Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 000-09439 | |
Entity Registrant Name | INTERNATIONAL BANCSHARES CORPORATION | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-2157138 | |
Entity Address, Address Line One | 1200 San Bernardo Avenue | |
Entity Address, City or Town | Laredo | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78042-1359 | |
City Area Code | 956 | |
Local Phone Number | 722-7611 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | IBOC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,658,153 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000315709 | |
Amendment Flag | false |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 321,119 | $ 316,797 |
Investment securities: | ||
Held to maturity debt securities (Market value of $2,400 on June 30, 2019 and $1,200 on December 31, 2018) | 2,400 | 1,200 |
Available for sale debt securities (Amortized cost of $3,473,480 on June 30, 2019 and $3,481,165 on December 31, 2018) | 3,467,913 | 3,411,350 |
Equity securities with readily determinable fair values | 6,127 | 5,937 |
Total investment securities | 3,476,440 | 3,418,487 |
Loans | 6,842,701 | 6,561,289 |
Less allowance for probable loan losses | (58,203) | (61,384) |
Net loans | 6,784,498 | 6,499,905 |
Bank premises and equipment, net | 505,696 | 506,899 |
Accrued interest receivable | 37,956 | 36,803 |
Other investments | 299,913 | 337,507 |
Cash surrender value of life insurance policies | 286,056 | 282,646 |
Goodwill | 282,532 | 282,532 |
Other assets | 232,806 | 190,376 |
Total assets | 12,227,016 | 11,871,952 |
Deposits: | ||
Demand - non-interest bearing | 3,554,907 | 3,454,840 |
Savings and interest bearing demand | 3,304,326 | 3,268,237 |
Time | 1,969,425 | 1,973,468 |
Total deposits | 8,828,658 | 8,696,545 |
Securities sold under repurchase agreements | 241,188 | 229,989 |
Other borrowed funds | 808,376 | 705,665 |
Junior subordinated deferrable interest debentures | 134,642 | 160,416 |
Other liabilities | 153,833 | 139,755 |
Total liabilities | 10,166,697 | 9,932,370 |
Shareholders' equity: | ||
Common shares of $1.00 par value. Authorized 275,000,000 shares; issued 96,151,204 shares on June 30, 2019 and 96,104,029 shares on December 31, 2018 | 96,151 | 96,104 |
Surplus | 146,614 | 145,283 |
Retained earnings | 2,133,239 | 2,064,134 |
Accumulated other comprehensive loss | (4,252) | (54,634) |
Total shareholders' equity before treasury stock | 2,371,752 | 2,250,887 |
Less cost of shares in treasury, 30,495,448 shares on March 31, 2019 and 30,494,143 on December 31, 2018 | (311,433) | (311,305) |
Total shareholders' equity | 2,060,319 | 1,939,582 |
Total liabilities and shareholders' equity | $ 12,227,016 | $ 11,871,952 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Consolidated Statements of Condition | ||
Held to maturity, Fair value (in dollars) | $ 2,400 | $ 1,200 |
Available for sale, Amortized cost (in dollars) | $ 3,473,480 | $ 3,481,165 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, Authorized shares | 275,000,000 | 275,000,000 |
Common shares, issued shares | 96,151,204 | 96,104,029 |
Treasury, shares | 30,497,401 | 30,494,143 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Loans, including fees | $ 105,564 | $ 92,083 | $ 208,369 | $ 179,916 |
Investment securities: | ||||
Taxable | 19,602 | 20,694 | 38,902 | 41,908 |
Tax-exempt | 1,377 | 2,087 | 3,026 | 4,282 |
Other interest income | 317 | 202 | 626 | 367 |
Total interest income | 126,860 | 115,066 | 250,923 | 226,473 |
Interest expense: | ||||
Savings deposits | 4,249 | 3,291 | 8,492 | 5,519 |
Time deposits | 5,044 | 3,010 | 9,422 | 5,679 |
Securities sold under repurchase agreements | 591 | 348 | 1,180 | 1,371 |
Other borrowings | 3,513 | 4,379 | 7,007 | 9,068 |
Junior subordinated deferrable interest debentures | 1,681 | 1,765 | 3,631 | 3,291 |
Total interest expense | 15,078 | 12,793 | 29,732 | 24,928 |
Net interest income | 111,782 | 102,273 | 221,191 | 201,545 |
Provision for probable loan losses | 2,665 | (2,730) | 10,085 | (1,068) |
Net interest income after provision for probable loan losses | 109,117 | 105,003 | 211,106 | 202,613 |
Non-interest income: | ||||
Investment securities transactions, net | (6) | (10) | ||
Other investments, net | (1,703) | 5,841 | 2,245 | 10,567 |
Other income | 4,513 | 5,727 | 7,053 | 9,782 |
Total non-interest income | 34,416 | 42,303 | 70,545 | 81,278 |
Non-interest expense: | ||||
Employee compensation and benefits | 37,246 | 34,692 | 73,655 | 69,310 |
Occupancy | 6,580 | 7,163 | 12,957 | 13,238 |
Depreciation of bank premises and equipment | 7,032 | 6,364 | 14,013 | 12,637 |
Professional fees | 3,745 | 3,375 | 7,337 | 5,947 |
Deposit insurance assessments | 859 | 974 | 1,642 | 1,974 |
Net expense, other real estate owned | 1,203 | 2,649 | 2,198 | 2,378 |
Advertising | 2,081 | 1,808 | 4,163 | 3,647 |
Software and software maintenance | 5,003 | 4,390 | 9,500 | 8,462 |
Other | 15,864 | 19,186 | 27,099 | 31,917 |
Total non-interest expense | 79,613 | 80,601 | 152,564 | 149,510 |
Income before income taxes | 63,920 | 66,705 | 129,087 | 134,381 |
Provision for income taxes | 13,900 | 13,818 | 27,161 | 28,074 |
Net income | $ 50,020 | $ 52,887 | $ 101,926 | $ 106,307 |
Basic earnings per common share: | ||||
Weighted average number of shares outstanding (in shares) | 65,648,090 | 66,114,497 | 65,633,117 | 66,103,499 |
Net income (in dollars per share) | $ 0.76 | $ 0.80 | $ 1.55 | $ 1.61 |
Fully diluted earnings per common share: | ||||
Weighted average number of shares outstanding (in shares) | 65,867,234 | 66,932,113 | 65,849,281 | 66,898,065 |
Net income (in dollars per share) | $ 0.76 | $ 0.79 | $ 1.55 | $ 1.59 |
Services charges on deposit accounts | ||||
Non-interest income: | ||||
Service charges | $ 17,610 | $ 17,555 | $ 34,870 | $ 35,267 |
Other service charges, commissions and fees, Banking | ||||
Non-interest income: | ||||
Service charges | 11,764 | 11,152 | 22,640 | 22,274 |
Other service charges, commissions and fees, Non-banking | ||||
Non-interest income: | ||||
Service charges | $ 2,238 | $ 2,028 | $ 3,747 | $ 3,388 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 50,020 | $ 52,887 | $ 101,926 | $ 106,307 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized holding gains (losses) on securities available for sale arising during period (net of tax effects of $6,685, $(2,974), $13,391, and $(13,594)) | 25,148 | (11,187) | 50,374 | (51,140) |
Reclassification adjustment for losses on securities available for sale included in net income (net of tax effects of $1, $0, $2 and $0) | 5 | 8 | ||
Other comprehensive income, net of tax | 25,153 | (11,187) | 50,382 | (51,140) |
Comprehensive income | $ 75,173 | $ 41,700 | $ 152,308 | $ 55,167 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Comprehensive Income | ||||
Net unrealized holding gains (losses) on securities available for sale arising during period, tax effects | $ 6,685 | $ (2,974) | $ 13,391 | $ (13,594) |
Reclassification adjustment for losses on securities available for sale included in net income, tax effects | $ 1 | $ 0 | $ 2 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Surplus | Retained Earnings | Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2017 | $ 96,019 | $ 171,816 | $ 1,891,805 | $ (28,397) | $ (292,263) | $ 1,838,980 |
Balance (in shares) at Dec. 31, 2017 | 96,019 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 106,307 | 106,307 | ||||
Dividends: | ||||||
Cash ($.50 and $.33 per share) for the six month period ended June 30, 2019 and 2018, respectively) | (21,814) | (21,815) | ||||
Purchase of treasury stock (1,953, 1,298, 3,258 and 1,298 shares) for the three and six month periods ended June 30, 2019 and 2018, respectively) | (57) | (57) | ||||
Exercise of stock options | $ 47 | 770 | 818 | |||
Exercise of stock options (in shares) | 47 | |||||
Stock compensation expense recognized in earnings | 470 | 470 | ||||
Other comprehensive income (loss), net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (44,973) | (44,973) | ||||
Balance at Jun. 30, 2018 | $ 96,066 | 173,056 | 1,982,465 | (79,537) | (292,320) | 1,879,730 |
Balance (in shares) at Jun. 30, 2018 | 96,066 | |||||
Balance at Mar. 31, 2018 | $ 96,044 | 172,416 | 1,923,411 | (68,350) | (292,263) | 1,831,258 |
Balance (in shares) at Mar. 31, 2018 | 96,044 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 52,887 | 52,887 | ||||
Dividends: | ||||||
Purchase of treasury stock (1,953, 1,298, 3,258 and 1,298 shares) for the three and six month periods ended June 30, 2019 and 2018, respectively) | (57) | (57) | ||||
Exercise of stock options | $ 22 | 355 | 377 | |||
Exercise of stock options (in shares) | 22 | |||||
Stock compensation expense recognized in earnings | 285 | 285 | ||||
Other comprehensive income (loss), net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (5,020) | (5,020) | ||||
Balance at Jun. 30, 2018 | $ 96,066 | 173,056 | 1,982,465 | (79,537) | (292,320) | 1,879,730 |
Balance (in shares) at Jun. 30, 2018 | 96,066 | |||||
Dividends: | ||||||
Cumulative adjustment for adoption of new accounting standards | 6,167 | (6,167) | ||||
Balance at Dec. 31, 2018 | $ 96,104 | 145,283 | 2,064,134 | (54,634) | (311,305) | 1,939,582 |
Balance (in shares) at Dec. 31, 2018 | 96,104 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 101,926 | 101,926 | ||||
Dividends: | ||||||
Cash ($.50 and $.33 per share) for the six month period ended June 30, 2019 and 2018, respectively) | (32,821) | (32,821) | ||||
Purchase of treasury stock (1,953, 1,298, 3,258 and 1,298 shares) for the three and six month periods ended June 30, 2019 and 2018, respectively) | (128) | (128) | ||||
Exercise of stock options | $ 47 | 827 | 874 | |||
Exercise of stock options (in shares) | 47 | |||||
Stock compensation expense recognized in earnings | 504 | 504 | ||||
Other comprehensive income (loss), net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 50,382 | 50,382 | ||||
Balance at Jun. 30, 2019 | $ 96,151 | 146,614 | 2,133,239 | (4,252) | (311,433) | 2,060,319 |
Balance (in shares) at Jun. 30, 2019 | 96,151 | |||||
Balance at Mar. 31, 2019 | $ 96,137 | 146,113 | 2,083,219 | (29,405) | (311,359) | 1,984,705 |
Balance (in shares) at Mar. 31, 2019 | 96,137 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 50,020 | 50,020 | ||||
Dividends: | ||||||
Purchase of treasury stock (1,953, 1,298, 3,258 and 1,298 shares) for the three and six month periods ended June 30, 2019 and 2018, respectively) | (74) | (74) | ||||
Exercise of stock options | $ 14 | 262 | 276 | |||
Exercise of stock options (in shares) | 14 | |||||
Stock compensation expense recognized in earnings | 239 | 239 | ||||
Other comprehensive income (loss), net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 25,153 | 25,153 | ||||
Balance at Jun. 30, 2019 | $ 96,151 | $ 146,614 | $ 2,133,239 | $ (4,252) | $ (311,433) | $ 2,060,319 |
Balance (in shares) at Jun. 30, 2019 | 96,151 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Shareholders' Equity | ||||
Cash Dividends (in dollars per share) | $ 0.50 | $ 0.33 | ||
Purchase of treasury stock (in shares) | 1,953 | 1,298 | 3,258 | 1,298 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income | $ 101,926 | $ 106,307 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for probable loan losses | 10,085 | (1,068) |
Specific reserve, other real estate owned | 88 | 2,658 |
Depreciation of bank premises and equipment | 14,013 | 12,637 |
Gain on sale of bank premises and equipment | (194) | (147) |
Gain on sale of other real estate owned | (639) | (688) |
Accretion of investment securities discounts | (186) | (133) |
Amortization of investment securities premiums | 8,240 | 10,857 |
Investment securities transactions, net | 10 | |
Unrealized loss on equity securities with readily determinable fair values | (190) | 1,021 |
Stock based compensation expense | 504 | 470 |
Earnings from affiliates and other investments | (290) | (7,683) |
Deferred tax expense | 764 | 363 |
Increase in accrued interest receivable | (1,153) | (1,306) |
Increase in other assets | (25,589) | (42,795) |
Net increase in other liabilities | 18,028 | 21,724 |
Net cash provided by operating activities | 125,417 | 102,217 |
Investing activities: | ||
Proceeds from maturities of securities | 1,075 | |
Proceeds from sales and calls of available for sale securities | 60,695 | 18,145 |
Purchases of available for sale securities | (380,095) | (47,346) |
Principal collected on mortgage backed securities | 317,822 | 363,406 |
Net increase in loans | (316,959) | (126,153) |
Purchases of other investments | (35,766) | (27,457) |
Distributions from other investments | 56,181 | 8,702 |
Purchases of bank premises and equipment | (14,409) | (10,274) |
Proceeds from sales of bank premises and equipment | 1,470 | 2,191 |
Proceeds from sales of other real estate owned | 1,793 | 901 |
Net cash (used in) provided by investing activities | (309,268) | 183,190 |
Financing activities: | ||
Net increase in non-interest bearing demand deposits | 100,067 | 193,768 |
Net increase (decrease) in savings and interest bearing demand deposits | 36,089 | (14,745) |
Net decrease in time deposits | (4,043) | (54,287) |
Net increase (decrease) in securities sold under repurchase agreements | 11,199 | (47,050) |
Net increase (decrease) in other borrowed funds | 102,711 | (342,275) |
Redemption of long-term debt | (25,774) | |
Purchase of treasury stock | (128) | (57) |
Proceeds from stock transactions | 874 | 818 |
Payments of cash dividends - common | (32,822) | (21,814) |
Net cash provided by (used in) financing activities | 188,173 | (285,642) |
Increase (decrease) in cash and cash equivalents | 4,322 | (235) |
Cash and cash equivalents at beginning of period | 316,797 | 265,357 |
Cash and cash equivalents at end of period | 321,119 | 265,122 |
Supplemental cash flow information: | ||
Interest paid | 28,602 | 11,593 |
Income taxes paid | 27,864 | 27,948 |
Non-cash investing and financing activities: | ||
Net transfers from loans to other real estate owned | 22,281 | $ 31,139 |
