Covered loans (1) — 359,334 Total loans $ 61,623,768 $ 60,061,263 (1) Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. The loss sharing agreements provide for FDIC loss sharing for five years for commercial loans and 10 years for single family residential loans. The loss sharing agreement for commercial loans expired in the fourth quarter of 2014. In July 2017, the Company terminated the single family residential loss share agreement with the FDIC ahead of the contractual maturity. Loans no longer covered under a loss share agreement were reclassified to their appropriate loan type. Total loans includes unearned income totaling $257.9 million and $260.5 million at December 31, 2017 and 2016 , respectively; and unamortized deferred costs totaling $343.9 million and $322.9 million at December 31, 2017 and 2016 , respectively. |
Disclosure of activity in allowances for loan losses during year | The following table, which excludes loans held for sale, presents a summary of the activity in the allowance for loan losses. The portion of the allowance that has not been identified by the Company as related to specific loan categories has been allocated to the individual loan categories on a pro rata basis for purposes of the table below: Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Covered Total Loans (In Thousands) Year Ended December 31, 2017 Allowance for loan losses: Beginning balance $ 458,580 $ 116,937 $ 119,484 $ 143,292 $ — $ 838,293 Provision (credit) for loan losses 49,528 6,195 (874 ) 232,875 (31 ) 287,693 Loans charged off (106,570 ) (9,983 ) (21,287 ) (221,212 ) — (359,052 ) Loan recoveries 19,097 4,984 12,533 39,181 31 75,826 Net (charge-offs) recoveries (87,473 ) (4,999 ) (8,754 ) (182,031 ) 31 (283,226 ) Ending balance $ 420,635 $ 118,133 $ 109,856 $ 194,136 $ — $ 842,760 Year Ended December 31, 2016 Allowance for loan losses: Beginning balance $ 402,113 $ 122,068 $ 132,104 $ 104,948 $ 1,440 $ 762,673 Provision (credit) for loan losses 129,646 (5,502 ) (4,156 ) 182,558 43 302,589 Loans charged off (84,218 ) (4,866 ) (19,946 ) (180,573 ) (1,484 ) (291,087 ) Loan recoveries 11,039 5,237 11,482 36,359 1 64,118 Net (charge-offs) recoveries (73,179 ) 371 (8,464 ) (144,214 ) (1,483 ) (226,969 ) Ending balance $ 458,580 $ 116,937 $ 119,484 $ 143,292 $ — $ 838,293 Year Ended December 31, 2015 Allowance for loan losses: Beginning balance $ 299,482 $ 138,233 $ 154,627 $ 89,891 $ 2,808 $ 685,041 Provision (credit) for loan losses 116,272 (17,975 ) (9,711 ) 104,195 857 193,638 Loans charged off (25,831 ) (3,882 ) (26,630 ) (115,113 ) (2,228 ) (173,684 ) Loan recoveries 12,190 5,692 13,818 25,975 3 57,678 Net (charge-offs) recoveries (13,641 ) 1,810 (12,812 ) (89,138 ) (2,225 ) (116,006 ) Ending balance $ 402,113 $ 122,068 $ 132,104 $ 104,948 $ 1,440 $ 762,673 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. The table below provides a summary of the allowance for loan losses and related loan balances by portfolio. Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Covered Total Loans (In Thousands) December 31, 2017 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 61,705 $ 9,864 $ 30,613 $ 2,203 $ — $ 104,385 Collectively evaluated for impairment 358,930 108,269 79,243 191,933 — 738,375 Total allowance for loan losses $ 420,635 $ 118,133 $ 109,856 $ 194,136 $ — $ 842,760 Loans: Ending balance of loans: Individually evaluated for impairment $ 307,680 $ 85,180 $ 172,857 $ 3,577 $ — $ 569,294 Collectively evaluated for impairment 25,442,269 13,912,517 16,209,259 5,490,429 — 61,054,474 Total loans $ 25,749,949 $ 13,997,697 $ 16,382,116 $ 5,494,006 $ — $ 61,623,768 December 31, 2016 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 99,932 $ 4,037 $ 32,016 $ 2,223 $ — $ 138,208 Collectively evaluated for impairment 358,648 112,900 87,468 141,069 — 700,085 Total allowance for loan losses $ 458,580 $ 116,937 $ 119,484 $ 143,292 $ — $ 838,293 Loans: Ending balance of loans: Individually evaluated for impairment $ 719,468 $ 44,258 $ 186,338 $ 3,042 $ — $ 953,106 Collectively evaluated for impairment 24,402,534 13,291,718 16,063,143 4,991,428 359,334 59,108,157 Total loans $ 25,122,002 $ 13,335,976 $ 16,249,481 $ 4,994,470 $ 359,334 $ 60,061,263 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. |
Schedule of impaired financing receivables | The following table presents information on individually evaluated impaired loans, by loan class. December 31, 2017 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ 142,908 $ 175,743 $ — $ 164,772 $ 175,512 $ 61,705 Real estate – construction 2,849 2,858 — 130 130 7 Commercial real estate – mortgage 35,140 36,415 — 47,061 55,122 9,857 Residential real estate – mortgage — — — 117,751 117,751 10,214 Equity lines of credit — — — 19,183 19,188 16,021 Equity loans — — — 35,923 36,765 4,378 Credit card — — — — — — Consumer direct — — — 2,545 2,545 1,254 Consumer indirect — — — 1,032 1,032 949 Total loans $ 180,897 $ 215,016 $ — $ 388,397 $ 408,045 $ 104,385 December 31, 2016 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ 375,957 $ 396,294 $ — $ 343,511 $ 371,085 $ 99,932 Real estate – construction — — — 344 459 344 Commercial real estate – mortgage 19,235 20,177 — 24,679 24,865 3,693 Residential real estate – mortgage — — — 119,986 119,986 7,529 Equity lines of credit — — — 24,591 25,045 19,083 Equity loans — — — 41,761 42,561 5,404 Credit card — — — — — — Consumer direct — — — 745 745 59 Consumer indirect — — — 2,297 2,297 2,164 Total loans $ 395,192 $ 416,471 $ — $ 557,914 $ 587,043 $ 138,208 The following table presents information on individually evaluated impaired loans, by loan class. Years Ended December 31, 2017 2016 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In Thousands) Commercial, financial and agricultural $ 426,809 $ 947 $ 632,319 $ 1,221 $ 113,844 $ 1,118 Real estate – construction 1,874 11 1,734 8 5,391 100 Commercial real estate – mortgage 72,692 1,071 44,530 1,195 84,565 2,200 Residential real estate – mortgage 115,583 2,676 109,792 2,672 110,251 2,786 Equity lines of credit 21,458 871 26,638 1,025 27,108 1,124 Equity loans 38,090 1,312 44,051 1,490 49,336 1,638 Credit card — — — — — — Consumer direct 1,629 27 833 28 657 17 Consumer indirect 1,553 10 2,221 13 1,694 7 Total loans $ 679,688 $ 6,925 $ 862,118 $ 7,652 $ 392,846 $ 8,990 |
Schedule of credit quality indicators associated with the Company's loans | The following tables, which exclude loans held for sale and covered loans, illustrate the credit quality indicators associated with the Company’s loans, by loan class. Commercial December 31, 2017 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Pass $ 24,387,737 $ 2,257,659 $ 11,309,484 Special Mention 614,006 12,401 215,076 Substandard 623,672 3,479 187,049 Doubtful 124,534 — 12,549 $ 25,749,949 $ 2,273,539 $ 11,724,158 December 31, 2016 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Pass $ 23,142,975 $ 2,055,483 $ 10,898,877 Special Mention 758,417 60,826 187,182 Substandard 1,081,439 9,007 106,183 Doubtful 139,171 — 18,418 $ 25,122,002 $ 2,125,316 $ 11,210,660 Consumer December 31, 2017 Residential Real Estate -Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Performing $ 13,182,760 $ 2,616,825 $ 350,531 $ 627,588 $ 1,681,246 $ 3,147,223 Nonperforming 182,987 36,280 12,733 11,929 9,137 16,883 $ 13,365,747 $ 2,653,105 $ 363,264 $ 639,517 $ 1,690,383 $ 3,164,106 December 31, 2016 Residential Real Estate -Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Performing $ 13,115,936 $ 2,507,375 $ 431,417 $ 593,927 $ 1,249,370 $ 3,121,825 Nonperforming 144,058 36,403 14,292 10,954 5,271 13,123 $ 13,259,994 $ 2,543,778 $ 445,709 $ 604,881 $ 1,254,641 $ 3,134,948 |
Schedule of past due loans | The following tables present an aging analysis of the Company’s past due loans excluding loans classified as held for sale. December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due and Impaired Not Past Due or Impaired Total (In Thousands) Commercial, financial and agricultural $ 14,804 $ 3,753 $ 18,136 $ 310,059 $ 1,213 $ 347,965 $ 25,401,984 $ 25,749,949 Real estate – construction 12,293 70 1,560 5,381 101 19,405 2,254,134 2,273,539 Commercial real estate – mortgage 10,473 3,270 927 111,982 4,155 130,807 11,593,351 11,724,158 Residential real estate – mortgage 69,474 34,440 8,572 173,843 64,898 351,227 13,014,520 13,365,747 Equity lines of credit 10,956 7,556 2,259 34,021 237 55,029 2,598,076 2,653,105 Equity loans 4,170 657 995 11,559 30,105 47,486 315,778 363,264 Credit card 6,710 4,804 11,929 — — 23,443 616,074 639,517 Consumer direct 19,766 7,020 6,712 2,425 534 36,457 1,653,926 1,690,383 Consumer indirect 92,017 26,460 7,288 9,595 — 135,360 3,028,746 3,164,106 Covered loans — — — — — — — — Total loans $ 240,663 $ 88,030 $ 58,378 $ 658,865 $ 101,243 $ 1,147,179 $ 60,476,589 $ 61,623,768 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due and Impaired Not Past Due or Impaired Total (In Thousands) Commercial, financial and agricultural $ 23,788 $ 6,581 $ 2,891 $ 596,454 $ 8,726 $ 638,440 $ 24,483,562 $ 25,122,002 Real estate – construction 918 50 2,007 1,239 2,393 6,607 2,118,709 2,125,316 Commercial real estate – mortgage 3,791 3,474 — 71,921 4,860 84,046 11,126,614 11,210,660 Residential real estate – mortgage 57,359 28,450 3,356 140,303 59,893 289,361 12,970,633 13,259,994 Equity lines of credit 7,922 4,583 2,950 33,453 — 48,908 2,494,870 2,543,778 Equity loans 5,615 1,843 467 13,635 34,746 56,306 389,403 445,709 Credit card 6,411 5,042 10,954 — — 22,407 582,474 604,881 Consumer direct 13,338 4,563 4,482 789 704 23,876 1,230,765 1,254,641 Consumer indirect 85,198 22,833 7,197 5,926 — 121,154 3,013,794 3,134,948 Covered loans 7,311 1,351 27,238 730 — 36,630 322,704 359,334 Total loans $ 211,651 $ 78,770 $ 61,542 $ 864,450 $ 111,322 $ 1,327,735 $ 58,733,528 $ 60,061,263 |
Schedule of troubled debt restructuring loans | The following table presents an analysis of the types of loans that were restructured and classified as TDRs, excluding loans classified as held for sale. December 31, 2017 December 31, 2016 December 31, 2015 Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Commercial, financial and agricultural 26 $ 232,511 10 $ 44,569 6 $ 384 Real estate – construction — — 2 3,504 — — Commercial real estate – mortgage 3 1,223 5 1,431 7 4,478 Residential real estate – mortgage 66 15,714 70 13,211 46 9,709 Equity lines of credit 41 1,858 82 3,869 115 6,482 Equity loans 30 1,246 17 1,369 35 2,586 Credit card — — — — — — Consumer direct — — 4 35 23 1,210 Consumer indirect 14 209 128 2,148 74 1,298 Covered loans 2 103 — — 3 29 |
Schedule of subsequent default on restructured loans | The following tables provide a summary of initial subsequent defaults that occurred within one year of the restructure date. The table excludes loans classified as held for sale as of period-end and includes loans no longer in default as of year-end. Years Ended December 31, 2017 2016 2015 Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default (Dollars in Thousands) Commercial, financial and agricultural 1 $ 686 — $ — — $ — Real estate – construction — — — — 1 377 Commercial real estate – mortgage — — — — 1 178 Residential real estate – mortgage 1 505 — — 7 987 Equity lines of credit — — 8 204 1 — Equity loans 2 51 3 293 3 216 Credit card — — — — — — Consumer direct — — — — 1 100 Consumer indirect 1 22 2 32 1 18 Covered loans — — — — 2 24 |
Loan Sales and Servicing (Table
Loan Sales and Servicing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of loans transferred to held for sale and loans sold | The following table summarizes the Company's activity in the loans held for sale portfolio and loan sales, excluding activity related to loans originated for sale in the secondary market. 2017 2016 2015 (In Thousands) Loans transferred from held for investment to held for sale $ — $ 820,615 $ 907,414 Charge-offs on loans recognized at transfer from held for investment to held for sale — 8,295 — Loans and loans held for sale sold 204,058 1,044,800 466,459 |
Schedule of loan sales and residential mortgage servicing rights | The following table is an analysis of the activity in the Company’s MSRs. Years Ended December 31, 2017 2016 2015 (In Thousands) Carrying value, at beginning of year $ 51,428 $ 44,541 $ 35,488 Additions 7,098 10,118 15,922 Increase (decrease) in fair value: Due to changes in valuation inputs or assumptions 2,233 7,093 (2,193 ) Due to other changes in fair value (1) (11,162 ) (10,324 ) (4,676 ) Carrying value, at end of year $ 49,597 $ 51,428 $ 44,541 (1) Represents the realization of expected net servicing cash flows, expected borrower repayments and the passage of time. The following table summarizes the Company's sales of loans originated for sale in the secondary market. 2017 2016 2015 (In Thousands) Residential real estate loans originated for sale in the secondary market sold (1) $ 660,484 $ 682,115 $ 1,521,424 Net gains recognized on sales of residential real estate loans originated for sale in the secondary market (2) 25,576 28,207 41,913 (1) Includes loans originated for sale where the Company retained servicing responsibilities. (2) Net gains were recorded in mortgage banking income in the Company's Consolidated Statements of Income. Residential Real Estate Mortgage Loans Sold with Retained Servicing The following table summarizes the Company's activity related to residential real estate mortgage loans sold with retained servicing. 2017 2016 2015 (In Thousands) Residential real estate mortgage loans sold with retained servicing (1) $ 660,484 $ 997,956 $ 1,521,424 Servicing fees recognized (2) 25,521 25,772 22,087 (1) There is no recourse to the Company for the failures of borrowers to pay loans when due. (2) Recorded as a component of other noninterest income in the Company's Consolidated Statements of Income. The following table provides the recorded balance of loans sold with retained servicing and the related MSRs. December 31, 2017 December 31, 2016 (In Thousands) Recorded balance of residential real estate mortgage loans sold with retained servicing (1) $ 4,635,334 $ 4,684,899 MSRs (2) 49,597 51,428 (1) These loans are not included in loans on the Company's Consolidated Balance Sheets. (2) Recorded under the fair value method and included in other assets on the Company's Consolidated Balance Sheets. |
Schedule of sensitivity of current fair value of residential real estate mortgage servicing rights | At December 31, 2017 and 2016 , the sensitivity of the current fair value of the residential MSRs to immediate 10% and 20% adverse changes in key economic assumptions are included in the following table: December 31, 2017 2016 (Dollars in Thousands) Fair value of MSRs $ 49,597 $ 51,428 Composition of residential loans serviced for others: Fixed rate mortgage loans 97.4 % 97.3 % Adjustable rate mortgage loans 2.6 2.7 Total 100.0 % 100.0 % Weighted average life (in years) 6.6 6.5 Prepayment speed: 9.7 % 15.7 % Effect on fair value of a 10% increase (1,582 ) (1,646 ) Effect on fair value of a 20% increase (3,068 ) (3,184 ) Weighted average option adjusted spread 8.2 % 8.1 % Effect on fair value of a 10% increase (1,568 ) (1,758 ) Effect on fair value of a 20% increase (3,031 ) (3,402 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | A summary of the Company’s premises and equipment is presented below. December 31, 2017 2016 (In Thousands) Land $ 304,160 $ 311,384 Buildings 595,865 594,426 Furniture, fixtures and equipment 440,659 428,326 Software 897,587 800,297 Leasehold improvements 187,398 170,523 Construction / projects in progress 91,839 158,682 2,517,508 2,463,638 Less: Accumulated depreciation and amortization 1,302,634 1,163,584 Total premises and equipment $ 1,214,874 $ 1,300,054 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of activity related to the Company's goodwill | A summary of the activity related to the Company’s goodwill follows. Years Ended December 31, 2017 2016 (In Thousands) Balance, at beginning of year Goodwill $ 9,835,400 $ 9,835,400 Accumulated impairment losses (4,852,104 ) (4,792,203 ) Goodwill, net at beginning of year 4,983,296 5,043,197 Annual activity: Goodwill acquired during the year — — Disposition adjustments — — Impairment losses — (59,901 ) Balance, at end of year Goodwill 9,835,400 9,835,400 Accumulated impairment losses (4,852,104 ) (4,852,104 ) Goodwill, net at end of year $ 4,983,296 $ 4,983,296 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of time deposit maturities | At December 31, 2017 , the scheduled maturities of time deposits were as follows. (In Thousands) 2018 $ 11,243,000 2019 2,018,572 2020 413,615 2021 76,311 2022 66,537 Thereafter 63,697 Total $ 13,881,732 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowings | The short-term borrowings table below shows the distribution of the Company’s short-term borrowed funds. Ending Balance Ending Average Interest Rate Average Balance Maximum Outstanding Balance (Dollars in Thousands) As of and for the year ended December 31, 2017 Federal funds purchased $ 1,710 1.50 % $ 402 $ 1,710 Securities sold under agreements to repurchase 17,881 1.23 58,222 114,361 Total 19,591 58,624 116,071 Other short-term borrowings 17,996 1.48 1,703,738 2,771,539 Total short-term borrowings $ 37,587 $ 1,762,362 $ 2,887,610 As of and for the year ended December 31, 2016 Federal funds purchased $ 12,885 0.39 % $ 372,355 $ 766,095 Securities sold under agreements to repurchase 26,167 0.55 79,625 148,291 Total 39,052 451,980 914,386 Other short-term borrowings 2,802,977 1.68 3,778,752 4,497,354 Total short-term borrowings $ 2,842,029 $ 4,230,732 $ 5,411,740 |
FHLB and Other Borrowings (Tabl
FHLB and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of details on FHLB advances and other borrowings | The following table details the Company’s FHLB advances and other borrowings including maturities and interest rates as of December 31, 2017 . December 31, Maturity Dates 2017 2016 (In Thousands) FHLB advances: LIBOR-based floating rate (weighted average rate of 1.58%) 2021 $ 120,000 $ 120,000 Fixed rate (weighted average rate of 2.00%) 2018-2025 1,510,328 410,529 Total FHLB advances 1,630,328 530,529 Senior notes and subordinated debentures: 1.85% senior notes 2017 — 400,000 2.75% senior notes 2019 600,000 600,000 2.88% senior notes 2022 750,000 — 6.40% subordinated debentures 2017 — 350,000 5.50% subordinated debentures 2020 227,764 227,764 3.88% subordinated debentures 2025 700,000 700,000 5.90% subordinated debentures 2026 71,086 71,086 Fair value of hedged senior notes and subordinated debentures (867 ) 36,800 Net unamortized discount (18,381 ) (18,298 ) Total senior notes and subordinated debentures 2,329,602 2,367,352 Capital securities: LIBOR plus 3.05% floating rate debentures payable to State National Capital Trust I 2033 — 15,470 LIBOR plus 2.85% floating rate debentures payable to Texas Regional Statutory Trust I 2034 — 51,547 LIBOR plus 2.60% floating rate debentures payable to TexasBanc Capital Trust I 2034 — 25,774 LIBOR plus 2.79% floating rate debentures payable to State National Statutory Trust II 2034 — 10,310 Unamortized premium — 569 Total capital securities — 103,670 Total FHLB and other borrowings $ 3,959,930 $ 3,001,551 |
Schedule of maturity information on FHLB and other borrowings | The following table presents maturity information for the Company’s FHLB and other borrowings, including the fair value of hedged senior notes and subordinated debentures as well as unamortized discounts and premiums, as of December 31, 2017 . FHLB Advances Senior Notes and Subordinated Debentures (In Thousands) Maturing: 2018 $ 300,000 $ — 2019 1,150,000 598,055 2020 — 237,946 2021 120,000 — 2022 — 733,927 Thereafter 60,328 759,674 Total $ 1,630,328 $ 2,329,602 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Change in components of other comprehensive income (loss) | The following summarizes the change in the components of other comprehensive income (loss). December 31, 2017 Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive loss: Unrealized holding losses arising during period from securities available for sale $ (20,089 ) $ (5,143 ) $ (14,946 ) Less: reclassification adjustment for net gains on sale of securities in net income 3,033 776 2,257 Net change in unrealized losses on securities available for sale (23,122 ) (5,919 ) (17,203 ) Change in unamortized net holding losses on investment securities held to maturity 5,076 1,132 3,944 Change in unamortized non-credit related impairment on investment securities held to maturity 1,556 565 991 Net change in unamortized holding losses on securities held to maturity 6,632 1,697 4,935 Unrealized holding gains (losses) arising during period from cash flow hedge instruments (35,768 ) (21,083 ) (14,685 ) Change in defined benefit plans (3,501 ) (1,301 ) (2,200 ) Other comprehensive loss $ (55,759 ) $ (26,606 ) $ (29,153 ) December 31, 2016 Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive loss: Unrealized holding losses arising during period from securities available for sale $ (76,706 ) $ (28,668 ) $ (48,038 ) Less: reclassification adjustment for net gains on sale of securities in net income 30,037 11,226 18,811 Net change in unrealized losses on securities available for sale (106,743 ) (39,894 ) (66,849 ) Change in unamortized net holding losses on investment securities held to maturity 5,848 2,235 3,613 Less: non-credit related impairment on investment securities held to maturity 151 55 96 Change in unamortized non-credit related impairment on investment securities held to maturity 1,438 487 951 Net change in unamortized holding losses on securities held to maturity 7,135 2,667 4,468 Unrealized holding losses arising during period from cash flow hedge instruments (5,882 ) (2,209 ) (3,673 ) Change in defined benefit plans (4,826 ) (1,964 ) (2,862 ) Other comprehensive loss $ (110,316 ) $ (41,400 ) $ (68,916 ) December 31, 2015 Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive loss: Unrealized holding losses arising during period from securities available for sale $ (26,090 ) $ (9,455 ) $ (16,635 ) Less: reclassification adjustment for net gains on sale of securities in net income 81,656 29,591 52,065 Net change in unrealized losses on securities available for sale (107,746 ) (39,046 ) (68,700 ) Change in unamortized net holding losses on investment securities held to maturity 10,948 3,043 7,905 Less: non-credit related impairment on investment securities held to maturity 87 32 55 Change in unamortized non-credit related impairment on investment securities held to maturity 1,661 1,527 134 Net change in unamortized holding losses on securities held to maturity 12,522 4,538 7,984 Unrealized holding gains arising during period from cash flow hedge instruments 3,141 1,854 1,287 Change in defined benefit plans 18,971 7,016 11,955 Other comprehensive loss $ (73,112 ) $ (25,638 ) $ (47,474 ) |
Schedule of accumulated other comprehensive income (loss) | Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity Accumulated Gains (Losses) on Cash Flow Hedging Instruments Defined Benefit Plan Adjustment Unamortized Impairment Losses on Investment Securities Held to Maturity Total (In Thousands) Balance, December 31, 2015 $ (56,326 ) $ (6,407 ) $ (29,166 ) $ (7,437 ) $ (99,336 ) Other comprehensive loss before reclassifications (48,038 ) (1,337 ) — (96 ) (49,471 ) Amounts reclassified from accumulated other comprehensive income (loss) (15,198 ) (2,336 ) (2,862 ) 951 (19,445 ) Net current period other comprehensive income (loss) (63,236 ) (3,673 ) (2,862 ) 855 (68,916 ) Balance, December 31, 2016 $ (119,562 ) $ (10,080 ) $ (32,028 ) $ (6,582 ) $ (168,252 ) Balance, December 31, 2016 $ (119,562 ) $ (10,080 ) $ (32,028 ) $ (6,582 ) $ (168,252 ) Other comprehensive loss before reclassifications (14,946 ) (14,252 ) — — (29,198 ) Amounts reclassified from accumulated other comprehensive income (loss) 1,687 (433 ) (2,200 ) 991 45 Net current period other comprehensive income (loss) (13,259 ) (14,685 ) (2,200 ) 991 (29,153 ) Balance, December 31, 2017 $ (132,821 ) $ (24,765 ) $ (34,228 ) $ (5,591 ) $ (197,405 ) |
