Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-09439 | ||
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, $1.00 par value | ||
Trading Symbol | IBOC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 2,025,979 | ||
Entity Common Stock, Shares Outstanding | 63,298,608 | ||
Entity Central Index Key | 0000315709 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 1,997,238,000 | $ 256,820,000 |
Investment securities: | ||
Held to maturity debt securities (Market value of $3,400 on December 31, 2020 and $2,400 on December 31, 2019) | 3,400,000 | 2,400,000 |
Available for sale debt securities (Amortized cost of $3,054,289 on December 31, 2020 and $3,376,070 on December 31, 2019) | 3,080,768,000 | 3,378,923,000 |
Equity securities with readily determinable fair values | 6,202,000 | 6,095,000 |
Total investment securities | 3,090,370,000 | 3,387,418,000 |
Loans | 7,541,754,000 | 6,894,946,000 |
Less allowance for credit losses | (109,059,000) | (60,278,000) |
Net loans | 7,432,695,000 | 6,834,668,000 |
Bank premises and equipment, net | 479,878,000 | 506,595,000 |
Accrued interest receivable | 37,881,000 | 36,620,000 |
Other investments | 254,413,000 | 318,427,000 |
Cash surrender value of life insurance policies | 292,381,000 | 289,693,000 |
Goodwill | 282,532,000 | 282,532,000 |
Other assets | 162,079,000 | 200,121,000 |
Total assets | 14,029,467,000 | 12,112,894,000 |
Deposits: | ||
Demand-non-interest bearing | 4,715,814,000 | 3,545,905,000 |
Savings and interest bearing demand | 3,852,505,000 | 3,267,829,000 |
Time | 2,153,541,000 | 2,012,300,000 |
Total deposits | 10,721,860,000 | 8,826,034,000 |
Securities sold under repurchase agreements | 428,148,000 | 236,536,000 |
Other borrowed funds | 436,327,000 | 626,511,000 |
Junior subordinated deferrable interest debentures | 134,642,000 | 134,642,000 |
Other liabilities | 130,492,000 | 171,118,000 |
Total liabilities | 11,851,469,000 | 9,994,841,000 |
Shareholders' equity: | ||
Common shares of $1.00 par value. Authorized 275,000,000 shares; issued 96,240,977 shares on December 31, 2020 and 96,214,967 shares on December 31, 2019 | 96,241,000 | 96,215,000 |
Surplus | 149,334,000 | 148,075,000 |
Retained earnings | 2,289,626,000 | 2,200,568,000 |
Accumulated other comprehensive income | 20,825,000 | 2,345,000 |
Total shareholders' equity before treasury stock | 2,556,026,000 | 2,447,203,000 |
Less cost of shares in treasury, 32,961,289 shares on December 31, 2020 and 31,015,061 on December 31, 2019 | (378,028,000) | (329,150,000) |
Total shareholders' equity | 2,177,998,000 | 2,118,053,000 |
Total liabilities and shareholders' equity | $ 14,029,467,000 | $ 12,112,894,000 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Held to maturity, Market value (in dollars) | $ 3,400 | $ 2,400 |
Available for sale, Amortized cost (in dollars) | $ 3,054,289 | $ 3,376,070 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, Authorized shares | 275,000,000 | 275,000,000 |
Common shares, issued shares | 96,240,977 | 96,214,967 |
Treasury, shares | 32,961,289 | 31,015,061 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||
Loans, including fees | $ 377,579,000 | $ 413,611,000 | $ 375,173,000 |
Investment securities: | |||
Taxable | 46,095,000 | 72,485,000 | 81,484,000 |
Tax-exempt | 2,434,000 | 4,885,000 | 8,141,000 |
Other interest income | 900,000 | 1,420,000 | 1,024,000 |
Total interest income | 427,008,000 | 492,401,000 | 465,822,000 |
Interest expense: | |||
Savings deposits | 6,358,000 | 16,379,000 | 12,764,000 |
Time deposits | 19,230,000 | 20,970,000 | 13,096,000 |
Securities sold under repurchase agreements | 926,000 | 2,432,000 | 2,415,000 |
Other borrowings | 8,773,000 | 12,413,000 | 17,404,000 |
Junior subordinated deferrable interest debentures | 3,832,000 | 6,435,000 | 6,989,000 |
Total interest expense | 39,119,000 | 58,629,000 | 52,668,000 |
Net interest income | 387,889,000 | 433,772,000 | 413,154,000 |
Provision for credit losses | 45,379,000 | 18,843,000 | 6,112,000 |
Net interest income after provision for credit losses | 342,510,000 | 414,929,000 | 407,042,000 |
Other service charges, commissions and fees | |||
Investment securities transactions, net | (5,000) | (12,000) | (141,000) |
Other investments, net | 4,920,000 | 5,985,000 | 19,897,000 |
Other income | 26,873,000 | 17,523,000 | 18,367,000 |
Total non-interest income | 150,579,000 | 154,826,000 | 165,042,000 |
Non-interest expense: | |||
Employee compensation and benefits | 130,039,000 | 145,929,000 | 138,532,000 |
Occupancy | 24,909,000 | 28,635,000 | 29,097,000 |
Depreciation of bank premises and equipment | 28,318,000 | 28,270,000 | 25,873,000 |
Professional fees | 12,546,000 | 17,661,000 | 12,601,000 |
Deposit insurance assessments | 1,870,000 | 1,416,000 | 3,742,000 |
Net expense, other real estate owned | 9,808,000 | 6,377,000 | 4,413,000 |
Amortization of identified intangible assets | 0 | 0 | 0 |
Advertising | 4,284,000 | 7,748,000 | 7,695,000 |
Software and software maintenance | 19,238,000 | 19,850,000 | 17,516,000 |
Other | 50,319,000 | 53,915,000 | 60,032,000 |
Total non-interest expense | 281,331,000 | 309,801,000 | 299,501,000 |
Income before income taxes | 211,758,000 | 259,954,000 | 272,583,000 |
Provision for income taxes | 44,439,000 | 54,850,000 | 56,652,000 |
Net income | $ 167,319,000 | $ 205,104,000 | $ 215,931,000 |
Basic earnings per common share: | |||
Weighted average number of shares outstanding (in shares) | 63,725,819 | 65,476,606 | 66,106,580 |
Net income (in dollars per share) | $ 2.63 | $ 3.13 | $ 3.27 |
Fully diluted earnings per common share: | |||
Weighted average number of shares outstanding (in shares) | 63,853,135 | 65,685,684 | 66,633,820 |
Net income (in dollars per share) | $ 2.62 | $ 3.12 | $ 3.24 |
Services charges on deposit accounts | |||
Non-interest income: | |||
Service charges on deposit accounts | $ 61,983,000 | $ 72,502,000 | $ 72,433,000 |
Other service charges, commissions and fees, Banking | |||
Other service charges, commissions and fees | |||
Banking | 48,986,000 | 50,996,000 | 46,685,000 |
Other service charges, commissions and fees, Non-banking | |||
Other service charges, commissions and fees | |||
Non-banking | $ 7,822,000 | $ 7,832,000 | $ 7,801,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 167,319 | $ 205,104 | $ 215,931 |
Other comprehensive income, net of tax: | |||
Net unrealized holding gains (losses) on securities available for sale arising during period (net of tax effects of $4,911, $15,144, and $(7,004)) | 18,476 | 56,970 | (26,348) |
Reclassification adjustment for losses on securities available for sale included in net income (net of tax effects of $1, $3 and $30) | 4 | 9 | 111 |
Other comprehensive income, net of tax | 18,480 | 56,979 | (26,237) |
Comprehensive income | $ 185,799 | $ 262,083 | $ 189,694 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net unrealized holding (losses) gains on securities available for sale arising during period, tax effects | $ 4,911 | $ 15,144 | $ (7,004) |
Reclassification adjustment for losses on securities available for sale included in net income, tax effects | $ 1 | $ 3 | $ 30 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member]Adjustment | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Adjustment | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Adjustment | 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 | 215,931 | 215,931 | ||||||||
Dividends: | ||||||||||
Payable/Cash | (49,599) | (49,599) | ||||||||
Purchase of treasury stock | (19,042) | (19,042) | ||||||||
Exercise of stock options | 85 | 1,437 | 1,522 | |||||||
Exercise of stock options (in shares) | 85 | |||||||||
Stock compensation expense recognized in earnings | 1,035 | 1,035 | ||||||||
Repurchase of outstanding warrant | (29,005) | (29,005) | ||||||||
Other comprehensive income, net of tax: | ||||||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (20,240) | (20,240) | ||||||||
Balance at Dec. 31, 2018 | 96,104 | 145,283 | $ 5,997 | 2,064,134 | $ (5,997) | (54,634) | (311,305) | 1,939,582 | ||
Balance (in shares) at Dec. 31, 2018 | 96,104 | |||||||||
Increase (decrease) in shareholders' equity | ||||||||||
Net Income | 205,104 | 205,104 | ||||||||
Dividends: | ||||||||||
Payable/Cash | (68,670) | (68,670) | ||||||||