Establishment of lease liability and right-of-use asset | $ 6,171 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Our consolidated financial statements include the accounts of International Bancshares Corporation, and our wholly-owned bank subsidiaries, International Bank of Commerce, Laredo (“IBC”), Commerce Bank, International Bank of Commerce, Zapata, International Bank of Commerce, Brownsville, International Bank of Commerce, Oklahoma (the “Subsidiary Banks”) and our wholly-owned non-bank subsidiaries, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, and IBC Capital Corporation. Effective January 1, 2019, we dissolved one of our non-bank subsidiaries, IBC Subsidiary Corporation, a second-tier bank holding company incorporated in the State of Delaware. All significant inter-company balances and transactions have been eliminated in consolidation. Our consolidated financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in our latest Annual Report on Form 10-K. Our consolidated statement of condition at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“US GAAP”) for complete financial statements. Certain reclassifications have been made to make prior periods comparable. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results for the year ending December 31, 2019 or any future period. We operate as one segment. The operating information used by our chief executive officer for purposes of assessing performance and making operating decisions is the consolidated statements presented in this report. We have five active operating subsidiaries, the Subsidiary Banks. We apply the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), FASB ASC 280, “Segment Reporting,” in determining our reportable segments and related disclosures. We have evaluated all events or transactions that occurred through the date we issued these financial statements. During this period, we did not have any material recognizable or non-recognizable subsequent events. On January 1, 2019, we adopted the provisions of ASU 2016-02, “Leases.” ASU 2016-02 amends existing standards for accounting for leases by lessees, with accounting for leases by lessors remaining mainly unchanged from current guidance. The update requires that lessees recognize a lease liability and a right of use asset for all leases (with the exception of short-term leases) at the commencement date of the lease and disclose key information about leasing arrangements. The update is to be applied on a modified retrospective basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. In January 2018, the FASB issued a proposal that provides an additional transition method that would allow entities to not apply the guidance in the update in the comparative periods presented in the consolidated financial statements, but instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As part of our business model, we primarily own all property we occupy, with the exception of certain branches operating in grocery stores or shopping centers and certain ATM locations and were classified as operating leases under previous guidance. The adoption of the standard did not have a significant impact on our consolidated financial statements. As of the date of adoption, we recorded a right of use asset and a lease million. The right of use asset and lease liability are included in other and other liabilities, respectively, on our consolidated statement of condition. Amortization of the right of use asset for the three and six months ended |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value | |
Fair Value | Note 2 — Fair Value Measurements ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 applies to all financial instruments that are being measured and reported on a fair value basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; it also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into the following three levels: ● Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2 Inputs - Observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 Inputs - 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 include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or other valuation techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2019 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,340,220 $ — $ 3,340,220 $ — States and political subdivisions 127,693 — 127,693 — Equity Securities 6,127 6,127 — — $ 3,474,040 $ 6,127 $ 3,467,913 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,223,010 $ — $ 3,223,010 $ — States and political subdivisions 188,340 — 188,340 — Equity Securities 5,937 5,937 — — $ 3,417,287 $ 5,937 $ 3,411,350 $ — Available-for-sale debt securities are classified within Level 2 of the valuation hierarchy. Equity securities with readily determinable fair values are classified within Level 1. For debt investments classified as Level 2 in the fair value hierarchy, we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis. The instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Year ended Identical Observable Unobservable (Credit) June 30, Assets Inputs Inputs During 2019 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 2,999 $ — $ — $ 2,999 $ 1,133 Other real estate owned 26,703 — — 26,703 88 Equity investment without readily determinable fair value 28,166 — — 28,166 4,775 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2018 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 1,563 $ — $ — $ 1,563 $ 356 Other real estate owned 38,871 — — 38,871 3,071 Our assets measured at fair value on a non-recurring basis are limited to impaired loans, other real estate owned, and an equity investment without a readily determinable fair value. Impaired loans are classified within Level 3 of the valuation hierarchy. The fair value of impaired loans is derived in accordance with FASB ASC 310, “Receivables”. Impaired loans are primarily comprised of collateral-dependent commercial loans. As the primary sources of loan repayments decline, the secondary repayment source, the collateral, takes on greater significance. Correctly evaluating the fair value becomes even more important. Re-measurement of the impaired loan to fair value is done through a specific valuation allowance included in the allowance for probable loan losses. The fair value of impaired loans is based on the fair value of the collateral, as determined through either an appraisal or evaluation process. The basis for our appraisal and appraisal review process is based on regulatory guidelines and strives to comply with all regulatory appraisal laws, regulations, and the Uniform Standards of Professional Appraisal Practice. All appraisals and evaluations are “as is” (the property’s highest and best use) valuations based on the current conditions of the property/project at that point in time. The determination of the fair value of the collateral is based on the net realizable value, which is the appraised value less any closing costs, when applicable. As of June 30, 2019, we had $14,287,000 of impaired commercial collateral dependent loans, of which $2,369,000 had an appraisal performed within the immediately preceding twelve months, and of which $8,756,000 had an evaluation performed within the immediately preceding twelve months. As of December 31, 2018, we had approximately $14,306,000 of impaired commercial collateral dependent loans, of which $10,911,000 had an appraisal performed within the immediately preceding twelve months and of which $0 had an evaluation performed within the immediately preceding twelve months. Our determination to either seek an appraisal or to perform an evaluation begins in weekly credit quality meetings, where the committee analyzes the existing collateral values of the impaired loans and where obsolete appraisals are identified. In order to determine whether we would obtain a new appraisal or perform an internal evaluation to determine the fair value of the collateral, the credit committee reviews the existing appraisal to determine if the collateral value is reasonable in view of the current use of the collateral and the economic environment related to the collateral. If the analysis of the existing appraisal does not find that the collateral value is reasonable under the current circumstances, we would obtain a new appraisal on the collateral or perform an internal evaluation of the collateral. The ultimate decision to get a new appraisal rests with the independent credit administration group. A new appraisal is not required if an internal evaluation, as performed by in-house experts, is able to appropriately update the original appraisal assumptions to reflect current market conditions and provide an estimate of the collateral’s market value for impairment analysis. The internal evaluations must be in writing and contain sufficient information detailing the analysis, assumptions and conclusions, and they must support performing an evaluation in lieu of ordering a new appraisal. Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate owned is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal) within Level 3 of the fair value hierarchy. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for probable loan losses, if necessary. The fair value is reviewed periodically and subsequent write-downs are made, accordingly, through a charge to operations. Other real estate owned is included in other assets on the consolidated financial statements. For the three and six months ended June 30, 2019 and the twelve months ended December 31, 2018, we recorded $9,500,000, $9,500,000, n charges to the allowance for probable loan losses in connection with loans transferred to other real estate owned. The $9,500,000 charge is related to the deterioration on one loan relationship discussed further in Note 4 – Allowance for Loan Losses. For the three and six months ended June 30, 2019 and the twelve months ended December 31, 2018, we recorded $80,000, $88,000, and $3,071,000, respectively, in adjustments to fair value in connection with other real estate owned. The fair value estimates, methods, and assumptions for our financial instruments at June 30, 2019 and December 31, 2018 are outlined below. Cash and Cash Equivalents For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Time Deposits with Banks The carrying amounts of time deposits with banks approximate fair value. Investment Securities Held-to-Maturity The carrying amounts of investments held-to-maturity approximate fair value. Investment Securities For investment securities, which include U.S. Treasury securities, obligations of other U.S. government agencies, obligations of states and political subdivisions and mortgage pass-through and related securities, fair values are from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. See disclosures of fair value of investment securities in Note 6. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, such as commercial, real estate and consumer loans, as outlined by regulatory reporting guidelines. Each category is segmented into fixed and variable interest rate terms and by performing and non-performing categories. For variable rate performing loans, the carrying amount approximates the fair value. For fixed-rate performing loans, except residential mortgage loans, the fair value is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. For performing residential mortgage loans, fair value is estimated by discounting contractual cash flows adjusted for prepayment estimates using discount rates based on secondary market sources or the primary origination market. Fixed-rate performing loans are within Level 3 of the fair value hierarchy. At June 30, 2019 and December 31, 2018, the carrying amount of fixed-rate performing loans was $1,522,893,000 and $1,515,437,000, respectively, and the estimated fair value was $1,498,527,000 and $1,469,231,000, respectively. Accrued Interest The carrying amounts of accrued interest approximate fair value. Deposits The fair value of deposits with no stated maturity, such as non-interest bearing demand deposit accounts, savings accounts and interest bearing demand deposit accounts, was equal to the amount payable on demand as of June 30, 2019 and December 31, 2018. The fair value of time deposits is based on the discounted value of contractual cashflows. The discount rate is based on currently offered rates. Time deposits are within Level 3 of the fair value hierarchy. At June 30, 2019 and December 31, 2018, the carrying amount of time deposits was $1,969,425,000 and $1,973,468,000, respectively, and the estimated fair value was $1,970,714,000 and $1,976,156,000, respectively. Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements include short- and long-term maturities. Due to the contractual terms of the short-term instruments, the carrying amounts approximated fair value at June 30, 2019 and December 31, 2018. Junior Subordinated Deferrable Interest Debentures We currently have floating-rate junior subordinated deferrable interest debentures outstanding. Due to the contractual terms of the floating-rate junior subordinated deferrable interest debentures, the carrying amounts approximated fair value at June 30, 2019 and December 31, 2018. Other Borrowed Funds We currently have short- and long-term borrowings issued from the Federal Home Loan Bank (“FHLB”). Due to the contractual terms of the short-term borrowings, the carrying amounts approximated fair value at June 30, 2019 and December 31, 2018. The long-term borrowings outstanding at June 30, 2019 and December 31, 2018 are fixed-rate borrowings and the fair value is based on established market spreads for similar types of borrowings. The fixed rate long-term borrowings are included in Level 2 of the fair value hierarchy. At June 30, 2019 and December 31, 2018, the carrying amount of the fixed rate long-term FHLB borrowings was $436,601,000 and $436,690,000, respectively, and the estimated fair value was $445,252,000 and $436,238,000 , respectively. Commitments to Extend Credit and Letters of Credit Commitments to extend credit and fund letters of credit are principally at current interest rates, and, therefore, the carrying amount approximates fair value. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include the bank premises and equipment and core deposit value. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
Loans | |
Loans | Note 3 — Loans A summary of loans, by loan type at June 30, 2019 and December 31, 2018 is as follows: June 30, December 31, 2019 2018 (Dollars in Thousands) Commercial, financial and agricultural $ 3,452,170 $ 3,305,124 Real estate - mortgage 1,185,442 1,173,101 Real estate - construction 2,010,198 1,886,231 Consumer 46,713 46,316 Foreign 148,178 150,517 Total loans $ 6,842,701 $ 6,561,289 |
Allowance for Probable Loan Los
Allowance for Probable Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Allowance for Probable Loan Losses | |