Schedule of reclassifications out of accumulated other comprehensive income | The following table presents information on reclassifications out of accumulated other comprehensive income. Details About Accumulated Other Comprehensive Income Components Amounts Reclassified From Accumulated Other Comprehensive Income (1) Consolidated Statement of Income Caption December 31, 2017 December 31, 2016 December 31, 2015 (In Thousands) Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity $ 3,033 $ 30,037 $ 81,656 Investment securities gains, net (5,076 ) (5,848 ) (10,948 ) Interest on investment securities held to maturity (2,043 ) 24,189 70,708 356 (8,991 ) (26,548 ) Income tax (expense) benefit $ (1,687 ) $ 15,198 $ 44,160 Net of tax Accumulated Gains (Losses) on Cash Flow Hedging Instruments $ 3,496 $ 8,370 $ 13,056 Interest and fees on loans (2,441 ) (4,629 ) (6,934 ) Interest and fees on FHLB advances 1,055 3,741 6,122 (622 ) (1,405 ) (4,261 ) Income tax expense $ 433 $ 2,336 $ 1,861 Net of tax Defined Benefit Plan Adjustment $ 3,501 $ 4,826 $ (18,971 ) (2) (1,301 ) (1,964 ) 7,016 Income tax (expense) benefit $ 2,200 $ 2,862 $ (11,955 ) Net of tax Unamortized Impairment Losses on Investment Securities Held to Maturity $ (1,556 ) $ (1,438 ) $ (1,661 ) Interest on investment securities held to maturity 565 487 1,527 Income tax benefit $ (991 ) $ (951 ) $ (134 ) Net of tax (1) Amounts in parentheses indicate debits to the Consolidated Statements of Income. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18 , Benefit Plans , for additional details). |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Consolidated Balance Sheets on a gross basis. December 31, 2017 December 31, 2016 Fair Value Fair Value Notional Amount Derivative Assets (1) Derivative Liabilities (2) Notional Amount Derivative Assets (1) Derivative Liabilities (2) (In Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 2,223,950 $ 19,399 $ 16,831 $ 2,123,950 $ 38,890 $ 14,226 Total fair value hedges 19,399 16,831 38,890 14,226 Cash flow hedges: Interest rate contracts: Swaps related to commercial loans 9,075,000 325 2 7,625,000 2,340 11,570 Swaps related to FHLB advances 120,000 — 4,424 120,000 — 7,093 Foreign currency contracts: Forwards related to currency fluctuations 3,220 — 144 3,618 — 380 Total cash flow hedges 325 4,570 2,340 19,043 Total derivatives designated as hedging instruments $ 19,724 $ 21,401 $ 41,230 $ 33,269 Free-standing derivatives not designated as hedging instruments: Interest rate contracts: Forward contracts related to held for sale mortgages $ 141,000 $ 85 $ 130 $ 251,500 $ 2,479 $ 493 Option contracts related to mortgage servicing rights 40,000 38 — — — — Interest rate lock commitments 114,184 2,416 — 150,616 2,424 32 Equity contracts: Purchased equity option related to equity-linked CDs 810,011 39,791 — 833,763 57,198 — Written equity option related to equity-linked CDs 718,428 — 35,562 770,632 — 53,044 Foreign exchange contracts: Forwards related to commercial loans 358,729 291 3,501 424,155 3,741 1,723 Spots related to commercial loans 83,338 84 245 54,599 134 — Swap associated with sale of Visa, Inc. Class B shares 99,826 — 2,496 68,308 — 1,708 Futures contracts (3) 1,449,000 — — 104,000 — — Trading account assets and liabilities: Interest rate contracts for customers 30,472,359 133,516 134,073 28,000,014 290,238 228,748 Foreign exchange contracts for customers 514,185 12,149 10,524 870,084 28,367 26,317 Total trading account assets and liabilities 145,665 144,597 318,605 255,065 Total free-standing derivative instruments not designated as hedging instruments $ 188,370 $ 186,531 $ 384,581 $ 312,065 (1) Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Consolidated Balance Sheets, are recorded in other assets on the Company’s Consolidated Balance Sheets. (2) Derivative liabilities are recorded in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets . (3) Changes in fair value are cash settled daily; therefore, there is no ending balance at any given reporting period. |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table reflects the change in fair value for interest rate contracts and the related hedged items as well as other gains and losses related to fair value hedges including gains and losses recognized because of hedge ineffectiveness. Gain (Loss) for the Years Ended December 31, Consolidated Statements of Income Caption 2017 2016 2015 (In Thousands) Change in fair value of interest rate contracts: Interest rate swaps hedging long term debt Interest on FHLB and other borrowings $ (33,092 ) $ (25,906 ) $ (19,130 ) Hedged long term debt Interest on FHLB and other borrowings 34,839 25,411 15,395 Other gains on interest rate contracts: Interest and amortization related to interest rate swaps on hedged long term debt Interest on FHLB and other borrowings 29,483 41,391 46,559 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the effect of derivative instruments designated and qualifying as cash flow hedges on the Company’s Consolidated Balance Sheets and the Company’s Consolidated Statements of Income. Gain (Loss) for the Years Ended December 31, 2017 2016 2015 (In Thousands) Interest rate and foreign currency exchange contracts: Net change in amount recognized in other comprehensive income $ (14,685 ) $ (3,673 ) $ 1,287 Amount reclassified from accumulated other comprehensive income (loss) into net income 1,055 3,741 6,122 Amount of ineffectiveness recognized in net income 13 (714 ) — |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position | The net gains and losses recorded in the Company’s Consolidated Statements of Income from free-standing derivative instruments not designated as hedging instruments are summarized in the following table. Gain (Loss) for the Years Ended December 31, Consolidated Statements of Income Caption 2017 2016 2015 (In Thousands) Futures contracts Mortgage banking income and corporate and correspondent investment sales $ 123 $ (138 ) $ (12 ) Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking income (2,030 ) 857 3,801 Interest rate lock commitments Mortgage banking income 24 (482 ) 556 Interest rate contracts for customers Corporate and correspondent investment sales 29,155 24,507 28,533 Option contracts related to mortgage servicing rights Corporate and correspondent investment sales (605 ) (264 ) (195 ) Commodity contracts: Commodity contracts for customers Corporate and correspondent investment sales — (6 ) 6 Equity contracts: Purchased equity option related to equity-linked CDs Other expense (18,704 ) (2,178 ) (17,112 ) Written equity option related to equity-linked CDs Other expense 18,581 3,515 17,761 Foreign currency contracts: Swap and forward contracts related to commercial loans Other income (38,885 ) 12,368 54,441 Spot contracts related to commercial loans Other income 5,512 451 (9,366 ) Foreign currency exchange contracts for customers Corporate and correspondent investment sales 10,451 3,971 2,656 |
Schedule of Offsetting Assets | The following represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement. Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Collateral Received/ Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) December 31, 2017 Derivative financial assets: Subject to a master netting arrangement $ 93,409 $ — $ 93,409 $ — $ 21,423 $ 71,986 Not subject to a master netting arrangement 114,685 — 114,685 — — 114,685 Total derivative financial assets $ 208,094 $ — $ 208,094 $ — $ 21,423 $ 186,671 Derivative financial liabilities: Subject to a master netting arrangement $ 108,955 $ — $ 108,955 $ 4,545 $ 92,396 $ 12,014 Not subject to a master netting arrangement 98,977 — 98,977 — — 98,977 Total derivative financial liabilities $ 207,932 $ — $ 207,932 $ 4,545 $ 92,396 $ 110,991 December 31, 2016 Derivative financial assets: Subject to a master netting arrangement $ 234,002 $ — $ 234,002 $ — $ 33,212 $ 200,790 Not subject to a master netting arrangement 191,809 — 191,809 — — 191,809 Total derivative financial assets $ 425,811 $ — $ 425,811 $ — $ 33,212 $ 392,599 Derivative financial liabilities: Subject to a master netting arrangement $ 248,669 $ — $ 248,669 $ 9,685 $ 102,603 $ 136,381 Not subject to a master netting arrangement 96,665 — 96,665 — — 96,665 Total derivative financial liabilities $ 345,334 $ — $ 345,334 $ 9,685 $ 102,603 $ 233,046 (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Schedule of Offsetting Liabilities | The following represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement. Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Collateral Received/ Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) December 31, 2017 Derivative financial assets: Subject to a master netting arrangement $ 93,409 $ — $ 93,409 $ — $ 21,423 $ 71,986 Not subject to a master netting arrangement 114,685 — 114,685 — — 114,685 Total derivative financial assets $ 208,094 $ — $ 208,094 $ — $ 21,423 $ 186,671 Derivative financial liabilities: Subject to a master netting arrangement $ 108,955 $ — $ 108,955 $ 4,545 $ 92,396 $ 12,014 Not subject to a master netting arrangement 98,977 — 98,977 — — 98,977 Total derivative financial liabilities $ 207,932 $ — $ 207,932 $ 4,545 $ 92,396 $ 110,991 December 31, 2016 Derivative financial assets: Subject to a master netting arrangement $ 234,002 $ — $ 234,002 $ — $ 33,212 $ 200,790 Not subject to a master netting arrangement 191,809 — 191,809 — — 191,809 Total derivative financial assets $ 425,811 $ — $ 425,811 $ — $ 33,212 $ 392,599 Derivative financial liabilities: Subject to a master netting arrangement $ 248,669 $ — $ 248,669 $ 9,685 $ 102,603 $ 136,381 Not subject to a master netting arrangement 96,665 — 96,665 — — 96,665 Total derivative financial liabilities $ 345,334 $ — $ 345,334 $ 9,685 $ 102,603 $ 233,046 (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activiti43
Securities Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of assets and liabilities subject to enforceable master netting arrangements | The Company offsets the assets and liabilities under netting arrangements for the balance sheet presentation of securities purchased under agreements to resell and securities sold under agreements to repurchase provided certain criteria are met that permit balance sheet netting. Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Collateral Received/ Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) December 31, 2017 (2) Securities purchased under agreement to resell: Subject to a master netting arrangement $ 93,664 $ 67,751 $ 25,913 $ 25,913 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 85,632 $ 67,751 $ 17,881 $ 17,881 $ — $ — December 31, 2016 (2) Securities purchased under agreement to resell: Subject to a master netting arrangement $ 3,164,039 $ 3,069,489 $ 94,550 $ 94,550 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 3,095,655 $ 3,069,488 $ 26,167 $ 26,167 $ — $ — (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. (2) The decrease in gross amounts recognized from December 31, 2016 to December 31, 2017, relates to a reduction in securities purchased under agreements to resell and securities sold under agreements to repurchase held by BSI. |
Schedule of securities sold under agreements to repurchase | The following table presents the Company's related activity, by collateral type and remaining contractual maturity. Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total (In Thousands) December 31, 2017 Securities sold under agreements repurchase: U.S. Treasury and other U.S. government agencies securities $ 4,906 $ — $ 12,900 $ 4,981 $ 22,787 Mortgage-backed securities — — 62,845 — 62,845 Total $ 4,906 $ — $ 75,745 $ 4,981 $ 85,632 December 31, 2016 Securities sold under agreements repurchase: U.S. Treasury and other U.S. government agencies securities $ 1,408,736 $ 806,526 $ 798,089 $ — $ 3,013,351 Mortgage-backed securities — — 82,304 — 82,304 Total $ 1,408,736 $ 806,526 $ 880,393 $ — $ 3,095,655 |
Commitment, Contingencies and G
Commitment, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for operating and capital leases | The following table provides the annual future minimum payments under capital leases and noncancelable operating leases at December 31, 2017 : Operating Lease Capital Lease (In Thousands) 2018 $ 66,172 $ 2,155 2019 63,864 2,191 2020 55,868 2,227 2021 49,831 2,136 2022 42,993 1,904 Thereafter 156,456 8,524 Total $ 435,184 $ 19,137 |
Schedule of commitments to extend credit, standby letters of credit and commercial letters of credit | The following represents the Company’s commitments to extend credit, standby letters of credit and commercial letters of credit. December 31, 2017 2016 (In Thousands) Commitments to extend credit $ 27,743,387 $ 27,070,935 Standby and commercial letters of credit 1,446,903 1,474,405 |
Regulatory Capital Requiremen45
Regulatory Capital Requirements and Dividends from Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of actual capital amounts and ratios used by the Company and the Bank | At December 31, 2017 , the Company and the Bank, remain above the applicable U.S. regulatory capital requirements. Under the U.S. Basel III capital rule, the current minimum required regulatory capital ratios under Transition Requirements to which the Company and the Bank were subject are as follows: 2017 (1) 2016 (2) CET1 Risk-Based Capital Ratio 5.750 % 5.125 % Tier 1 Risk-Based Capital Ratio 7.250 6.625 Total Risk-Based Capital Ratio 9.250 8.625 Tier 1 Leverage Ratio 4.000 4.000 (1) At December 31, 2017 , under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements include a capital conservation buffer of 1.250% . (2) At December 31, 2016 , under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements include a capital conservation buffer of 0.625% . The following table presents the Transitional Basel III regulatory capital ratios at December 31, 2017 and 2016 for the Company and the Bank. Amount Ratios 2017 2016 2017 2016 (Dollars in Thousands) Risk-based capital CET1: BBVA Compass Bancshares, Inc. $ 7,964,877 $ 7,669,118 11.80 % 11.49 % Compass Bank 7,301,630 7,272,273 10.88 10.93 Tier 1: BBVA Compass Bancshares, Inc. 8,199,077 7,907,518 12.15 11.85 Compass Bank 7,305,830 7,280,673 10.89 10.95 Total: BBVA Compass Bancshares, Inc. 9,689,834 9,550,482 14.36 14.31 Compass Bank 9,007,719 9,020,099 13.43 13.56 Leverage: BBVA Compass Bancshares, Inc. 8,199,077 7,907,518 9.98 9.46 Compass Bank 7,305,830 7,280,673 9.10 9.14 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plan activity | Obligations and Funded Status Years Ended December 31, 2017 2016 (In Thousands) Change in benefit obligation: Benefit obligation, at beginning of year $ 340,191 $ 329,736 Service cost 3,542 3,784 Interest cost 11,685 11,668 Actuarial (gain) loss 22,171 8,374 Benefits paid (13,737 ) (13,371 ) Benefit obligation, at end of year 363,852 340,191 Change in plan assets: Fair value of plan assets, at beginning of year 336,627 338,266 Actual return on plan assets 26,035 11,732 Benefits paid (13,737 ) (13,371 ) Fair value of plan assets, at end of year 348,925 336,627 Funded status (14,927 ) (3,565 ) Net actuarial loss 43,430 37,445 Net amount recognized $ 28,503 $ 33,880 |
Schedule of amounts recognized in balance sheet | Amounts recognized on the Company’s Consolidated Balance Sheets consist of: December 31, 2017 2016 (In Thousands) Accrued expenses and other liabilities $ (14,927 ) $ (3,565 ) Deferred tax – other assets 10,267 13,907 Accumulated other comprehensive loss 33,163 23,538 Net amount recognized $ 28,503 $ 33,880 |
Schedule of amounts recognized in income statements | The components of net periodic benefit cost recognized in the Company’s Consolidated Statements of Income are as follows. Years Ended December 31, 2017 2016 2015 (In Thousands) Service cost $ 3,542 $ 3,784 $ 4,754 Interest cost 11,685 11,668 14,459 Expected return on plan assets (10,087 ) (10,446 ) (10,537 ) Recognized actuarial loss — — 563 Net periodic benefit cost $ 5,140 $ 5,006 $ 9,239 |
Schedule of assumptions used in the defined benefit plan | The following table provides additional information related to the Company’s defined benefit pension plan. Years Ended December 31, 2017 2016 (Dollars in Thousands) Change in defined benefit plan included in other comprehensive income $ 9,625 $ 4,416 Weighted average assumptions used to determine benefit obligation at December 31: Discount rate 3.57 % 4.04 % Rate of compensation increase N/A 3.00 % Weighted average assumptions used to determine net pension income for year ended December 31: Discount rate - benefit obligations 4.04 % 4.29 % Discount rate - service cost 4.22 % 4.52 % Discount rate - interest cost 3.51 % 3.62 % Expected return on plan assets 3.06 % 3.15 % Rate of compensation increase 3.00 % 3.00 % |
Schedule of assumptions used in the defined benefit plan | The following table provides additional information related to the Company’s defined benefit pension plan. Years Ended December 31, 2017 2016 (Dollars in Thousands) Change in defined benefit plan included in other comprehensive income $ 9,625 $ 4,416 Weighted average assumptions used to determine benefit obligation at December 31: Discount rate 3.57 % 4.04 % Rate of compensation increase N/A 3.00 % Weighted average assumptions used to determine net pension income for year ended December 31: Discount rate - benefit obligations 4.04 % 4.29 % Discount rate - service cost 4.22 % 4.52 % Discount rate - interest cost 3.51 % 3.62 % Expected return on plan assets 3.06 % 3.15 % Rate of compensation increase 3.00 % 3.00 % |
Schedule of estimated benefit payments | The following table summarizes the estimated benefits to be paid in the following periods. (In Thousands) 2018 $ 14,753 2019 15,348 2020 16,255 2021 17,072 2022 17,992 2023-2027 99,976 |
Schedule of changes in fair value of benefit plans | The following table presents the fair value of the Company’s defined benefit pension plan assets. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2017 Assets: Cash and cash equivalents $ 18,985 $ 18,985 $ — $ — Fixed income securities: U.S. Treasury and other U.S. government agencies 235,621 218,200 17,421 — States and political subdivisions 6,401 — 6,401 — Corporate bonds 87,918 — 87,918 — Total fixed income securities 329,940 218,200 111,740 — Fair value of plan assets $ 348,925 $ 237,185 $ 111,740 $ — December 31, 2016 Assets: Cash and cash equivalents $ 12,463 $ 12,463 $ — $ — Fixed income securities: U.S. Treasury and other U.S. government agencies 221,242 200,391 20,851 — States and political subdivisions 6,771 — 6,771 — Corporate bonds 96,151 — 96,151 — Total fixed income securities 324,164 200,391 123,773 — Fair value of plan assets $ 336,627 $ 212,854 $ 123,773 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of the following: Years Ended December 31, 2017 2016 2015 (In Thousands) Current income tax expense: Federal $ 158,531 $ 154,572 $ 275,135 State 19,588 13,322 12,409 Total 178,119 167,894 287,544 Deferred income tax expense (benefit): Federal 141,093 (19,973 ) (102,070 ) State (3,136 ) (1,900 ) (8,972 ) Total 137,957 (21,873 ) (111,042 ) Total income tax expense $ 316,076 $ 146,021 $ 176,502 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differed from the amount computed by applying the federal statutory income tax rate to pretax earnings for the following reasons: Years Ended December 31, 2017 2016 2015 Amount Percent of Pretax Earnings Amount Percent of Pretax Earnings Amount Percent of Pretax Earnings (Dollars in Thousands) Income tax expense at federal statutory rate $ 271,902 35.0 % $ 181,140 35.0 % $ 239,351 35.0 % Increase (decrease) resulting from: Goodwill impairment — — 20,965 4.0 5,950 0.9 Tax-exempt interest income (56,814 ) (7.3 ) (51,246 ) (9.9 ) (49,170 ) (7.2 ) Change in valuation allowance (1,167 ) (0.2 ) 402 0.1 (2,029 ) (0.3 ) Bank owned life insurance (5,988 ) (0.8 ) (6,035 ) (1.2 ) (6,082 ) (0.9 ) Income tax credits (25,635 ) (3.3 ) (11,257 ) (2.2 ) (10,238 ) (1.5 ) State income tax, net of federal income taxes 14,118 1.8 7,106 1.4 4,154 0.6 Revaluation of net deferred tax assets (1) 121,244 15.7 — — — — Other (1,584 ) (0.2 ) 4,946 1.0 (5,434 ) (0.8 ) Income tax expense $ 316,076 40.7 % $ 146,021 28.2 % $ 176,502 25.8 % (1) Includes approximately $40 million of expense related to items in accumulated other comprehensive income in which the related tax effects were originally recognized in other comprehensive income. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below. December 31, 2017 2016 (In Thousands) Deferred tax assets: Allowance for loan losses $ 197,563 $ 309,655 Accrued expenses 89,847 121,459 Loan valuation — 48,880 Net unrealized losses on investment securities available for sale, hedging instruments and defined benefit plan adjustment 73,424 98,916 Other real estate owned 467 567 Nonaccrual interest 17,737 22,707 Federal net operating loss carryforwards 6,906 15,041 Other 35,416 57,216 Gross deferred taxes 421,360 674,441 Valuation allowance (11,641 ) (14,639 ) Total deferred tax assets 409,719 659,802 Deferred tax liabilities: Premises and equipment 147,542 243,113 Core deposit and other acquired intangibles 6,864 13,117 Capitalized loan costs 32,584 47,527 Loan valuation 1,648 — Other 12,832 24,309 Total deferred tax liabilities 201,470 328,066 Net deferred tax asset $ 208,249 $ 331,736 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a tabular reconciliation of the total amounts of the gross unrecognized tax benefits. Years Ended December 31, 2017 2016 2015 (In Thousands) Unrecognized income tax benefits, at beginning of year $ 13,615 $ 16,552 $ 28,286 Increases for tax positions related to: Prior years 414 — 58 Current year 2,196 1,933 1,537 Decreases for tax positions related to: Prior years — (2,185 ) (85 ) Current year — — — Settlement with taxing authorities — (1,174 ) (583 ) Expiration of applicable statutes of limitation (1,309 ) (1,511 ) (12,661 ) Unrecognized income tax benefits, at end of year $ 14,916 $ 13,615 $ 16,552 |
Schedule of open tax years | The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: Jurisdictions Open Tax Years Federal 2014-2017 Various states (1) 2006-2017 (1) Major state tax jurisdictions include Alabama, California, Texas and New York. |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of differences between aggregate fair value and aggregate unpaid principle balance | The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value. Aggregate Fair Value Aggregate Unpaid Principal Balance Difference (In Thousands) December 31, 2017 Residential mortgage loans held for sale $ 67,110 $ 64,992 $ 2,118 December 31, 2016 Residential mortgage loans held for sale $ 105,257 $ 103,886 $ 1,371 |
Summary of asset and liabilities measure at fair value on a recurring basis | The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies securities $ 74,195 $ 74,195 $ — $ — State and political subdivisions securities 557 — 557 — Other debt securities 79 — 79 — Interest rate contracts 133,516 — 133,516 — Foreign exchange contracts 12,149 — 12,149 — Total trading account assets 220,496 74,195 146,301 — Investment securities available for sale: U.S. Treasury and other U.S. government agencies 4,204,438 3,248,898 955,540 — Agency mortgage-backed securities 2,812,800 — 2,812,800 — Agency collateralized mortgage obligations 5,200,011 — 5,200,011 — States and political subdivisions 2,383 — 2,383 — Equity securities (1) 13,930 13,577 — 353 Total investment securities available for sale 12,233,562 3,262,475 8,970,734 353 Loans held for sale 67,110 — 67,110 — Derivative assets: Interest rate contracts 22,263 38 19,809 2,416 Equity contracts 39,791 — 39,791 — Foreign exchange contracts 375 — 375 — Total derivative assets 62,429 38 59,975 2,416 Other assets - MSR 49,597 — — 49,597 Other assets - SBIC 45,042 — — 45,042 Liabilities: Trading account liabilities: U.S. Treasury and other U.S. government agencies securities $ 17,996 $ 17,996 $ — $ — Interest rate contracts 134,073 — 134,073 — Foreign exchange contracts 10,524 — 10,524 — Total trading account liabilities 162,593 17,996 144,597 — Derivative liabilities: Interest rate contracts 21,387 — 21,387 — Equity contracts 35,562 — 35,562 — Foreign exchange contracts 3,890 — 3,890 — Total derivative liabilities 60,839 — 60,839 — (1) Excludes $450 million of FHLB and Federal Reserve stock required to be owned by the Company at December 31, 2017 . These securities are carried at par. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies securities $ 2,820,797 $ 2,820,797 $ — $ — State and political subdivisions securities 219 — 219 — Other debt securities 4,120 — 4,120 — Interest rate contracts 290,238 — 290,238 — Foreign exchange contracts 28,367 — 28,367 — Other trading assets 859 — — 859 Total trading account assets 3,144,600 2,820,797 322,944 859 Investment securities available for sale: U.S. Treasury and other U.S. government agencies 2,374,331 1,266,564 1,107,767 — Agency mortgage-backed securities 3,763,338 — 3,763,338 — Agency collateralized mortgage obligations 5,098,928 — 5,098,928 — States and political subdivisions 8,641 — 8,641 — Equity securities (1) 16,565 16,272 — 293 Total investment securities available for sale 11,261,803 1,282,836 9,978,674 293 Loans held for sale 105,257 — 105,257 — Derivative assets: Interest rate contracts 46,133 — 43,709 2,424 Equity contracts 57,198 — 57,198 — Foreign exchange contracts 3,875 — 3,875 — Total derivative assets 107,206 — 104,782 2,424 Other assets - MSR 51,428 — — 51,428 Other assets - SBIC 15,639 — — 15,639 Liabilities: Trading account liabilities: U.S. Treasury and other U.S. government agencies $ 2,750,085 $ 2,750,085 $ — $ — Other debt securities 2,892 — 2,892 — Interest rate contracts 228,748 — 228,748 — Foreign exchange contracts 26,317 — 26,317 — Total trading account liabilities 3,008,042 2,750,085 257,957 — Derivative liabilities: Interest rate contracts 33,414 — 33,382 32 Equity contracts 53,044 — 53,044 — Foreign exchange contracts 2,103 — 2,103 — Total derivative liabilities 88,561 — 88,529 32 (1) Excludes $403 million of FHLB and Federal Reserve stock required to be owned by the Company at December 31, 2016 . These securities are carried at par. |