Purchase of treasury stock | (17,845) | (17,845) | ||||||||
Exercise of stock options | 111 | 1,812 | 1,923 | |||||||
Exercise of stock options (in shares) | 111 | |||||||||
Stock compensation expense recognized in earnings | 980 | 980 | ||||||||
Other comprehensive income, net of tax: | ||||||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 56,979 | 56,979 | ||||||||
Balance at Dec. 31, 2019 | 96,215 | 148,075 | 2,200,568 | 2,345 | (329,150) | 2,118,053 | ||||
Balance (in shares) at Dec. 31, 2019 | 96,215 | |||||||||
Increase (decrease) in shareholders' equity | ||||||||||
Net Income | 167,319 | 167,319 | ||||||||
Dividends: | ||||||||||
Payable/Cash | (69,928) | (69,928) | ||||||||
Purchase of treasury stock | (48,878) | (48,878) | ||||||||
Exercise of stock options | 26 | 516 | 542 | |||||||
Exercise of stock options (in shares) | 26 | |||||||||
Stock compensation expense recognized in earnings | 743 | 743 | ||||||||
Other comprehensive income, net of tax: | ||||||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 18,480 | 18,480 | ||||||||
Balance at Dec. 31, 2020 | $ 96,241 | $ 149,334 | $ (8,333) | $ 2,289,626 | $ 20,825 | $ (378,028) | $ (8,333) | $ 2,177,998 | ||
Balance (in shares) at Dec. 31, 2020 | 96,241 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Payable/Cash Dividends (in dollars per share) | $ 1.10 | $ 1.05 | $ 0.75 |
Purchase of treasury stock (in shares) | 1,946,228 | 468,918 | 520,918 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 167,319 | $ 205,104 | $ 215,931 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit loss | 45,379 | 18,843 | 6,112 |
Specific reserve, other real estate owned | 1,539 | 322 | 3,071 |
Depreciation of bank premises and equipment | 28,318 | 28,270 | 25,873 |
Gain on sale of bank premises and equipment | (40) | (237) | (1,456) |
Gain on sale of other real estate owned | (892) | (1,470) | (1,465) |
Accretion of investment securities discounts | (500) | (428) | (271) |
Amortization of investment securities premiums | 39,039 | 20,549 | 20,087 |
Investment securities transactions, net | 5 | 12 | 141 |
Unrealized gain (loss) on equity securities with readily determinable fair values | (107) | (158) | 388 |
Stock based compensation expense | 743 | 980 | 1,035 |
Losses (earnings) from affiliates and other investments | 74 | (3,914) | (15,484) |
Deferred income taxes | (3,122) | 3,309 | 5,143 |
(Increase) decrease in accrued interest receivable | (1,261) | 183 | (2,347) |
Decrease (increase) in other assets | 42,571 | 8,043 | (51,827) |
(Decrease) increase in other liabilities | (13,932) | 32,157 | 24,916 |
Net cash provided by operating activities | 305,133 | 311,565 | 229,847 |
Investing activities: | |||
Proceeds from maturities of securities | 1,075 | 2,275 | |
Proceeds from sales and calls of available for sale securities | 42,350 | 94,585 | 38,175 |
Proceeds from sales of equity securities with readily determinable fair values | 21,607 | ||
Purchases of available for sale securities | (1,819,814) | (893,301) | (47,346) |
Principal collected on mortgage backed securities | 2,058,626 | 882,479 | 675,304 |
Net increase in loans | (647,213) | (375,621) | (258,142) |
Purchases of other investments | (44,447) | (52,795) | (43,418) |
Distributions from other investments | 64,860 | 44,919 | 3,668 |
Purchases of bank premises and equipment | (6,725) | (29,590) | (21,395) |
Proceeds from sales of bank premises and equipment | 904 | 1,861 | 4,533 |
Proceeds from sales of other real estate owned | 6,679 | 9,405 | 4,179 |
Net cash (used in) provided by investing activities | (343,705) | (318,058) | 379,440 |
Financing activities: | |||
Net increase in non-interest bearing demand deposits | 1,169,909 | 91,065 | 211,585 |
Net increase (decrease) in savings and interest bearing demand deposits | 584,676 | (408) | 23,106 |
Net increase (decrease) in time deposits | 141,241 | 38,832 | (83,038) |
Net increase (decrease) in securities sold under repurchase agreements | 191,612 | 6,547 | (123,816) |
Net decrease in other borrowed funds | (190,184) | (79,154) | (489,560) |
Redemption of long-term debt | (25,774) | ||
Repurchase of outstanding common stock warrant | (29,005) | ||
Purchase of treasury stock | (48,878) | (17,845) | (19,042) |
Proceeds from stock transactions | 542 | 1,923 | 1,522 |
Payments of cash dividends - common | (69,928) | (68,670) | (49,599) |
Net cash used in financing activities | 1,778,990 | (53,484) | (557,847) |
Increase (decrease) in cash and cash equivalents | 1,740,418 | (59,977) | 51,440 |
Cash and cash equivalents at beginning of period | 256,820 | 316,797 | 265,357 |
Cash and cash equivalents at end of period | 1,997,238 | 256,820 | 316,797 |
Supplemental cash flow information: | |||
Interest paid | 41,975 | 56,728 | 50,623 |
Income taxes paid | 34,826 | 44,089 | 40,565 |
Non-cash investing and financing activities: | |||
Net transfers from loans to other real estate owned | 4,526 | 22,015 | $ 32,610 |
Establishment of lease liability and right-of-use asset | $ 6,171 | ||
Net transfers from bank premises and equipment to other assets | $ 4,260 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Our accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. The following is a description of the more significant of those policies. Consolidation and Basis of Presentation Our consolidated financial statements include the accounts of the International Bancshares Corporation, its wholly-owned Subsidiary Banks and its wholly-owned non-bank subsidiaries, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, and IBC Capital Corporation. All significant inter-company balances and transactions have been eliminated in consolidation. We, through our Subsidiary Banks, are primarily engaged in the business of banking, including the acceptance of checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile and other installment and term loans. Our primary markets are north, south, central, and southeast Texas and the state of Oklahoma. Each of our Subsidiary Banks is very active in facilitating international trade along the United States border with Mexico and elsewhere. Although our loan portfolio is diversified, the ability of our debtors to honor their contracts is primarily dependent upon the economic conditions in our trade area. In addition, the investment portfolio is directly impacted by fluctuations in market interest rates. We are subject to the regulations of certain federal agencies as well as the Texas Department of Banking and the Oklahoma Department of Banking and undergo periodic examinations by those regulatory authorities. Such agencies may require certain standards or impose certain limitations based on their judgments or changes in law and regulations. We own one insurance-related subsidiary, IBC Insurance Agency, Inc., a wholly owned subsidiary of our Subsidiary Bank, International Bank of Commerce, Laredo. The insurance-related subsidiary does not conduct underwriting activities. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statement of condition and income and expenses for the periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of ACL. Subsequent Events 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. Investment Securities We classify debt securities into one of these categories: held-to-maturity, available-for-sale, or trading. Such classifications are reassessed for appropriate classification at each reporting date. Securities that are intended and expected to be held until maturity are classified as “held-to-maturity” and are carried at amortized cost for financial statement reporting. Securities that are not positively expected to be held until maturity, but are intended to be held for an indefinite period of time are classified as “available-for-sale” or “trading” and 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 and in shareholders’ equity as accumulated other comprehensive income (loss) until realized. In accordance with ASU 2016-13, which we adopted on January 1, 2020, available-for-sale and held-to-maturity debt securities in an unrealized loss position must be evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment would be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. The exception to this process will occur if we intend to sell an impaired available-for-sale debt security or if we will more likely than not be required to sell a credit impaired available-for-sale debt security prior to the value recovering to the security’s amortized cost. In those situations, the entire credit-related impairment amount would be required to be recognized in earnings. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at December 31, 2020 and have determined that no debt securities in an unrealized loss position are arising from credit related reasons and have therefore not recorded any allowances for debt securities in our ACL for the period. Unrealized gains and losses related to equity securities with readily determinable fair values are included in net income. We did not maintain any trading securities during the three-year period ended December 31, 2020. Mortgage-backed securities held at December 31, 2020 and 2019 represent participating interests in pools of long-term first mortgage loans originated and serviced by the issuers of the securities. Mortgage-backed securities are either issued or guaranteed by the U.S. government or its agencies including Freddie Mac, Fannie Mae, Ginnie Mae or other non-government entities. 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 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. Market interest rate fluctuations can affect the prepayment speed of principal and the yield on the security. Premiums and discounts are amortized using the level yield or “interest method” over the terms of the securities. Declines in the fair value of held-to-maturity and available-for sale-securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) our intent to hold and our determination of whether we will more likely than not be required to sell the security prior to a recovery in fair value. If we determine that (i) we intend to sell the security or (ii) it is more likely than not that we will be required to sell the security before it’s anticipated recovery, the other-than-temporary impairment that is recognized in earnings is equal to the difference between the fair value of the security and our amortized cost of the security. If we determine that we (i) do not intend to sell the security and (ii) we will not be more likely than not required to sell the security before it’s anticipated recovery, the other-than-temporary impairment is segregated into its two components (i) the amount of impairment related to credit loss and (ii) the amount of impairment related to other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost is the credit loss recognized through earnings and an adjustment to the cost basis of the security. The amount of impairment related to other factors is included in other comprehensive income (loss). Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Equity Securities Provision and Allowance for Credit Losses We adopted the provisions of Accounting Standards Update No. 2016-13 to ASC 326, “Financial Instruments – Credit Losses,” on January 1, 2020. ASU 2016-13 replaces the long-standing incurred loss model with an expected credit loss model that recognizes credit losses over the life of a financial asset. Expected credit losses capture historical information, current conditions, and reasonable and supportable forecasts of future conditions. The ACL is deducted from the amortized cost of an instrument to present the net amount expected to be collected on the financial asset. Our ACL primarily consists of the aggregate ACL estimates of our Subsidiary Banks. The estimates are established through charges to operations in the form of charges to provisions for credit loss expense. Loan losses or recoveries are charged or credited directly to the ACL. The ACL of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated current expected credit losses in the current loan portfolio, including information about past events, current conditions and reasonable and supportable forecasts. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates and the view of regulatory authorities towards loan classifications. We believe that the allowance for probable loan losses is adequate. 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, financial and agricultural or real estate loans are generally considered by management to represent a loss, in whole or part, (i) when an exposure beyond any collateral coverage is apparent, (ii) when no further collection of the portion of the loan so exposed is anticipated based on actual results, (iii) when the credit enhancements, if any, are not adequate, and (iv) when the borrower’s financial condition would indicate so. Generally, unsecured consumer loans are charged-off when 90 days past due. Loans Loans are reported at the principal balance outstanding, net of unearned discounts. Interest income on loans is reported on an accrual basis. Loan fees and costs associated with originating the loans are accreted or amortized over the life of the loan using the interest method. We originate mortgage loans that may subsequently be sold to an unaffiliated third party. The loans are not securitized and if sold, are sold without recourse. Loans held for sale are carried at cost and the principal amount outstanding is not significant to the consolidated financial statements. Doubtful Loans Doubtful loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. Doubtful loans are measured based on (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. Substantially all our doubtful 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. Troubled Debt Restructured Loans Non-Accrual Loans The non-accrual loan policy of our Subsidiary Banks is to discontinue the accrual of interest on loans when management determines that it is probable that future interest accruals will be un-collectible. As it relates to consumer loans, management charges-off those loans when the loan is contractually 90 days past due. Under special circumstances, a consumer or non-consumer loan may be more than 90 days delinquent as to interest or principal and not be placed on non-accrual status. This situation generally results when a Subsidiary Bank has a borrower who is experiencing financial difficulties, but not to the extent that requires a restructuring of indebtedness. The majority of this category is composed of loans that are considered to be adequately secured and/or for which there are expected future payments. When a loan is placed on non-accrual status, any interest accrued, not paid is reversed and charged to operations against interest income. As it relates to non-consumer loans that are not 90 days past due, management will evaluate each of these loans to determine if placing the loan on non-accrual status is warranted. Interest income on non-accrual loans is recognized only to the extent payments are received or when, in management’s opinion, the debtor’s financial condition warrants reestablishment of interest accruals. Other Real Estate Owned and Repossessed Assets Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate 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). 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 ACL, if necessary. Any subsequent write-downs are charged against other non-interest expense through a valuation allowance. Other real estate owned totaled approximately $60,487,300 and $71,103,000 at December 31, 2020 and 2019, respectively. Other real estate owned is included in other assets. Repossessed assets consist primarily of non-real estate assets acquired by foreclosure. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the asset to be repossessed by a charge to the ACL, if necessary. Repossessed assets are included in other assets on the consolidated financial statements and totaled approximately $5,779,000 and $7,137,000 at December 31, 2020 and 2019, respectively. Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on straight-line and accelerated methods over the estimated useful lives of the assets. Repairs and maintenance are charged to operations as incurred and expenditures for renewals and betterments are capitalized. We primarily own all the property we occupy, with the exception of certain branches operating in grocery store or retail shopping centers and certain ATM locations, which are all under operating leases as classified under guidance prior to the issuance of ASU 2016-02, “Leases.” We adopted the guidance in ASU 2016-02 on January 1, 2019 and recorded a right of use asset and a lease liability other assets other liabilities Other Investments Other investments include equity investments in non-financial companies, as well as equity securities with no readily determinable fair market value. Equity investments are accounted for using the equity method of accounting. Equity securities with no readily determinable fair value are accounted for using the cost method. Revenue Recognition Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. We file a consolidated federal income tax return with our subsidiaries. Recognition of deferred tax assets is based on management’s assessment that the benefit related to certain temporary differences, tax operating loss carry forwards, and tax credits are more likely than not to be realized. A valuation allowance is recorded for the amount of the deferred tax items for which it is more likely than not that the tax benefits will not be realized. We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2020 and 2019, respectively, after evaluating all uncertain tax positions, we have recorded no liability for unrecognized tax benefits at the end of the reporting period. We would recognize any interest accrued on unrecognized tax benefits as other interest expense and penalties as other non-interest expense. During the years ended December 31, 2020, 2019 and 2018, we recognized no interest expense or penalties related to uncertain tax positions. We file consolidated tax returns in the U.S. Federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2017. Stock Options Compensation expense for stock awards is based on the market price of the stock on the measurement date, which is generally the date of grant, and is recognized ratably over the service period of the award. The fair value of stock options granted was estimated using the Black-Sholes-Merton option-pricing model. This model was developed for use in estimating the fair value of publicly traded options that have no vesting restrictions and are fully transferable. Additionally, the model requires the input of highly subjective assumptions. Because our employee stock options have characteristics significantly different from those of publicly traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the Black-Scholes-Merton option-pricing model does not necessarily provide a reliable single measure of the fair value of our stock options. Net Income Per Share Basic Earnings Per Share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The dilutive effect of stock options is considered in earnings per share calculations, if dilutive, using the treasury stock method. Goodwill and Identified Intangible Assets Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill is tested for impairment at least annually or on an interim basis if an event triggering impairment may have occurred. As of October 1, 2020, after completing goodwill testing, we have determined that no goodwill impairment exists. Identified intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our identified intangible assets relate to core deposits and contract rights. As of December 31, 2020, we have determined that no impairment of identified intangibles exists. Identified intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. See Note 6—Goodwill and Other Intangible Assets. Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the statement of condition and reported at the lower of the carrying value or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the statement of condition. Consolidated Statements of Cash Flows For purposes of the consolidated statements of cash flows, we consider all short-term investments with a maturity at date of purchase of three months or less to be cash equivalents. Also, we report transactions related to deposits and loans to customers on a net basis. Accounting for Transfers and Servicing of Financial Assets We account for transfers and servicing of financial assets and extinguishments of liabilities based on the application of a financial-components approach that focuses on control. After a transfer of financial assets, we recognize the financial and servicing assets we control and liabilities we have incurred, derecognize financial assets when control has been surrendered and derecognize liabilities when extinguished. We have retained mortgage servicing rights in connection with the sale of mortgage loans. Because we may not initially identify loans as originated for resale, all loans are initially treated as held for investment. The value of the mortgage servicing rights are reviewed periodically for impairment and are amortized in proportion to, and over the period of estimated net servicing income or net servicing losses. The value of the mortgage servicing rights is not significant to the consolidated statements of condition. Segments of an Enterprise and Related Information 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 financial statements presented in this report. We have five active operating subsidiaries, namely, the Subsidiary Banks. We apply the provisions of ASC Topic 280, “Segment Reporting,” in determining our reportable segments and related disclosures. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale. Advertising Advertising costs are expensed as incurred. Reclassifications Certain amounts in the prior year’s presentations have been reclassified to conform to the current presentation. These reclassifications had no effect on previously reported net income or shareholders’ equity. New Accounting Standards In February 2016, the FASB issued Accounting Standards Update No. 2016-02 to ASC 820, “Leases.” The update 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. The update is effective for interim and annual periods beginning after December 15, 2018. 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. On January 1, 2019, we adopted the provisions of ASU 2016-02, “Leases.” 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 that 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 liability other assets other liabilities In June 2016, the FASB issued Accounting Standards Update No. 2016-13 to ASC 326, “Financial Instruments – Credit Losses.” The update amends existing standards for accounting for credit losses for financial assets. The update requires that the expected credit losses on the financial instruments held as of the end of the period being reported be measured based on historical experience, current conditions, and reasonable and supportable forecasts. The update also expands the required disclosures related to significant estimates and judgements used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s financial assets. The update also amended the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The impact of the adoption of the standard is to be recorded as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The accounting standard was effective for us on January 1, 2020. The task force formed last year, which includes key members of the teams that work with the calculation of the allowance for probable loan losses plus members representing the corporate accounting and risk management areas, has worked with the implementation of the update and validation to complete our model/tool. Based on the composition of the portfolio at December 31, 2019 and after finalizing the methodology, the adoption of the update increased our allowance for probable loan losses (referred to as the ACL under ASU 2016-13), by approximately 17.2%, resulting in a cumulative-effect adjustment to retained earnings of approximately $8.3 million, net of tax. Please refer to Note 4 – Allowance for Credit Losses and the Critical Accounting Policies discussion in Management’s Discussion and Analysis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 to ASC 350, “Intangibles – Goodwill and Other.” The update amends existing guidance in evaluating goodwill for impairment. The update requires that an entity perform its annual or interim goodwill test by comparing the fair value of a reporting unit with its carrying amount, with any impairment charges being recognized as the difference between the fair value and carrying value. The update is