Allowance for Probable Loan Losses | Note 4 — Allowance for Probable Loan Losses The allowance for probable loan losses primarily consists of the aggregate loan loss allowances of the Subsidiary Banks. The allowances are established through charges to operations in the form of provisions for probable loan losses. Loan losses or recoveries are charged or credited directly to the allowances. The allowance for probable loan losses of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated probable losses in the loan portfolio. The allowance for probable loan losses is derived from the following elements: (i) allowances established on specific impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values, and the industry in which the customer operates; (ii) allowances based on actual historical loss experience for similar types of loans in our loan portfolio; and (iii) allowances based on general economic conditions, changes in the mix of loans, company resources, border risk and credit quality indicators, among other things. All segments of the loan portfolio continue to be impacted by economic uncertainty as the economy recovers from the recent prolonged downturn. Our management continually reviews the allowance for loan losses of the Subsidiary Banks using the amounts determined from the allowances established on specific impaired loans, the allowance established on quantitative historical loss percentages, and the allowance based on qualitative data to establish an appropriate amount to maintain in our allowance for loan losses. Should any of the factors considered by management in evaluating the adequacy of the allowance for probable loan losses change, our estimate of probable loan losses could also change, which could affect the level of future provisions for probable loan losses. While the calculation of the allowance for probable loan losses utilizes management’s best judgment and all information reasonably available, the adequacy of the allowance is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. The loan loss provision is determined using the following methods. On a weekly basis, loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on the internal classified report of the Subsidiary Banks. Additionally, the credit department of each Subsidiary Bank reviews the majority of our loans for proper internal classification purposes, regardless of whether they are past due, and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, we determine if a loan should be placed on an internal classified report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history. A summary of the transactions in the allowance for probable loan losses by loan class is as follows: Three Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 11,412 $ 14,789 $ 25,880 $ 2,345 $ 3,546 $ 7,745 $ 462 $ 851 $ 67,030 Losses charged to allowance (5,016) — (6,878) — (1) (94) (55) — (12,044) Recoveries credited to allowance 408 56 15 — 10 55 8 — 552 Net (losses) recoveries charged to allowance (4,608) 56 (6,863) — 9 (39) (47) — (11,492) Provision charged to operations 4,976 428 (1,988) (496) 72 (394) 73 (6) 2,665 Balance at June 30, $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 Three Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 20,691 $ 11,798 $ 24,803 $ 947 $ 3,006 $ 4,689 $ 437 $ 783 $ 67,154 Losses charged to allowance (2,284) — (70) — (30) (9) (65) — (2,458) Recoveries credited to allowance 447 2 192 — 1 229 15 1 887 Net (losses) recoveries charged to allowance (1,837) 2 122 — (29) 220 (50) 1 (1,571) Provision charged to operations (2,258) 2,903 (6,629) 627 614 1,884 63 66 (2,730) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 Six Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 12,596 $ 15,123 $ 19,353 $ 1,808 $ 3,467 $ 7,719 $ 447 $ 871 $ 61,384 Losses charged to allowance (7,780) — (6,879) — (2) (100) (118) — (14,879) Recoveries credited to allowance 1,046 76 298 — 11 157 25 — 1,613 Net (losses) recoveries charged to allowance (6,734) 76 (6,581) — 9 57 (93) — (13,266) Provision charged to operations 5,918 74 4,257 41 151 (464) 134 (26) 10,085 Balance at June 30, $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 Six Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 27,905 $ 11,675 $ 16,663 $ 1,109 $ 2,950 $ 6,103 $ 440 $ 842 $ 67,687 Losses charged to allowance (4,999) (1) (70) — (44) (39) (182) — (5,335) Recoveries credited to allowance 1,030 4 210 — 2 295 27 1 1,569 Net (losses) recoveries charged to allowance (3,969) 3 140 — (42) 256 (155) 1 (3,766) Provision charged to operations (7,340) 3,025 1,493 465 683 434 165 7 (1,068) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 The allowance for probable loan losses is a reserve established through a provision for probable loan losses charged to expense, which represents management’s best estimate of probable loan losses when evaluating loans individually or collectively. The increase in provision for probable loan losses charged to expense and charge offs charged to the allowance for probable loan losses for the three and six months ended June 30, 2019 can be attributed to a relationship that is secured by multiple pieces of real property on which car dealerships are operated. The relationship began deteriorating in the fourth quarter of 2018, triggered by significant fraud by a high level insider of the car dealership resulting in the dealerships unexpectedly filing for bankruptcy and creating an exposure for potential loss since the operations of the dealerships were the source of repayment from the borrower. The relationship further deteriorated in the first quarter of 2019 after the sponsor of the court approved debtor in possession plan discontinued its role in the process and thus did not fulfill its obligation to assume full responsibility of the accrued and unpaid interest. Although the relationship is secured by real property (the dealerships’ real estate), the real property has specialized use, contributing to the potential exposure for probable loss. During the first quarter of 2019, in light of the circumstances and management’s evaluation of the relationship, the decision was made to place the relationship on impaired, non-accrual status and place a specific reserve on the relationship in the amount of $9.5 million. During the second quarter of 2019, management continued to evaluate the relationship and decided to foreclose on the underlying real estate collateral, resulting in a charge off of approximately $9,500,000 , reflected in the tables above as part of the Commercial and Commercial Real Estate: Farmland and Commercial categories. The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class as of June 30, 2019 and December 31, 2018: June 30, 2019 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 8,473 $ 648 $ 1,194,270 $ 11,132 Commercial real estate: other construction & land development 1,924 116 2,008,274 15,157 Commercial real estate: farmland & commercial 4,160 935 2,023,836 16,094 Commercial real estate: multifamily 505 — 220,926 1,849 Residential: first lien 6,297 — 453,881 3,627 Residential: junior lien 1,023 — 724,241 7,312 Consumer 1,046 — 45,667 488 Foreign 279 — 147,899 845 Total $ 23,707 $ 1,699 $ 6,818,994 $ 56,504 December 31, 2018 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 9,179 $ 656 $ 1,119,790 $ 11,940 Commercial real estate: other construction & land development 2,092 116 1,884,139 15,007 Commercial real estate: farmland & commercial 3,509 — 1,946,389 19,353 Commercial real estate: multifamily 507 — 225,750 1,808 Residential: first lien 6,244 — 439,556 3,467 Residential: junior lien 901 — 726,400 7,719 Consumer 1,175 — 45,141 447 Foreign 293 — 150,224 871 Total $ 23,900 $ 772 $ 6,537,389 $ 60,612 The table below provides additional information on loans accounted for on a non-accrual basis by loan class at June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 (Dollars in Thousands) Domestic Commercial $ 8,440 $ 9,143 Commercial real estate: other construction & land development 1,924 2,092 Commercial real estate: farmland & commercial 4,160 3,509 Commercial real estate: multifamily 505 507 Residential: first lien 391 347 Residential: junior lien 289 171 Consumer 9 22 Total non-accrual loans $ 15,718 $ 15,791 Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. We have identified these loans through our normal loan review procedures. Impaired loans are measured based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of our impaired loans are measured at the fair value of the collateral. In limited cases, we may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. The following tables detail key information regarding our impaired loans by loan class at June 30, 2019 and December 31, 2018: June 30, 2019 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Related Recorded Interest Recorded Interest Investment Balance Allowance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,309 $ 1,904 $ 648 $ 1,316 $ — $ 1,322 $ — Commercial real estate: other construction & land development 131 169 116 132 — 133 — Commercial real estate: farmland & commercial 2,369 2,399 935 2,369 — 2,369 — Total impaired loans with related allowance $ 3,809 $ 4,472 $ 1,699 $ 3,817 $ — $ 3,824 $ — June 30, 2019 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Recorded Interest Recorded Interest Investment Balance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 7,163 $ 7,294 $ 16,788 $ 1 $ 17,078 $ 1 Commercial real estate: other construction & land development 1,793 2,078 1,792 — 1,813 — Commercial real estate: farmland & commercial 1,792 2,382 14,203 — 20,551 — Commercial real estate: multifamily 505 536 507 — 507 — Residential: first lien 6,297 6,459 6,480 78 6,579 153 Residential: junior lien 1,023 1,032 1,028 11 1,033 22 Consumer 1,046 1,046 1,046 — 1,063 — Foreign 279 279 281 3 285 6 Total impaired loans with no related allowance $ 19,898 $ 21,106 $ 42,125 $ 93 $ 48,909 $ 182 December 31, 2018 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,563 $ 2,161 $ 656 $ 1,741 $ — Commercial real estate: other construction & land development 135 169 116 141 — Total impaired loans with related allowance $ 1,698 $ 2,330 $ 772 $ 1,882 $ — December 31, 2018 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 7,616 $ 7,730 $ 16,194 $ 3 Commercial real estate: other construction & land development 1,957 2,205 2,151 — Commercial real estate: farmland & commercial 3,509 4,031 36,632 — Commercial real estate: multifamily 507 538 565 — Residential: first lien 6,244 6,386 7,136 305 Residential: junior lien 901 911 976 44 Consumer 1,175 1,190 1,211 2 Foreign 293 293 327 14 Total impaired loans with no related allowance $ 22,202 $ 23,284 $ 65,192 $ 368 The following table details key information regarding our impaired loans by loan class at June 30, 2018: June 30, 2018 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,604 $ — $ 1,661 $ — Commercial real estate: other construction & land development 143 — 144 — Total impaired loans with related allowance $ 1,747 $ — $ 1,805 $ — June 30, 2018 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,594 $ 1 $ 16,738 $ 1 Commercial real estate: other construction & land development 2,148 — 2,216 — Commercial real estate: farmland & commercial 36,790 — 36,686 — Commercial real estate: multifamily 664 — 568 — Residential: first lien 6,426 76 6,864 152 Residential: junior lien 803 12 811 22 Consumer 1,145 1 1,179 2 Foreign 333 4 337 7 Total impaired loans with no related allowance $ 64,903 $ 94 $ 65,399 $ 184 A portion of the impaired loans have adequate collateral and credit enhancements not requiring a related allowance for loan loss. Management recognizes the risks associated with these impaired loans, however, management is confident our loss exposure regarding these credits will be significantly reduced due to our long-standing practices that encompass the following principles: (i) the financial strength of the borrower, including strong earnings, a high net worth, significant liquidity and an acceptable debt to worth ratio, (ii) managerial and business competence, (iii) the ability to repay, (iv) for a new business, projected cash flows, (v) loan to value, (vi) in the case of a secondary guarantor, a guarantor financial statement, and (vii) financial and/or other character references. Management’s decision to place loans in this category does not necessarily mean that we will experience significant losses from these loans or significant increases in impaired loans from these levels. The following table details loans accounted for as “troubled debt restructuring,” segregated by loan class. Loans accounted for as troubled debt restructuring are included in impaired loans. June 30, 2019 December 31, 2018 (Dollars in Thousands) Domestic Commercial $ 34 $ 35 Residential: first lien 5,905 5,947 Residential: junior lien 734 730 Consumer 1,037 1,153 Foreign 279 293 Total troubled debt restructuring $ 7,989 $ 8,158 The Subsidiary Banks charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged-off when 90 days past due. While our management believes that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged-off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the allowance for probable loan losses can be made only on a subjective basis. It is the judgment of our management that the allowance for probable loan losses at June 30, 2019 was adequate to absorb probable losses from loans in the portfolio at that date. The following tables present information regarding the aging of past due loans by loan class at June 30, 2019 and December 31, 2018: June 30, 2019 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,160 $ 696 $ 8,840 $ 1,312 $ 12,696 $ 1,190,047 $ 1,202,743 Commercial real estate: other construction & land development 308 — 1,030 206 1,338 2,008,860 2,010,198 Commercial real estate: farmland & commercial 1,534 4,844 767 325 7,145 2,020,851 2,027,996 Commercial real estate: multifamily — 155 505 — 660 220,771 221,431 Residential: first lien 2,632 1,419 4,312 3,948 8,363 451,815 460,178 Residential: junior lien 633 374 1,360 1,070 2,367 722,897 725,264 Consumer 742 111 28 24 881 45,832 46,713 Foreign 1,867 638 167 167 2,672 145,506 148,178 Total past due loans $ 10,876 $ 8,237 $ 17,009 $ 7,052 $ 36,122 $ 6,806,579 $ 6,842,701 December 31, 2018 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 4,651 $ 1,089 $ 19,851 $ 10,890 $ 25,591 $ 1,103,378 $ 1,128,969 Commercial real estate: other construction & land development 727 1,707 922 16 3,356 1,882,875 1,886,231 Commercial real estate: farmland & commercial 2,928 784 27,239 24,910 30,951 1,918,947 1,949,898 Commercial real estate: multifamily 927 — 578 71 1,505 224,752 226,257 Residential: first lien 3,998 1,677 3,362 3,079 9,037 436,763 445,800 Residential: junior lien 1,155 618 1,108 937 2,881 724,420 727,301 Consumer 486 19 45 32 550 45,766 46,316 Foreign 1,106 117 739 739 1,962 148,555 150,517 Total past due loans $ 15,978 $ 6,011 $ 53,844 $ 40,674 $ 75,833 $ 6,485,456 $ 6,561,289 The decrease in the 90 days or greater and still accruing at June 30, 2019 compared to December 31, 2018 can be primarily attributed to the previously discussed relationship secured by real property on which car dealerships are operated and the foreclosure of the underlying real estate assets securing the relationship in the second quarter of 2019. Our internal classified report is segregated into the following categories: (i) “Special Review Credits,” (ii) “Watch List-Pass Credits,” and (iii) “Watch List-Substandard Credits.” The loans placed in the “Special Review Credits” category reflect management’s opinion that the loans reflect potential weakness which requires monitoring on a more frequent basis. The “Special Review Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List-Pass Credits” category reflect our opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” The “Watch List-Pass Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List-Substandard Credits” classification are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that we could sustain some future loss if such weaknesses are not corrected. For loans that are classified as impaired, management evaluates these credits in accordance with the provisions of ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the credit. The specific reserve allocated under ASC 310-10 is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of our loans evaluated as impaired under ASC 310-10 are measured using the fair value of collateral method. In limited cases, we may use other methods to determine the specific reserve of a loan under ASC 310-10 if such loan is not collateral dependent. The allowance based on historical loss experience on our remaining loan portfolio, which includes the “Special Review Credits,” “Watch List - Pass Credits,” and “Watch List - Substandard Credits” is determined by segregating the remaining loan portfolio into certain categories such as commercial loans, installment loans, international loans, loan concentrations and overdrafts. Installment loans are then further segregated by number of days past due. A historical loss percentage, adjusted for (i) management’s evaluation of changes in lending policies and procedures, (ii) current economic conditions in the market area we serve, (iii) other risk factors, (iv) the effectiveness of the internal loan review function, (v) changes in loan portfolios, and (vi) the composition and concentration of credit volume is applied to each category. Each category is then added together to determine the allowance allocated under ASC 450-20. A summary of the loan portfolio by credit quality indicator by loan class at June 30, 2019 and December 31, 2018 is as follows: June 30, 2019 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 1,141,456 $ 19 $ 1,694 $ 51,101 $ 8,473 Commercial real estate: other construction & land development 1,942,982 — 9,310 55,982 1,924 Commercial real estate: farmland & commercial 1,834,448 56,158 34,394 98,836 4,160 Commercial real estate: multifamily 220,023 — — 903 505 Residential: first lien 452,493 — 143 1,245 6,297 Residential: junior lien 723,385 — 856 — 1,023 Consumer 45,667 — — — 1,046 Foreign 147,899 — — — 279 Total $ 6,508,353 $ 56,177 $ 46,397 $ 208,067 $ 23,707 December 31, 2018 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 998,625 $ 441 $ 44,544 $ 76,180 $ 9,179 Commercial real estate: other construction & land development 1,817,098 1,648 9,055 56,338 2,092 Commercial real estate: farmland & commercial 1,726,711 62,046 38,373 119,259 3,509 Commercial real estate: multifamily 224,823 — — 927 507 Residential: first lien 438,773 — 142 641 6,244 Residential: junior lien 725,538 — 862 — 901 Consumer 45,141 — — — 1,175 Foreign 150,224 — — — 293 Total $ 6,126,933 $ 64,135 $ 92,976 $ 253,345 $ 23,900 The decrease in Watch List – Pass credits at June 30, 2019 from Decmeber 31, 2018 can be primarily attirubuted to the reclassification of a relationship secured by oil and gas properties to Pass. The decrease in Watch List- Substandard credits at June 30, 2019 can be primarily attributed to the foreclosure of the underlying real estate assets in the previously discussed relationship on which car dealerships were operated and a pay down on a relationship secured primarily by aircraft. |