Reconciliation of assets measured on a recurring basis using significant unobservable inputs | The following table reconciles the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Other Trading Assets Equity Securities Interest Rate Contracts, net Other Assets - MSR Other Assets - SBIC (In Thousands) Balance, December 31, 2015 $ 1,117 $ 253 $ 2,874 $ 44,541 $ — Transfers into Level 3 — — — — — Transfers out of Level 3 — — — — — Total gains or losses (realized/unrealized): Included in earnings (1) (258 ) — (482 ) (3,231 ) — Included in other comprehensive income — — — — — Purchases, issuances, sales and settlements: Purchases — 41 — — 15,639 Issuances — — — 10,118 — Sales — (1 ) — — — Settlements — — — — — Balance, December 31, 2016 $ 859 $ 293 $ 2,392 $ 51,428 $ 15,639 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2016 $ (258 ) $ — $ (482 ) $ (3,231 ) $ — Balance, December 31, 2016 $ 859 $ 293 $ 2,392 $ 51,428 $ 15,639 Transfers into Level 3 — — — — — Transfers out of Level 3 — — — — — Total gains or losses (realized/unrealized): Included in earnings (1) (859 ) — 24 (8,929 ) 10,088 Included in other comprehensive income — — — — — Purchases, issuances, sales and settlements: Purchases — 63 — — 19,315 Issuances — — — 7,098 — Sales — (3 ) — — — Settlements — — — — — Balance, December 31, 2017 $ — $ 353 $ 2,416 $ 49,597 $ 45,042 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2017 $ (859 ) $ — $ 24 $ (8,929 ) $ 10,088 (1) Included in noninterest income in the Consolidated Statements of Income. |
Schedule of carrying amounts and estimated fair values within the fair value hierarchy | The following table represents those assets that were subject to fair value adjustments during the years ended December 31, 2017 and 2016 and still held as of the end of the year, and the related losses from fair value adjustments on assets sold during the year as well as assets still held as of the end of the year. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) December 31, 2017 (Level 1) (Level 2) (Level 3) December 31, 2017 (In Thousands) Nonrecurring fair value measurements Assets: Investment securities held to maturity $ 1,659 $ — $ — $ 1,659 $ (242 ) Impaired loans (1) 70,749 — — 70,749 (90,553 ) OREO 17,278 — — 17,278 (5,577 ) Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) December 31, 2016 (Level 1) (Level 2) (Level 3) December 31, 2016 (In Thousands) Nonrecurring fair value measurements Assets: Investment securities held to maturity $ 2,550 $ — $ — $ 2,550 $ (130 ) Loans held for sale 56,592 — 56,592 — (8,295 ) Impaired loans (1) 59,807 — — 59,807 (69,051 ) OREO 21,112 — — 21,112 (3,438 ) (1) Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral. |
Schedule of asset fair value measurement inputs | The tables below present quantitative information about the significant unobservable inputs for material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring and nonrecurring basis. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs December 31, 2017 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Interest rate contracts $ 2,416 Discounted cash flow Closing ratios (pull-through) 24.9% - 99.3% (66.1%) Cap grids 0.2% - 2.3% (0.9%) Other assets - MSRs 49,597 Discounted cash flow Option adjusted spread 4.6% - 17.2% (8.2%) Constant prepayment rate or life speed 0.0% - 46.7% (8.6%) Cost to service $65 - $4,000 ($81) Other assets - SBIC investments 45,042 Transaction price Transaction price N/A Nonrecurring fair value measurements: Investment securities held to maturity $ 1,659 Discounted cash flow Prepayment rate 5.1% Default rate 4.8% Loss severity 70.6% Impaired loans 70,749 Appraised value Appraised value 0.0% - 100.0% (19.2%) OREO 17,278 Appraised value Appraised value 8.0% (1) (1) Represents discounts to appraised value for estimated costs to sell. |
Schedule of liability fair value measurement inputs | The tables below present quantitative information about the significant unobservable inputs for material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring and nonrecurring basis. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs December 31, 2017 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Interest rate contracts $ 2,416 Discounted cash flow Closing ratios (pull-through) 24.9% - 99.3% (66.1%) Cap grids 0.2% - 2.3% (0.9%) Other assets - MSRs 49,597 Discounted cash flow Option adjusted spread 4.6% - 17.2% (8.2%) Constant prepayment rate or life speed 0.0% - 46.7% (8.6%) Cost to service $65 - $4,000 ($81) Other assets - SBIC investments 45,042 Transaction price Transaction price N/A Nonrecurring fair value measurements: Investment securities held to maturity $ 1,659 Discounted cash flow Prepayment rate 5.1% Default rate 4.8% Loss severity 70.6% Impaired loans 70,749 Appraised value Appraised value 0.0% - 100.0% (19.2%) OREO 17,278 Appraised value Appraised value 8.0% (1) (1) Represents discounts to appraised value for estimated costs to sell. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs December 31, 2016 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Other trading assets $ 859 Discounted cash flow Default rate 10.1% Prepayment rate 6.2% - 11.1% (8.2%) Interest rate contracts 2,392 Discounted cash flow Closing ratios (pull-through) 18.6% - 99.1% (68.5%) Cap grids 0.1% - 2.3% (1.1%) Other assets - MSRs 51,428 Discounted cash flow Option adjusted spread 6.1% - 18.6% (8.1%) Constant prepayment rate or life speed 1.3% - 62.0% (15.7%) Cost to service $65 - $4,000 ($79) Other assets - SBIC investments 15,639 Transaction price Transaction price N/A Nonrecurring fair value measurements: Investment securities held to maturity $ 2,550 Discounted cash flow Prepayment rate 10.9% Default rate 9.2% Loss severity 63.7% Impaired loans 59,807 Appraised value Appraised value 0.0% - 80.0% (31.9%) OREO 21,112 Appraised value Appraised value 8.0% (1) (1) Represents discounts to appraised value for estimated costs to sell. |
Schedule of fair value by balance sheet location | The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows: December 31, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 4,082,826 $ 4,082,826 $ 4,082,826 $ — $ — Investment securities held to maturity 1,046,093 1,040,543 — — 1,040,543 Loans, net 60,781,008 57,906,982 — — 57,906,982 Liabilities: Deposits $ 69,256,313 $ 69,302,597 $ — $ 69,302,597 $ — FHLB and other borrowings 3,959,930 4,010,308 — 4,010,308 — Federal funds purchased and securities sold under agreements to repurchase 19,591 19,591 — 19,591 — December 31, 2016 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 3,251,786 $ 3,251,786 $ 3,251,786 $ — $ — Investment securities held to maturity 1,203,217 1,182,009 — — 1,182,009 Loans, net 59,222,970 56,283,761 — — 56,283,761 Liabilities: Deposits $ 67,279,533 $ 67,359,299 $ — $ 67,359,299 $ — FHLB and other borrowings 3,001,551 3,001,836 — 3,001,836 — Federal funds purchased and securities sold under agreements to repurchase 39,052 39,052 — 39,052 — Other short-term borrowings 50,000 50,000 — 50,000 — |
Supplemental Disclosure for S49
Supplemental Disclosure for Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow disclosures | The following table presents the Company’s noncash investing and financing activities. Years Ended December 31, 2017 2016 2015 (In Thousands) Supplemental disclosures of cash flow information: Interest paid $ 458,660 $ 460,766 $ 405,548 Net income taxes paid 164,875 163,917 273,578 Supplemental schedule of noncash investing and financing activities: Transfer of loans and loans held for sale to OREO $ 28,986 $ 26,235 $ 20,781 Transfer of loans to loans held for sale — 828,910 906,857 Transfer of loans held for sale to loans — — 511,400 Issuance of restricted stock, net of cancellations (689 ) (1,686 ) 2,595 Business combinations: Assets acquired $ — $ — $ 14,327 Liabilities assumed — — 977 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following table presents the segment information for the Company’s segments. December 31, 2017 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income $ 1,114,619 $ 947,687 $ 158,000 $ 26,753 $ 83,108 $ 2,330,167 Allocated provision for loan losses 70,748 171,949 6,906 — 38,090 287,693 Noninterest income 209,261 457,216 195,434 12,074 171,990 1,045,975 Noninterest expense 632,824 1,164,927 148,754 24,921 340,161 2,311,587 Net income (loss) before income tax expense (benefit) 620,308 68,027 197,774 13,906 (123,153 ) 776,862 Income tax expense 217,108 23,809 69,221 4,867 1,071 316,076 Net income (loss) 403,200 44,218 128,553 9,039 (124,224 ) 460,786 Less: net income attributable to noncontrolling interests 299 — — 1,685 21 2,005 Net income (loss) attributable to BBVA Compass Bancshares, Inc. $ 402,901 $ 44,218 $ 128,553 $ 7,354 $ (124,245 ) $ 458,781 Average total assets $ 35,874,760 $ 18,084,514 $ 10,072,542 $ 15,475,862 $ 7,850,620 $ 87,358,298 December 31, 2016 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 1,140,639 $ 905,460 $ 158,347 $ (14,257 ) $ (122,508 ) $ 2,067,681 Allocated provision for loan losses 124,054 96,428 56,963 — 25,144 302,589 Noninterest income 204,387 457,975 187,782 54,228 151,602 1,055,974 Noninterest expense 629,931 1,148,818 181,635 21,096 322,042 2,303,522 Net income (loss) before income tax expense (benefit) 591,041 118,189 107,531 18,875 (318,092 ) 517,544 Income tax expense (benefit) 206,865 41,366 37,636 6,606 (146,452 ) 146,021 Net income (loss) 384,176 76,823 69,895 12,269 (171,640 ) 371,523 Less: net income attributable to noncontrolling interests 310 — — 1,713 (13 ) 2,010 Net income (loss) attributable to BBVA Compass Bancshares, Inc. $ 383,866 $ 76,823 $ 69,895 $ 10,556 $ (171,627 ) $ 369,513 Average total assets $ 36,499,711 $ 17,513,245 $ 13,332,010 $ 16,220,449 $ 7,498,945 $ 91,064,360 December 31, 2015 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 1,025,130 $ 828,335 $ 173,840 $ 24,221 $ (38,549 ) $ 2,012,977 Allocated provision for loan losses 88,882 46,636 58,337 — (217 ) 193,638 Noninterest income 204,956 469,430 165,656 91,439 147,893 1,079,374 Noninterest expense 594,582 1,143,441 159,524 20,119 297,187 2,214,853 Net income (loss) before income tax expense (benefit) 546,622 107,688 121,635 95,541 (187,626 ) 683,860 Income tax expense (benefit) 191,318 37,691 42,572 33,439 (128,518 ) 176,502 Net income (loss) 355,304 69,997 79,063 62,102 (59,108 ) 507,358 Less: net income attributable to noncontrolling interests 488 — — 1,740 — 2,228 Net income (loss) attributable to BBVA Compass Bancshares, Inc. $ 354,816 $ 69,997 $ 79,063 $ 60,362 $ (59,108 ) $ 505,130 Average total assets $ 35,000,182 $ 17,845,225 $ 13,901,379 $ 14,520,289 $ 7,122,104 $ 88,389,179 |
Parent Company Financial Stat51
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed financial statements for Parent Company | The condensed financial information for BBVA Compass Bancshares, Inc. (Parent company only) is presented as follows: Parent Company Balance Sheets December 31, 2017 2016 (In Thousands) Assets: Cash and cash equivalents $ 276,223 $ 222,314 Investment securities available for sale 209,458 200,045 Investments in subsidiaries: Banks 12,092,248 12,096,195 Non-banks 395,806 288,900 Other assets 52,943 48,900 Total assets $ 13,026,678 $ 12,856,354 Liabilities and Shareholder’s Equity: Accrued expenses and other liabilities $ 42,429 $ 134,668 Shareholder’s equity 12,984,249 12,721,686 Total liabilities and shareholder’s equity $ 13,026,678 $ 12,856,354 Parent Company Statements of Income Years Ended December 31, 2017 2016 2015 (In Thousands) Income: Dividends from banking subsidiaries $ 400,000 $ 270,000 $ 101,000 Dividends from non-bank subsidiaries 112 110 20,098 Other 6,333 2,743 318 Total income 406,445 272,853 121,416 Expense: Salaries and employee benefits 3,898 1,877 — Other 10,603 12,521 8,927 Total expense 14,501 14,398 8,927 Income before income tax benefit and equity in undistributed earnings of subsidiaries 391,944 258,455 112,489 Income tax benefit (979 ) (5,028 ) (3,866 ) Income before equity in undistributed earnings of subsidiaries 392,923 263,483 116,355 Equity in undistributed earnings of subsidiaries 65,858 106,030 388,775 Net income $ 458,781 $ 369,513 $ 505,130 Other comprehensive loss (1) (29,153 ) (68,916 ) (47,474 ) Comprehensive income $ 429,628 $ 300,597 $ 457,656 (1) See Consolidated Statement of Comprehensive Income detail. Parent Company Statements of Cash Flows Years Ended December 31, 2017 2016 2015 (In Thousands) Operating Activities: Net income $ 458,781 $ 369,513 $ 505,130 Adjustments to reconcile net income to cash provided by operations: Amortization of stock based compensation — 3,947 4,128 Depreciation 1,272 68 54 Equity in undistributed earnings of subsidiaries (65,858 ) (106,030 ) (388,775 ) Increase in other assets (3,827 ) (2,723 ) (2,832 ) Increase in accrued expenses and other liabilities 11,406 5,823 3,202 Net cash provided by operating activities 401,774 270,598 120,907 Investing Activities: Purchases of investment securities available for sale (99,991 ) (311,441 ) (100,024 ) Sales and maturities of investment securities available for sale 90,000 210,000 — Purchase of premises and equipment (955 ) (8,732 ) (182 ) Contributions to subsidiaries (69,317 ) (24,746 ) — Net cash used in investing activities (80,263 ) (134,919 ) (100,206 ) Financing Activities: Repayment of other borrowings (100,537 ) — — Vesting of restricted stock (1,530 ) (1,744 ) (3,603 ) Restricted stock grants retained to cover taxes (689 ) (630 ) (3,016 ) Issuance of preferred stock — — 229,475 Dividends paid (164,846 ) (175,699 ) (115,000 ) Net cash (used in) provided by financing activities (267,602 ) (178,073 ) 107,856 Net increase (decrease) in cash and cash equivalents 53,909 (42,394 ) 128,557 Cash and cash equivalents at beginning of year 222,314 264,708 136,151 Cash and cash equivalents at end of year $ 276,223 $ 222,314 $ 264,708 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of derivative contracts between the Company and BBVA | The following represents the amount of securities purchased under agreements to resell and securities sold under agreements to repurchase where BBVA is the counterparty. December 31, 2017 2016 (In Thousands) Securities purchased under agreements to resell $ — $ 8,330 Securities sold under agreements to repurchase 17,881 23,397 The net fair value of outstanding derivative contracts between the Company and BBVA are detailed below. December 31, 2017 2016 (In Thousands) Derivative contracts: Fair value hedges $ (15,991 ) $ (14,225 ) Cash flow hedges (144 ) (380 ) Free-standing derivative instruments not designated as hedging instruments 7,777 (14,326 ) |
Summary of Significant Accoun53
Summary of Significant Accounting Policies Narrative (Details) | 12 Months Ended |
Dec. 31, 2017USD ($)investment_category | |
Accounting Policies [Abstract] | |
Number of investment classification categories | investment_category | 3 |
Commercial, industrial or construction loans held for investment, period of time after payment becomes in doubt that the Company stops accruing interest income and applies subsequent interest payments as principal reductions | 90 days |
Consumer loans including residential real estate, held for investment, period of time after payment becomes delinquent or when foreclosure proceedings have been initiated that the Company suspends any payment of principal or interest | 120 days |
Minimum balance on loans that are nonaccrual and troubled debt restructurings that are evaluated individually on expected future cash flows and discounted effective rates (greater than) | $ 1,000,000 |
Maximum balance on loans that are nonaccrual that are collectively evaluated for impairments on a historic loss expectation or loss calculations (less than) | $ 1,000,000 |
Life cycle used in historical loss methodology, period | 9 years |
Minimum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives on premises and equipment | 1 year |
Maximum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives on premises and equipment | 40 years |
Recognition period of charge off expenses on credit card loans | 180 days |
Recognition of charge off expenses on residential loans, period of time loan is past due | 180 days |
Recognition of charge off expenses on consumer loans, period of time loan is past due | 120 days |
Commercial, Financial and Agricultural | |
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | |
Period used as life cycle for calculation of PD | 9 years |
Period used as life cycle for calculation of LGD | 9 years |
Maximum number of days account can be delinquent for the lowest PD factor rating | 60 days |
Consumer | |
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | |
Period used as life cycle for calculation of PD | 9 years |
Period used as life cycle for calculation of LGD | 9 years |
Maximum number of days account can be delinquent for the lowest PD factor rating | 60 days |
Acquisition Activities - Narrat
Acquisition Activities - Narrative (Details) $ in Thousands | Jun. 06, 2016USD ($)subsidiary | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)subsidiary |
Business Combinations [Abstract] | ||||
Number of entities under common control acquired | subsidiary | 4 | 4 | ||
Cash payment to purchase entities under common control | $ 69,200 | $ 0 | $ 69,151 | $ 20,000 |
Total net assets acquired from entities under common control | $ 103,000 |
Investment Securities Availab55
Investment Securities Available for Sale and Investment Securities Held to Maturity - Adjusted cost and fair value of securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment securities available for sale: | ||
Amortized Cost | $ 12,875,832 | $ 11,833,978 |
Gross Unrealized Gains | 19,750 | 20,825 |
Gross Unrealized Losses | 211,795 | 189,748 |
Fair Value | 12,683,787 | 11,665,055 |
Investment securities held to maturity: | ||
Amortized Cost | 1,046,093 | 1,203,217 |
Gross Unrealized Gains | 11,203 | 10,699 |
Gross Unrealized Losses | 16,753 | 31,907 |
Fair Value | 1,040,543 | 1,182,009 |
U.S. Treasury and other U.S. government agencies | ||
Investment securities available for sale: | ||
Amortized Cost | 4,265,296 | 2,409,141 |
Gross Unrealized Gains | 996 | 2,390 |
Gross Unrealized Losses | 61,854 | 37,200 |
Fair Value | 4,204,438 | 2,374,331 |
Mortgage-backed securities | ||
Investment securities available for sale: | ||
Amortized Cost | 2,841,584 | 3,796,270 |
Gross Unrealized Gains | 14,312 | 12,869 |
Gross Unrealized Losses | 43,096 | 45,801 |
Fair Value | 2,812,800 | 3,763,338 |
Collateralized mortgage obligations | ||
Investment securities available for sale: | ||
Amortized Cost | 5,302,531 | 5,200,241 |
Gross Unrealized Gains | 4,203 | 5,292 |
Gross Unrealized Losses | 106,723 | 106,605 |
Fair Value | 5,200,011 | 5,098,928 |
Investment securities held to maturity: | ||
Amortized Cost | 64,140 | 83,087 |
Gross Unrealized Gains | 5,262 | 5,265 |
Gross Unrealized Losses | 1,605 | 3,278 |
Fair Value | 67,797 | 85,074 |
States and political subdivisions | ||
Investment securities available for sale: | ||
Amortized Cost | 2,278 | 8,457 |
Gross Unrealized Gains | 105 | 184 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,383 | 8,641 |
Investment securities held to maturity: | ||
Amortized Cost | 911,393 | 1,040,716 |
Gross Unrealized Gains | 3,951 | 2,309 |
Gross Unrealized Losses | 12,853 | 25,518 |
Fair Value | 902,491 | 1,017,507 |
Other | ||
Investment securities held to maturity: | ||
Amortized Cost | 61,252 | 64,296 |
Gross Unrealized Gains | 243 | 1,143 |
Gross Unrealized Losses | 1,667 | 2,030 |
Fair Value | 59,828 | 63,409 |
Equity Securities | ||
Investment securities available for sale: | ||
Amortized Cost | 464,143 | 419,869 |
Gross Unrealized Gains | 134 | 90 |
Gross Unrealized Losses | 122 | 142 |
Fair Value | 464,155 | 419,817 |
Asset-backed securities | ||
Investment securities held to maturity: | ||
Amortized Cost | 9,308 | 15,118 |
Gross Unrealized Gains | 1,747 | 1,982 |
Gross Unrealized Losses | 628 | 1,081 |
Fair Value | $ 10,427 | $ 16,019 |
Investment Securities Availab56
Investment Securities Available for Sale and Investment Securities Held to Maturity - Fair value and unrealized losses of available for sale securities and held to maturity securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | $ 4,170,832 | $ 6,234,690 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 37,616 | 138,651 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 6,290,353 | 2,761,941 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 174,179 | 51,097 |
Available-for-sale securities, fair value | 10,461,185 | 8,996,631 |
Available-for-sale securities, unrealized losses | 211,795 | 189,748 |
Investment securities held to maturity: | ||
Held-to-maturity securities, securities in a loss position for less than 12 months, fair value | 265,031 | 552,858 |
Held-to-maturity securities, securities in a loss position for less than 12 months, unrealized losses | 4,488 | 13,745 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, fair value | 390,508 | 366,711 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, unrealized losses | 12,265 | 18,162 |
Held-to-maturity securities, fair value | 655,539 | 919,569 |
Held-to-maturity securities unrealized losses | 16,753 | 31,907 |
U.S. Treasury and other U.S. government agencies | ||
Investment securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | 2,532,439 | 1,277,341 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 28,308 | 23,862 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 1,325,975 | 609,078 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 33,546 | 13,338 |
Available-for-sale securities, fair value | 3,858,414 | 1,886,419 |
Available-for-sale securities, unrealized losses | 61,854 | 37,200 |
Mortgage-backed securities | ||
Investment securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | 390,106 | 1,425,743 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 2,731 | 15,235 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 1,666,045 | 1,368,957 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 40,365 | 30,566 |
Available-for-sale securities, fair value | 2,056,151 | 2,794,700 |
Available-for-sale securities, unrealized losses | 43,096 | 45,801 |
Asset-backed securities | ||
Investment securities held to maturity: | ||
Held-to-maturity securities, securities in a loss position for less than 12 months, fair value | 0 | 343 |
Held-to-maturity securities, securities in a loss position for less than 12 months, unrealized losses | 0 | 1 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, fair value | 6,243 | 9,238 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, unrealized losses | 628 | 1,080 |
Held-to-maturity securities, fair value | 6,243 | 9,581 |
Held-to-maturity securities unrealized losses | 628 | 1,081 |
Collateralized mortgage obligations | ||
Investment securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | 1,244,416 | 3,527,757 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 6,522 | 99,477 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 3,297,278 | 782,849 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 100,201 | 7,128 |
Available-for-sale securities, fair value | 4,541,694 | 4,310,606 |
Available-for-sale securities, unrealized losses | 106,723 | 106,605 |
Investment securities held to maturity: | ||
Held-to-maturity securities, securities in a loss position for less than 12 months, fair value | 9,776 | 3,847 |
Held-to-maturity securities, securities in a loss position for less than 12 months, unrealized losses | 25 | 527 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, fair value | 22,439 | 40,083 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, unrealized losses | 1,580 | 2,751 |
Held-to-maturity securities, fair value | 32,215 | 43,930 |
Held-to-maturity securities unrealized losses | 1,605 | 3,278 |
States and political subdivisions | ||
Investment securities held to maturity: | ||
Held-to-maturity securities, securities in a loss position for less than 12 months, fair value | 236,207 | 532,090 |
Held-to-maturity securities, securities in a loss position for less than 12 months, unrealized losses | 4,365 | 13,043 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, fair value | 341,090 | 313,803 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, unrealized losses | 8,488 | 12,475 |
Held-to-maturity securities, fair value | 577,297 | 845,893 |
Held-to-maturity securities unrealized losses | 12,853 | 25,518 |
Equity Securities | ||
Investment securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | 3,871 | 3,849 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 55 | 77 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 1,055 | 1,057 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 67 | 65 |
Available-for-sale securities, fair value | 4,926 | 4,906 |
Available-for-sale securities, unrealized losses | 122 | 142 |
Other | ||
Investment securities held to maturity: | ||
Held-to-maturity securities, securities in a loss position for less than 12 months, fair value | 19,048 | 16,578 |
Held-to-maturity securities, securities in a loss position for less than 12 months, unrealized losses | 98 | 174 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, fair value | 20,736 | 3,587 |
Held-to-maturity securities, securities in a loss position for 12 months or longer, unrealized losses | 1,569 | 1,856 |
Held-to-maturity securities, fair value | 39,784 | 20,165 |
Held-to-maturity securities unrealized losses | $ 1,667 | $ 2,030 |
Investment Securities Availab57
Investment Securities Available for Sale and Investment Securities Held to Maturity - Other temporary impairments losses recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Other than temporary impairment recognized in other comprehensive income, beginning of period | $ 22,582 | $ 22,452 | $ 21,123 |
Reductions for securities paid off during the period (realized) | 0 | 0 | (331) |
Additions for the credit component on debt securities in which OTTI was not previously recognized | 242 | 0 | 1,013 |
Additions for the credit component on debt securities in which OTTI was previously recognized | 0 | 130 | 647 |