intended to standardize the impairment test for all business entities and also reduce the complexity and cost of evaluating goodwill for impairment. The update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of the update is not expected to have a significant impact to our consolidated financial statements. In March 2017, the FASB issued Accounting Standards Update No. 2017-08 to ASC 310, “Receivables – Nonrefundable Fees and Other Costs.” The update amends existing guidance on the amortization period for certain callable debt securities held at a premium. The update shortens the amortization period of the premium to the earliest call date. The update is effective for fiscal years beginning after December 15, 2018. The update is to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of the update did not have a significant impact to our consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update No. 2018-02 to ASC 220, “Income Statement – Reporting Comprehensive Income.” The update amends current guidance surrounding the reclassification of certain tax effects from accumulated other comprehensive income. The update is being issued as a result of the 2017 Tax Cuts and Jobs Act and the related impact to comprehensive income as a result of the application of current guidance with respect to changes in tax rates. Under current guidance, entities must re-evaluate the carrying value of deferred tax assets and liabilities and adjust them for the tax effect of the rate change and record that change through earnings. The result is that the tax effects for items that normally would only be recognized in comprehensive income will be recognized through earnings and results in stranded tax effects in accumulated other comprehensive income (loss) for the impact of the rate change. The update will allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for the stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The update is effective for all entities for fiscal years beginning after December 31, 2018. We adopted the provisions of ASU 2018-02 to ASC 220 in the second quarter of 2018. We recorded a one-time reclassification of $5,997,000 between accumulated comprehensive income (loss) and retained earnings as a result of the adoption of the accounting standards update. In August 2018, the FASB issued Accounting Standards Update No. 2018-13 to ASC 820, “Fair Value Measurement.” The update amends the existing guidance surrounding the disclosure of certain fair value measurements. The update removes certain disclosures that are no longer considered cost beneficial, modifies and, in some instances clarifies, the specific requirements of certain disclosures and adds disclosure requirements that are identified relevant. The update is effective for fiscal years beginning after December 15, 2019. The adoption of the update is not expected to have a significant impact on our consolidated financial statements. In January 20201, the FASB issued Accounting Standards Update No. 2021-01, “Reference Rate Reform (Topic 848): Scope.” The update clarifies the applicability of the practical expedients and exceptions issued in ASU 2020-04 to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. The update is intended to capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The update was effective as of the date of issuance and can be applied through December 31, 2022. We have not adopted the provisions of the update and to not anticipate that the adoption of the update will have a significant impact on our consolidated financial statements. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investment Securities and Equity Securities with Readily Determinable Fair Values | (2) Investment Securities In accordance with ASU 2016-13, which we adopted on January 1, 2020, available-for-sale and held-to-maturity debt securities in an unrealized loss position must be evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment would be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. The exception to this process will occur if we intend to sell an impaired available-for-sale debt security or if we will more likely than not be required to sell a credit impaired available-for-sale debt security prior to the value recovering to the security’s amortized cost. In those situations, the entire credit-related impairment amount would be required to be recognized in earnings. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at December 31, 2020 and have determined that no debt securities in an unrealized loss position are arising from credit related reasons and have therefore not recorded any allowances for debt securities in our ACL for the period. Unrealized 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 December 31, 2020 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 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 $ 3,006,592 $ 32,701 $ (9,339) $ 3,029,954 $ 3,029,954 Obligations of states and political subdivisions 47,697 3,131 (14) 50,814 50,814 Total investment securities $ 3,054,289 $ 35,832 $ (9,353) $ 3,080,768 $ 3,080,768 (1) Included in the carrying value of residential mortgage- backed securities are $371,407 of mortgage-backed securities issued by Ginnie Mae and $2,658,547 of mortgage-backed securities issued by Fannie Mae and Freddie Mac The amortized cost and estimated fair value of investment securities at December 31, 2020, 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 $ 1,200 $ 1,200 $ — $ — Due after one year through five years 2,200 2,200 — — Due after five years through ten years — — 355 356 Due after ten years — — 47,342 50,458 Residential mortgage-backed securities — — 3,006,592 3,029,954 Total investment securities $ 3,400 $ 3,400 $ 3,054,289 $ 3,080,768 The amortized cost and estimated fair value by type of investment security at December 31, 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 Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,285,623 $ 16,534 $ (16,609) $ 3,285,548 $ 3,285,548 Obligations of states and political subdivisions 90,447 2,933 (5) 93,375 93,375 Total investment securities $ 3,376,070 $ 19,467 $ (16,614) $ 3,378,923 $ 3,378,923 (1) Included in the carrying value of residential mortgage- backed securities are $571,247 of mortgage-backed securities issued by Ginnie Mae, $2,714,301 of mortgage-backed securities issued by Fannie Mae and Freddie Mac Residential mortgage-backed securities are securities issued by Freddie Mac, Fannie Mae, Ginnie Mae or non-government entities. Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U.S. government. Investments in 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 and Freddie Mac are rated consistently as AAA rated securities. The amortized cost and fair value of available for sale investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short-term fixed borrowings was $1,220,400,000 and $1,224,268,000, respectively, at December 31, 2020. Proceeds from the sale and call of securities available-for-sale were $42,350,000, $94,585,000 and $59,782,000 during 2020, 2019 and 2018, respectively, which amounts included $0, $0 and $0 of mortgage-backed securities. Gross gains of $1,000, $3,000 and $3,000, and gross losses of $6,000, $15,000 and $144,000 were realized on the sales and calls in 2020, 2019 and 2018, respectively. 