Stock Options
Stock Options | 6 Months Ended |
Jun. 30, 2019 | |
Stock Options | |
Stock Options | Note 5 — Stock Options On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There are 800,000 shares of common stock available for stock option grants under the 2012 Plan, which may be qualified incentive stock options (“ISOs”) or non-qualified stock options. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years . As of June 30, 2019, 26,876 shares were available for future grants under the 2012 Plan. A summary of option activity under the stock option plan for the six months ended June 30, 2019 is as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2018 788,977 $ 25.91 Plus: Options granted 11,500 36.59 Less: Options exercised 47,175 18.52 Options expired — — Options forfeited 29,176 27.11 Options outstanding at June 30, 2019 724,126 26.51 5.80 $ 8,234 Options fully vested and exercisable at June 30, 2019 369,795 $ 21.07 4.24 $ 6,159 Stock-based compensation expense included in the consolidated statements of income for the three and six months ended June 30, 2019 is $239,000 and $504,000 , respectively. Stock-based compensation expense included in the consolidated statements of income for the three and six months ended June 30, 2018 was $286,000 and $470,000 , respectively. As of June 30, 2019, there was approximately $2,336,000 of total unrecognized stock-based compensation cost related to non-vested options granted under our plans that will be recognized over a weighted average period of 1.9 years. |
Investment Securities and Equit
Investment Securities and Equity Securities with Readily Determinable Fair Values | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities | |
Investment Securities | Note 6 — Investment Securities and Equity Securities with Readily Determinable Fair Values We classify debt securities into one of three categories: held-to maturity, available-for-sale, or trading. Such debt securities are reassessed for appropriate classification at each reporting date. Securities classified as “held-to-maturity” are carried at amortized cost for financial statement reporting, while securities classified as “available-for-sale” and “trading” are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading,” while unrealized holding gains and losses related to those securities classified as “available-for-sale” are excluded from net income and reported net of tax as other comprehensive income (loss) and accumulated other comprehensive income (loss) until realized, or in the case of losses, when deemed other than temporary. In accordance with the provisions of ASU 2016-01, which we adopted on January 1, 2018, unrealized holding gains and losses related to equity securities with readily determinable fair values are included in net income. The amortized cost and estimated fair value by type of investment security at June 30, 2019 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,348,834 $ 15,432 $ (24,046) $ 3,340,220 $ 3,340,220 Obligations of states and political subdivisions 124,646 3,047 — 127,693 127,693 Total investment securities $ 3,473,480 $ 18,479 $ (24,046) $ 3,467,913 $ 3,467,913 (1) Included in the carrying value of residential mortgage-backed securities are $544,659 of mortgage-backed securities issued by Ginnie Mae and $2,795,561 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2018 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 1,200 $ — $ — $ 1,200 $ 1,200 Total investment securities $ 1,200 $ — $ — $ 1,200 $ 1,200 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,295,366 $ 6,813 $ (79,169) $ 3,223,010 $ 3,223,010 Obligations of states and political subdivisions 185,799 2,646 (105) 188,340 188,340 Total investment securities $ 3,481,165 $ 9,459 $ (79,274) $ 3,411,350 $ 3,411,350 (1) Included in the carrying value of residential mortgage-backed securities are $501,293 of mortgage-backed securities issued by Ginnie Mae and $2,721,717 of mortgage-backed securities issued by Fannie Mae and Freddie. The amortized cost and estimated fair value of investment securities at June 30, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 1,075 $ 1,075 $ — $ — Due after one year through five years 1,325 1,325 — — Due after five years through ten years — — 2,244 2,283 Due after ten years — — 122,402 125,410 Residential mortgage-backed securities — — 3,348,834 3,340,220 Total investment securities $ 2,400 $ 2,400 $ 3,473,480 $ 3,467,913 Residential mortgage-backed securities are securities primarily issued by the Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal National Mortgage Association (“Fannie Mae”), or the Government National Mortgage Association (“Ginnie Mae”). Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. Investments in residential mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government, however, we believe that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008 and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. The amortized cost and fair value of available-for-sale debt investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short-term fixed borrowings was $1,063,745,000 and $1,057,009,000, respectively, at June 30, 2019. Proceeds from the sale and calls of debt securities available-for-sale were $19,275,000 and $60,695,000 for the three and six months ended June 30, 2019, which included $0 and $0 of mortgage-backed securities, respectively. Gross gains of $1 and $3 and gross losses of $7 and $13 were realized on the sales and calls for the three and six months ended June 30, 2019, respectively. Proceeds from the sale and call of debt securities available-for-sale were $0 and $18,145,000 for the three and six months ended June 30, 2018, which included $0 and $0 of mortgage-backed securities, respectively. Gross gains of $0 and $0 and gross losses of $0 and $0 were realized on the sales and calls for the three and six months ended June 30, 2018, respectively. Gross unrealized losses on debt investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at June 30, 2019, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 23,726 $ (72) $ 2,080,460 $ (23,974) $ 2,104,186 $ (24,046) $ 23,726 $ (72) $ 2,080,460 $ (23,974) $ 2,104,186 $ (24,046) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 208,384 $ (2,124) $ 2,537,181 $ (77,045) $ 2,745,565 $ (79,169) Obligations of states and political subdivisions 12,756 (99) 512 (6) 13,268 (105) $ 221,140 $ (2,223) $ 2,537,693 $ (77,051) $ 2,758,833 $ (79,274) The unrealized losses on investments in residential mortgage-backed securities are primarily caused by changes in market interest rates. Residential mortgage-backed securities are primarily securities issued by Freddie Mac, Fannie Mae and Ginnie Mae. The contractual cash obligations of the securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. The contractual cash obligations of the securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government; however, we believe that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008, and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae and Freddie Mac are rated consistently as AAA rated securities. The decrease in fair value on residential mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae is due to market interest rates. We have no intent to sell and will more than likely not be required to sell before a market price recovery or maturity of the securities; therefore, it is our conclusion that the investments in residential mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae are not considered other-than-temporarily impaired. Equity securities with readily determinable fair values consist primarily of Community Reinvestment Act funds. At June 30, 2019 and December 31, 2018, the balance in equity securities with readily determinable fair values recorded at fair value were $6,127,000 and $5,937,000 , respectively. Prior to January 1, 2018, the equity securities were included in available-for-sale securities, with the related unrealized gain or loss recorded as a component of other comprehensive income. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2019 and the three and six months ended June 30, 2018: Three Months Ended June 30, 2019 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ 52 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 52 Three Months Ended June 30, 2018 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ (247) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (247) Six Months Ended June 30, 2019 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ 190 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 190 Six Months Ended June 30, 2018 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ (1,021) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (1,021) |
Other Borrowed Funds
Other Borrowed Funds | 6 Months Ended |
Jun. 30, 2019 | |
Other Borrowed Funds | |
Other Borrowed Funds | Note 7 — Other Borrowed Funds Other borrowed funds include FHLB borrowings, which are short-term and long-term borrowings issued by the FHLB of Dallas and the FHLB of Topeka at the market price offered at the time of funding. These borrowings are secured by residential mortgage-backed investment securities and a portion of our loan portfolio. At June 30, 2019, other borrowed funds totaled $808,376,000, an increase of 14.6% from $705,665,000 at December 31, 2018. The increase in borrowings can be primarily attributed to increased liquidity needs to fund operations and loan activity. |
Junior Subordinated Interest De
Junior Subordinated Interest Deferrable Debentures | 6 Months Ended |
Jun. 30, 2019 | |
Junior Subordinated Interest Deferrable Debentures | |
Junior Subordinated Interest Deferrable Debentures | Note 8 — Junior Subordinated Interest Deferrable Debentures As of June 30, 2019, we have five statutory business trusts under the laws of the State of Delaware, for the purpose of issuing trust preferred securities. The five statutory business trusts we formed (the “Trusts”) have each issued Capital and Common Securities and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (“Debentures”) that we issued. As of June 30, 2019 and December 31, 2018, the principal amount of Debentures outstanding totaled $134,642,000 and $160,416,000, respectively. On May 7, 2019, after receiving the required regulatory approvals, we redeemed the full of Junior Subordinated Deferrable Interest Debentures related to IB Capital Trust VI. The Debentures are subordinated and junior in right of payment to all present and future senior indebtedness (as defined in the respective Indentures) and are pari passu terms of the Debentures are the same as the distribution rate and payment terms of the respective issues of Capital and Common Securities issued by the Trusts. We have fully and unconditionally guaranteed the obligations of each of the Trusts with respect to the Capital and Common Securities. We have the right, unless an Event of Default (as defined in the Indentures) has occurred and is continuing, to defer payment of interest on the Debentures for up to twenty consecutive quarterly periods on Trusts VIII, IX, X, XI and XII. If interest payments on any of the Debentures are deferred, distributions on both the Capital and Common Securities related to that Debenture would also be deferred. The redemption prior to maturity of any of the Debentures may require the prior approval of the Federal Reserve and/or other regulatory bodies. For financial reporting purposes, the Trusts are treated as our investments and not consolidated in our consolidated financial statements. Although the Capital and Common Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital and Common Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital and Common Securities issued by the Trusts qualify as Tier 1 capital up to a maximum of 25 % of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25 % threshold would qualify as Tier 2 capital. At June 30, 2019 and December 31, 2018, the total $134,642,000 and $160,416,000 of the Capital and Common Securities outstanding qualified as Tier 1 capital. The following table illustrates key information about each of the Capital and Common Securities and their interest rate at June 30, 2019: Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust VIII $ 25,774 Quarterly 5.65 % LIBOR + 3.05 October 2033 October 2008 Trust IX 41,238 Quarterly 4.21 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 4.23 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 4.21 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 3.97 % LIBOR + 1.45 September 2037 September 2012 $ 134,642 (1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Common Stock and Dividends
Common Stock and Dividends | 6 Months Ended |
Jun. 30, 2019 | |
Common Stock and Dividends | |