Other than temporary impairment recognized in other comprehensive income, end of period | $ 22,824 | $ 22,582 | $ 22,452 |
Investment Securities Availab58
Investment Securities Available for Sale and Investment Securities Held to Maturity - Maturities of securities portfolios (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment securities available for sale, amortized cost [Abstract] | ||
Maturing within one year | $ 211,721 | |
Maturing after one but within five years | 1,586,822 | |
Maturing after five but within ten years | 1,591,646 | |
Maturing after ten years | 877,385 | |
Total single date maturities | 4,267,574 | |
Mortgage-backed securities and collateralized mortgage obligations | 8,144,115 | |
Amortized Cost | 12,875,832 | $ 11,833,978 |
Investment securities available for sale, fair value [Abstract] | ||
Maturing within one year | 210,736 | |
Maturing after one but within five years | 1,565,281 | |
Maturing after five but within ten years | 1,575,186 | |
Maturing after ten years | 855,618 | |
Total single date maturities | 4,206,821 | |
Mortgage-backed securities and collateralized mortgage obligations | 8,012,811 | |
Investment securities available for sale | 12,683,787 | 11,665,055 |
Held-to-maturity securities, amortized cost [Abstract] | ||
Maturing within one year | 102,858 | |
Maturing after one but within five years | 190,487 | |
Maturing after five but within ten years | 214,204 | |
Maturing after ten years | 474,404 | |
Total single date maturities | 981,953 | |
Collateralized mortgage obligations | 64,140 | |
Total | 1,046,093 | 1,203,217 |
Held-to-maturity securities, fair value [Abstract] | ||
Maturing within one year | 102,889 | |
Maturing after one but within five years | 190,294 | |
Maturing after five but within ten years | 211,758 | |
Maturing after ten years | 467,805 | |
Total single date maturities | 972,746 | |
Collateralized mortgage obligations | 67,797 | |
Total | 1,040,543 | 1,182,009 |
Equity Securities | ||
Investment securities available for sale, amortized cost [Abstract] | ||
Amortized Cost | 464,143 | 419,869 |
Investment securities available for sale, fair value [Abstract] | ||
Investment securities available for sale | $ 464,155 | $ 419,817 |
Investment Securities Availab59
Investment Securities Available for Sale and Investment Securities Held to Maturity - Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains | $ 3,033 | $ 30,037 | $ 83,488 |
Gross losses | 0 | 0 | 1,832 |
Net realized gains | $ 3,033 | $ 30,037 | $ 81,656 |
Investment Securities Availab60
Investment Securities Available for Sale and Investment Securities Held to Maturity - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2008 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Federal home loan bank and federal reserve stock carried at par value | $ 450,000 | $ 403,000 | ||
Investment securities available for sale were pledged to secure public deposits, securities sold under agreements to repurchase and FHLB advances required or permitted by law | $ 553,000 | |||
Investment securities available for sale rated AAA | 99.90% | |||
Total securities impairment | $ 242 | 130 | $ 1,660 | |
Transferred held-to-maturity security, at carrying value | $ 1,100,000 | |||
Transferred held-to-maturity security, at market value | $ 859,000 | |||
Unrealized losses, net of tax related to securities in accumulated other comprehensive income | $ (10,000) | $ (13,000) |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses - Composition of loan portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Loans and Leases Receivable Disclosure [Line Items] | |||
Covered loans | [1] | $ 0 | $ 359,334 |
Total loans | 61,623,768 | 60,061,263 | |
Commercial, Financial and Agricultural | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 25,749,949 | 25,122,002 | |
Commercial Real Estate | Real estate – construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,273,539 | 2,125,316 | |
Commercial Real Estate | Commercial real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 11,724,158 | 11,210,660 | |
Residential Real Estate | Residential real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 13,365,747 | 13,259,994 | |
Residential Real Estate | Equity lines of credit | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,653,105 | 2,543,778 | |
Residential Real Estate | Equity loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 363,264 | 445,709 | |
Consumer | Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 639,517 | 604,881 | |
Consumer | Consumer direct | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 1,690,383 | 1,254,641 | |
Consumer | Consumer indirect | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 3,164,106 | 3,134,948 | |
Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 39,747,646 | 38,457,978 | |
Commercial | Commercial, Financial and Agricultural | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 25,749,949 | 25,122,002 | |
Commercial | Commercial Real Estate | Real estate – construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,273,539 | 2,125,316 | |
Commercial | Commercial Real Estate | Commercial real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 11,724,158 | 11,210,660 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 21,876,122 | 21,243,951 | |
Consumer | Residential Real Estate | Residential real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 13,365,747 | 13,259,994 | |
Consumer | Residential Real Estate | Equity lines of credit | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,653,105 | 2,543,778 | |
Consumer | Residential Real Estate | Equity loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 363,264 | 445,709 | |
Consumer | Consumer | Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 639,517 | 604,881 | |
Consumer | Consumer | Consumer direct | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 1,690,383 | 1,254,641 | |
Consumer | Consumer | Consumer indirect | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 3,164,106 | $ 3,134,948 | |
FDIC loss sharing agreement | Commercial Loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
FDIC loss sharing agreement, term | 5 years | ||
FDIC loss sharing agreement | Single Family Residential Loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
FDIC loss sharing agreement, term | 10 years | ||
[1] | Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. The loss sharing agreements provide for FDIC loss sharing for five years for commercial loans and 10 years for single family residential loans. The loss sharing agreement for commercial loans expired in the fourth quarter of 2014. In July 2017, the Company terminated the single family residential loss share agreement with the FDIC ahead of the contractual maturity. Loans no longer covered under a loss share agreement were reclassified to their appropriate loan type. |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses - Allowances for loan losses activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses, covered, beginning of period | $ 0 | $ 1,440 | $ 2,808 | |
Allowance for loan losses,total loans, beginning of period | 838,293 | 762,673 | 685,041 | |
Provision (credit) for loan losses | 287,693 | 302,589 | 193,638 | |
Provision (credit) for loan losses, covered | (31) | 43 | 857 | |
Provision (credit) for loan losses, total loans | 287,693 | 302,589 | 193,638 | |
Loans charged off, covered | 0 | (1,484) | (2,228) | |
Loans charged off, total loans | (359,052) | (291,087) | (173,684) | |
Loan recoveries, covered | 31 | 1 | 3 | |
Loan recoveries, total loans | 75,826 | 64,118 | 57,678 | |
Net (charge-offs) recoveries, covered | 31 | (1,483) | (2,225) | |
Net (charge-offs) recoveries, total loans | (283,226) | (226,969) | (116,006) | |
Allowance for loan losses, covered, end of period | 0 | 0 | 1,440 | |
Allowance for loan losses, total loans, end of period | 842,760 | 838,293 | 762,673 | |
Commercial, Financial and Agricultural | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period | 458,580 | 402,113 | 299,482 | |
Provision (credit) for loan losses | 49,528 | 129,646 | 116,272 | |
Loans charged off | (106,570) | (84,218) | (25,831) | |
Loan recoveries | 19,097 | 11,039 | 12,190 | |
Net (charge-offs) recoveries | (87,473) | (73,179) | (13,641) | |
Allowance for loan losses, end of period | 420,635 | 458,580 | 402,113 | |
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period | [1] | 116,937 | 122,068 | 138,233 |
Provision (credit) for loan losses | [1] | 6,195 | (5,502) | (17,975) |
Loans charged off | [1] | (9,983) | (4,866) | (3,882) |
Loan recoveries | [1] | 4,984 | 5,237 | 5,692 |
Net (charge-offs) recoveries | [1] | (4,999) | 371 | 1,810 |
Allowance for loan losses, end of period | [1] | 118,133 | 116,937 | 122,068 |
Residential Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period | [2] | 119,484 | 132,104 | 154,627 |
Provision (credit) for loan losses | [2] | (874) | (4,156) | (9,711) |
Loans charged off | [2] | (21,287) | (19,946) | (26,630) |
Loan recoveries | [2] | 12,533 | 11,482 | 13,818 |
Net (charge-offs) recoveries | [2] | (8,754) | (8,464) | (12,812) |
Allowance for loan losses, end of period | [2] | 109,856 | 119,484 | 132,104 |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period | [3] | 143,292 | 104,948 | 89,891 |
Provision (credit) for loan losses | [3] | 232,875 | 182,558 | 104,195 |
Loans charged off | [3] | (221,212) | (180,573) | (115,113) |
Loan recoveries | [3] | 39,181 | 36,359 | 25,975 |
Net (charge-offs) recoveries | [3] | (182,031) | (144,214) | (89,138) |
Allowance for loan losses, end of period | [3] | $ 194,136 | $ 143,292 | $ 104,948 |
[1] | Includes commercial real estate – mortgage and real estate – construction loans. | |||
[2] | Includes residential real estate – mortgage, equity lines of credit and equity loans. | |||
[3] | Includes credit card, consumer direct and consumer indirect loans. |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses - Allowance for loan losses by portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Ending Balance of Allowance Attributable to Loans [Abstract] | |||||
Individually evaluated for impairment | $ 104,385 | $ 138,208 | |||
Collectively evaluated for impairment | 738,375 | 700,085 | |||
Total allowance for loan losses, covered | 0 | 0 | $ 1,440 | $ 2,808 | |
Total allowance for loan losses, total loans | 842,760 | 838,293 | 762,673 | 685,041 | |
Ending Balance of Loans [Abstract] | |||||
Individually evaluated for impairment | 569,294 | 953,106 | |||
Collectively evaluated for impairment | 61,054,474 | 59,108,157 | |||
Collectively evaluated for impairment, covered | 359,334 | ||||
Total loans, covered | [1] | 0 | 359,334 | ||
Total loans | 61,623,768 | 60,061,263 | |||
Commercial, Financial and Agricultural | |||||
Ending Balance of Allowance Attributable to Loans [Abstract] | |||||
Individually evaluated for impairment | 61,705 | 99,932 | |||
Collectively evaluated for impairment | 358,930 | 358,648 | |||
Total allowance for loan losses | 420,635 | 458,580 | 402,113 | 299,482 | |
Ending Balance of Loans [Abstract] | |||||
Individually evaluated for impairment | 307,680 | 719,468 | |||
Collectively evaluated for impairment | 25,442,269 | 24,402,534 | |||
Total loans, excluding covered loans | 25,749,949 | 25,122,002 | |||
Commercial Real Estate | |||||
Ending Balance of Allowance Attributable to Loans [Abstract] | |||||
Individually evaluated for impairment | [2] | 9,864 | 4,037 | ||
Collectively evaluated for impairment | [2] | 108,269 | 112,900 | ||
Total allowance for loan losses | [2] | 118,133 | 116,937 | 122,068 | 138,233 |
Ending Balance of Loans [Abstract] | |||||
Individually evaluated for impairment | [2] | 85,180 | 44,258 | ||
Collectively evaluated for impairment | [2] | 13,912,517 | 13,291,718 | ||
Total loans, excluding covered loans | [2] | 13,997,697 | 13,335,976 | ||
Residential Real Estate | |||||
Ending Balance of Allowance Attributable to Loans [Abstract] | |||||
Individually evaluated for impairment | [3] | 30,613 | 32,016 | ||
Collectively evaluated for impairment | [3] | 79,243 | 87,468 | ||
Total allowance for loan losses | [3] | 109,856 | 119,484 | 132,104 | 154,627 |
Ending Balance of Loans [Abstract] | |||||
Individually evaluated for impairment | [3] | 172,857 | 186,338 | ||
Collectively evaluated for impairment | [3] | 16,209,259 | 16,063,143 | ||
Total loans, excluding covered loans | [3] | 16,382,116 | 16,249,481 | ||
Consumer | |||||
Ending Balance of Allowance Attributable to Loans [Abstract] | |||||
Individually evaluated for impairment | [4] | 2,203 | 2,223 | ||
Collectively evaluated for impairment | [4] | 191,933 | 141,069 | ||
Total allowance for loan losses | [4] | 194,136 | 143,292 | $ 104,948 | $ 89,891 |
Ending Balance of Loans [Abstract] | |||||
Individually evaluated for impairment | [4] | 3,577 | 3,042 | ||
Collectively evaluated for impairment | [4] | 5,490,429 | 4,991,428 | ||
Total loans, excluding covered loans | [4] | $ 5,494,006 | $ 4,994,470 | ||
[1] | Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. The loss sharing agreements provide for FDIC loss sharing for five years for commercial loans and 10 years for single family residential loans. The loss sharing agreement for commercial loans expired in the fourth quarter of 2014. In July 2017, the Company terminated the single family residential loss share agreement with the FDIC ahead of the contractual maturity. Loans no longer covered under a loss share agreement were reclassified to their appropriate loan type. | ||||
[2] | Includes commercial real estate – mortgage and real estate – construction loans. | ||||
[3] | Includes residential real estate – mortgage, equity lines of credit and equity loans. | ||||
[4] | Includes credit card, consumer direct and consumer indirect loans. |
Loans and Allowance for Loan 64
Loans and Allowance for Loan Losses - Impaired loans by loan class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | $ 180,897 | $ 395,192 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 215,016 | 416,471 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 388,397 | 557,914 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 408,045 | 587,043 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 104,385 | 138,208 | |
Individually evaluated impaired loans, average recorded investment | 679,688 | 862,118 | $ 392,846 |
Individually evaluated impaired loans, interest income recognized | 6,925 | 7,652 | 8,990 |
Commercial, Financial and Agricultural | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 142,908 | 375,957 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 175,743 | 396,294 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 164,772 | 343,511 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 175,512 | 371,085 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 61,705 | 99,932 | |
Individually evaluated impaired loans, average recorded investment | 426,809 | 632,319 | 113,844 |
Individually evaluated impaired loans, interest income recognized | 947 | 1,221 | 1,118 |
Commercial Real Estate | Real estate – construction | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 2,849 | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 2,858 | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 130 | 344 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 130 | 459 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 7 | 344 | |
Individually evaluated impaired loans, average recorded investment | 1,874 | 1,734 | 5,391 |
Individually evaluated impaired loans, interest income recognized | 11 | 8 | 100 |
Commercial Real Estate | Commercial real estate – mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 35,140 | 19,235 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 36,415 | 20,177 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 47,061 | 24,679 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 55,122 | 24,865 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 9,857 | 3,693 | |
Individually evaluated impaired loans, average recorded investment | 72,692 | 44,530 | 84,565 |
Individually evaluated impaired loans, interest income recognized | 1,071 | 1,195 | 2,200 |
Residential Real Estate | Residential real estate – mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 117,751 | 119,986 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 117,751 | 119,986 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 10,214 | 7,529 | |
Individually evaluated impaired loans, average recorded investment | 115,583 | 109,792 | 110,251 |
Individually evaluated impaired loans, interest income recognized | 2,676 | 2,672 | 2,786 |
Residential Real Estate | Equity lines of credit | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 19,183 | 24,591 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 19,188 | 25,045 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 16,021 | 19,083 | |
Individually evaluated impaired loans, average recorded investment | 21,458 | 26,638 | 27,108 |
Individually evaluated impaired loans, interest income recognized | 871 | 1,025 | 1,124 |
Residential Real Estate | Equity loans | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 35,923 | 41,761 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 36,765 | 42,561 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 4,378 | 5,404 | |
Individually evaluated impaired loans, average recorded investment | 38,090 | 44,051 | 49,336 |
Individually evaluated impaired loans, interest income recognized | 1,312 | 1,490 | 1,638 |
Consumer | Credit card | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 0 | 0 | |
Individually evaluated impaired loans, average recorded investment | 0 | 0 | 0 |
Individually evaluated impaired loans, interest income recognized | 0 | 0 | 0 |
Consumer | Consumer direct | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 2,545 | 745 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 2,545 | 745 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 1,254 | 59 | |
Individually evaluated impaired loans, average recorded investment | 1,629 | 833 | 657 |
Individually evaluated impaired loans, interest income recognized | 27 | 28 | 17 |
Consumer | Consumer indirect | |||
Financing Receivable, Impaired [Line Items] | |||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principle balance | 0 | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 1,032 | 2,297 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principle balance | 1,032 | 2,297 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 949 | 2,164 | |
Individually evaluated impaired loans, average recorded investment | 1,553 | 2,221 | 1,694 |
Individually evaluated impaired loans, interest income recognized | $ 10 | $ 13 | $ 7 |
Loans and Allowance for Loan 65
Loans and Allowance for Loan Losses - Credit quality indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial, Financial and Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 25,749,949 | $ 25,122,002 |
Residential Real Estate | Residential real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,365,747 | 13,259,994 |
Residential Real Estate | Equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,653,105 | 2,543,778 |
Residential Real Estate | Equity loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 363,264 | 445,709 |
Commercial Real Estate | Real estate – construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,273,539 | 2,125,316 |
Commercial Real Estate | Commercial real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,724,158 | 11,210,660 |
Consumer | Credit card | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 639,517 | 604,881 |
Consumer | Consumer direct | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,690,383 | 1,254,641 |
Consumer | Consumer indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,164,106 | 3,134,948 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21,876,122 | 21,243,951 |
Consumer | Residential Real Estate | Residential real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,365,747 | 13,259,994 |
Consumer | Residential Real Estate | Equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,653,105 | 2,543,778 |
Consumer | Residential Real Estate | Equity loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 363,264 | 445,709 |
Consumer | Consumer | Credit card | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 639,517 | 604,881 |
Consumer | Consumer | Consumer direct | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,690,383 | 1,254,641 |
Consumer | Consumer | Consumer indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,164,106 | 3,134,948 |
Consumer | Performing | Residential Real Estate | Residential real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,182,760 | 13,115,936 |
Consumer | Performing | Residential Real Estate | Equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,616,825 | 2,507,375 |
Consumer | Performing | Residential Real Estate | Equity loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 350,531 | 431,417 |
Consumer | Performing | Consumer | Credit card | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 627,588 | 593,927 |
Consumer | Performing | Consumer | Consumer direct | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,681,246 | 1,249,370 |
Consumer | Performing | Consumer | Consumer indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,147,223 | 3,121,825 |
Consumer | Nonperforming | Residential Real Estate | Residential real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 182,987 | 144,058 |
Consumer | Nonperforming | Residential Real Estate | Equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 36,280 | 36,403 |
Consumer | Nonperforming | Residential Real Estate | Equity loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,733 | 14,292 |
Consumer | Nonperforming | Consumer | Credit card | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,929 | 10,954 |
Consumer | Nonperforming | Consumer | Consumer direct | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,137 | 5,271 |
Consumer | Nonperforming | Consumer | Consumer indirect | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,883 | 13,123 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 39,747,646 | 38,457,978 |
Commercial | Commercial, Financial and Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 25,749,949 | 25,122,002 |
Commercial | Commercial, Financial and Agricultural | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 24,387,737 | 23,142,975 |
Commercial | Commercial, Financial and Agricultural | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 614,006 | 758,417 |
Commercial | Commercial, Financial and Agricultural | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 623,672 | 1,081,439 |
Commercial | Commercial, Financial and Agricultural | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 124,534 | 139,171 |
Commercial | Commercial Real Estate | Real estate – construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,273,539 | 2,125,316 |
Commercial | Commercial Real Estate | Commercial real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,724,158 | 11,210,660 |
Commercial | Commercial Real Estate | Pass | Real estate – construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,257,659 | 2,055,483 |
Commercial | Commercial Real Estate | Pass | Commercial real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,309,484 | 10,898,877 |
Commercial | Commercial Real Estate | Special Mention | Real estate – construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,401 | 60,826 |
Commercial | Commercial Real Estate | Special Mention | Commercial real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 215,076 | 187,182 |
Commercial | Commercial Real Estate | Substandard | Real estate – construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,479 | 9,007 |
Commercial | Commercial Real Estate | Substandard | Commercial real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 187,049 | 106,183 |
Commercial | Commercial Real Estate | Doubtful | Real estate – construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial | Commercial Real Estate | Doubtful | Commercial real estate – mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 12,549 | $ 18,418 |
Loans and Allowance for Loan 66
Loans and Allowance for Loan Losses - Past due loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual, Covered | $ 0 | $ 730 | |
Accruing TDRs, Covered | 0 | 0 | |
Total Past Due and Impaired, Covered | 0 | 36,630 | |
Not Past Due or Impaired, Covered | 0 | 322,704 | |
Total loans, covered | [1] | 0 | 359,334 |
Nonaccrual, Total Loans | 658,865 | 864,450 | |
Accruing TDRs, Total Loans | 101,243 | 111,322 | |
Total Past Due and Impaired, Total Loans | 1,147,179 | 1,327,735 | |
Not Past Due or Impairment, Total Loans | 60,476,589 | 58,733,528 | |
Total loans | 61,623,768 | 60,061,263 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due, Covered | 0 | 7,311 | |
Past Due, Total Loans | 240,663 | 211,651 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due, Covered | 0 | 1,351 | |
Past Due, Total Loans | 88,030 | 78,770 | |
90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due, Covered | 0 | 27,238 | |
Past Due, Total Loans | 58,378 | 61,542 | |
Commercial, Financial and Agricultural | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 310,059 | 596,454 | |
Accruing TDRs | 1,213 | 8,726 | |
Total Past Due and Impaired | 347,965 | 638,440 | |
Not Past Due or Impaired | 25,401,984 | 24,483,562 | |