Common Stock and Dividends | Note 9 — Common Stock and Dividends On April 15, 2019 we paid cash dividends of $0.50 per share to record holders of our common stock on April 1, 2019. On April 16, 2018 we paid cash dividends of $0.33 per share to record holders of our common stock on April 2, 2018, In April 2009, the Board of Directors re-established a formal stock repurchase program that authorized the repurchase of up to $40 million of common stock within the following 12 months . Annually since then, including on March 11, 2019, the Board of Directors extended the repurchase program and this year authorized an increase to purchase up to $50 million of common stock during the 12 month period commencing again on a total of 9,803,514 shares had been repurchased under all programs at a cost of $311,433,000. We are not obligated to purchase shares under our stock repurchase program outside of its Rule 10b5-1 trading plan. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Other Tax Matters | 6 Months Ended |
Jun. 30, 2019 | |
Commitments, Contingent Liabilities and Other Tax Matters | |
Commitments, Contingent Liabilities and Other Tax Matters | Note 10 — Commitments and Contingent Liabilities and Other Tax Matters We are involved in various legal proceedings that are in various stages of litigation. We have determined, based on discussions with its counsel, that any material loss in such actions, individually or in the aggregate, is remote or the damages sought, even if fully recovered, would not be considered material to our consolidated financial position or results of operations. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters. |
Capital Ratios
Capital Ratios | 6 Months Ended |
Jun. 30, 2019 | |
Capital Requirements | |
Capital Requirements | Note 11 — Capital Ratios Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amount and classifications are also subject to qualitative judgements by regulators about components, risk-weighting and other factors. On November 21, 2017, the OCC, the Federal Reserve and the FDIC finalized a proposed rule that extends the current treatment under the regulatory capital rules for certain regulatory capital deductions and risk weights and certain minority interest requirements, as they apply to banking organizations that are not subject to the advanced approaches capital rules. Effective January 1, 2018, the rule also pauses the full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests. The agencies are also considering whether to make adjustments to the capital rules in response to CECL (the FASB Standard relating to current expected credit loss) and its potential impact on regulatory capital. On December 7, 2017, the Basel Committee on Banking Supervision unveiled the latest round of its regulatory capital framework, commonly called “Basel IV.” The framework makes changes to the capital framework first introduced as “Basel III” in 2010. The committee targeted 2022-2027 as the timeframe for implementation by regulators in individual countries, including the U.S. federal bank regulatory agencies (after notice and comment). On May 24, 2018, the EGRRCPA was enacted and, among other things, it includes a simplified capital rule change which effectively exempts banks with assets of less than $10 billion that exceed the “community bank leverage ratio,” from all risk-based capital requirements, including Basel III and its predecessors. The federal banking agencies must establish the “community bank leverage ratio” (a ratio of tangible equity to average consolidated assets) between 8% and 10% before community banks can begin to take advantage of this regulatory relief provision. Some of the Subsidiary Banks, with assets of less than $10 billion, may qualify for this exemption. Additionally, under the EGRRCPA, qualified bank holding companies with assets of up to $3 billion (currently $1 billion) will be eligible for the Federal Reserve’s Small Bank Holding Company Policy Statement, which eases limitations on the issuance of debt by holding companies. On August 28, 2018, the Federal Reserve issued an interim final rule expanding the applicability of its Small Bank Holding Company Policy Statement. While holding companies that meet the conditions of the policy statement are excluded from consolidated capital requirements, their depository institutions continue to be subject to minimum capital requirements. Finally, for banks that continue to be subject to the risk-based capital rules of Basel III (e.g., 150%), certain commercial real estate loans that were formally classified as high volatility commercial real estate 31 (“HVCRE”) will not be subject to heightened risk weights if they meet certain criteria. Also, while acquisition, development, and construction (“ADC”) loans will generally be subject to heightened risk weights, certain exceptions will apply. On September 18, 2018, the federal banking agencies issued a proposed rule modifying the agencies’ capital rules for HVCRE. We had a CET1 to risk-weighted assets ratio of 17.82% on June 30, 2019 and 17.55 % on December 31, 2018. We had a Tier 1 capital-to-average-total-asset (leverage) ratio of 16.03% and 15.87%, risk-weighted Tier 1 capital ratio of 19.04% and 19.06% and risk-weighted total capital ratio of 19.67% and 19.74 % at June 30, 2019 and December 31, 2018, respectively. Our CET1 capital consists of common stock and related surplus, net of treasury stock, and retained earnings. We and our Subsidiary Banks elected to opt-out of the requirement to include most components of accumulated other comprehensive income (loss) in the calculation of CET1 capital. CET1 is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Tier 1 capital includes CET1 capital and additional Tier 1 capital. Additional Tier 1 capital includes the Capital and Common Securities issued by the Trusts (see Note 8 above) up to a maximum of 25 % of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25 % threshold qualifies as Tier 2 capital. As of June 30, 2019, the total of $134,642,000 of the Capital and Common Securities outstanding qualified as Tier 1 capital. We actively monitor the regulatory capital ratios to ensure that our Subsidiary Banks are well-capitalized under the regulatory framework. The CET1, Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk-weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. We and our Subsidiary Banks are subject to the regulatory capital requirements administered by the Federal Reserve, and, for our Subsidiary Banks, the FDIC. Regulatory authorities can initiate certain mandatory actions if we or any of our Subsidiary Banks fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of June 30, 2019, that we and each of our Subsidiary Banks meet all capital adequacy requirements to which we are subject. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value | |
Assets and liabilities measured at fair value on a recurring basis | The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2019 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,340,220 $ — $ 3,340,220 $ — States and political subdivisions 127,693 — 127,693 — Equity Securities 6,127 6,127 — — $ 3,474,040 $ 6,127 $ 3,467,913 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,223,010 $ — $ 3,223,010 $ — States and political subdivisions 188,340 — 188,340 — Equity Securities 5,937 5,937 — — $ 3,417,287 $ 5,937 $ 3,411,350 $ — |
Assets measured at fair value on a non-recurring basis | The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Year ended Identical Observable Unobservable (Credit) June 30, Assets Inputs Inputs During 2019 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 2,999 $ — $ — $ 2,999 $ 1,133 Other real estate owned 26,703 — — 26,703 88 Equity investment without readily determinable fair value 28,166 — — 28,166 4,775 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2018 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 1,563 $ — $ — $ 1,563 $ 356 Other real estate owned 38,871 — — 38,871 3,071 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans | |
Summary of loans, by loan type | June 30, December 31, 2019 2018 (Dollars in Thousands) Commercial, financial and agricultural $ 3,452,170 $ 3,305,124 Real estate - mortgage 1,185,442 1,173,101 Real estate - construction 2,010,198 1,886,231 Consumer 46,713 46,316 Foreign 148,178 150,517 Total loans $ 6,842,701 $ 6,561,289 |
Allowance for Probable Loan L_2
Allowance for Probable Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Allowance for Probable Loan Losses | |
Loans individually or collectively evaluated for their impairment and related allowance, by loan class | Three Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 11,412 $ 14,789 $ 25,880 $ 2,345 $ 3,546 $ 7,745 $ 462 $ 851 $ 67,030 Losses charged to allowance (5,016) — (6,878) — (1) (94) (55) — (12,044) Recoveries credited to allowance 408 56 15 — 10 55 8 — 552 Net (losses) recoveries charged to allowance (4,608) 56 (6,863) — 9 (39) (47) — (11,492) Provision charged to operations 4,976 428 (1,988) (496) 72 (394) 73 (6) 2,665 Balance at June 30, $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 Three Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 20,691 $ 11,798 $ 24,803 $ 947 $ 3,006 $ 4,689 $ 437 $ 783 $ 67,154 Losses charged to allowance (2,284) — (70) — (30) (9) (65) — (2,458) Recoveries credited to allowance 447 2 192 — 1 229 15 1 887 Net (losses) recoveries charged to allowance (1,837) 2 122 — (29) 220 (50) 1 (1,571) Provision charged to operations (2,258) 2,903 (6,629) 627 614 1,884 63 66 (2,730) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 Six Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 12,596 $ 15,123 $ 19,353 $ 1,808 $ 3,467 $ 7,719 $ 447 $ 871 $ 61,384 Losses charged to allowance (7,780) — (6,879) — (2) (100) (118) — (14,879) Recoveries credited to allowance 1,046 76 298 — 11 157 25 — 1,613 Net (losses) recoveries charged to allowance (6,734) 76 (6,581) — 9 57 (93) — (13,266) Provision charged to operations 5,918 74 4,257 41 151 (464) 134 (26) 10,085 Balance at June 30, $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 Six Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 27,905 $ 11,675 $ 16,663 $ 1,109 $ 2,950 $ 6,103 $ 440 $ 842 $ 67,687 Losses charged to allowance (4,999) (1) (70) — (44) (39) (182) — (5,335) Recoveries credited to allowance 1,030 4 210 — 2 295 27 1 1,569 Net (losses) recoveries charged to allowance (3,969) 3 140 — (42) 256 (155) 1 (3,766) Provision charged to operations (7,340) 3,025 1,493 465 683 434 165 7 (1,068) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 June 30, 2019 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 8,473 $ 648 $ 1,194,270 $ 11,132 Commercial real estate: other construction & land development 1,924 116 2,008,274 15,157 Commercial real estate: farmland & commercial 4,160 935 2,023,836 16,094 Commercial real estate: multifamily 505 — 220,926 1,849 Residential: first lien 6,297 — 453,881 3,627 Residential: junior lien 1,023 — 724,241 7,312 Consumer 1,046 — 45,667 488 Foreign 279 — 147,899 845 Total $ 23,707 $ 1,699 $ 6,818,994 $ 56,504 December 31, 2018 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 9,179 $ 656 $ 1,119,790 $ 11,940 Commercial real estate: other construction & land development 2,092 116 1,884,139 15,007 Commercial real estate: farmland & commercial 3,509 — 1,946,389 19,353 Commercial real estate: multifamily 507 — 225,750 1,808 Residential: first lien 6,244 — 439,556 3,467 Residential: junior lien 901 — 726,400 7,719 Consumer 1,175 — 45,141 447 Foreign 293 — 150,224 871 Total $ 23,900 $ 772 $ 6,537,389 $ 60,612 |
Loans accounted on non-accrual basis, by loan class | June 30, 2019 December 31, 2018 (Dollars in Thousands) Domestic Commercial $ 8,440 $ 9,143 Commercial real estate: other construction & land development 1,924 2,092 Commercial real estate: farmland & commercial 4,160 3,509 Commercial real estate: multifamily 505 507 Residential: first lien 391 347 Residential: junior lien 289 171 Consumer 9 22 Total non-accrual loans $ 15,718 $ 15,791 |
Impaired loans, by loan class | June 30, 2019 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Related Recorded Interest Recorded Interest Investment Balance Allowance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,309 $ 1,904 $ 648 $ 1,316 $ — $ 1,322 $ — Commercial real estate: other construction & land development 131 169 116 132 — 133 — Commercial real estate: farmland & commercial 2,369 2,399 935 2,369 — 2,369 — Total impaired loans with related allowance $ 3,809 $ 4,472 $ 1,699 $ 3,817 $ — $ 3,824 $ — June 30, 2019 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Recorded Interest Recorded Interest Investment Balance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 7,163 $ 7,294 $ 16,788 $ 1 $ 17,078 $ 1 Commercial real estate: other construction & land development 1,793 2,078 1,792 — 1,813 — Commercial real estate: farmland & commercial 1,792 2,382 14,203 — 20,551 — Commercial real estate: multifamily 505 536 507 — 507 — Residential: first lien 6,297 6,459 6,480 78 6,579 153 Residential: junior lien 1,023 1,032 1,028 11 1,033 22 Consumer 1,046 1,046 1,046 — 1,063 — Foreign 279 279 281 3 285 6 Total impaired loans with no related allowance $ 19,898 $ 21,106 $ 42,125 $ 93 $ 48,909 $ 182 December 31, 2018 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,563 $ 2,161 $ 656 $ 1,741 $ — Commercial real estate: other construction & land development 135 169 116 141 — Total impaired loans with related allowance $ 1,698 $ 2,330 $ 772 $ 1,882 $ — December 31, 2018 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 7,616 $ 7,730 $ 16,194 $ 3 Commercial real estate: other construction & land development 1,957 2,205 2,151 — Commercial real estate: farmland & commercial 3,509 4,031 36,632 — Commercial real estate: multifamily 507 538 565 — Residential: first lien 6,244 6,386 7,136 305 Residential: junior lien 901 911 976 44 Consumer 1,175 1,190 1,211 2 Foreign 293 293 327 14 Total impaired loans with no related allowance $ 22,202 $ 23,284 $ 65,192 $ 368 The following table details key information regarding our impaired loans by loan class at June 30, 2018: June 30, 2018 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,604 $ — $ 1,661 $ — Commercial real estate: other construction & land development 143 — 144 — Total impaired loans with related allowance $ 1,747 $ — $ 1,805 $ — June 30, 2018 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,594 $ 1 $ 16,738 $ 1 Commercial real estate: other construction & land development 2,148 — 2,216 — Commercial real estate: farmland & commercial 36,790 — 36,686 — Commercial real estate: multifamily 664 — 568 — Residential: first lien 6,426 76 6,864 152 Residential: junior lien 803 12 811 22 Consumer 1,145 1 1,179 2 Foreign 333 4 337 7 Total impaired loans with no related allowance $ 64,903 $ 94 $ 65,399 $ 184 |
Loans accounted for as trouble debt restructuring, by loan class | June 30, 2019 December 31, 2018 (Dollars in Thousands) Domestic Commercial $ 34 $ 35 Residential: first lien 5,905 5,947 Residential: junior lien 734 730 Consumer 1,037 1,153 Foreign 279 293 Total troubled debt restructuring $ 7,989 $ 8,158 |