Total Loans | 25,749,949 | 25,122,002 | |
Commercial, Financial and Agricultural | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 14,804 | 23,788 | |
Commercial, Financial and Agricultural | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,753 | 6,581 | |
Commercial, Financial and Agricultural | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 18,136 | 2,891 | |
Commercial Real Estate | Real estate – construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 5,381 | 1,239 | |
Accruing TDRs | 101 | 2,393 | |
Total Past Due and Impaired | 19,405 | 6,607 | |
Not Past Due or Impaired | 2,254,134 | 2,118,709 | |
Total Loans | 2,273,539 | 2,125,316 | |
Commercial Real Estate | Commercial real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 111,982 | 71,921 | |
Accruing TDRs | 4,155 | 4,860 | |
Total Past Due and Impaired | 130,807 | 84,046 | |
Not Past Due or Impaired | 11,593,351 | 11,126,614 | |
Total Loans | 11,724,158 | 11,210,660 | |
Commercial Real Estate | 30-59 Days Past Due | Real estate – construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 12,293 | 918 | |
Commercial Real Estate | 30-59 Days Past Due | Commercial real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10,473 | 3,791 | |
Commercial Real Estate | 60-89 Days Past Due | Real estate – construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 70 | 50 | |
Commercial Real Estate | 60-89 Days Past Due | Commercial real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,270 | 3,474 | |
Commercial Real Estate | 90 Days or More Past Due | Real estate – construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,560 | 2,007 | |
Commercial Real Estate | 90 Days or More Past Due | Commercial real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 927 | 0 | |
Residential Real Estate | Residential real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 173,843 | 140,303 | |
Accruing TDRs | 64,898 | 59,893 | |
Total Past Due and Impaired | 351,227 | 289,361 | |
Not Past Due or Impaired | 13,014,520 | 12,970,633 | |
Total Loans | 13,365,747 | 13,259,994 | |
Residential Real Estate | Equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 34,021 | 33,453 | |
Accruing TDRs | 237 | 0 | |
Total Past Due and Impaired | 55,029 | 48,908 | |
Not Past Due or Impaired | 2,598,076 | 2,494,870 | |
Total Loans | 2,653,105 | 2,543,778 | |
Residential Real Estate | Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 11,559 | 13,635 | |
Accruing TDRs | 30,105 | 34,746 | |
Total Past Due and Impaired | 47,486 | 56,306 | |
Not Past Due or Impaired | 315,778 | 389,403 | |
Total Loans | 363,264 | 445,709 | |
Residential Real Estate | 30-59 Days Past Due | Residential real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 69,474 | 57,359 | |
Residential Real Estate | 30-59 Days Past Due | Equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10,956 | 7,922 | |
Residential Real Estate | 30-59 Days Past Due | Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4,170 | 5,615 | |
Residential Real Estate | 60-89 Days Past Due | Residential real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 34,440 | 28,450 | |
Residential Real Estate | 60-89 Days Past Due | Equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 7,556 | 4,583 | |
Residential Real Estate | 60-89 Days Past Due | Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 657 | 1,843 | |
Residential Real Estate | 90 Days or More Past Due | Residential real estate – mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8,572 | 3,356 | |
Residential Real Estate | 90 Days or More Past Due | Equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,259 | 2,950 | |
Residential Real Estate | 90 Days or More Past Due | Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 995 | 467 | |
Consumer | Credit card | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Accruing TDRs | 0 | 0 | |
Total Past Due and Impaired | 23,443 | 22,407 | |
Not Past Due or Impaired | 616,074 | 582,474 | |
Total Loans | 639,517 | 604,881 | |
Consumer | Consumer direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 2,425 | 789 | |
Accruing TDRs | 534 | 704 | |
Total Past Due and Impaired | 36,457 | 23,876 | |
Not Past Due or Impaired | 1,653,926 | 1,230,765 | |
Total Loans | 1,690,383 | 1,254,641 | |
Consumer | Consumer indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 9,595 | 5,926 | |
Accruing TDRs | 0 | 0 | |
Total Past Due and Impaired | 135,360 | 121,154 | |
Not Past Due or Impaired | 3,028,746 | 3,013,794 | |
Total Loans | 3,164,106 | 3,134,948 | |
Consumer | 30-59 Days Past Due | Credit card | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6,710 | 6,411 | |
Consumer | 30-59 Days Past Due | Consumer direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 19,766 | 13,338 | |
Consumer | 30-59 Days Past Due | Consumer indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 92,017 | 85,198 | |
Consumer | 60-89 Days Past Due | Credit card | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4,804 | 5,042 | |
Consumer | 60-89 Days Past Due | Consumer direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 7,020 | 4,563 | |
Consumer | 60-89 Days Past Due | Consumer indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 26,460 | 22,833 | |
Consumer | 90 Days or More Past Due | Credit card | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11,929 | 10,954 | |
Consumer | 90 Days or More Past Due | Consumer direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6,712 | 4,482 | |
Consumer | 90 Days or More Past Due | Consumer indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 7,288 | $ 7,197 | |
[1] | Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. The loss sharing agreements provide for FDIC loss sharing for five years for commercial loans and 10 years for single family residential loans. The loss sharing agreement for commercial loans expired in the fourth quarter of 2014. In July 2017, the Company terminated the single family residential loss share agreement with the FDIC ahead of the contractual maturity. Loans no longer covered under a loss share agreement were reclassified to their appropriate loan type. |
Loans and Allowance for Loan 67
Loans and Allowance for Loan Losses - Reclassified as troubled debt restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contract | Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructuring, write-down | $ 27,100 | ||
Number of contracts, covered | Contract | 2 | 0 | 3 |
Post modification outstanding, recorded investment, covered | $ 103 | $ 0 | $ 29 |
Number of subsequent defaults contracts, covered | Contract | 0 | 0 | 2 |
Recorded investment at subsequent default, covered | $ 0 | $ 0 | $ 24 |
Commercial, Financial and Agricultural | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 26 | 10 | 6 |
Post modification outstanding, recorded investment | $ 232,511 | $ 44,569 | $ 384 |
Number of subsequent default contracts | Contract | 1 | 0 | 0 |
Recorded investment at subsequent default | $ 686 | $ 0 | $ 0 |
Commercial Real Estate | Real estate – construction | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 0 | 2 | 0 |
Post modification outstanding, recorded investment | $ 0 | $ 3,504 | $ 0 |
Number of subsequent default contracts | Contract | 0 | 0 | 1 |
Recorded investment at subsequent default | $ 0 | $ 0 | $ 377 |
Commercial Real Estate | Commercial real estate – mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 3 | 5 | 7 |
Post modification outstanding, recorded investment | $ 1,223 | $ 1,431 | $ 4,478 |
Number of subsequent default contracts | Contract | 0 | 0 | 1 |
Recorded investment at subsequent default | $ 0 | $ 0 | $ 178 |
Residential Real Estate | Residential real estate – mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 66 | 70 | 46 |
Post modification outstanding, recorded investment | $ 15,714 | $ 13,211 | $ 9,709 |
Number of subsequent default contracts | Contract | 1 | 0 | 7 |
Recorded investment at subsequent default | $ 505 | $ 0 | $ 987 |
Residential Real Estate | Equity lines of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 41 | 82 | 115 |
Post modification outstanding, recorded investment | $ 1,858 | $ 3,869 | $ 6,482 |
Number of subsequent default contracts | Contract | 0 | 8 | 1 |
Recorded investment at subsequent default | $ 0 | $ 204 | $ 0 |
Residential Real Estate | Equity loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 30 | 17 | 35 |
Post modification outstanding, recorded investment | $ 1,246 | $ 1,369 | $ 2,586 |
Number of subsequent default contracts | Contract | 2 | 3 | 3 |
Recorded investment at subsequent default | $ 51 | $ 293 | $ 216 |
Consumer | Credit card | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 0 | 0 | 0 |
Post modification outstanding, recorded investment | $ 0 | $ 0 | $ 0 |
Number of subsequent default contracts | Contract | 0 | 0 | 0 |
Recorded investment at subsequent default | $ 0 | $ 0 | $ 0 |
Consumer | Consumer direct | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 0 | 4 | 23 |
Post modification outstanding, recorded investment | $ 0 | $ 35 | $ 1,210 |
Number of subsequent default contracts | Contract | 0 | 0 | 1 |
Recorded investment at subsequent default | $ 0 | $ 0 | $ 100 |
Consumer | Consumer indirect | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 14 | 128 | 74 |
Post modification outstanding, recorded investment | $ 209 | $ 2,148 | $ 1,298 |
Number of subsequent default contracts | Contract | 1 | 2 | 1 |
Recorded investment at subsequent default | $ 22 | $ 32 | $ 18 |
Loans and Allowance for Loan 68
Loans and Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | |||
Unearned income | $ 257.9 | $ 260.5 | |
Unamortized deferred costs | 343.9 | 322.9 | |
Loans pledged to secure deposits and FHLB advances and for other purposes as required or permitted by law | 14,100 | ||
Commitment to lend additional funds to borrowers whose terms have been modified in a TDR | 15.9 | 12.6 | |
Other real estate owned | 17 | 21 | |
Residential real estate loans secured by residential real estate properties for which formal foreclosure proceedings were in process | 57 | 48 | |
Residential real estate – mortgage | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | |||
Other real estate owned | 12 | 18 | |
Interest Rate Concession | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | |||
Post modification outstanding, recorded investment | 7 | 5 | $ 4 |
Modification of Loan Structure | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | |||
Post modification outstanding, recorded investment | $ 246 | $ 65 | $ 22 |
Loan Sales and Servicing - Narr
Loan Sales and Servicing - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | ||
Loans held for sale | $ 67,110 | $ 161,849 |
Commercial, Financial and Agricultural | ||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | ||
Loans held for sale | 57,000 | |
Residential Real Estate | Residential real estate – mortgage | ||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | ||
Loans held for sale | $ 105,000 |
Loan Sales and Servicing - Loan
Loan Sales and Servicing - Loans Transferred to Held for Sale and Loans Sold (Details) - Loans and Loans Held for Sale Excluding Loans Originated for Sale in Secondary Market - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | |||
Loans transferred from held for investment to held for sale | $ 0 | $ 820,615 | $ 907,414 |
Charge-offs on loans recognized at transfer from held for investment to held for sale | 0 | 8,295 | 0 |
Loans and loans held for sale sold | $ 204,058 | $ 1,044,800 | $ 466,459 |
Loan Sales and Servicing - Sale
Loan Sales and Servicing - Sales in the Secondary Market (Details) - Originated For Sale In The Secondary Market - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | ||||
Residential real estate loans originated for sale in the secondary market sold | [1] | $ 660,484 | $ 682,115 | $ 1,521,424 |
Net gains recognized on sales of residential real estate loans originated for sale in the secondary market | [2] | $ 25,576 | $ 28,207 | $ 41,913 |
[1] | Includes loans originated for sale where the Company retained servicing responsibilities. | |||
[2] | Net gains were recorded in mortgage banking income in the Company's Consolidated Statements of Income. |
Loan Sales and Servicing - Real
Loan Sales and Servicing - Real Estate Mortgages Sold With Retained Servicing (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | ||||
Fair value of MSRs | $ 49,597 | $ 51,428 | ||
Residential Real Estate Mortgage Loans Sold with Retained Servicing | ||||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estate Owned [Line Items] | ||||
Residential mortgage loans sold with retained servicing | [1] | 660,484 | 997,956 | $ 1,521,424 |
Servicing fees recognized | [2] | 25,521 | 25,772 | $ 22,087 |
Recorded balance of residential real estate mortgage loans sold with retained servicing | [3] | 4,635,334 | 4,684,899 | |
Fair value of MSRs | [4] | $ 49,597 | $ 51,428 | |
[1] | There is no recourse to the Company for the failures of borrowers to pay loans when due. | |||
[2] | Recorded as a component of other noninterest income in the Company's Consolidated Statements of Income. | |||
[3] | These loans are not included in loans on the Company's Consolidated Balance Sheets. | |||
[4] | Recorded under the fair value method and included in other assets on the Company's Consolidated Balance Sheets. |
Loan Sales and Servicing - Resi
Loan Sales and Servicing - Residential MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 51,428 | |||
Increase (decrease) in fair value: | ||||
Ending balance | 49,597 | $ 51,428 | ||
Residential Mortgage | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 51,428 | 44,541 | $ 35,488 | |
Additions | 7,098 | 10,118 | 15,922 | |
Increase (decrease) in fair value: | ||||
Due to changes in valuation inputs or assumptions | 2,233 | 7,093 | (2,193) | |
Due to other changes in fair value | [1] | (11,162) | (10,324) | (4,676) |
Ending balance | $ 49,597 | $ 51,428 | $ 44,541 | |
[1] | Represents the realization of expected net servicing cash flows, expected borrower repayments and the passage of time. |
Loan Sales and Servicing - Valu
Loan Sales and Servicing - Valuation Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||
Fair value of MSRs | $ 49,597 | $ 51,428 |
Composition of residential loans serviced for others, percentage | 100.00% | 100.00% |
Weighted average life (in years) | 6 years 7 months 14 days | 6 years 6 months |
Prepayment speed: | 9.70% | 15.70% |
Effect on fair value of a 10% increase | $ (1,582) | $ (1,646) |
Effect on fair value of a 20% increase | $ (3,068) | $ (3,184) |
Weighted average option adjusted spread | 8.20% | 8.10% |
Effect on fair value of a 10% increase | $ (1,568) | $ (1,758) |
Effect on fair value of a 20% increase | $ (3,031) | $ (3,402) |
Fixed rate mortgage loan | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of residential loans serviced for others, percentage | 97.40% | 97.30% |
Adjustable rate mortgage loan | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of residential loans serviced for others, percentage | 2.60% | 2.70% |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 2,517,508 | $ 2,463,638 | |
Less: Accumulated depreciation and amortization | 1,302,634 | 1,163,584 | |
Total premises and equipment | 1,214,874 | 1,300,054 | |
Depreciation expense | 194,300 | 188,700 | $ 181,400 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 304,160 | 311,384 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 595,865 | 594,426 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 440,659 | 428,326 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 897,587 | 800,297 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 187,398 | 170,523 | |
Construction / projects in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 91,839 | $ 158,682 |
Bank Owned Life Insurance (Deta
Bank Owned Life Insurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Bank owned life insurance | $ 722,596 | $ 711,939 | |
Bank owned life insurance | 17,108 | 17,243 | $ 18,662 |
Bank Owned Life Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Bank owned life insurance | 723,000 | 712,000 | |
Accrued expenses and other liabilities | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Split dollar life insurance amount | $ 8,000 | $ 7,000 |
Goodwill Goodwill activity (Det
Goodwill Goodwill activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning of period | $ 9,835,400 | $ 9,835,400 | |
Accumulated impairment losses, beginning of period | (4,852,104) | (4,792,203) | |
Goodwill, net, beginning of period | 4,983,296 | 5,043,197 | |
Goodwill acquired during the year | 0 | 0 | |
Disposition adjustments | 0 | 0 | |
Impairment losses | 0 | (59,901) | $ (17,000) |
Goodwill, end of period | 9,835,400 | 9,835,400 | 9,835,400 |
Accumulated impairment losses, end of period | (4,852,104) | (4,852,104) | (4,792,203) |
Goodwill, net, end of period | $ 4,983,296 | $ 4,983,296 | $ 5,043,197 |
Goodwill Narrative (Details)
Goodwill Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)reporting_unit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 59,901,000 | $ 17,000,000 |
Number Of Reporting Units With No Goodwill Impairments | reporting_unit | 3 | ||
Number of reporting units | reporting_unit | 3 | ||
Goodwill | $ 4,983,296,000 | 4,983,296,000 | 5,043,197,000 |
Recognized accumulated goodwill impairment losses | 4,852,104,000 | 4,852,104,000 | $ 4,792,203,000 |
Commercial Banking & Wealth | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 2,700,000,000 | ||
Recognized accumulated goodwill impairment losses | 2,500,000,000 | ||
Retail Banking | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1,400,000,000 | ||
Recognized accumulated goodwill impairment losses | 1,400,000,000 | ||
Corporate and investment banking | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 896,000,000 | ||
Recognized accumulated goodwill impairment losses | 249,000,000 | ||
Simple | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | 0 | $ 60,000,000 | |
Reporting units with no remaining goodwill balance | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Recognized accumulated goodwill impairment losses | $ 784,000,000 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Time deposits, less than $250,000 | $ 11,100 | |
Time deposits, $250,000 or more | 2,800 | |
Demand deposits overdrafts reclassified to loans | 20 | $ 15 |
Standby letters of credit issued to secure public deposits | $ 6,600 |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2,018 | $ 11,243,000 |
2,019 | 2,018,572 |
2,020 | 413,615 |
2,021 | 76,311 |
2,022 | 66,537 |
Thereafter | 63,697 |
Total | $ 13,881,732 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Ending Balance | $ 37,587 | $ 2,842,029 |
Average Balance | 1,762,362 | 4,230,732 |
Maximum Outstanding Balance | 2,887,610 | 5,411,740 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Ending Balance | $ 1,710 | $ 12,885 |
Ending Average Interest Rate | 1.50% | 0.39% |
Average Balance | $ 402 | $ 372,355 |
Maximum Outstanding Balance | 1,710 | 766,095 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Ending Balance | $ 17,881 | $ 26,167 |
Ending Average Interest Rate | 1.23% | 0.55% |
Average Balance | $ 58,222 | $ 79,625 |
Maximum Outstanding Balance | 114,361 | 148,291 |
Total federal funds purchased and securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Ending Balance | 19,591 | 39,052 |
Average Balance | 58,624 | 451,980 |
Maximum Outstanding Balance | 116,071 | 914,386 |
Other short-term borrowings | ||
Short-term Debt [Line Items] | ||
Ending Balance | $ 17,996 | $ 2,802,977 |
Ending Average Interest Rate | 1.48% | 1.68% |
Average Balance | $ 1,703,738 | $ 3,778,752 |
Maximum Outstanding Balance | $ 2,771,539 | $ 4,497,354 |
FHLB and Other Borrowings - Nar
FHLB and Other Borrowings - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)trust | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
FHLB and other borrowings | $ 3,959,930,000 | $ 3,001,551,000 | |
Number of subsidiary business trusts owned by the company | trust | 4 | ||
Senior notes | 1.85% senior notes | |||
Debt Instrument [Line Items] | |||
FHLB and other borrowings | $ 0 | 400,000,000 | |
Maturity date | Sep. 29, 2017 | ||
Stated interest rate | 1.85% | ||
Senior notes | 2.88% senior notes | |||
Debt Instrument [Line Items] | |||
FHLB and other borrowings | $ 750,000,000 | 0 | |
Maturity date | Jun. 29, 2022 | ||
Debt issued | $ 750,000,000 | ||
Stated interest rate | 2.875% | ||
Subordinated debentures | |||
Debt Instrument [Line Items] | |||
FHLB and other borrowings | $ 2,329,602,000 | 2,367,352,000 | |
Subordinated debentures | 6.40% subordinated debentures | |||
Debt Instrument [Line Items] | |||
FHLB and other borrowings | $ 0 | 350,000,000 | |
Maturity date | Oct. 1, 2017 | ||
Stated interest rate | 6.40% | ||
Corporate bonds | |||
Debt Instrument [Line Items] | |||
FHLB and other borrowings | $ 0 | $ 103,670,000 | |
Corporate bonds | Trust preferred securities | |||
Debt Instrument [Line Items] | |||
FHLB and other borrowings | $ 104,000,000 |
FHLB and Other Borrowings - Deb
FHLB and Other Borrowings - Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
FHLB and other borrowings | $ 3,959,930 | $ 3,001,551 |
FHLB Advances | ||
Debt Instrument [Line Items] | ||
FHLB and other borrowings | $ 1,630,328 | 530,529 |
FHLB Advances | LIBOR-based floating rate FHLB advances | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.58% | |
Maturity date | Jul. 27, 2021 | |
FHLB and other borrowings | $ 120,000 | 120,000 |
FHLB Advances | Fixed rate, FHLB advances | ||
Debt Instrument [Line Items] | ||
Maturity date, start | Jan. 19, 2018 | |
Maturity date, end | Jul. 1, 2025 | |
Weighted average interest rate | 2.00% | |
FHLB and other borrowings | $ 1,510,328 | 410,529 |
Senior notes | 1.85% senior notes | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 29, 2017 | |
FHLB and other borrowings | $ 0 | 400,000 |
Stated interest rate | 1.85% | |
Senior notes | 2.75% senior notes | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 29, 2019 | |
FHLB and other borrowings | $ 600,000 | 600,000 |
Stated interest rate | 2.75% | |
Senior notes | 2.88% senior notes | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 29, 2022 | |
FHLB and other borrowings | $ 750,000 | 0 |
Stated interest rate | 2.875% | |
Subordinated debentures | ||
Debt Instrument [Line Items] | ||
FHLB and other borrowings | $ 2,329,602 | 2,367,352 |
Unamortized (discount) premium | $ (18,381) | (18,298) |
Subordinated debentures | 6.40% subordinated debentures | ||
Debt Instrument [Line Items] | ||
Maturity date | Oct. 1, 2017 | |
FHLB and other borrowings | $ 0 | 350,000 |
Stated interest rate | 6.40% | |
Subordinated debentures | 5.50% subordinated debentures | ||
Debt Instrument [Line Items] | ||
Maturity date | Apr. 1, 2020 | |
FHLB and other borrowings | $ 227,764 | 227,764 |
Stated interest rate | 5.50% | |
Subordinated debentures | Subordinated Debt, 3.88% Interest Rate | ||
Debt Instrument [Line Items] | ||
Maturity date | Apr. 10, 2025 | |
FHLB and other borrowings | $ 700,000 | 700,000 |
Stated interest rate | 3.875% | |
Subordinated debentures | 5.90% subordinated debentures | ||
Debt Instrument [Line Items] | ||
Maturity date | Apr. 1, 2026 | |
FHLB and other borrowings | $ 71,086 | 71,086 |
Stated interest rate | 5.90% | |
Subordinated debentures | Fair value of hedged senior notes and subordinated debentures | ||
Debt Instrument [Line Items] | ||
FHLB and other borrowings | $ (867) | 36,800 |
Capital Securities | ||
Debt Instrument [Line Items] | ||
FHLB and other borrowings | 0 | 103,670 |
Unamortized (discount) premium | $ 0 | 569 |
Capital Securities | LIBOR plus 3.05% floating rate debentures payable to State National Capital Trust I | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 30, 2033 | |
FHLB and other borrowings | $ 0 | 15,470 |
Stated interest rate | 3.05% | |
Capital Securities | LIBOR plus 2.85% floating rate debentures payable to Texas Regional Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Maturity date | Mar. 17, 2034 | |
FHLB and other borrowings | $ 0 | 51,547 |
Stated interest rate | 2.85% | |
Capital Securities | LIBOR plus 2.60% floating rate debentures payable to TexasBanc Capital Trust I | ||
Debt Instrument [Line Items] | ||
Maturity date | Jul. 23, 2034 | |
FHLB and other borrowings | $ 0 | 25,774 |
Stated interest rate | 2.60% | |
Capital Securities | LIBOR plus 2.79% floating rate debentures payable to State National Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Maturity date | Mar. 17, 2034 | |
FHLB and other borrowings | $ 0 | $ 10,310 |
Stated interest rate | 2.79% |
FHLB and Other Borrowings - Mat
FHLB and Other Borrowings - Maturity of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Maturing: | ||
Total | $ 3,959,930 | $ 3,001,551 |
FHLB Advances | ||
Maturing: | ||
2,018 | 300,000 | |
2,019 | 1,150,000 | |
2,020 | 0 | |
2,021 | 120,000 | |
2,022 | 0 | |
Thereafter | 60,328 | |
Total | 1,630,328 | 530,529 |
Senior Notes and Subordinated Debentures | ||
Maturing: | ||
2,018 | 0 | |
2,019 | 598,055 | |
2,020 | 237,946 | |
2,021 | 0 | |
2,022 | 733,927 | |
Thereafter | 759,674 | |
Total | 2,329,602 | |
Capital Securities | ||
Maturing: | ||
Total | $ 0 | $ 103,670 |
Shareholder's Equity (Details)
Shareholder's Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2000 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||
Preferred stock, shares sold | 1,150 | 1,150 | |||
Preferred stock, sale price (in dollars per share) | $ 0.01 | $ 0.01 | |||
Preferred stock | $ 229,475 | $ 229,475 | |||
Preferred stock issued, value | $ 229,475 | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 200,000 | $ 200,000 | |||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares sold | 1,150 | 1,150 | |||
Preferred stock, sale price (in dollars per share) | $ 200,000 | $ 200,000 | |||
Preferred stock, redemption period threshold following certain changes in regulatory capital requirements | 90 days | ||||
Preferred stock | $ 229,000 | $ 229,000 | |||
Preferred Class B | |||||
Class of Stock [Line Items] | |||||
Preferred stock issued, value | $ 21,000 | ||||
Preferred stock outstanding, value | $ 23,000 | 23,000 | |||
Preferred stock, rate per annum | 9.875% | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | ||||
Libor | Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, variable rate on dividends | 5.24% | ||||
Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock issued, value | $ 229,475 | ||||
BBVA | Preferred Stock | Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock | $ 229,000 | $ 229,000 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pretax | |||
Other comprehensive income (loss) | $ (55,759) | $ (110,316) | $ (73,112) |
Tax Expense/ (Benefit) | |||
Other comprehensive income (loss) | (26,606) | (41,400) | (25,638) |
After-tax | |||
Change in unamortized net holding losses on investment securities held to maturity | 3,944 | 3,613 | 7,905 |
Less: non-credit related impairment on investment securities held to maturity | 0 | 96 | 55 |
Change in unamortized non-credit related impairment on investment securities held to maturity | 991 | 951 | 134 |
Net change in unamortized holding losses on securities held to maturity | 4,935 | 4,468 | 7,984 |
Other comprehensive loss, net of tax | (29,153) | (68,916) | (47,474) |
Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity | |||
After-tax | |||
Unrealized holding losses arising during period from securities available for sale | (14,946) | (48,038) | |
Less: reclassification adjustment for net gains on sale of securities in net income | (1,687) | 15,198 | |
Other comprehensive loss, net of tax | (13,259) | (63,236) | |
Accumulated Gains (Losses) on Cash Flow Hedging Instruments | |||
Pretax | |||
Other comprehensive income (loss) | (35,768) | (5,882) | 3,141 |
Tax Expense/ (Benefit) | |||
Other comprehensive income (loss) | (21,083) | (2,209) | 1,854 |
After-tax | |||
Unrealized holding losses arising during period from securities available for sale | (14,252) | (1,337) | |
Less: reclassification adjustment for net gains on sale of securities in net income | 433 | 2,336 | |
Other comprehensive loss, net of tax | (14,685) | (3,673) | 1,287 |
Defined Benefit Plan Adjustment | |||
Pretax | |||
Other comprehensive income (loss) | (3,501) | (4,826) | 18,971 |
Tax Expense/ (Benefit) | |||
Other comprehensive income (loss) | (1,301) | (1,964) | 7,016 |
After-tax | |||
Unrealized holding losses arising during period from securities available for sale | 0 | 0 | |
Less: reclassification adjustment for net gains on sale of securities in net income | 2,200 | 2,862 | |
Other comprehensive loss, net of tax | (2,200) | (2,862) | 11,955 |
Available-for-sale Securities | Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity | |||
Pretax | |||
Unrealized holding losses arising during period from securities available for sale | (20,089) | (76,706) | (26,090) |
Less: reclassification adjustment for net gains on sale of securities in net income | 3,033 | 30,037 | 81,656 |
Other comprehensive income (loss) | (23,122) | (106,743) | (107,746) |
Tax Expense/ (Benefit) | |||
Unrealized holding losses arising during period from securities available for sale | (5,143) | (28,668) | (9,455) |
Less: reclassification adjustment for net gains on sale of securities in net income | 776 | 11,226 | 29,591 |
Other comprehensive income (loss) | (5,919) | (39,894) | (39,046) |
After-tax | |||
Unrealized holding losses arising during period from securities available for sale | (14,946) | (48,038) | (16,635) |
Less: reclassification adjustment for net gains on sale of securities in net income | 2,257 | 18,811 | 52,065 |
Other comprehensive loss, net of tax | (17,203) | (66,849) | (68,700) |
Held-to-maturity Securities | Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity | |||
Pretax | |||
Change in unamortized net holding losses on investment securities held to maturity | 5,076 | 5,848 | 10,948 |
Less: non-credit related impairment on investment securities held to maturity | 151 | 87 | |
Change in unamortized non-credit related impairment on investment securities held to maturity | 1,556 | 1,438 | 1,661 |
Net change in unamortized holding losses on securities held to maturity | 6,632 | 7,135 | 12,522 |
Tax Expense/ (Benefit) | |||
Change in unamortized net holding losses on investment securities held to maturity | 1,132 | 2,235 | 3,043 |
Less: non-credit related impairment on investment securities held to maturity | 55 | 32 | |
Change in unamortized non-credit related impairment on investment securities held to maturity | 565 | 487 | 1,527 |
Net change in unamortized holding losses on securities held to maturity | 1,697 | 2,667 | 4,538 |
After-tax | |||
Change in unamortized net holding losses on investment securities held to maturity | 3,944 | 3,613 | 7,905 |
Less: non-credit related impairment on investment securities held to maturity | 96 | 55 | |
Change in unamortized non-credit related impairment on investment securities held to maturity | 991 | 951 | 134 |
Net change in unamortized holding losses on securities held to maturity | $ 4,935 | $ 4,468 | $ 7,984 |
Comprehensive Income - AOCI (De
Comprehensive Income - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | $ 12,750,707 | $ 12,624,709 | $ 12,054,922 |
Other comprehensive loss, net of tax | (29,153) | (68,916) | (47,474) |
Balance, end of period | 13,013,310 | 12,750,707 | 12,624,709 |
Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity | |||
Accumulated Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (119,562) | (56,326) | |
Other comprehensive loss before reclassifications | (14,946) | (48,038) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,687 | (15,198) | |
Other comprehensive loss, net of tax | (13,259) | (63,236) | |
Balance, end of period | (132,821) | (119,562) | (56,326) |
Accumulated Gains (Losses) on Cash Flow Hedging Instruments | |||
Accumulated Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (10,080) | (6,407) | |
Other comprehensive loss before reclassifications | (14,252) | (1,337) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (433) | (2,336) | |
Other comprehensive loss, net of tax | (14,685) | (3,673) | 1,287 |
Balance, end of period | (24,765) | (10,080) | (6,407) |
Defined Benefit Plan Adjustment | |||
Accumulated Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (32,028) | (29,166) | |
Other comprehensive loss before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (2,200) | (2,862) | |
Other comprehensive loss, net of tax | (2,200) | (2,862) | 11,955 |
Balance, end of period | (34,228) | (32,028) | (29,166) |
Unamortized Impairment Losses on Investment Securities Held to Maturity | |||
Accumulated Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (6,582) | (7,437) | |
Other comprehensive loss before reclassifications | 0 | (96) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 991 | 951 | |
Other comprehensive loss, net of tax | 991 | 855 | |
Balance, end of period | (5,591) | (6,582) | (7,437) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (168,252) | (99,336) | (51,862) |
Other comprehensive loss before reclassifications | (29,198) | (49,471) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 45 | (19,445) | |
Other comprehensive loss, net of tax | (29,153) | (68,916) | (47,474) |
Balance, end of period | $ (197,405) | $ (168,252) | $ (99,336) |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest on investment securities held to maturity | $ 27,009 | $ 26,893 | $ 27,449 | |
Interest and fees on loans | 2,447,293 | 2,236,929 | 2,162,145 | |
Interest and fees on FHLB advances | (93,814) | (82,744) | (89,988) | |
Net income before income tax expense | 776,862 | 517,544 | 683,860 | |
Income tax expense | (316,076) | (146,021) | (176,502) | |
Net income | 460,786 | 371,523 | 507,358 | |
Amounts Reclassified From Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Securities Available for Sale and Transferred to Held to Maturity | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment securities gains, net | [1] | 3,033 | 30,037 | 81,656 |
Interest on investment securities held to maturity | [1] | (5,076) | (5,848) | (10,948) |
Net income before income tax expense | [1] | (2,043) | 24,189 | 70,708 |
Income tax expense | [1] | 356 | (8,991) | (26,548) |
Net income | [1] | (1,687) | 15,198 | 44,160 |
Amounts Reclassified From Accumulated Other Comprehensive Income | Accumulated Gains (Losses) on Cash Flow Hedging Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and fees on loans | [1] | 3,496 | 8,370 | 13,056 |
Interest and fees on FHLB advances | [1] | (2,441) | (4,629) | (6,934) |
Net income before income tax expense | [1] | 1,055 | 3,741 | 6,122 |
Income tax expense | [1] | (622) | (1,405) | (4,261) |
Net income | [1] | 433 | 2,336 | 1,861 |
Amounts Reclassified From Accumulated Other Comprehensive Income | Defined Benefit Plan Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net periodic expense | [1],[2] | 3,501 | 4,826 | (18,971) |
Income tax expense | [1] | (1,301) | (1,964) | 7,016 |
Net income | [1] | 2,200 | 2,862 | (11,955) |
Amounts Reclassified From Accumulated Other Comprehensive Income | Unamortized Impairment Losses on Investment Securities Held to Maturity | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest on investment securities held to maturity | [1] | (1,556) | (1,438) | (1,661) |
Income tax expense | [1] | 565 | 487 | 1,527 |
Net income | [1] | $ (991) | $ (951) | $ (134) |
[1] | Amounts in parentheses indicate debits to the Consolidated Statements of Income. | |||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18, Benefit Plans, for additional details). |
Derivatives and Hedging - Deriv
Derivatives and Hedging - Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | $ 93,409 | $ 234,002 | ||
Derivative liabilities | 108,955 | 248,669 | ||
Derivatives designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 19,724 | 41,230 | |
Derivative liabilities | [2] | 21,401 | 33,269 | |
Derivatives designated as hedging instrument | Fair value hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 19,399 | 38,890 | |
Derivative liabilities | 16,831 | [2] | 14,226 | |
Derivatives designated as hedging instrument | Fair value hedges | Interest rate swaps related to long-term debt | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 2,223,950 | 2,123,950 | ||
Derivative assets | [1] | 19,399 | 38,890 | |
Derivative liabilities | 16,831 | [2] | 14,226 | |
Derivatives designated as hedging instrument | Cash flow hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 325 | 2,340 | |
Derivative liabilities | [2] | 4,570 | 19,043 | |
Derivatives designated as hedging instrument | Cash flow hedges | Swaps related to commercial loans | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 9,075,000 | 7,625,000 | ||
Derivative assets | [1] | 325 | 2,340 | |
Derivative liabilities | [2] | 2 | 11,570 | |
Derivatives designated as hedging instrument | Cash flow hedges | Swaps related to FHLB advances | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 120,000 | 120,000 | ||
Derivative liabilities | [2] | 4,424 | 7,093 | |
Derivatives designated as hedging instrument | Cash flow hedges | Foreign currency exchange contracts for customers | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 3,220 | 3,618 | ||
Derivative liabilities | [2] | 144 | 380 | |
Derivatives not designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 188,370 | 384,581 | |
Derivative liabilities | [2] | 186,531 | 312,065 | |
Derivatives not designated as hedging instrument | Forward contracts related to held for sale mortgages | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 141,000 | 251,500 | ||
Derivative assets | [1] | 85 | 2,479 | |
Derivative liabilities | [2] | 130 | 493 | |
Derivatives not designated as hedging instrument | Option contracts related to mortgage servicing rights | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 40,000 | 0 | ||
Derivative assets | [1] | 38 | 0 | |
Derivative liabilities | [2] | 0 | 0 | |
Derivatives not designated as hedging instrument | Interest rate lock commitments | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 114,184 | 150,616 | ||
Derivative assets | [1] | 2,416 | 2,424 | |
Derivative liabilities | [2] | 0 | 32 | |
Derivatives not designated as hedging instrument | Purchased equity option related to equity-linked CDs | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 810,011 | 833,763 | ||
Derivative assets | [1] | 39,791 | 57,198 | |
Derivatives not designated as hedging instrument | Written equity option related to equity-linked CDs | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 718,428 | 770,632 | ||
Derivative liabilities | [2] | 35,562 | 53,044 | |
Derivatives not designated as hedging instrument | Forwards related to commercial loans | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 358,729 | 424,155 | ||
Derivative assets | [1] | 291 | 3,741 | |
Derivative liabilities | [2] | 3,501 | 1,723 | |
Derivatives not designated as hedging instrument | Spots related to commercial loans | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 83,338 | 54,599 | ||
Derivative assets | [1] | 84 | 134 | |
Derivative liabilities | [2] | 245 | 0 | |
Derivatives not designated as hedging instrument | Swap associated with sale of Visa, Inc. Class B shares | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 99,826 | 68,308 | ||
Derivative liabilities | [2] | 2,496 | 1,708 | |
Derivatives not designated as hedging instrument | Futures contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | [3] | 1,449,000 | 104,000 | |
Derivatives not designated as hedging instrument | Interest rate contracts for customers | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 30,472,359 | 28,000,014 | ||
Derivative assets | [1] | 133,516 | 290,238 | |
Derivative liabilities | [2] | 134,073 | 228,748 | |
Derivatives not designated as hedging instrument | Foreign exchange contracts for customers | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 514,185 | 870,084 | ||
Derivative assets | [1] | 12,149 | 28,367 | |
Derivative liabilities | [2] | 10,524 | 26,317 | |
Derivatives not designated as hedging instrument | Total trading account assets and liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 145,665 | 318,605 | |
Derivative liabilities | [2] | $ 144,597 | $ 255,065 | |
[1] | Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Consolidated Balance Sheets, are recorded in other assets on the Company’s Consolidated Balance Sheets. | |||
[2] | Derivative liabilities are recorded in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. | |||
[3] | Changes in fair value are cash settled daily; therefore, there is no ending balance at any given reporting period. |
Derivatives and Hedging - Fair
Derivatives and Hedging - Fair Value Hedges (Details) - Derivatives designated as hedging instrument - Fair value hedges - Interest rate swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) from Hedged Firm Commitment Not Qualifying as Fair Value Hedge, Net | $ 0 | $ 0 | $ 0 |
Derivative, average remaining maturity period | 4 years 6 months 30 days | ||
Interest on FHLB and other borrowings | |||
Interest Rate Fair Value Hedges [Abstract] | |||
Change in fair value of interest rate contracts, interest rate swaps hedging long term debt | $ (33,092) | (25,906) | (19,130) |
Change in fair value of interest rate contract - hedged long term debt | 34,839 | 25,411 | 15,395 |
Interest and amortization related to interest rate swaps on hedged long term debt | $ 29,483 | $ 41,391 | $ 46,559 |
Derivatives and Hedging - Cash
Derivatives and Hedging - Cash Flow Hedges (Details) - Derivatives designated as hedging instrument - Cash flow hedges - Interest rate swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on discontinuation of interest rate cash flow hedge | $ 0 | $ 0 | $ 0 |
Cash flow hedges not terminated, net fair value | $ (4,200) | ||
Derivative, average remaining maturity period | 1 year 35 days | ||
Maximum length of time hedged in interest rate cash flow hedge | 3 years 5 months 55 days | ||
Interest rate and foreign currency exchange Cash Flow Hedges [Abstract] | |||
Net change in amount recognized in other comprehensive income | $ (14,685) | (3,673) | 1,287 |
Amount reclassified from accumulated other comprehensive income (loss) into net income | 1,055 | 3,741 | 6,122 |
Amount of ineffectiveness recognized in net income | 13 | $ (714) | $ 0 |
Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedge gain to be reclassified within twelve months | $ (37,500) |
Derivatives and Hedging - Free
Derivatives and Hedging - Free Standing Derivative Instruments (Details) - Derivatives not designated as hedging instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Futures contracts | Mortgage banking income and corporate and correspondent investment sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | $ 123 | $ (138) | $ (12) |
Forward contracts related to residential mortgage loans held for sale | Mortgage banking income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | (2,030) | 857 | 3,801 |
Interest rate lock commitments | Mortgage banking income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | 24 | (482) | 556 |
Interest rate contracts for customers | Corporate and correspondent investment sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | 29,155 | 24,507 | 28,533 |
Option contracts related to mortgage servicing rights | Corporate and correspondent investment sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | (605) | (264) | (195) |
Commodity contracts for customers | Corporate and correspondent investment sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | 0 | (6) | 6 |
Purchased equity option related to equity-linked CDs | Other expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | (18,704) | (2,178) | (17,112) |
Written equity option related to equity-linked CDs | Other expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | 18,581 | 3,515 | 17,761 |
Swap and forward contracts related to commercial loans | Other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | (38,885) | 12,368 | 54,441 |
Spots related to commercial loans | Other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | 5,512 | 451 | (9,366) |
Foreign currency exchange contracts for customers | Corporate and correspondent investment sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | $ 10,451 | $ 3,971 | $ 2,656 |
Derivatives and Hedging - Credi
Derivatives and Hedging - Credit and Market Risks (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivatives [Line Items] | ||||
Derivative, collateral, right to reclaim cash | [1] | $ 92,396,000 | $ 102,603,000 | |
Derivative, collateral, obligation to return cash | [1] | 21,423,000 | 33,212,000 | |
Other Assets | ||||
Derivatives [Line Items] | ||||
Derivative, collateral, right to reclaim cash | 92,000,000 | 103,000,000 | ||
Deposits | ||||
Derivatives [Line Items] | ||||
Derivative, collateral, obligation to return cash | 24,000,000 | 37,000,000 | ||
Derivatives not designated as hedging instrument | Interest rate swap | ||||
Derivatives [Line Items] | ||||
Credit risk derivatives, at fair value, net | 146,000,000 | |||
Loss on derivative instruments held for trading purposes, net | 0 | 2,500,000 | $ 9,000 | |
Credit losses associated with derivative instruments classified as nontrading | 0 | $ 0 | $ 0 | |
Over the Counter | Derivatives designated as hedging instrument | Interest rate swap | ||||
Derivatives [Line Items] | ||||
Credit risk derivatives, at fair value, net | $ 20,000,000 | |||
[1] | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Derivatives and Hedging - Conti
Derivatives and Hedging - Contingent Features (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, net liability position, aggregate fair value | $ 31 | $ 30 |
Collateral already posted, aggregate fair value | 30 | 29 |
Additional collateral, aggregate fair value | $ 1 | $ 1 |
Derivatives and Hedging - Netti
Derivatives and Hedging - Netting Arrangement (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Asset [Abstract] | |||
Derivative assets, total derivatives subject to a master netting arrangement, gross amounts recognized | $ 93,409 | $ 234,002 | |
Derivative assets, total derivative subject to a master netting arrangement, gross amounts offset in the Consolidated Balance Sheets | 0 | 0 | |
Derivative assets, total derivatives subject to a master netting arrangement, net amount presented in the consolidated balance sheets | 93,409 | 234,002 | |
Derivative assets, total derivatives subject to a master netting arrangement, gross amounts not offset in the consolidated balance sheet, financial instruments collateral received/pledged | [1] | 0 | 0 |
Derivate assets, total derivatives subject to a master netting arrangement, gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | [1] | 21,423 | 33,212 |
Derivative assets, total derivatives subject to master netting arrangements, net amount | 71,986 | 200,790 | |
Derivative assets, total derivatives not subject to a master netting arrangement | 114,685 | 191,809 | |
Derivative assets, total derivatives not subject to a master netting arrangement, net amount | 114,685 | 191,809 | |
Total derivative financial assets, gross amounts recognized | 208,094 | 425,811 | |
Total derivative financial assets, net amount presented in the consolidated balance sheet | 208,094 | 425,811 | |
Total derivative financial assets, net amount | 186,671 | 392,599 | |
Derivative Liability [Abstract] | |||
Derivative liabilities, total derivative subject to a master netting arrangement, gross amounts recognized | 108,955 | 248,669 | |
Derivative liabilities, total derivative subject to a master netting arrangement, gross amount offset in the consolidated balance sheets | 0 | 0 | |
Derivative liabilities, total derivative subject to a master netting arrangement, net amount presented in the consolidated balance sheets | 108,955 | 248,669 | |
Derivative liabilities, total derivative subject to a master netting arrangement, gross amounts not offset in the consolidated balance sheets, financial instruments collateral received/pledged | [1] | 4,545 | 9,685 |
Derivative liabilities, total derivative subject to a master netting arrangement, gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | [1] | 92,396 | 102,603 |
Derivative liabilities, total derivative subject to a master netting arrangement, net amount | 12,014 | 136,381 | |
Derivative Liability, Not Subject to Master Netting Arrangement | 98,977 | 96,665 | |
Derivative Liability, Not Subject to Master Netting Arrangement Deduction | 98,977 | 96,665 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 207,932 | 345,334 | |
Total derivative financial liabilities, net amount presented in the consolidated balance sheets | 207,932 | 345,334 | |
Total derivative financial liabilities, net amount | $ 110,991 | $ 233,046 | |
[1] | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activiti96
Securities Financing Activities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |||
Fair value of collateral received related to securities purchased under agreements to resell | $ 94,000 | $ 3,100,000 | |
Fair value of collateral pledged related to securities sold under agreements to repurchase | 91,000 | 3,100,000 | |
Securities purchased under agreements to resell | |||
Securities purchased under agreements to resell, subject to master netting arrangement, gross amounts recognized | [1] | 93,664 | 3,164,039 |
Securities purchased under agreements to resell, subject to a master netting arrangement, gross amounts offset in the consolidated balance sheets | 67,751 | 3,069,489 | |
Securities purchased under agreements to resell, subject to a master netting arrangement, net amount presented in the consolidated balance sheets | 25,913 | 94,550 | |
Securities purchased under agreements to resell, subject to a master netting arrangement, gross amounts not offset in the consolidated balance sheets, financial instruments collateral received/pledged | [2] | 25,913 | 94,550 |
Securities purchased under agreements to resell, net amount | 0 | 0 | |
Securities sold under agreements to repurchase | |||
Securities sold under agreements to repurchase, subject to a master netting arrangement, gross amounts recognized | [1] | 85,632 | 3,095,655 |
Securities sold under agreements to repurchase, gross amounts offset in the consolidated balance sheets | 67,751 | 3,069,488 | |
Securities sold under agreements to repurchase, subject to a master netting arrangement, net amount presented in the consolidated balance sheet | 17,881 | 26,167 | |
Securities sold under agreements to repurchase, subject to a master netting arrangement, gross amounts not offset in the consolidated balance sheet, financial instruments collateral received/pledged | [2] | 17,881 | 26,167 |