Information regarding the aging of past due loans, by loan class | June 30, 2019 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,160 $ 696 $ 8,840 $ 1,312 $ 12,696 $ 1,190,047 $ 1,202,743 Commercial real estate: other construction & land development 308 — 1,030 206 1,338 2,008,860 2,010,198 Commercial real estate: farmland & commercial 1,534 4,844 767 325 7,145 2,020,851 2,027,996 Commercial real estate: multifamily — 155 505 — 660 220,771 221,431 Residential: first lien 2,632 1,419 4,312 3,948 8,363 451,815 460,178 Residential: junior lien 633 374 1,360 1,070 2,367 722,897 725,264 Consumer 742 111 28 24 881 45,832 46,713 Foreign 1,867 638 167 167 2,672 145,506 148,178 Total past due loans $ 10,876 $ 8,237 $ 17,009 $ 7,052 $ 36,122 $ 6,806,579 $ 6,842,701 December 31, 2018 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 4,651 $ 1,089 $ 19,851 $ 10,890 $ 25,591 $ 1,103,378 $ 1,128,969 Commercial real estate: other construction & land development 727 1,707 922 16 3,356 1,882,875 1,886,231 Commercial real estate: farmland & commercial 2,928 784 27,239 24,910 30,951 1,918,947 1,949,898 Commercial real estate: multifamily 927 — 578 71 1,505 224,752 226,257 Residential: first lien 3,998 1,677 3,362 3,079 9,037 436,763 445,800 Residential: junior lien 1,155 618 1,108 937 2,881 724,420 727,301 Consumer 486 19 45 32 550 45,766 46,316 Foreign 1,106 117 739 739 1,962 148,555 150,517 Total past due loans $ 15,978 $ 6,011 $ 53,844 $ 40,674 $ 75,833 $ 6,485,456 $ 6,561,289 |
Summary of the loan portfolio by credit quality indicator, by loan class | June 30, 2019 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 1,141,456 $ 19 $ 1,694 $ 51,101 $ 8,473 Commercial real estate: other construction & land development 1,942,982 — 9,310 55,982 1,924 Commercial real estate: farmland & commercial 1,834,448 56,158 34,394 98,836 4,160 Commercial real estate: multifamily 220,023 — — 903 505 Residential: first lien 452,493 — 143 1,245 6,297 Residential: junior lien 723,385 — 856 — 1,023 Consumer 45,667 — — — 1,046 Foreign 147,899 — — — 279 Total $ 6,508,353 $ 56,177 $ 46,397 $ 208,067 $ 23,707 December 31, 2018 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 998,625 $ 441 $ 44,544 $ 76,180 $ 9,179 Commercial real estate: other construction & land development 1,817,098 1,648 9,055 56,338 2,092 Commercial real estate: farmland & commercial 1,726,711 62,046 38,373 119,259 3,509 Commercial real estate: multifamily 224,823 — — 927 507 Residential: first lien 438,773 — 142 641 6,244 Residential: junior lien 725,538 — 862 — 901 Consumer 45,141 — — — 1,175 Foreign 150,224 — — — 293 Total $ 6,126,933 $ 64,135 $ 92,976 $ 253,345 $ 23,900 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stock Options | |
Summary of option activity under stock option plans | Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2018 788,977 $ 25.91 Plus: Options granted 11,500 36.59 Less: Options exercised 47,175 18.52 Options expired — — Options forfeited 29,176 27.11 Options outstanding at June 30, 2019 724,126 26.51 5.80 $ 8,234 Options fully vested and exercisable at June 30, 2019 369,795 $ 21.07 4.24 $ 6,159 |
Investment Securities and Equ_2
Investment Securities and Equity Securities with Readily Determinable Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities | |
Amortized cost and estimated fair value by type of investment security | The amortized cost and estimated fair value by type of investment security at June 30, 2019 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,348,834 $ 15,432 $ (24,046) $ 3,340,220 $ 3,340,220 Obligations of states and political subdivisions 124,646 3,047 — 127,693 127,693 Total investment securities $ 3,473,480 $ 18,479 $ (24,046) $ 3,467,913 $ 3,467,913 (1) Included in the carrying value of residential mortgage-backed securities are $544,659 of mortgage-backed securities issued by Ginnie Mae and $2,795,561 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2018 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 1,200 $ — $ — $ 1,200 $ 1,200 Total investment securities $ 1,200 $ — $ — $ 1,200 $ 1,200 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,295,366 $ 6,813 $ (79,169) $ 3,223,010 $ 3,223,010 Obligations of states and political subdivisions 185,799 2,646 (105) 188,340 188,340 Total investment securities $ 3,481,165 $ 9,459 $ (79,274) $ 3,411,350 $ 3,411,350 (1) Included in the carrying value of residential mortgage-backed securities are $501,293 of mortgage-backed securities issued by Ginnie Mae and $2,721,717 of mortgage-backed securities issued by Fannie Mae and Freddie. |
Amortized cost and fair value of investment securities, by contractual maturity | Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 1,075 $ 1,075 $ — $ — Due after one year through five years 1,325 1,325 — — Due after five years through ten years — — 2,244 2,283 Due after ten years — — 122,402 125,410 Residential mortgage-backed securities — — 3,348,834 3,340,220 Total investment securities $ 2,400 $ 2,400 $ 3,473,480 $ 3,467,913 |
Gross unrealized losses on investment securities and the related fair value | Gross unrealized losses on debt investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at June 30, 2019, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 23,726 $ (72) $ 2,080,460 $ (23,974) $ 2,104,186 $ (24,046) $ 23,726 $ (72) $ 2,080,460 $ (23,974) $ 2,104,186 $ (24,046) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 208,384 $ (2,124) $ 2,537,181 $ (77,045) $ 2,745,565 $ (79,169) Obligations of states and political subdivisions 12,756 (99) 512 (6) 13,268 (105) $ 221,140 $ (2,223) $ 2,537,693 $ (77,051) $ 2,758,833 $ (79,274) |
Summary of unrealized and realized gains and losses recognized in net income on equity securities | Three Months Ended June 30, 2019 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ 52 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 52 Three Months Ended June 30, 2018 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ (247) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (247) Six Months Ended June 30, 2019 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ 190 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 190 Six Months Ended June 30, 2018 (Dollars in Thousands) Net gains (losses) recognized during the period on equity securities $ (1,021) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (1,021) |
Junior Subordinated Interest _2
Junior Subordinated Interest Deferrable Debentures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Junior Subordinated Interest Deferrable Debentures | |
Junior subordinated deferrable interest debentures, major types of business trusts | Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust VIII $ 25,774 Quarterly 5.65 % LIBOR + 3.05 October 2033 October 2008 Trust IX 41,238 Quarterly 4.21 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 4.23 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 4.21 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 3.97 % LIBOR + 1.45 September 2037 September 2012 $ 134,642 (1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)segmentsubsidiary | Jan. 01, 2019USD ($)subsidiary | |
Basis of presentation | |||
Number of operating segments | segment | 1 | ||
Number of active operating bank subsidiaries | subsidiary | 5 | ||
Number of non-bank subsidiaries that were dissolved | subsidiary | 1 | ||
Right-of-use asset amortization | $ 245 | $ 459 | |
ASU 2016-02 | |||
Basis of presentation | |||
Right-of-use asset | $ 6,400 | ||
Statement of Financial Position Location | us-gaap:OtherAssets | ||
Lease liability | $ 6,400 | ||
Statement of Financial Position Location | us-gaap:OtherLiabilities |
Fair Value (Fair Value By Level
Fair Value (Fair Value By Level) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Available for sale debt securities | $ 3,467,913 | $ 3,411,350 |
Equity Securities | 6,127 | 5,937 |
Marketable Securities | 3,476,440 | 3,418,487 |
Assets/liabilities measured at fair value | ||
Assets: | ||
Available for sale debt securities | 3,467,913 | |
Assets/liabilities measured at fair value | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 3,340,220 | 3,223,010 |
Assets/liabilities measured at fair value | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 127,693 | 188,340 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | ||
Assets: | ||
Marketable Securities | 3,474,040 | 3,417,287 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 3,340,220 | 3,223,010 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 127,693 | 188,340 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Equity securities with readily determinable fair values | ||
Assets: | ||
Equity Securities | 6,127 | 5,937 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Marketable Securities | 6,127 | 5,937 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities with readily determinable fair values | ||
Assets: | ||
Equity Securities | 6,127 | 5,937 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Marketable Securities | 3,467,913 | 3,411,350 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 3,340,220 | 3,223,010 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities | $ 127,693 | $ 188,340 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurement and Assumptions) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
Assets: | |||
Impaired Loans | $ 14,287 | $ 14,287 | $ 14,306 |
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Charges to allowance for probable loan losses in connection with other real estate owned | 9,500 | $ 9,500 | 170 |
Number of loan foreclosures | loan | 1 | ||
Adjustment to fair value in connection with other real estate owned | 80 | $ 88 | 3,071 |
Impaired commercial collateral dependent loans | 14,287 | 14,287 | 14,306 |
Impaired commercial collateral dependent receivables appraisals to determine fair value within immediately preceding twelve months | 2,369 | 2,369 | 10,911 |
Impaired collateral dependent commercial loans with internal evaluation completed within last twelve months | 8,756 | 8,756 | 0 |
Measured on a non-recurring basis | |||
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Change in net provision, impaired loans | 1,133 | 1,133 | 356 |
Change in net provision, other real estate owned | 88 | 88 | 3,071 |
Change in net provision, equity investment without readily determinable fair value | 4,775 | 4,775 | |
Measured on a non-recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Impaired Loans | 2,999 | 2,999 | 1,563 |
Equity investment without readily determinable fair value | 28,166 | 28,166 | |
Non-financial assets: | |||
Other real estate owned | 26,703 | 26,703 | 38,871 |
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Impaired commercial collateral dependent loans | 2,999 | 2,999 | 1,563 |
Measured on a non-recurring basis | Assets/liabilities measured at fair value | |||
Assets: | |||
Impaired Loans | 2,999 | 2,999 | 1,563 |
Equity investment without readily determinable fair value | 28,166 | 28,166 | |
Non-financial assets: | |||
Other real estate owned | 26,703 | 26,703 | 38,871 |
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Impaired commercial collateral dependent loans | $ 2,999 | $ 2,999 | $ 1,563 |
Fair Value Measurements (Other
Fair Value Measurements (Other Assumptions) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deposits | ||
Carrying amount of time deposits | $ 1,969,425 | $ 1,973,468 |
Significant Unobservable Inputs (Level 3) | ||
Loans | ||
Carrying amount of fixed rate performing loans | 1,522,893 | 1,515,437 |
Estimated fair value of fixed rate performing loans | 1,498,527 | 1,469,231 |
Deposits | ||
Carrying amount of time deposits | 1,969,425 | 1,973,468 |
Estimated fair value of time deposits | 1,970,714 | 1,976,156 |
Significant Other Observable Inputs (Level 2) | ||
Other borrowed funds | ||
Carrying amount of the long-term FHLB borrowings | 436,601 | 436,690 |
Estimated fair value of long-term FHLB borrowings | $ 445,252 | $ 436,238 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of loans, by loan type | ||
Total loans | $ 6,842,701 | $ 6,561,289 |
Commercial, financial and agricultural | ||
Summary of loans, by loan type | ||
Total loans | 3,452,170 | 3,305,124 |
Real estate - mortgage | ||
Summary of loans, by loan type | ||
Total loans | 1,185,442 | 1,173,101 |
Commercial Real Estate:Other Construction and Land Development | ||
Summary of loans, by loan type | ||
Total loans | 2,010,198 | 1,886,231 |
Consumer | ||
Summary of loans, by loan type | ||
Total loans | 46,713 | 46,316 |
Foreign | ||
Summary of loans, by loan type | ||
Total loans | $ 148,178 | $ 150,517 |
Allowance for Probable Loan L_3
Allowance for Probable Loan Losses (By Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for probable loan losses | |||||
Balance at the beginning of the period | $ 67,030 | $ 61,384 | $ 67,154 | $ 61,384 | $ 67,687 |
Losses charged to allowance | (12,044) | (2,458) | (14,879) | (5,335) | |
Recoveries credited to allowance | 552 | 887 | 1,613 | 1,569 | |
Net losses (recoveries) charged to allowance | (11,492) | (1,571) | (13,266) | (3,766) | |
Provision charged to operations | 2,665 | (2,730) | 10,085 | (1,068) | |
Balance at the end of the period | 58,203 | 67,030 | 62,853 | 58,203 | 62,853 |
Watch - List Impaired | |||||
Allowance for probable loan losses | |||||
Losses charged to allowance | 9,500 | 9,500 | |||
Commercial | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 11,412 | 12,596 | 20,691 | 12,596 | 27,905 |
Losses charged to allowance | (5,016) | (2,284) | (7,780) | (4,999) | |
Recoveries credited to allowance | 408 | 447 | 1,046 | 1,030 | |
Net losses (recoveries) charged to allowance | (4,608) | (1,837) | (6,734) | (3,969) | |
Provision charged to operations | 4,976 | (2,258) | 5,918 | (7,340) | |
Balance at the end of the period | 11,780 | 11,412 | 16,596 | 11,780 | 16,596 |
Commercial Real Estate:Other Construction and Land Development | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 14,789 | 15,123 | 11,798 | 15,123 | 11,675 |
Losses charged to allowance | (1) | ||||
Recoveries credited to allowance | 56 | 2 | 76 | 4 | |
Net losses (recoveries) charged to allowance | 56 | 2 | 76 | 3 | |
Provision charged to operations | 428 | 2,903 | 74 | 3,025 | |
Balance at the end of the period | 15,273 | 14,789 | 14,703 | 15,273 | 14,703 |
Commercial Real Estate: Farmland and Commercial | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 25,880 | 19,353 | 24,803 | 19,353 | 16,663 |
Losses charged to allowance | (6,878) | (70) | (6,879) | (70) | |
Recoveries credited to allowance | 15 | 192 | 298 | 210 | |
Net losses (recoveries) charged to allowance | (6,863) | 122 | (6,581) | 140 | |
Provision charged to operations | (1,988) | (6,629) | 4,257 | 1,493 | |
Balance at the end of the period | 17,029 | 25,880 | 18,296 | 17,029 | 18,296 |
Commercial Real Estate: Multifamily | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 2,345 | 1,808 | 947 | 1,808 | 1,109 |
Provision charged to operations | (496) | 627 | 41 | 465 | |
Balance at the end of the period | 1,849 | 2,345 | 1,574 | 1,849 | 1,574 |
Residential First Lien | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 3,546 | 3,467 | 3,006 | 3,467 | 2,950 |
Losses charged to allowance | (1) | (30) | (2) | (44) | |
Recoveries credited to allowance | 10 | 1 | 11 | 2 | |
Net losses (recoveries) charged to allowance | 9 | (29) | 9 | (42) | |
Provision charged to operations | 72 | 614 | 151 | 683 | |
Balance at the end of the period | 3,627 | 3,546 | 3,591 | 3,627 | 3,591 |
Residential Junior Lien | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 7,745 | 7,719 | 4,689 | 7,719 | 6,103 |
Losses charged to allowance | (94) | (9) | (100) | (39) | |
Recoveries credited to allowance | 55 | 229 | 157 | 295 | |
Net losses (recoveries) charged to allowance | (39) | 220 | 57 | 256 | |
Provision charged to operations | (394) | 1,884 | (464) | 434 | |
Balance at the end of the period | 7,312 | 7,745 | 6,793 | 7,312 | 6,793 |
Consumer | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 462 | 447 | 437 | 447 | 440 |
Losses charged to allowance | (55) | (65) | (118) | (182) | |
Recoveries credited to allowance | 8 | 15 | 25 | 27 | |
Net losses (recoveries) charged to allowance | (47) | (50) | (93) | (155) | |
Provision charged to operations | 73 | 63 | 134 | 165 | |
Balance at the end of the period | 488 | 462 | 450 | 488 | 450 |
Foreign | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 851 | 871 | 783 | 871 | 842 |
Recoveries credited to allowance | 1 | 1 | |||
Net losses (recoveries) charged to allowance | 1 | 1 | |||
Provision charged to operations | (6) | 66 | (26) | 7 | |
Balance at the end of the period | $ 845 | $ 851 | $ 850 | $ 845 | $ 850 |
Allowance for Probable Loan L_4
Allowance for Probable Loan Losses (Impairment By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | $ 23,707 | $ 23,900 |
Loans Individually Evaluated for Impairment, Allowance | 1,699 | 772 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 6,818,994 | 6,537,389 |
Loans Collectively Evaluated for Impairment, Allowance | 56,504 | 60,612 |
Commercial | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 8,473 | 9,179 |
Loans Individually Evaluated for Impairment, Allowance | 648 | 656 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 1,194,270 | 1,119,790 |
Loans Collectively Evaluated for Impairment, Allowance | 11,132 | 11,940 |
Commercial Real Estate:Other Construction and Land Development | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 1,924 | 2,092 |
Loans Individually Evaluated for Impairment, Allowance | 116 | 116 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,008,274 | 1,884,139 |
Loans Collectively Evaluated for Impairment, Allowance | 15,157 | 15,007 |
Commercial Real Estate: Farmland and Commercial | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 4,160 | 3,509 |
Loans Individually Evaluated for Impairment, Allowance | 935 | |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,023,836 | 1,946,389 |
Loans Collectively Evaluated for Impairment, Allowance | 16,094 | 19,353 |
Commercial Real Estate: Multifamily | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 505 | 507 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 220,926 | 225,750 |
Loans Collectively Evaluated for Impairment, Allowance | 1,849 | 1,808 |
Residential First Lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 6,297 | 6,244 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 453,881 | 439,556 |
Loans Collectively Evaluated for Impairment, Allowance | 3,627 | 3,467 |
Residential Junior Lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 1,023 | 901 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 724,241 | 726,400 |
Loans Collectively Evaluated for Impairment, Allowance | 7,312 | 7,719 |
Consumer | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 1,046 | 1,175 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 45,667 | 45,141 |
Loans Collectively Evaluated for Impairment, Allowance | 488 | 447 |
Foreign | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 279 | 293 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 147,899 | 150,224 |
Loans Collectively Evaluated for Impairment, Allowance | $ 845 | $ 871 |
Allowance for Probable Loan L_5
Allowance for Probable Loan Losses (Non-accrual Basis By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | $ 15,718 | $ 15,791 |
Commercial | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 8,440 | 9,143 |
Commercial Real Estate:Other Construction and Land Development | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 1,924 | 2,092 |
Commercial Real Estate: Farmland and Commercial | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 4,160 | 3,509 |
Commercial Real Estate: Multifamily | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 505 | 507 |
Residential First Lien | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 391 | 347 |
Residential Junior Lien | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 289 | 171 |
Consumer | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | $ 9 | $ 22 |
Allowance for Probable Loan L_6
Allowance for Probable Loan Losses (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Interest Recognized | ||||
Total trouble debt restructuring | $ 7,989 | $ 7,989 | $ 8,158 | |
Period of charge off for past due unsecured commercial loans | 90 days | 90 days | ||
Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with related allowance | $ 3,809 | $ 1,805 | $ 3,809 | 1,698 |
Total impaired loans with no related allowance | 19,898 | 65,399 | 19,898 | 22,202 |
Unpaid principal balance: | ||||
Total impaired loans with an allowance recorded | 4,472 | 4,472 | 2,330 | |
Total impaired loans with no related allowance recorded | 21,106 | 184 | 21,106 | 23,284 |
Related Allowance | 1,699 | 1,699 | 772 | |
Average recorded investment: | ||||
Total impaired loans with an allowance recorded | 3,817 | 1,747 | 3,824 | 1,882 |
Total impaired loans with no related allowance recorded | 42,125 | 64,903 | 48,909 | 65,192 |
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 93 | 94 | 182 | 368 |
Commercial | ||||
Interest Recognized | ||||
Total trouble debt restructuring | 34 | 34 | 35 | |
Commercial | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with related allowance | 1,309 | 1,661 | 1,309 | 1,563 |
Total impaired loans with no related allowance | 7,163 | 16,738 | 7,163 | 7,616 |
Unpaid principal balance: | ||||
Total impaired loans with an allowance recorded | 1,904 | 1,904 | 2,161 | |
Total impaired loans with no related allowance recorded | 7,294 | 1 | 7,294 | 7,730 |
Related Allowance | 648 | 648 | 656 | |
Average recorded investment: | ||||
Total impaired loans with an allowance recorded | 1,316 | 1,604 | 1,322 | 1,741 |
Total impaired loans with no related allowance recorded | 16,788 | 16,594 | 17,078 | 16,194 |
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 1 | 1 | 1 | 3 |
Commercial Real Estate:Other Construction and Land Development | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with related allowance | 131 | 144 | 131 | 135 |
Total impaired loans with no related allowance | 1,793 | 2,216 | 1,793 | 1,957 |
Unpaid principal balance: | ||||
Total impaired loans with an allowance recorded | 169 | 169 | 169 | |
Total impaired loans with no related allowance recorded | 2,078 | 2,078 | 2,205 | |
Related Allowance | 116 | 116 | 116 | |
Average recorded investment: | ||||
Total impaired loans with an allowance recorded | 132 | 143 | 133 | 141 |
Total impaired loans with no related allowance recorded | 1,792 | 2,148 | 1,813 | 2,151 |
Commercial Real Estate: Farmland and Commercial | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with related allowance | 2,369 | 2,369 | ||
Total impaired loans with no related allowance | 1,792 | 36,686 | 1,792 | 3,509 |
Unpaid principal balance: | ||||
Total impaired loans with an allowance recorded | 2,399 | 2,399 | ||
Total impaired loans with no related allowance recorded | 2,382 | 2,382 | 4,031 | |
Related Allowance | 935 | 935 | ||
Average recorded investment: | ||||
Total impaired loans with an allowance recorded | 2,369 | 2,369 | ||
Total impaired loans with no related allowance recorded | 14,203 | 36,790 | 20,551 | 36,632 |
Commercial Real Estate: Multifamily | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 505 | 568 | 505 | 507 |
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 536 | 536 | 538 | |
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 507 | 664 | 507 | 565 |
Residential First Lien | ||||
Interest Recognized | ||||
Total trouble debt restructuring | 5,905 | 5,905 | 5,947 | |
Residential First Lien | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 6,297 | 6,864 | 6,297 | 6,244 |
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 6,459 | 152 | 6,459 | 6,386 |
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 6,480 | 6,426 | 6,579 | 7,136 |
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 78 | 76 | 153 | 305 |
Residential Junior Lien | ||||
Interest Recognized | ||||
Total trouble debt restructuring | 734 | 734 | 730 | |
Residential Junior Lien | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 1,023 | 811 | 1,023 | 901 |
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 1,032 | 22 | 1,032 | 911 |
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 1,028 | 803 | 1,033 | 976 |
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 11 | 12 | 22 | 44 |
Consumer | ||||
Interest Recognized | ||||
Total trouble debt restructuring | 1,037 | 1,037 | 1,153 | |
Consumer | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 1,046 | 1,179 | 1,046 | 1,175 |
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 1,046 | 2 | 1,046 | 1,190 |
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 1,046 | 1,145 | 1,063 | 1,211 |
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 1 | 2 | ||
Foreign | ||||
Interest Recognized | ||||
Total trouble debt restructuring | 279 | 279 | 293 | |
Foreign | Class of Financing Receivable | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 279 | 337 | 279 | 293 |
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 279 | 7 | 279 | 293 |
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 281 | 333 | 285 | 327 |
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | $ 3 | $ 4 | $ 6 | $ 14 |
Allowance for Probable Loan L_7
Allowance for Probable Loan Losses (Aging By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | $ 7,052 | $ 40,674 |
Past due | 36,122 | 75,833 |
Loans, current | 6,806,579 | 6,485,456 |
Total loans | 6,842,701 | 6,561,289 |
30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 10,876 | 15,978 |
60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 8,237 | 6,011 |
90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 17,009 | 53,844 |
Commercial | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 1,312 | 10,890 |
Past due | 12,696 | 25,591 |
Loans, current | 1,190,047 | 1,103,378 |
Total loans | 1,202,743 | 1,128,969 |
Commercial | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 3,160 | 4,651 |
Commercial | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 696 | 1,089 |
Commercial | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 8,840 | 19,851 |
Commercial Real Estate:Other Construction and Land Development | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 206 | 16 |
Past due | 1,338 | 3,356 |
Loans, current | 2,008,860 | 1,882,875 |
Total loans | 2,010,198 | 1,886,231 |
Commercial Real Estate:Other Construction and Land Development | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 308 | 727 |
Commercial Real Estate:Other Construction and Land Development | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 1,707 | |
Commercial Real Estate:Other Construction and Land Development | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 1,030 | 922 |
Commercial Real Estate: Farmland and Commercial | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 325 | 24,910 |
Past due | 7,145 | 30,951 |
Loans, current | 2,020,851 | 1,918,947 |
Total loans | 2,027,996 | 1,949,898 |
Commercial Real Estate: Farmland and Commercial | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 1,534 | 2,928 |
Commercial Real Estate: Farmland and Commercial | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 4,844 | 784 |
Commercial Real Estate: Farmland and Commercial | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 767 | 27,239 |
Commercial Real Estate: Multifamily | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 71 | |
Past due | 660 | 1,505 |
Loans, current | 220,771 | 224,752 |
Total loans | 221,431 | 226,257 |
Commercial Real Estate: Multifamily | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 927 | |
Commercial Real Estate: Multifamily | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 155 | |
Commercial Real Estate: Multifamily | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 505 | 578 |
Residential First Lien | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 3,948 | 3,079 |
Past due | 8,363 | 9,037 |
Loans, current | 451,815 | 436,763 |
Total loans | 460,178 | 445,800 |
Residential First Lien | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 2,632 | 3,998 |
Residential First Lien | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 1,419 | 1,677 |
Residential First Lien | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 4,312 | 3,362 |
Residential Junior Lien | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 1,070 | 937 |
Past due | 2,367 | 2,881 |
Loans, current | 722,897 | 724,420 |
Total loans | 725,264 | 727,301 |
Residential Junior Lien | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 633 | 1,155 |
Residential Junior Lien | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 374 | 618 |
Residential Junior Lien | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 1,360 | 1,108 |
Consumer | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 24 | 32 |
Past due | 881 | 550 |
Loans, current | 45,832 | 45,766 |
Total loans | 46,713 | 46,316 |
Consumer | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 742 | 486 |
Consumer | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 111 | 19 |
Consumer | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 28 | 45 |
Foreign | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 167 | 739 |
Past due | 2,672 | 1,962 |
Loans, current | 145,506 | 148,555 |
Total loans | 148,178 | 150,517 |
Foreign | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 1,867 | 1,106 |
Foreign | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 638 | 117 |
Foreign | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | $ 167 | $ 739 |
Allowance for Probable Loan L_8
Allowance for Probable Loan Losses (Portfolio Credit Quality By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 6,842,701 | $ 6,561,289 |
Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 6,508,353 | 6,126,933 |
Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 56,177 | 64,135 |
Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 46,397 | 92,976 |
Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 208,067 | 253,345 |
Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 23,707 | 23,900 |
Commercial | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,202,743 | 1,128,969 |
Commercial | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,141,456 | 998,625 |
Commercial | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 19 | 441 |
Commercial | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,694 | 44,544 |
Commercial | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 51,101 | 76,180 |
Commercial | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 8,473 | 9,179 |
Commercial Real Estate:Other Construction and Land Development | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,010,198 | 1,886,231 |
Commercial Real Estate:Other Construction and Land Development | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,942,982 | 1,817,098 |
Commercial Real Estate:Other Construction and Land Development | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,648 | |
Commercial Real Estate:Other Construction and Land Development | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 9,310 | 9,055 |
Commercial Real Estate:Other Construction and Land Development | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 55,982 | 56,338 |
Commercial Real Estate:Other Construction and Land Development | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,924 | 2,092 |