Securities sold under agreements to repurchase, subject to a master netting arrangement, net amount | $ 0 | $ 0 | |
[1] | The decrease in gross amounts recognized from December 31, 2016 to December 31, 2017, relates to a reduction in securities purchased under agreements to resell and securities sold under agreements to repurchase held by BSI. | ||
[2] | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activiti97
Securities Financing Activities - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | $ 85,632 | $ 3,095,655 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 4,906 | 1,408,736 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 806,526 |
30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 75,745 | 880,393 |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 4,981 | 0 |
U.S. Treasury and other U.S. government agencies | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 22,787 | 3,013,351 |
U.S. Treasury and other U.S. government agencies | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 4,906 | 1,408,736 |
U.S. Treasury and other U.S. government agencies | Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 806,526 |
U.S. Treasury and other U.S. government agencies | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 12,900 | 798,089 |
U.S. Treasury and other U.S. government agencies | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 4,981 | 0 |
Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 62,845 | 82,304 |
Mortgage-backed securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 0 |
Mortgage-backed securities | Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 0 |
Mortgage-backed securities | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 62,845 | 82,304 |
Mortgage-backed securities | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | $ 0 | $ 0 |
Commitments, Contingencies an98
Commitments, Contingencies and Guarantees - Operating and Capital Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 66,172 |
2,019 | 63,864 |
2,020 | 55,868 |
2,021 | 49,831 |
2,022 | 42,993 |
Thereafter | 156,456 |
Total | 435,184 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | 2,155 |
2,019 | 2,191 |
2,020 | 2,227 |
2,021 | 2,136 |
2,022 | 1,904 |
Thereafter | 8,524 |
Total | $ 19,137 |
Commitments, Contingencies an99
Commitments, Contingencies and Guarantees - Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Guarantor Obligations [Line Items] | ||
Commitments to extend credit | $ 27,743,387 | $ 27,070,935 |
Financial standby letter of credit | ||
Guarantor Obligations [Line Items] | ||
Standby and commercial letters of credit | $ 1,446,903 | $ 1,474,405 |
Commitments, Contingencies a100
Commitments, Contingencies and Guarantees - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Jul. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||||
Assets recorded as capital leases | $ 25,300,000 | $ 25,300,000 | |||
Accumulated deprecation recorded on assets recorded as capital leases | 14,500,000 | 14,500,000 | |||
Lease expense | 84,300,000 | $ 81,000,000 | $ 75,000,000 | ||
Lease income | 6,800,000 | 6,600,000 | 5,400,000 | ||
Representation and warranties reserve | 29,000,000 | 29,000,000 | |||
Gain on termination of FDIC shared loss agreement | 1,779,000 | 0 | $ 0 | ||
FDIC loss sharing agreement | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, loss in period | $ 132,000,000 | ||||
Accrued Expenses and Other Liabilities | Potential Recourse Related To FNMA Securitizations | |||||
Loss Contingencies [Line Items] | |||||
Representation and warranties reserve | 793,000 | 793,000 | 681,000 | ||
Accrued Expenses and Other Liabilities | Standard Representations And Warranties Related To Loan Sales To Government-Sponsored Agencies | |||||
Loss Contingencies [Line Items] | |||||
Representation and warranties reserve | 1,000,000 | 1,000,000 | 1,000,000 | ||
Financial standby letter of credit | |||||
Loss Contingencies [Line Items] | |||||
Letters of credit, deferred fees | 9,000,000 | 9,000,000 | 8,000,000 | ||
Maximum potential amount of future undiscounted payments Company could be required to make on outstanding standby letters of credit | 1,400,000,000 | 1,400,000,000 | |||
Financial standby letter of credit | Accrued Expenses and Other Liabilities | |||||
Loss Contingencies [Line Items] | |||||
Representation and warranties reserve | 83,000,000 | 83,000,000 | 77,000,000 | ||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Representation and warranties reserve | 0 | $ 0 | |||
Minimum | Financial standby letter of credit | |||||
Loss Contingencies [Line Items] | |||||
Guarantor obligations, term | 1 year | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Representation and warranties reserve | 76,000,000 | $ 76,000,000 | |||
Maximum | Potential Recourse Related To FNMA Securitizations | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 19,000,000 | $ 19,000,000 | 19,000,000 | ||
Maximum | Financial standby letter of credit | |||||
Loss Contingencies [Line Items] | |||||
Guarantor obligations, term | 4 years | ||||
Commercial Loan | FDIC loss sharing agreement | |||||
Loss Contingencies [Line Items] | |||||
FDIC loss sharing agreement, term | 5 years | ||||
Single Family Residential Loan | FDIC loss sharing agreement | |||||
Loss Contingencies [Line Items] | |||||
FDIC loss sharing agreement, term | 10 years | ||||
Low income housing tax credit partnership | |||||
Loss Contingencies [Line Items] | |||||
Unfunded commitment | 373,000,000 | $ 373,000,000 | $ 289,000,000 | ||
Facilities | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Lease, term | 10 years | ||||
Facilities | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Lease, term | 20 years | ||||
Equipment | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Lease, term | 5 years | ||||
Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Amount awarded to other party | 98,000,000 | ||||
Damages sought, value | $ 79,000,000 |
Regulatory Capital Requireme101
Regulatory Capital Requirements and Dividends from Subsidiaries - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Dividends that could be paid while maintaining requirements to be classified as well-capitalized, amount | $ 1.9 | |
Cash balance required by federal reserve | $ 2.8 | $ 1.9 |
Regulatory Capital Requireme102
Regulatory Capital Requirements and Dividends from Subsidiaries - Current Minimum Required Regulatory Capital Ratios (Details) | Dec. 31, 2017 | Dec. 31, 2016 | ||
Banking and Thrift [Abstract] | ||||
CET1 Risk-Based Capital Ratio | 5.75% | [1] | 5.125% | [2] |
Tier 1 Risk-Based Capital Ratio | 7.25% | [1] | 6.625% | [2] |
Total Risk-Based Capital Ratio | 9.25% | [1] | 8.625% | [2] |
Tier 1 Leverage Ratio | 4.00% | [1] | 4.00% | [2] |
Capital conservation buffer | 1.25% | 0.625% | ||
[1] | At December 31, 2017, under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements include a capital conservation buffer of 1.250%. | |||
[2] | At December 31, 2016, under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements include a capital conservation buffer of 0.625%. |
Regulatory Capital Requireme103
Regulatory Capital Requirements and Dividends from Subsidiaries - Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
BBVA | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET 1 risk-based capital, amount | $ 7,964,877 | $ 7,669,118 |
CET 1 risk-based capital, ratio | 11.80% | 11.49% |
Tier 1 risk-based capital, amount | $ 8,199,077 | $ 7,907,518 |
Tier 1 risk-based capital, ratio | 12.15% | 11.85% |
Total risk-based capital, amount | $ 9,689,834 | $ 9,550,482 |
Total risk-based capital, ratio | 14.36% | 14.31% |
Leverage, amount | $ 8,199,077 | $ 7,907,518 |
Leverage, ratio | 9.98% | 9.46% |
Compass Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET 1 risk-based capital, amount | $ 7,301,630 | $ 7,272,273 |
CET 1 risk-based capital, ratio | 10.88% | 10.93% |
Tier 1 risk-based capital, amount | $ 7,305,830 | $ 7,280,673 |
Tier 1 risk-based capital, ratio | 10.89% | 10.95% |
Total risk-based capital, amount | $ 9,007,719 | $ 9,020,099 |
Total risk-based capital, ratio | 13.43% | 13.56% |
Leverage, amount | $ 7,305,830 | $ 7,280,673 |
Leverage, ratio | 9.10% | 9.14% |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expense related to defined contribution profit sharing plan | $ 38,100 | $ 37,200 | $ 34,800 |
Profit Sharing Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of employee's base pay | 2.00% | ||
Profit Sharing Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of employee's base pay | 4.00% | ||
Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee's maximum contributions that can be made to benefit plan, percentage | 75.00% | ||
Employer matching contributions, first tranche, percent of contributions matched | 100.00% | ||
Employee matching contribution, tranche one, percent of compensation employees can deferred for matching | 3.00% | ||
Employer matching contribution, tranche two, percent of match by employer | 50.00% | ||
Employee matching contribution, tranche two, percent of compensation employees can deferred for matching | 2.00% | ||
Defined Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 364,000 | 338,000 | |
Expected future amortization of actuarial losses | 546 | ||
Funded status | (14,927) | (3,565) | |
Net periodic expense | 5,140 | 5,006 | 9,239 |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded status | 33,000 | 33,283 | |
Net periodic expense | 1,500 | 2,000 | $ 2,000 |
Accumulated other comprehensive loss | $ 11,600 | $ 9,000 |
Benefit Plans - Change in benef
Benefit Plans - Change in benefit obligations and plan assets (Details) - Defined Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | |||
Benefit obligation, at beginning of year | $ 340,191 | $ 329,736 | |
Service cost | 3,542 | 3,784 | $ 4,754 |
Interest cost | 11,685 | 11,668 | 14,459 |
Actuarial (gain) loss | 22,171 | 8,374 | |
Benefits paid | (13,737) | (13,371) | |
Benefit obligation, at end of year | 363,852 | 340,191 | 329,736 |
Change in plan assets: | |||
Fair value of plan assets, at beginning of year | 336,627 | 338,266 | |
Actual return on plan assets | 26,035 | 11,732 | |
Benefits paid | (13,737) | (13,371) | |
Fair value of plan assets, at end of year | 348,925 | 336,627 | $ 338,266 |
Funded status | (14,927) | (3,565) | |
Net actuarial loss | 43,430 | 37,445 | |
Net amount recognized | $ 28,503 | $ 33,880 |
Benefit Plans - Recognition on
Benefit Plans - Recognition on Balance Sheet (Details) - Defined Pension Plan - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount recognized | $ 28,503 | $ 33,880 |
Accrued expenses and other liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued expenses and other liabilities | (14,927) | (3,565) |
Deferred tax – other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid benefit cost - other assets | 10,267 | 13,907 |
Accumulated Other Comprehensive Income (Loss) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated other comprehensive loss | $ 33,163 | $ 23,538 |
Benefit Plans - Recognition 107
Benefit Plans - Recognition on Income Statement (Details) - Defined Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3,542 | $ 3,784 | $ 4,754 |
Interest cost | 11,685 | 11,668 | 14,459 |
Expected return on plan assets | (10,087) | (10,446) | (10,537) |
Recognized actuarial loss | 0 | 0 | 563 |
Net amount recognized | $ 5,140 | $ 5,006 | $ 9,239 |
Benefit Plans - Assumptions for
Benefit Plans - Assumptions for defined benefit plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average assumptions used to determine net pension income for year ended December 31: | ||
Discount rate - service cost | 4.22% | 4.52% |
Discount rate - interest cost | 3.51% | 3.62% |
Defined Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Change in defined benefit plan included in other comprehensive income | $ 9,625 | $ 4,416 |
Weighted average assumptions used to determine benefit obligation at December 31: | ||
Discount rate | 3.57% | 4.04% |
Rate of compensation increase | 3.00% | |
Weighted average assumptions used to determine net pension income for year ended December 31: | ||
Discount rate - benefit obligations | 4.04% | 4.29% |
Expected return on plan assets | 3.06% | 3.15% |
Rate of compensation increase | 3.00% | 3.00% |
Benefit Plans - Estimated Benef
Benefit Plans - Estimated Benefit Payments (Details) - Defined Pension Plan $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,018 | $ 14,753 |
2,019 | 15,348 |
2,020 | 16,255 |
2,021 | 17,072 |
2,022 | 17,992 |
2023 - 2027 | $ 99,976 |
Benefit Plans - Fair value of d
Benefit Plans - Fair value of defined benefit plans (Details) - Defined Pension Plan - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 348,925 | $ 336,627 | $ 338,266 |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 237,185 | 212,854 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 111,740 | 123,773 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,985 | 12,463 | |
Cash and cash equivalents | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,985 | 12,463 | |
Cash and cash equivalents | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Total fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 329,940 | 324,164 | |
Total fixed income securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 218,200 | 200,391 | |
Total fixed income securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 111,740 | 123,773 | |
Total fixed income securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Treasury and other U.S. government agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 235,621 | 221,242 | |
U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 218,200 | 200,391 | |
U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,421 | 20,851 | |
U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
States and political subdivisions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,401 | 6,771 | |
States and political subdivisions | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
States and political subdivisions | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,401 | 6,771 | |
States and political subdivisions | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 87,918 | 96,151 | |
Corporate bonds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 87,918 | 96,151 | |
Corporate bonds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax expense: | |||
Federal | $ 158,531 | $ 154,572 | $ 275,135 |
State | 19,588 | 13,322 | 12,409 |
Total | 178,119 | 167,894 | 287,544 |
Deferred income tax expense (benefit): | |||
Federal | 141,093 | (19,973) | (102,070) |
State | (3,136) | (1,900) | (8,972) |
Total | 137,957 | (21,873) | (111,042) |
Total income tax expense | $ 316,076 | $ 146,021 | $ 176,502 |
Income Taxes - Effective Rate R
Income Taxes - Effective Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Effective Income Tax Rate Reconciliation, Amount | ||||
Income tax expense at federal statutory rate | $ 271,902 | $ 181,140 | $ 239,351 | |
Goodwill impairment | 0 | 20,965 | 5,950 | |
Tax-exempt interest income | (56,814) | (51,246) | (49,170) | |
Change in valuation allowance | (1,167) | 402 | (2,029) | |
Bank owned life insurance | (5,988) | (6,035) | (6,082) | |
Income tax credits | (25,635) | (11,257) | (10,238) | |
State income tax, net of federal income taxes | 14,118 | 7,106 | 4,154 | |
Revaluation of net deferred tax assets (1) | [1] | 121,244 | 0 | 0 |
Other | (1,584) | 4,946 | (5,434) | |
Total income tax expense | $ 316,076 | $ 146,021 | $ 176,502 | |
Effective Income Tax Rate Reconciliation, Percent of Pretax Earnings | ||||
Income tax expense at federal statutory rate | 35.00% | 35.00% | 35.00% | |
Goodwill impairment | 0.00% | 4.00% | 0.90% | |
Tax-exempt interest income | (7.30%) | (9.90%) | (7.20%) | |
Change in valuation allowance | (0.20%) | 0.10% | (0.30%) | |
Bank owned life insurance | (0.80%) | (1.20%) | (0.90%) | |
Income tax credits | (3.30%) | (2.20%) | (1.50%) | |
State income tax, net of federal income taxes | 1.80% | 1.40% | 0.60% | |
Revaluation of net deferred tax assets (1) | [1] | 15.70% | 0.00% | 0.00% |
Other | (0.20%) | 1.00% | (0.80%) | |
Income tax expense | 40.70% | 28.20% | 25.80% | |
Tax Cuts and Jobs Act of 2017, income tax expense | $ 40,000 | |||
[1] | Includes approximately $40 million of expense related to items in accumulated other comprehensive income in which the related tax effects were originally recognized in other comprehensive income. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 197,563 | $ 309,655 |
Accrued expenses | 89,847 | 121,459 |
Loan valuation | 0 | 48,880 |
Net unrealized losses on investment securities available for sale, hedging instruments and defined benefit plan adjustment | 73,424 | 98,916 |
Other real estate owned | 467 | 567 |
Nonaccrual interest | 17,737 | 22,707 |
Federal net operating loss carryforwards | 6,906 | 15,041 |
Other | 35,416 | 57,216 |
Gross deferred taxes | 421,360 | 674,441 |
Valuation allowance | (11,641) | (14,639) |
Total deferred tax assets | 409,719 | 659,802 |
Deferred tax liabilities: | ||
Premises and equipment | 147,542 | 243,113 |
Core deposit and other acquired intangibles | 6,864 | 13,117 |
Capitalized loan costs | 32,584 | 47,527 |
Loan valuation | 1,648 | 0 |
Other | 12,832 | 24,309 |
Total deferred tax liabilities | 201,470 | 328,066 |
Net deferred tax asset | $ 208,249 | $ 331,736 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Operating Loss Carryforwards [Line Items] | ||
Federal net operating loss carryforwards | $ 6,906 | $ 15,041 |
Real estate investment subsidiary | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 18,800 | 18,800 |
Operating loss carryforwards, valuation allowance | 4,000 | 6,600 |
Domestic tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 14,100 | 24,100 |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 231,000 | 238,000 |
Operating loss carryforwards, valuation allowance | $ 7,700 | $ 8,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized income tax benefits, at beginning of year | $ 13,615 | $ 16,552 | $ 28,286 |
Increases for tax positions related to: | |||
Prior years | 414 | 0 | 58 |
Current year | 2,196 | 1,933 | 1,537 |
Decreases for tax positions related to: | |||
Prior years | 0 | (2,185) | (85) |
Current year | 0 | 0 | 0 |
Settlement with taxing authorities | 0 | (1,174) | (583) |
Expiration of applicable statutes of limitation | (1,309) | (1,511) | (12,661) |
Unrecognized income tax benefits, at end of year | 14,916 | 13,615 | 16,552 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||
Unrecognized tax benefits, income tax penalties and interest expense | (872) | (1,800) | (3,200) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | |||
Unrecognized tax benefits, accrued interest and penalties | 4,300 | 5,100 | |
Unrecognized Tax Benefits [Abstract] | |||
Unrecognized tax benefits that would impact effective tax rate | 14,900 | $ 13,600 | $ 16,600 |
Minimum | |||
Unrecognized Tax Benefits [Abstract] | |||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | $ 7,000 |
Fair Value of Financial Inst116
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Federal home loan bank and federal reserve stock required to be owned by company | $ 450,000 | $ 403,000 | |
Residential mortgage loans held for sale | Noninterest income | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Net gains realized due to changes in fair value of loans | 748 | (658) | $ (4,200) |
Forward contracts | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Net gains realized due to changes in fair value of loans | $ (2,000) | $ 857 | $ 3,800 |
Fair Value of Financial Inst117
Fair Value of Financial Instruments - Unpaid Principle Balances (Details) - Residential mortgage loans held for sale - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 67,110 | $ 105,257 |
Aggregate Unpaid Principal Balance | 64,992 | 103,886 |
Difference | $ 2,118 | $ 1,371 |
Fair Value of Financial Inst118
Fair Value of Financial Instruments - Fair value of balance sheet items (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Assets: | ||||
Trading account assets | $ 220,496 | $ 3,144,600 | ||
Loans held for sale | 67,110 | 105,257 | ||
Fair Value | 12,683,787 | 11,665,055 | ||
Derivative assets | 208,094 | 425,811 | ||
Other assets | 1,518,493 | 1,435,187 | ||
Liabilities: | ||||
Derivative liabilities | 207,932 | 345,334 | ||
Fair Value, measurements, recurring | ||||
Assets: | ||||
Trading account assets | 220,496 | 3,144,600 | ||
Loans held for sale | 67,110 | 105,257 | ||
Fair Value | 12,233,562 | 11,261,803 | ||
Derivative assets | 62,429 | 107,206 | ||
Liabilities: | ||||
Trading account liabilities | 162,593 | 3,008,042 | ||
Derivative liabilities | 60,839 | 88,561 | ||
Fair Value, measurements, recurring | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 22,263 | 46,133 | ||
Liabilities: | ||||
Derivative liabilities | 21,387 | 33,414 | ||
Fair Value, measurements, recurring | Equity Contract | ||||
Assets: | ||||
Derivative assets | 39,791 | 57,198 | ||
Liabilities: | ||||
Derivative liabilities | 35,562 | 53,044 | ||
Fair Value, measurements, recurring | Foreign exchange contracts | ||||
Assets: | ||||
Derivative assets | 375 | 3,875 | ||
Liabilities: | ||||
Derivative liabilities | 3,890 | 2,103 | ||
Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | ||||
Assets: | ||||
Trading account assets | 74,195 | 2,820,797 | ||
Fair Value | 3,262,475 | 1,282,836 | ||
Derivative assets | 38 | |||
Liabilities: | ||||
Trading account liabilities | 17,996 | 2,750,085 | ||
Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 38 | |||
Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Trading account assets | 146,301 | 322,944 | ||
Loans held for sale | 67,110 | 105,257 | ||
Fair Value | 8,970,734 | 9,978,674 | ||
Derivative assets | 59,975 | 104,782 | ||
Liabilities: | ||||
Trading account liabilities | 144,597 | 257,957 | ||
Derivative liabilities | 60,839 | 88,529 | ||
Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 19,809 | 43,709 | ||
Liabilities: | ||||
Derivative liabilities | 21,387 | 33,382 | ||
Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | Equity Contract | ||||
Assets: | ||||
Derivative assets | 39,791 | 57,198 | ||
Liabilities: | ||||
Derivative liabilities | 35,562 | 53,044 | ||
Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | Foreign exchange contracts | ||||
Assets: | ||||
Derivative assets | 375 | 3,875 | ||
Liabilities: | ||||
Derivative liabilities | 3,890 | 2,103 | ||
Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Trading account assets | 0 | 859 | ||
Fair Value | 353 | 293 | ||
Derivative assets | 2,416 | 2,424 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 32 | ||
Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 2,416 | 2,424 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 32 | ||
U.S. Treasury and other U.S. government agencies | ||||
Assets: | ||||
Fair Value | 4,204,438 | 2,374,331 | ||
U.S. Treasury and other U.S. government agencies | Fair Value, measurements, recurring | ||||
Assets: | ||||
Trading account assets | 74,195 | 2,820,797 | ||
Fair Value | 4,204,438 | 2,374,331 | ||
Liabilities: | ||||
Trading account liabilities | 17,996 | 2,750,085 | ||
U.S. Treasury and other U.S. government agencies | Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | ||||
Assets: | ||||
Trading account assets | 74,195 | 2,820,797 | ||
Fair Value | 3,248,898 | 1,266,564 | ||
Liabilities: | ||||
Trading account liabilities | 17,996 | 2,750,085 | ||
U.S. Treasury and other U.S. government agencies | Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Fair Value | 955,540 | 1,107,767 | ||
Liabilities: | ||||
Trading account liabilities | 0 | |||
Agency mortgage-backed securities | Fair Value, measurements, recurring | ||||
Assets: | ||||
Fair Value | 2,812,800 | 3,763,338 | ||
Agency mortgage-backed securities | Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Fair Value | 2,812,800 | 3,763,338 | ||
Collateralized mortgage obligations | ||||
Assets: | ||||
Fair Value | 5,200,011 | 5,098,928 | ||
Collateralized mortgage obligations | Fair Value, measurements, recurring | ||||
Assets: | ||||
Fair Value | 5,200,011 | 5,098,928 | ||
Collateralized mortgage obligations | Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Fair Value | 5,200,011 | 5,098,928 | ||
States and political subdivisions | ||||
Assets: | ||||
Fair Value | 2,383 | 8,641 | ||
States and political subdivisions | Fair Value, measurements, recurring | ||||
Assets: | ||||
Trading account assets | 557 | 219 | ||
Fair Value | 2,383 | 8,641 | ||
States and political subdivisions | Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Trading account assets | 557 | 219 | ||
Fair Value | 2,383 | 8,641 | ||
Interest rate contracts | Fair Value, measurements, recurring | ||||
Assets: | ||||
Trading account assets | 133,516 | 290,238 | ||
Liabilities: | ||||
Trading account liabilities | 134,073 | 228,748 | ||
Interest rate contracts | Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Trading account assets | 133,516 | 290,238 | ||
Liabilities: | ||||
Trading account liabilities | 134,073 | 228,748 | ||
Other trading assets | Fair Value, measurements, recurring | ||||
Assets: | ||||
Trading account assets | 859 | |||
Other trading assets | Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Trading account assets | 859 | |||
Other debt securities | Fair Value, measurements, recurring | ||||
Assets: | ||||
Trading account assets | 79 | 4,120 | ||
Liabilities: | ||||
Trading account liabilities | 2,892 | |||
Other debt securities | Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Trading account assets | 79 | 4,120 | ||
Liabilities: | ||||
Trading account liabilities | 2,892 | |||
Foreign exchange contracts | Fair Value, measurements, recurring | ||||
Assets: | ||||
Trading account assets | 12,149 | 28,367 | ||
Liabilities: | ||||
Trading account liabilities | 10,524 | 26,317 | ||
Foreign exchange contracts | Fair Value, measurements, recurring | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Trading account assets | 12,149 | 28,367 | ||
Liabilities: | ||||
Trading account liabilities | 10,524 | 26,317 | ||
Equity Securities | ||||
Assets: | ||||
Fair Value | 464,155 | 419,817 | ||
Equity Securities | Fair Value, measurements, recurring | ||||
Assets: | ||||
Fair Value | 13,930 | [1] | 16,565 | [2] |
Equity Securities | Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | ||||
Assets: | ||||
Fair Value | 13,577 | [1] | 16,272 | [2] |
Equity Securities | Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Fair Value | 353 | [1] | 293 | [2] |
Other assets - MSRs | Fair Value, measurements, recurring | ||||
Assets: | ||||
Other assets | 49,597 | 51,428 | ||
Other assets - MSRs | Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Other assets | 49,597 | 51,428 | ||
Other assets - SBIC investments | Fair Value, measurements, recurring | ||||
Assets: | ||||
Other assets | 45,042 | 15,639 | ||
Other assets - SBIC investments | Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Other assets | $ 45,042 | $ 15,639 | ||
[1] | Excludes $450 million of FHLB and Federal Reserve stock required to be owned by the Company at December 31, 2017. These securities are carried at par. | |||
[2] | Excludes $403 million of FHLB and Federal Reserve stock required to be owned by the Company at December 31, 2016. These securities are carried at par. |
Fair Value of Financial Inst119
Fair Value of Financial Instruments - Assets measured on a recurring basis (Details) - Fair Value, measurements, recurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Trading Assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | $ 859 | $ 1,117 | |
Included in earnings | [1] | (859) | (258) |
Purchases, issuances, sales and settlements: [Abstract] | |||
Balance, end of year | 0 | 859 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2016 | (859) | (258) | |
Equity Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | 293 | 253 | |
Purchases, issuances, sales and settlements: [Abstract] | |||
Purchases | 63 | 41 | |
Sales | (3) | (1) | |
Balance, end of year | 353 | 293 | |
Interest rate contracts for customers | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | 2,392 | 2,874 | |
Included in earnings | [1] | 24 | (482) |
Purchases, issuances, sales and settlements: [Abstract] | |||
Balance, end of year | 2,416 | 2,392 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2016 | 24 | (482) | |
Other Assets - MSR | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | 51,428 | 44,541 | |
Included in earnings | [1] | (8,929) | (3,231) |
Purchases, issuances, sales and settlements: [Abstract] | |||
Purchases | 0 | ||
Issuances | 7,098 | 10,118 | |
Balance, end of year | 49,597 | 51,428 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2016 | (8,929) | (3,231) | |
Other assets - SBIC investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | 15,639 | ||
Included in earnings | [1] | 10,088 | |
Purchases, issuances, sales and settlements: [Abstract] | |||
Purchases | 19,315 | 15,639 | |
Balance, end of year | 45,042 | $ 15,639 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2016 | $ 10,088 | ||
[1] | Included in noninterest income in the Consolidated Statements of Income. |
Fair Value of Financial Inst120
Fair Value of Financial Instruments - Assets measured on nonrecurring basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity, estimated fair value | $ 1,040,543 | $ 1,182,009 | |
Loans held for sale, fair value | 67,110 | 105,257 | |
OREO, fair value | 17,278 | 21,112 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity, estimated fair value | 1,040,543 | 1,182,009 | |
Fair Value, measurements, nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity, estimated fair value | 1,659 | 2,550 | |
Investment securities held to maturity, total gains (losses) | (242) | (130) | |
Loans held for sale, fair value | 56,592 | ||
Loans held for sale, total gains (losses) | 8,295 | ||
Impaired loans, fair value | [1] | 70,749 | 59,807 |
Impaired loans, total gains (losses) | [1] | (90,553) | (69,051) |
OREO, total gains (losses) | (5,577) | (3,438) | |
Fair Value, measurements, nonrecurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale, fair value | 56,592 | ||
Fair Value, measurements, nonrecurring | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity, estimated fair value | 1,659 | 2,550 | |
Impaired loans, fair value | [1] | 70,749 | 59,807 |
OREO, fair value | $ 17,278 | $ 21,112 | |
[1] | Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral. |
Fair Value of Financial Inst121
Fair Value of Financial Instruments - Quantitative information about unobservable inputs for material assets and liabilities measured using fair value (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Investment securities held to maturity, estimated fair value | $ 1,040,543,000 | $ 1,182,009,000 | |
OREO, fair value | 17,278,000 | 21,112,000 | |
Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Investment securities held to maturity, estimated fair value | 1,040,543,000 | 1,182,009,000 | |
Fair Value, measurements, recurring | Other Trading Assets | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Other trading asset, fair value | $ 859,000 | ||
Fair Value, measurements, recurring | Other Trading Assets | Minimum | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Prepayment rate | 6.20% | ||
Fair Value, measurements, recurring | Other Trading Assets | Maximum | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Prepayment rate | 11.10% | ||
Fair Value, measurements, recurring | Other Trading Assets | Weighted Average | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Default rate | 10.10% | ||
Prepayment rate | 8.20% | ||
Fair Value, measurements, recurring | Interest rate contracts | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Interest rate contracts, fair value | $ 2,416,000 | $ 2,392,000 | |
Fair Value, measurements, recurring | Interest rate contracts | Minimum | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Closing (pull-through) rate | 24.90% | 18.60% | |
Cap grid rate | 0.20% | 0.10% | |
Fair Value, measurements, recurring | Interest rate contracts | Maximum | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Closing (pull-through) rate | 99.30% | 99.10% | |
Cap grid rate | 2.30% | 2.30% | |
Fair Value, measurements, recurring | Interest rate contracts | Weighted Average | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Closing (pull-through) rate | 66.10% | 68.50% | |
Cap grid rate | 0.90% | 1.10% | |
Fair Value, measurements, recurring | Other assets - MSRs | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Other assets - MSRs, fair value | $ 49,597,000 | $ 51,428,000 | |
Fair Value, measurements, recurring | Other assets - MSRs | Minimum | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Prepayment rate | 0.00% | 1.30% | |
Cost to service | $ 65 | $ 65 | |
Discount rate | 4.60% | 6.10% | |
Fair Value, measurements, recurring | Other assets - MSRs | Maximum | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Prepayment rate | 46.70% | 62.00% | |
Cost to service | $ 4,000 | $ 4,000 | |
Discount rate | 17.20% | 18.60% | |
Fair Value, measurements, recurring | Other assets - MSRs | Weighted Average | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Prepayment rate | 8.60% | 15.70% | |
Cost to service | $ 81 | $ 79 | |
Discount rate | 8.20% | 8.10% | |
Fair Value, measurements, recurring | Other assets - SBIC investments | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Other assets - MSRs, fair value | $ 45,042,000 | $ 15,639,000 | |
Fair Value, measurements, recurring | Other assets - SBIC investments | Weighted Average | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Transaction price | 0.00% | 0.00% | |
Fair Value, measurements, nonrecurring | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Investment securities held to maturity, estimated fair value | $ 1,659,000 | $ 2,550,000 | |
Impaired loans, fair value | [1] | 70,749,000 | 59,807,000 |
Fair Value, measurements, nonrecurring | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Investment securities held to maturity, estimated fair value | 1,659,000 | 2,550,000 | |
Impaired loans, fair value | [1] | 70,749,000 | 59,807,000 |
OREO, fair value | $ 17,278,000 | $ 21,112,000 | |
Fair Value, measurements, nonrecurring | Weighted Average | Discounted cash flow | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Default rate | 4.80% | 9.20% | |
Prepayment rate | 5.10% | 10.90% | |
Loss severity rate | 70.60% | 63.70% | |
Fair Value, measurements, nonrecurring | Impaired loans | Minimum | Appraised value | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Appraised value rate | 0.00% | 0.00% | |
Fair Value, measurements, nonrecurring | Impaired loans | Maximum | Appraised value | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Appraised value rate | 100.00% | 80.00% | |
Fair Value, measurements, nonrecurring | Impaired loans | Weighted Average | Appraised value | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Appraised value rate | 19.20% | 31.90% | |
Fair Value, measurements, nonrecurring | OREO | Weighted Average | Appraised value | Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Appraised value rate | [2] | 8.00% | 8.00% |
[1] | Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral. | ||
[2] | Represents discounts to appraised value for estimated costs to sell. |
Fair Value of Financial Inst122
Fair Value of Financial Instruments - Carrying value and estimated fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash and cash equivalents | $ 4,082,826 | $ 3,251,786 | $ 4,496,828 | $ 3,432,948 |
Investment securities held to maturity | 1,046,093 | 1,203,217 | ||
Investment securities held to maturity, estimated fair value | 1,040,543 | 1,182,009 | ||
Loans, net | 59,222,970 | |||
Liabilities: | ||||
Deposits | 69,256,313 | 67,279,533 | ||
Federal funds purchased and securities sold under agreements to repurchase | 19,591 | 39,052 | ||
Other short-term borrowings | 17,996 | 2,802,977 | ||
Fair Value, Inputs, Level 1 | ||||
Assets: | ||||
Cash and cash equivalents, estimated fair value | 4,082,826 | 3,251,786 | ||
Fair Value, Inputs, Level 2 | ||||
Liabilities: | ||||
Deposits, estimated fair value | 69,302,597 | 67,359,299 | ||
FHLB and other borrowings, estimated fair value | 4,010,308 | 3,001,836 | ||
Federal funds purchased and securities sold under agreements to repurchase, estimated fair value | 19,591 | 39,052 | ||
Other short-term borrowings, estimated fair value | 50,000 | |||
Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Investment securities held to maturity, estimated fair value | 1,040,543 | 1,182,009 | ||
Loans, net, estimated fair value | 57,906,982 | 56,283,761 | ||
Reported value measurement | ||||
Assets: | ||||
Cash and cash equivalents | 4,082,826 | 3,251,786 | ||
Investment securities held to maturity | 1,046,093 | 1,203,217 | ||
Loans, net | 60,781,008 | |||
Liabilities: | ||||
Deposits | 69,256,313 | 67,279,533 | ||
FHLB and other borrowings | 3,959,930 | 3,001,551 | ||
Federal funds purchased and securities sold under agreements to repurchase | 19,591 | 39,052 | ||
Other short-term borrowings | 50,000 | |||
Estimate of fair value measurement | ||||
Assets: | ||||
Cash and cash equivalents, estimated fair value | 4,082,826 | 3,251,786 | ||
Investment securities held to maturity, estimated fair value | 1,040,543 | 1,182,009 | ||
Loans, net, estimated fair value | 57,906,982 | 56,283,761 | ||
Liabilities: | ||||
Deposits, estimated fair value | 69,302,597 | 67,359,299 | ||
FHLB and other borrowings, estimated fair value | 4,010,308 | 3,001,836 | ||
Federal funds purchased and securities sold under agreements to repurchase, estimated fair value | $ 19,591 | 39,052 | ||
Other short-term borrowings, estimated fair value | $ 50,000 |
Supplemental Disclosure for 123
Supplemental Disclosure for Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental disclosures of cash flow information: | |||
Interest paid | $ 458,660 | $ 460,766 | $ 405,548 |
Net income taxes paid | 164,875 | 163,917 | 273,578 |
Supplemental schedule of noncash investing and financing activities: | |||
Transfer of loans and loans held for sale to OREO | 28,986 | 26,235 | 20,781 |
Transfer of loans to loans held for sale | 0 | 828,910 | 906,857 |
Transfer of loans held for sale to loans | 0 | 0 | 511,400 |
Issuance of restricted stock, net of cancellations | (689) | (1,686) | 2,595 |
Business combinations: | |||
Assets acquired | 0 | 0 | 14,327 |
Liabilities assumed | $ 0 | $ 0 | $ 977 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 2,330,167 | $ 2,067,681 | $ 2,012,977 |
Provision (credit) for loan losses | 287,693 | 302,589 | 193,638 |
Noninterest income | 1,045,975 | 1,055,974 | 1,079,374 |
Noninterest expense | 2,311,587 | 2,303,522 | 2,214,853 |
Net income before income tax expense | 776,862 | 517,544 | 683,860 |
Income tax expense | 316,076 | 146,021 | 176,502 |
Net income | 460,786 | 371,523 | 507,358 |
Less: net income attributable to noncontrolling interests | 2,005 | 2,010 | 2,228 |
Net income attributable to BBVA Compass Bancshares, Inc. | 458,781 | 369,513 | 505,130 |
Average total assets | 87,358,298 | 91,064,360 | 88,389,179 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 83,108 | (122,508) | (38,549) |
Provision (credit) for loan losses | 38,090 | 25,144 | (217) |
Noninterest income | 171,990 | 151,602 | 147,893 |
Noninterest expense | 340,161 | 322,042 | 297,187 |
Net income before income tax expense | (123,153) | (318,092) | (187,626) |
Income tax expense | 1,071 | (146,452) | (128,518) |
Net income | (124,224) | (171,640) | (59,108) |
Less: net income attributable to noncontrolling interests | 21 | (13) | 0 |
Net income attributable to BBVA Compass Bancshares, Inc. | (124,245) | (171,627) | (59,108) |
Average total assets | 7,850,620 | 7,498,945 | 7,122,104 |
Operating Segments | Commercial Banking & Wealth | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 1,114,619 | 1,140,639 | 1,025,130 |
Provision (credit) for loan losses | 70,748 | 124,054 | 88,882 |
Noninterest income | 209,261 | 204,387 | 204,956 |
Noninterest expense | 632,824 | 629,931 | 594,582 |
Net income before income tax expense | 620,308 | 591,041 | 546,622 |
Income tax expense | 217,108 | 206,865 | 191,318 |
Net income | 403,200 | 384,176 | 355,304 |
Less: net income attributable to noncontrolling interests | 299 | 310 | 488 |
Net income attributable to BBVA Compass Bancshares, Inc. | 402,901 | 383,866 | 354,816 |
Average total assets | 35,874,760 | 36,499,711 | 35,000,182 |
Operating Segments | Retail Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 947,687 | 905,460 | 828,335 |
Provision (credit) for loan losses | 171,949 | 96,428 | 46,636 |
Noninterest income | 457,216 | 457,975 | 469,430 |
Noninterest expense | 1,164,927 | 1,148,818 | 1,143,441 |
Net income before income tax expense | 68,027 | 118,189 | 107,688 |
Income tax expense | 23,809 | 41,366 | 37,691 |
Net income | 44,218 | 76,823 | 69,997 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 |
Net income attributable to BBVA Compass Bancshares, Inc. | 44,218 | 76,823 | 69,997 |
Average total assets | 18,084,514 | 17,513,245 | 17,845,225 |
Operating Segments | Corporate and Investment Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 158,000 | 158,347 | 173,840 |
Provision (credit) for loan losses | 6,906 | 56,963 | 58,337 |
Noninterest income | 195,434 | 187,782 | 165,656 |
Noninterest expense | 148,754 | 181,635 | 159,524 |
Net income before income tax expense | 197,774 | 107,531 | 121,635 |
Income tax expense | 69,221 | 37,636 | 42,572 |
Net income | 128,553 | 69,895 | 79,063 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 |
Net income attributable to BBVA Compass Bancshares, Inc. | 128,553 | 69,895 | 79,063 |
Average total assets | 10,072,542 | 13,332,010 | 13,901,379 |
Operating Segments | Treasury | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 26,753 | (14,257) | 24,221 |
Provision (credit) for loan losses | 0 | 0 | 0 |
Noninterest income | 12,074 | 54,228 | 91,439 |
Noninterest expense | 24,921 | 21,096 | 20,119 |
Net income before income tax expense | 13,906 | 18,875 | 95,541 |
Income tax expense | 4,867 | 6,606 | 33,439 |
Net income | 9,039 | 12,269 | 62,102 |
Less: net income attributable to noncontrolling interests | 1,685 | 1,713 | 1,740 |
Net income attributable to BBVA Compass Bancshares, Inc. | 7,354 | 10,556 | 60,362 |
Average total assets | $ 15,475,862 | $ 16,220,449 | $ 14,520,289 |
Parent Company Financial Sta125
Parent Company Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash and cash equivalents | $ 4,082,826 | $ 3,251,786 | $ 4,496,828 | $ 3,432,948 |
Investment securities available for sale | 12,683,787 | 11,665,055 | ||
Other assets | 1,518,493 | 1,435,187 | ||
Total assets | 87,320,579 | 87,079,953 | ||
Liabilities and Equity [Abstract] | ||||
Accrued expenses and other liabilities | 1,053,439 | 1,206,133 | ||
Total BBVA Compass Bancshares, Inc. shareholder’s equity | 12,984,249 | 12,721,686 | ||
Total liabilities and shareholder’s equity | 87,320,579 | 87,079,953 | ||
Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 276,223 | 222,314 | $ 264,708 | $ 136,151 |
Investment securities available for sale | 209,458 | 200,045 | ||
Other assets | 52,943 | 48,900 | ||
Total assets | 13,026,678 | 12,856,354 | ||
Liabilities and Equity [Abstract] | ||||
Accrued expenses and other liabilities | 42,429 | 134,668 | ||
Total BBVA Compass Bancshares, Inc. shareholder’s equity | 12,984,249 | 12,721,686 | ||
Total liabilities and shareholder’s equity | 13,026,678 | 12,856,354 | ||
Banking subsidiaries | Parent Company | ||||
Assets: | ||||
Investments in subsidiaries: | 12,092,248 | 12,096,195 | ||
Non-banking subsidiaries | Parent Company | ||||
Assets: | ||||
Investments in subsidiaries: | $ 395,806 | $ 288,900 |
Parent Company Financial Sta126
Parent Company Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Expense: | ||||
Salaries and employee benefits | $ 1,131,971 | $ 1,119,676 | $ 1,081,475 | |
Income tax expense | 316,076 | 146,021 | 176,502 | |
Comprehensive income attributable to BBVA Compass Bancshares, Inc. | 429,628 | 300,597 | 457,656 | |
Parent Company | ||||
Income: | ||||
Other | 6,333 | 2,743 | 318 | |
Total income | 406,445 | 272,853 | 121,416 | |
Expense: | ||||
Salaries and employee benefits | 3,898 | 1,877 | 0 | |
Other | 10,603 | 12,521 | 8,927 | |
Total expense | 14,501 | 14,398 | 8,927 | |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 391,944 | 258,455 | 112,489 | |
Income tax expense | (979) | (5,028) | (3,866) | |
Income before equity in undistributed earnings of subsidiaries | 392,923 | 263,483 | 116,355 | |
Equity in undistributed earnings of subsidiaries | 65,858 | 106,030 | 388,775 | |
Net income | 458,781 | 369,513 | 505,130 | |
Other comprehensive income (loss) | [1] | (29,153) | (68,916) | (47,474) |
Comprehensive income attributable to BBVA Compass Bancshares, Inc. | 429,628 | 300,597 | 457,656 | |
Banking subsidiaries | Parent Company | ||||
Income: | ||||
Dividends from banking subsidiaries | 400,000 | 270,000 | 101,000 | |
Non-banking subsidiaries | Parent Company | ||||
Income: | ||||
Dividends from banking subsidiaries | $ 112 | $ 110 | $ 20,098 | |
[1] | See Consolidated Statement of Comprehensive Income detail. |
Parent Company Financial Sta127
Parent Company Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Amortization of stock based compensation | $ 0 | $ 3,947 | $ 4,128 |
(Increase) decrease in other assets | (253,365) | (60,503) | 179,190 |
Increase in accrued expenses and other liabilities | 96,147 | (52,212) | (306,546) |
Net cash provided by operating activities | 1,108,320 | 815,439 | 688,346 |
Investing Activities: | |||
Purchases of investment securities available for sale | (4,444,939) | (4,773,027) | (5,856,808) |
Purchase of premises and equipment | (126,953) | (177,084) | (161,499) |
Net cash (used in) provided by investing activities | (260,975) | 1,189,301 | (6,254,688) |
Financing Activities: | |||
Vesting of restricted stock | (1,530) | (1,744) | (3,603) |
Restricted stock grants retained to cover taxes | (689) | (630) | (3,016) |
Issuance of preferred stock | 0 | 0 | 229,475 |
Net cash (used in) provided by financing activities | (16,305) | (3,249,782) | 6,630,222 |
Net increase (decrease) in cash and cash equivalents | 831,040 | (1,245,042) | 1,063,880 |
Cash and cash equivalents at beginning of year | 3,251,786 | 4,496,828 | 3,432,948 |
Cash and cash equivalents at end of year | 4,082,826 | 3,251,786 | 4,496,828 |
Parent Company | |||
Operating Activities: | |||
Net income | 458,781 | 369,513 | 505,130 |
Amortization of stock based compensation | 0 | 3,947 | 4,128 |
Depreciation | 1,272 | 68 | 54 |
Equity in undistributed earnings of subsidiaries | (65,858) | (106,030) | (388,775) |
(Increase) decrease in other assets | (3,827) | (2,723) | (2,832) |
Increase in accrued expenses and other liabilities | 11,406 | 5,823 | 3,202 |
Net cash provided by operating activities | 401,774 | 270,598 | 120,907 |
Investing Activities: | |||
Purchases of investment securities available for sale | (99,991) | (311,441) | (100,024) |
Sales and maturities of investment securities available for sale | 90,000 | 210,000 | 0 |
Purchase of premises and equipment | (955) | (8,732) | (182) |
Contributions to subsidiaries | (69,317) | (24,746) | 0 |
Net cash (used in) provided by investing activities | (80,263) | (134,919) | (100,206) |
Financing Activities: | |||
Repayment of other borrowings | (100,537) | 0 | 0 |
Vesting of restricted stock | (1,530) | (1,744) | (3,603) |
Restricted stock grants retained to cover taxes | (689) | (630) | (3,016) |
Issuance of preferred stock | 0 | 0 | 229,475 |
Dividends paid | (164,846) | (175,699) | (115,000) |
Net cash (used in) provided by financing activities | (267,602) | (178,073) | 107,856 |
Net increase (decrease) in cash and cash equivalents | 53,909 | (42,394) | 128,557 |
Cash and cash equivalents at beginning of year | 222,314 | 264,708 | 136,151 |
Cash and cash equivalents at end of year | $ 276,223 | $ 222,314 | $ 264,708 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 16, 2017 | Aug. 01, 2014 | Mar. 16, 2012 | |
Related Party Transaction [Line Items] | ||||||
Securities purchased under agreements to resell | $ 25,913,000 | $ 94,550,000 | ||||
Securities sold under agreements to repurchase | 17,881,000 | 26,167,000 | ||||
Preferred stock | 229,475,000 | 229,475,000 | ||||
Preferred stock dividends | 16,939,000 | 15,777,000 | $ 2,093,000 | |||
BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Securities purchased under agreements to resell | 0 | 8,330,000 | ||||
Securities sold under agreements to repurchase | 17,881,000 | 23,397,000 | ||||
BBVA | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Related party, income | 45,000,000 | 27,200,000 | 21,700,000 | |||
Related party, expenses | 28,500,000 | 23,700,000 | 25,400,000 | |||
BBVA | Line of credit | BSI | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | 50,000,000 | $ 150,000,000 | ||||
BBVA | Line of credit | Revolving credit facility | BSI | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | 0 | 0 | $ 450,000,000 | $ 420,000,000 | ||
Uncommitted Demand Facility | BBVA | Line of credit | Revolving credit facility | BSI | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties | $ 1,000,000,000 | |||||
Revolving Note And Cash Subordinated Agreement | BBVA | BSI | ||||||
Related Party Transaction [Line Items] | ||||||
Related party, interest expense | 931,000 | 3,100,000 | $ 2,300,000 | |||
Derivatives designated as hedging instrument | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Derivative notional amount | 4,800,000,000 | 5,200,000,000 | ||||
Derivatives not designated as hedging instrument | Free-standing derivative instruments – risk management and other purposes | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amount of transaction | 7,777,000 | (14,326,000) | ||||
Fair value hedges | Derivatives designated as hedging instrument | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amount of transaction | (15,991,000) | (14,225,000) | ||||
Cash flow hedges | Derivatives designated as hedging instrument | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amount of transaction | (144,000) | (380,000) | ||||
Series A Preferred Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Preferred stock | 229,000,000 | 229,000,000 | ||||
Preferred Stock | Series A Preferred Stock | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Preferred stock | 229,000,000 | 229,000,000 | ||||
Preferred stock dividends | 14,800,000 | $ 13,700,000 | ||||
Commercial Loan | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Related party, income | 444,000,000 | |||||
Other Noninterest Income | Commercial Loan | BBVA | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction amount | $ 1,500,000 |