Commercial Real Estate: Farmland and Commercial | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,027,996 | 1,949,898 |
Commercial Real Estate: Farmland and Commercial | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,834,448 | 1,726,711 |
Commercial Real Estate: Farmland and Commercial | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 56,158 | 62,046 |
Commercial Real Estate: Farmland and Commercial | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 34,394 | 38,373 |
Commercial Real Estate: Farmland and Commercial | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 98,836 | 119,259 |
Commercial Real Estate: Farmland and Commercial | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 4,160 | 3,509 |
Commercial Real Estate: Multifamily | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 221,431 | 226,257 |
Commercial Real Estate: Multifamily | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 220,023 | 224,823 |
Commercial Real Estate: Multifamily | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 903 | 927 |
Commercial Real Estate: Multifamily | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 505 | 507 |
Residential First Lien | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 460,178 | 445,800 |
Residential First Lien | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 452,493 | 438,773 |
Residential First Lien | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 143 | 142 |
Residential First Lien | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,245 | 641 |
Residential First Lien | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 6,297 | 6,244 |
Residential Junior Lien | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 725,264 | 727,301 |
Residential Junior Lien | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 723,385 | 725,538 |
Residential Junior Lien | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 856 | 862 |
Residential Junior Lien | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,023 | 901 |
Consumer | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 46,713 | 46,316 |
Consumer | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 45,667 | 45,141 |
Consumer | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,046 | 1,175 |
Foreign | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 148,178 | 150,517 |
Foreign | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 147,899 | 150,224 |
Foreign | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 279 | $ 293 |
Stock Options (Details)
Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Apr. 05, 2012 | |
Stock options under 2012 Plan | |||||
Stock option details | |||||
Shares available for future grants | 26,876 | 26,876 | 800,000 | ||
Maximum exercisable period for options granted | 10 years | ||||
Stock option activity | |||||
Options outstanding at the beginning of the period (in shares) | 788,977 | ||||
Plus: Options granted (in shares) | 11,500 | ||||
Less: | |||||
Options exercised (in shares) | 47,175 | ||||
Options forfeited (in shares) | 29,176 | ||||
Options outstanding at the end of the period (in shares) | 724,126 | 724,126 | |||
Options fully vested and exercisable at the end of the period (in shares) | 369,795 | 369,795 | |||
Stock Options, Weighted average exercise price | |||||
Options outstanding at the beginning, weighted average exercise price (in dollars per share) | $ 25.91 | ||||
Plus: Options granted, weighted average exercise price (in dollars per share) | 36.59 | ||||
Less: | |||||
Options exercised, weighted average exercise price (in dollars per share) | 18.52 | ||||
Options forfeited, weighted average exercise price (in dollars per share) | 27.11 | ||||
Options outstanding at the end, weighted average exercise price (in dollars per share) | $ 26.51 | 26.51 | |||
Options fully vested and exercisable at the end, weighted average exercise price (in dollars per share) | $ 21.07 | $ 21.07 | |||
Stock Options, Weighted average remaining contractual term (years) | |||||
Options outstanding at the end, weighted average remaining contractual term (years) | 5 years 9 months 18 days | ||||
Options fully vested and exercisable at the end, weighted average remaining contractual term (years) | 4 years 2 months 26 days | ||||
Stock Options, Aggregate intrinsic value | |||||
Options outstanding at the end, aggregate intrinsic value | $ 8,234 | $ 8,234 | |||
Options fully vested and exercisable at the end, aggregate intrinsic value | 6,159 | 6,159 | |||
Stock-based compensation expense | 239 | $ 286 | 504 | $ 470 | |
Stock-based compensation cost, unrecognized, related to non-vested options | $ 2,336 | $ 2,336 | |||
Stock-based compensation cost, unrecognized, related to non-vested options, weighted-average period of recognition | 1 year 10 months 24 days | ||||
Incentive stock options granted to 10% shareholders | |||||
Stock option details | |||||
Maximum exercisable period for options granted | 5 years |
Investment Securities and Equ_3
Investment Securities and Equity Securities with Readily Determinable Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity securities | ||
Amortized cost | $ 2,400 | $ 1,200 |
Estimated fair value | 2,400 | 1,200 |
Carrying Value | 2,400 | 1,200 |
Available-for-sale securities | ||
Amortized cost, Available-for-sale securities | 3,473,480 | 3,481,165 |
Gross Unrealized Gains | 18,479 | |
Gross Unrealized Losses | (24,046) | |
Available for sale debt securities | 3,467,913 | 3,411,350 |
Equity Securities | 6,127 | 5,937 |
Total Amortized cost | 3,481,165 | |
Total Gross unrealized gains | 9,459 | |
Total Gross unrealized losses | 79,274 | |
Assets/liabilities measured at fair value | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,467,913 | |
Available for sale debt securities and equity securities | 3,411,350 | |
Carrying Value | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,467,913 | |
Available for sale debt securities and equity securities | 3,411,350 | |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized cost, Available-for-sale securities | 3,348,834 | 3,295,366 |
Gross Unrealized Gains | 15,432 | 6,813 |
Gross Unrealized Losses | (24,046) | (79,169) |
Residential mortgage-backed securities | Assets/liabilities measured at fair value | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,340,220 | 3,223,010 |
Residential mortgage-backed securities | Carrying Value | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,340,220 | 3,223,010 |
Mortgage-backed securities by Ginnie Mae | ||
Available-for-sale securities | ||
Available for sale debt securities | 544,659 | 501,293 |
Mortgage-backed securities by Fannie Mae and Freddie Mac | ||
Available-for-sale securities | ||
Available for sale debt securities | 2,795,561 | 2,721,717 |
Obligations of states and political subdivisions | ||
Available-for-sale securities | ||
Amortized cost, Available-for-sale securities | 124,646 | 185,799 |
Gross Unrealized Gains | 3,047 | 2,646 |
Gross Unrealized Losses | (105) | |
Obligations of states and political subdivisions | Assets/liabilities measured at fair value | ||
Available-for-sale securities | ||
Available for sale debt securities | 127,693 | 188,340 |
Obligations of states and political subdivisions | Carrying Value | ||
Available-for-sale securities | ||
Available for sale debt securities | 127,693 | 188,340 |
Other securities | ||
Held-to-maturity securities | ||
Amortized cost | 2,400 | 1,200 |
Estimated fair value | 2,400 | 1,200 |
Carrying Value | $ 2,400 | $ 1,200 |
Investment Securities and Equ_4
Investment Securities and Equity Securities with Readily Determinable Fair Values (Contractual Maturities and Estimated Fair Values) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Held-to-maturity debt securities amortized cost disclosures | |||||
Due in one year or less, held-to-maturity debt securities amortized cost | $ 1,075 | $ 1,075 | |||
Due after one year through five years, held-to-maturity debt securities amortized cost | 1,325 | 1,325 | |||
Amortized cost, held-to-maturity debt securities | 2,400 | 2,400 | $ 1,200 | ||
Held-to-maturity debt securities, Estimated fair value disclosures | |||||
Due in one year or less, held-to-maturity debt securities, Estimated fair value | 1,075 | 1,075 | |||
Due after one year through five years, held-to-maturity debt securities, Estimated fair value | 1,325 | 1,325 | |||
Estimated fair value | 2,400 | 2,400 | 1,200 | ||
Available-for-sale debt securities amortized cost disclosures | |||||
Due after five years through ten years, available-for-sale debt securities amortized cost | 2,244 | 2,244 | |||
Due after ten years, available-for-sale debt securities amortized cost | 122,402 | 122,402 | |||
Residential mortgage-backed securities, amortized cost | 3,348,834 | 3,348,834 | |||
Amortized cost, Available-for-sale securities | 3,473,480 | 3,473,480 | 3,481,165 | ||
Available for sale debt securities, Estimated Fair Value Disclosures | |||||
Due after five years through ten years, available-for-sale debt securities, Estimated Fair Value | 2,283 | 2,283 | |||
Due after ten years, available-for-sale debt securities, Estimated Fair Value | 125,410 | 125,410 | |||
Residential mortgage-backed securities, Estimated Fair Value | 3,340,220 | 3,340,220 | |||
Estimated fair value, Available for sale securities | 3,467,913 | 3,467,913 | $ 3,411,350 | ||
Proceeds from sales and calls of available for sale securities | 19,275 | $ 0 | 60,695 | $ 18,145 | |
Proceeds from sales of mortgage-backed securities | 0 | 0 | 0 | 0 | |
Gross gains realized on sales | 1 | 0 | 3 | 0 | |
Gross losses realized on sales | 7 | $ 0 | 13 | $ 0 | |
Collateral Pledged | |||||
Available-for-sale debt securities amortized cost disclosures | |||||
Amortized cost, Available-for-sale securities | 1,063,745 | 1,063,745 | |||
Available for sale debt securities, Estimated Fair Value Disclosures | |||||
Fair value of available for sale investment securities pledged | $ 1,057,009 | $ 1,057,009 |
Investment Securities and Equ_5
Investment Securities and Equity Securities with Readily Determinable Fair Values (Fair Value and Gross Unrealized Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available for sale: | ||
Fair value, less than 12 months | $ 23,726 | $ 221,140 |
Unrealized losses, less than 12 Months | (72) | (2,223) |
Fair value, 12 months or more | 2,080,460 | 2,537,693 |
Unrealized losses, 12 Months or More | (23,974) | (77,051) |
Fair value, Total | 2,104,186 | 2,758,833 |
Unrealized losses, Total | (24,046) | (79,274) |
Residential mortgage-backed securities | ||
Available for sale: | ||
Fair value, less than 12 months | 23,726 | 208,384 |
Unrealized losses, less than 12 Months | (72) | (2,124) |
Fair value, 12 months or more | 2,080,460 | 2,537,181 |
Unrealized losses, 12 Months or More | (23,974) | (77,045) |
Fair value, Total | 2,104,186 | 2,745,565 |
Unrealized losses, Total | $ (24,046) | (79,169) |
Obligations of states and political subdivisions | ||
Available for sale: | ||
Fair value, less than 12 months | 12,756 | |
Unrealized losses, less than 12 Months | (99) | |
Fair value, 12 months or more | 512 | |
Unrealized losses, 12 Months or More | (6) | |
Fair value, Total | 13,268 | |
Unrealized losses, Total | $ (105) |
Investment Securities and Equ_6
Investment Securities and Equity Securities with Readily Determinable Fair Values (Unrealized and realized gains and losses recognized in net income on equity securities ) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investment Securities | |||||
Equity Securities | $ 6,127 | $ 6,127 | $ 5,937 | ||
Summary of unrealized and realized gains and losses recognized in net income on equity securities | |||||
Net losses recognized during the period on equity securities | 52 | $ (247) | 190 | $ (1,021) | |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | $ 52 | $ (247) | $ 190 | $ (1,021) |
Other Borrowed Funds (Details)
Other Borrowed Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 808,376 | $ 705,665 |
Percentage of decrease in other borrowed funds | 14.60% |
Junior Subordinated Deferrable
Junior Subordinated Deferrable Interest Debentures (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)item | May 07, 2019USD ($) | Dec. 31, 2018USD ($) | |
Junior subordinated deferrable interest debentures, major types of business trusts | |||
Number of statutory business trusts issuing trust preferred securities | item | 5 | ||
Junior subordinated deferrable interest debentures | $ 134,642,000 | $ 160,416,000 | |
Maximum number of consecutive quarterly period available for deferral of interest payment on Trusts VI, VIII, IX, X, XI and XII | item | 20 | ||
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum | 25.00% | ||
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum | 25.00% | ||
Capital securities issued by the trust, qualifying as Tier I capital | $ 134,642,000 | $ 160,416,000 | |
Trust VI | |||
Junior subordinated deferrable interest debentures, major types of business trusts | |||
Amount redeemed | $ 25,000,000 | ||
Trust XI | |||
Junior subordinated deferrable interest debentures, major types of business trusts | |||
Junior subordinated deferrable interest debentures | 25,990,000 | ||
Trust X | |||
Junior subordinated deferrable interest debentures, major types of business trusts | |||
Junior subordinated deferrable interest debentures | $ 21,021,000 |
Junior Subordinated Deferrabl_2
Junior Subordinated Deferrable Interest Debentures (Key Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 134,642 | $ 160,416 |
Trust VIII | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,774 | |
Interest rate (as a percent) | 5.65% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 3.05% | |
Trust IX | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 41,238 | |
Interest rate (as a percent) | 4.21% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust X | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 21,021 | |
Interest rate (as a percent) | 4.23% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.65% | |
Trust XI | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,990 | |
Interest rate (as a percent) | 4.21% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust XII | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 20,619 | |
Interest rate (as a percent) | 3.97% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.45% |
Common Stock and Dividends (Det
Common Stock and Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2019 | Apr. 15, 2019 | Apr. 16, 2018 | Apr. 09, 2017 | Apr. 30, 2009 | Apr. 09, 2019 |
Common Stock and Dividends | ||||||
Cash dividends paid to common shareholders (in dollars per share) | $ 0.50 | $ 0.33 | ||||
Repurchase of common stock, authorized amount | $ 40,000 | $ 50,000 | ||||
Period of repurchase of common stock | 12 months | 12 months | ||||
Cumulative number of shares repurchased under all stock repurchase programs | 9,803,514 | |||||
Cumulative cost of shares repurchased under all stock repurchase programs | $ 311,433 |
Capital Ratios (Details)
Capital Ratios (Details) | Jun. 30, 2019 | Dec. 31, 2018 |
Capital Requirements | ||
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 19.67% | 19.74% |
CET 1 ratio | 17.82% | 17.55% |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 16.03% | 15.87% |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 19.04% | 19.06% |