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, 2020 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 $ 1,462,232 $ (9,339) $ — $ — $ 1,462,232 $ (9,339) Obligations of states and political subdivisions — — 757 (14) 757 (14) $ 1,462,232 $ (9,339) $ 757 $ (14) $ 1,462,989 $ (9,353) 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 loss position, at December 31, 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 $ 523,031 $ (2,269) $ 1,448,109 $ (14,340) $ 1,971,140 $ (16,609) Obligations of states and political subdivisions 766 (5) — — 766 (5) $ 523,797 $ (2,274) $ 1,448,109 $ (14,340) $ 1,971,906 $ (16,614) The unrealized losses on investments in residential mortgage-backed securities are primarily caused by changes in market interest rates. We have no intent to sell and more likely than 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. Year Ended December 31, 2020 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 107 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 107 Year Ended December 31, 2019 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 158 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ 158 Year Ended December 31, 2018 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (388) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (388) |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Loans | (3) Loans A summary of loans, by loan type at December 31, 2020 and 2019 is as follows: December 31, December 31, 2020 2019 (Dollars in Thousands) Commercial, financial and agricultural $ 4,516,288 $ 3,379,837 Real estate - mortgage 999,144 1,140,377 Real estate - construction 1,846,757 2,185,883 Consumer 40,595 47,800 Foreign 138,970 141,049 Total loans $ 7,541,754 $ 6,894,946 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Allowance for Credit Losses | (4) Allowance for Credit Losses We adopted the provisions of ASU 2016-13 on January 1, 2020 on a modified retrospective basis. Results and information regarding our ACL included in this Note are calculated and presented in accordance with that accounting standards update. Results and information prior to January 1, 2020 are calculated and presented in accordance with previously applicable U.S. GAAP. ASU 2016-13 replaces the long-standing incurred loss model with an expected credit loss model that recognizes credit losses over the life of a financial asset. Expected credit losses capture historical information, current conditions, and reasonable and supportable forecasts of future conditions. The ACL is deducted from the amortized cost of an instrument to present the net amount expected to be collected on the financial asset. Our ACL primarily consists of the aggregate ACL estimates of our Subsidiary Banks. The estimates are established through charges to operations in the form of charges to provisions for credit loss expense. Loan losses or recoveries are charged or credited directly to the ACL. The ACL of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated current expected credit losses in the current loan portfolio, including information about past events, current conditions and reasonable and supportable forecasts. The estimation of the ACL is based on a loss-rate methodology that measures lifetime losses on loan pools that have similar risk characteristics. Loans that do not have similar risk characteristics are evaluated on an individual basis. The segmentation of the loan portfolio into pools requires a balancing process between capturing similar risk characteristics and containing sufficient loss history to provide meaningful results. Our segmentation starts at the general loan category with further sub-segmentation based on collateral types that may be of meaningful size and/or may contain sufficient differences in risk characteristics based on management’s judgement that would warrant further segmentation. The general loan categories along with primary risk characteristics used in our calculation are as follows: Commercial and industrial loans. Construction and land development loans. Commercial real estate loans. 1-4 family mortgages. Consumer loans. The loan pools are further broken down using a risk-based segmentation based on internal classifications for commercial loans and past due status for consumer mortgage loans. Non-mortgage consumer loans are evaluated as one segment. On a weekly basis, commercial 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 our internal Watch List report. Additionally, our credit department 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 will determine if a loan should be placed on an internal Watch List report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history. Our internal Watch List report is segregated into the following categories: (i) Pass, (ii) Economic Monitoring, (iii) Special Review, (iv) Watch List—Pass, or (v) Watch List—Substandard, and (vi) Watch List—Doubtful. The loans placed in the Special Review category and lower rated credits reflect our opinion that the loans reflect potential weakness which require monitoring on a more frequent basis. Credits in those categories are reviewed and discussed on a regular basis, no less frequently than quarterly, 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 category and lower rated credits reflect our opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” Credits in this category 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 category 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 may sustain some future loss if such weaknesses are not corrected. The loans placed in the Watch List—Doubtful category have shown defined weaknesses and it is likely, based on current information and events, that we will be unable to collect all principal and/or interest amounts contractually due. Watch List—Doubtful loans are placed on non-accrual when they are moved to that category. For the purposes of the ACL, in order to maintain segments with sufficient history for meaningful results, the credits in the Pass and Economic Monitoring categories are aggregated, the credits in the Special Review and Watch List—Pass credits are aggregated, and the credits in the Watch List—Substandard category remain in their own segment. For loans that are classified as Watch List—Doubtful, management evaluates these credits in accordance with ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the loan. 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) net realizable value of the fair value of the collateral if the loan is collateral dependent. Substantially all of our loans evaluated as Watch List—Doubtful under ASC 310-10 are measured using the fair value of collateral method. In rare 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. Within each collectively evaluated pool, the robustness of the lifetime historical loss-rate is evaluated and, if needed, is supplemented with peer loss rates through a model risk adjustment. Certain qualitative loss factors are then evaluated to incorporate management’s two-year reasonable and supportable forecast period followed by a reversion to the pool’s average lifetime loss-rate. Those qualitative loss factors are: (i) trends in portfolio volume and composition, (ii) volume and trends in classified loans, delinquencies, non-accruals and TDR’s, (iii) concentration risk, (iv) trends in underlying collateral value, (v) changes in policies, procedures, and strategies, and (vi) economic conditions. Qualitative factors also include potential losses stemming from operational risk factors arising from fraud, natural disasters, pandemics and geopolitical events. Should any of the factors considered by management in evaluating the adequacy of the ACL change, our estimate could also change, which could affect the level of future credit loss expense. We have elected to not measure an ACL for accrued interest receivable given our timely approach in identifying and writing off uncollectible accrued interest. An ACL for off-balance sheet exposure is derived from a projected usage rate of any unfunded commitment multiplied by the historical loss rate, plus model risk adjustment, if any, of the on-balance sheet loan pools. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates and the view of regulatory authorities towards loan classifications. A summary of the changes in the allowance for probable loan losses by loan class is as follows: December 31, 2020 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, $ 11,145 $ 18,152 $ 16,533 $ 1,786 $ 3,762 $ 7,535 $ 542 $ 823 $ 60,278 Adoption of ASU 2016-13 4,247 13,391 (4,292) (355) (1,580) (429) (225) (410) 10,347 Losses charge to allowance (8,936) (19) (55) — (160) (124) (280) — (9,574) Recoveries credited to allowance 2,191 35 117 — 21 186 69 10 2,629 Net losses charged to allowance (6,745) 16 62 — (139) 62 (211) 10 (6,945) Provision (credit) charged to operations 13,261 6,053 17,697 3,620 1,831 2,402 185 330 45,379 Balance at December 31, $ 21,908 $ 37,612 $ 30,000 $ 5,051 $ 3,874 $ 9,570 $ 291 $ 753 $ 109,059 December 31, 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 charge to allowance (14,412) (39) (7,353) — (201) (435) (487) (1) (22,928) Recoveries credited to allowance 2,196 113 318 — 26 286 40 — 2,979 Net losses charged to allowance (12,216) 74 (7,035) — (175) (149) (447) (1) (19,949) Provision (credit) charged to operations 10,765 2,955 4,215 (22) 470 (35) 542 (47) 18,843 Balance at December 31, $ 11,145 $ 18,152 $ 16,533 $ 1,786 $ 3,762 $ 7,535 $ 542 $ 823 $ 60,278 December 31, 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 charge to allowance (14,220) (1) (70) — (122) (347) (362) (3) (15,125) Recoveries credited to allowance 1,981 25 246 — 36 369 43 10 2,710 Net losses charged to allowance (12,239) 24 176 — (86) 22 (319) 7 (12,415) Provision (credit) charged to operations (3,070) 3,424 2,514 699 603 1,594 326 22 6,112 Balance at December 31, $ 12,596 $ 15,123 $ 19,353 $ 1,808 $ 3,467 $ 7,719 $ 447 $ 871 $ 61,384 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 $9.5 million, reflected in the tables above as part of the Commercial and commercial real estate: farmland and commercial categories. The decrease in the provision for probable loan losses charged to expense for the years ended December 31, 2018 can be attributed to a decrease in the historical loss experience in the commercial category of the calculation. As discussed in prior periods, charge-offs increased from historical levels due to the deterioration of one relationship that was secured by multiple pieces of transportation equipment beginning in the fourth quarter of 2014. We use a three-year historical charge-off experience in the calculation, therefore, as those charge-offs were eliminated from the calculation, the allowance for probable loan losses (now ACL) was impacted. As fluctuations occur in historical loss factors, management evaluates the need to adjust the qualitative factors used in the calculation to properly reflect probable loan losses. The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class: December 31, 2020 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,189 $ 209 $ 1,784,747 $ 21,699 Commercial real estate: other construction & land development 17,496 70 1,829,261 37,542 Commercial real estate: farmland & commercial 439 — 2,288,869 30,000 Commercial real estate: multifamily 134 — 440,910 5,051 Residential: first lien 151 — 404,968 3,874 Residential: junior lien 38 — 593,987 9,570 Consumer — — 40,595 291 Foreign — — 138,970 753 Total $ 19,447 $ 279 $ 7,522,307 $ 108,780 December 31, 2019 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,935 $ 249 $ 1,290,725 $ 10,895 Commercial real estate: other construction & land development 938 116 2,184,945 18,037 Commercial real estate: farmland & commercial 1,208 — 1,895,539 16,533 Commercial real estate: multifamily 165 — 190,265 1,786 Residential: first lien 6,278 — 427,623 3,762 Residential: junior lien 692 — 705,784 7,535 Consumer 1,195 — 46,605 542 Foreign 264 — 140,785 823 Total $ 12,675 $ 365 $ 6,882,271 $ 59,913 Loans accounted for on a non-accrual basis at December 31, 2020, 2019 and 2018 amounted to $19,822,000, $4,886,000 and $15,791,000, respectively. The increase in non-accrual commercial loans at December 31, 2020 compared to the same period of 2019 can be attributed to a relationship secured by commercial property. The decrease in non-accrual commercial loans at December 31, 2019 compared to the same period of 2018 can be attributed to a relationship secured by equipment and accounts receivable that has been upgraded to Watch-List Substandard. The effect of such non-accrual loans reduced interest income by approximately $694,000, $340,000 and $1,119,000 for the years ended December 31, 2020, 2019 and 2018, respectively. Amounts received on non-accruals are applied, for financial accounting purposes, first to principal and then to interest after all principal has been collected. Accruing loans contractually past due 90 days or more as to principal or interest payments at December 31, 2020, 2019 and 2018 amounted to approximately $8,238,000, $59,705,000 and $40,674,000, respectively. The increase at December 31, 2019 can be attributed to a relationship that is secured by multiple pieces of real property on which car dealerships are operated. The table below provides additional information on loans accounted for on a non-accrual basis by loan class: December 31, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ 1,189 $ 1,901 Commercial real estate: other construction & land development 17,496 938 Commercial real estate: farmland & commercial 439 1,208 Commercial real estate: multifamily 134 165 Residential: first lien 526 670 Residential: junior lien 38 — Consumer — 4 Total non-accrual loans $ 19,822 $ 4,886 Doubtful 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. Doubtful 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 doubtful 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 doubtful loans (formerly “impaired loans” prior to the adoption of ASU 2016-13) by loan class at December 31, 2019, in accordance with ASC 310 prior to the adoption of ASU 2016-13: December 31, 2019 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 510 $ 516 $ 249 $ 514 $ — Commercial real estate: other construction & land development 126 169 116 131 — Total impaired loans with related allowance $ 636 $ 685 $ 365 $ 645 $ — December 31, 2019 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 1,425 $ 1,516 $ 18,794 $ 2 Commercial real estate: other construction & land development 812 1,133 1,737 — Commercial real estate: farmland & commercial 1,208 1,841 22,357 — Commercial real estate: multifamily 165 168 651 — Residential: first lien 6,278 6,445 6,988 309 Residential: junior lien 692 692 1,023 42 Consumer 1,195 1,196 1,117 — Foreign 264 264 278 12 Total impaired loans with no related allowance $ 12,039 $ 13,255 $ 52,945 $ 365 December 31, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ — $ 32 Residential: first lien 4,078 5,608 Residential: junior lien 521 692 Consumer 989 1,192 Foreign 233 264 Total troubled debt restructuring $ 5,821 $ 7,788 We are actively working with our customers affected by the current economic crisis arising from COVID-19. We have been offering and are prepared to continue to offer assistance in accordance with current regulatory guidance. That includes continuously reaching out to our customers and, in some cases, offering short-term payment deferral plans. In accordance with the Coronavirus Aid, Relief and Economic Security (“CARES”) Act or interagency regulatory guidance, these short-term deferrals are not considered troubled debt restructurings. As of February 22, 2021, approximately $1,011,570,000 in loans with some degree of payment deferrals were in our system. Approximately 78% of the loans originally put into some sort of deferral program have resumed regular payments. The end of the deferral period on loans that are in some sort of payment deferral program will be throughout the first and second quarters of 2021 and we anticipate that approximately 13% of the loans still in a payment deferral program will request some degree of additional relief. The loans that may be requesting additional relief will include some customers in the industries that have been significantly impacted by the COVID-19 pandemic, including the hospitality sector, the oil and gas industry and retail developments. The CARES Act was signed into law on March 27, 2020. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The CARES Act includes the Paycheck Protection Program (“PPP”), originally a nearly $350 billion program designed to aid small businesses through federally guaranteed loans distributed through banks. These loans were originally intended to support eight weeks of payroll and certain other costs to help those businesses remain viable and allow their employees to pay their bills. Subsequently, on April 24, 2020, the Paycheck Protection Program and Health Care Enhancement Act (“CARES Part II”) was signed into law. CARES Part II provided an additional funding of $320 billion for the PPP program. Then, on June 5, 2020, the Paycheck Protection Program Flexibility Act (“PPPFA”) was signed into law. The PPPFA, among other things, extended the period of time that businesses could spend PPP loan proceeds on payroll and other eligible costs from eight weeks to the earlier of 24 weeks or December 31, 2020. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (the “Economic Aid Act”) was enacted, which among other things, reauthorized lending under the PPP to first-time borrowers and for second draws by certain borrowers who have previously received PPP loans. The Economic Aid Act made available an additional $147 billion for PPP loans requested by March 31, 2021. We have been active participants in helping our customers obtain PPP loans under all the PPP programs and as of February 22, 2021 have approximately 3,500 loans with an approximate value of $395,872,000 outstanding. The PPP loans are fully guaranteed by the U.S. government through the SBA. 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 management considers 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 ACL (formerly allowance for probable loan losses) can be made only on a subjective basis. It is the judgment of our management that the ACL at December 31, 2020 and December 31, 2019, was adequate to absorb probable losses from loans in the portfolio at that date. The following table presents information regarding the aging of past due loans by loan class: December 31, 2020 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 $ 1,931 $ 1,109 $ 563 $ 318 $ 3,603 $ 1,782,333 $ 1,785,936 Commercial real estate: other construction & land development 1,059 854 16,587 — 18,500 1,828,257 1,846,757 Commercial real estate: farmland & commercial 2,435 219 186 186 2,840 2,286,468 2,289,308 Commercial real estate: multifamily 126 — — — 126 440,918 441,044 Residential: first lien 2,399 926 6,165 5,890 9,490 395,629 405,119 Residential: junior lien 561 247 1,197 1,197 2,005 592,020 594,025 Consumer 318 71 79 79 468 40,127 40,595 Foreign 478 180 568 568 1,226 137,744 138,970 Total past due loans $ 9,307 $ 3,606 $ 25,345 $ 8,238 $ 38,258 $ 7,503,496 $ 7,541,754 December 31, 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 $ 3,134 $ 626 $ 1,292 $ 421 $ 5,052 $ 1,287,608 $ 1,292,660 Commercial real estate: other construction & land development 509 55 — — 564 2,185,319 2,185,883 Commercial real estate: farmland & commercial 8,058 2,031 54,928 54,878 65,017 1,831,730 1,896,747 Commercial real estate: multifamily 313 — 165 — 478 189,952 190,430 Residential: first lien 3,229 1,670 3,660 3,107 8,559 425,342 433,901 Residential: junior lien 1,112 477 1,200 1,200 2,789 703,687 706,476 Consumer 467 75 88 88 630 47,170 47,800 Foreign 1,347 3 11 11 1,361 139,688 141,049 Total past due loans $ 18,169 $ 4,937 $ 61,344 $ 59,705 $ 84,450 $ 6,810,496 $ 6,894,946 The decrease in commercial real estate: other construction & land development loans past due 90 days or greater at December 31, 2020 compared to December 31, 2019 can be primarily attributed to a relationship secured by real estate on which children’s learning centers are operated. Our internal classified report is segregated into the following categories: (i) “Special Review Credits,” (ii) “Watch List—Pass Credits,” or (iii) “Watch List—Substandard Credits.” The loans placed in the “Special Review Credits” category reflect our opinion that the loans reflect potential weakness which require 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. A summary of the loan portfolio by credit quality indicator by loan class is as follows: 2020 2019 2018 2017 2016 Prior Total (Dollars in Thousands) Balance at December 31, 2020 Domestic Commercial Pass $ 1,168,671 $ 240,869 $ 145,670 $ 85,434 $ 13,901 $ 10,000 $ 1,664,545 Special Review 75,638 — — — — — 75,638 Watch List - Pass 39,886 11 — 3 — 17 39,917 Watch List - Substandard 3,360 683 289 — 315 — 4,647 Watch List - Doubtful 777 161 92 159 — — 1,189 Total Commercial $ 1,288,332 $ 241,724 $ 146,051 $ 85,596 $ 14,216 $ 10,017 $ 1,785,936 Commercial real estate: other construction & land development Pass $ 773,165 $ 576,707 $ 320,308 $ 78,174 $ 10,534 $ 3,343 $ 1,762,231 Special Review 20,828 21,650 — — — — 42,478 Watch List - Pass 23,101 1,451 — — — — 24,552 Watch List - Doubtful 16,702 794 — — — — 17,496 Total Commercial real estate: other construction & land development $ 833,796 $ 600,602 $ 320,308 $ 78,174 $ 10,534 $ 3,343 $ 1,846,757 Commercial real estate: farmland & commercial Pass $ 884,070 $ 373,993 $ 386,268 $ 189,639 $ 202,500 $ 116,729 $ 2,153,199 Special Review 3,041 — 4,758 177 3,218 — 11,194 Watch List - Pass 61,637 942 277 80 — — 62,936 Watch List - Substandard 53,809 4,986 — 2,269 475 1 61,540 Watch List - Doubtful — 202 — — — 237 439 Total Commercial real estate: farmland & commercial $ 1,002,557 $ 380,123 $ 391,303 $ 192,165 $ 206,193 $ 116,967 $ 2,289,308 Commercial real estate: multifamily Pass $ 74,577 $ 208,356 $ 82,818 $ 64,110 $ 6,801 $ 4,248 $ 440,910 Watch List - Doubtful 134 — — — — — 134 Total Commercial real estate: multifamily $ 74,711 $ 208,356 $ 82,818 $ 64,110 $ 6,801 $ 4,248 $ 441,044 Residential: first lien Pass $ 81,004 $ 62,165 $ 72,299 $ 54,593 $ 29,250 $ 105,463 $ 404,774 Watc |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Bank Premises and Equipment | (5) Bank Premises and Equipment A summary of bank premises and equipment, by asset classification, at December 31, 2020 and 2019 were as follows: Estimated useful lives 2020 2019 (Dollars in Thousands) Bank buildings and improvements 5 - 39 years $ 577,656 $ 573,257 Furniture, equipment and vehicles 1 - 20 years 311,313 313,880 Land 117,848 118,099 Less: accumulated depreciation (526,939) (498,641) Bank premises and equipment, net $ 479,878 $ 506,595 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Other Intangible Assets | (6) Goodwill and Other Intangible Assets The majority of our identified intangibles are in the form of amortizable core deposit premium. A small portion of the fully amortized identified intangibles represent identified intangibles in the acquisition of the rights to the insurance agency contracts of InsCorp, Inc., acquired in 2008. Information on our identified intangible assets follows: Carrying Accumulated Amount Amortization Net (Dollars in Thousands) December 31, 2020: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — December 31, 2019: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — Amortization expense of intangible assets was $0, $0 and $0 for the years ended December 31, 2020, 2019 and 2018. There were no changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits | (7) Deposits Deposits as of December 31, 2020 and 2019 and related interest expense for the years ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 (Dollars in Thousands) Deposits: Demand - non-interest bearing Domestic $ 3,781,277 $ 2,815,835 Foreign 934,537 730,070 Total demand non-interest bearing 4,715,814 3,545,905 Savings and interest bearing demand Domestic 2,919,314 2,477,668 Foreign 933,191 790,161 Total savings and interest bearing demand 3,852,505 3,267,829 Time, certificates of deposit $100,000 or more Domestic 797,692 636,005 Foreign 822,387 827,031 Less than $100,000 Domestic 291,473 302,620 Foreign 241,989 246,644 Total time, certificates of deposit 2,153,541 2,012,300 Total deposits $ 10,721,860 $ 8,826,034 2020 2019 2018 (Dollars in Thousands) Interest expense: Savings and interest bearing demand Domestic $ 5,098 $ 13,462 $ 11,029 Foreign 1,260 2,917 1,735 Total savings and interest bearing demand 6,358 16,379 12,764 Time, certificates of deposit $100,000 or more Domestic 8,827 7,804 4,741 Foreign 7,536 9,407 5,798 Less than $100,000 Domestic 1,781 2,232 1,589 Foreign 1,086 1,527 968 Total time, certificates of deposit 19,230 20,970 13,096 Total interest expense on deposits $ 25,588 $ 37,349 $ 25,860 Scheduled maturities of time deposits as of December 31, 2020 were as follows: Total (in thousands) 2021 $ 1,971,433 2022 141,388 2023 28,781 2024 11,205 2025 681 Thereafter 53 Total $ 2,153,541 Scheduled maturities of time deposits in amounts of $100,000 or more at December 31, 2020, were as follows: Total (in thousands) Due within 3 months or less $ 606,807 Due after 3 months and within 6 months 385,859 Due after 6 months and within 12 months 498,626 Due after 12 months 129,792 $ 1,621,084 Time deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2020 and December 31, 2019 were $1,085,404 and $929,860, in thousands, respectively. |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Securities Sold Under Repurchase Agreements | (8) Securities Sold Under Repurchase Agreements Our Subsidiary Banks have entered into repurchase agreements with individual customers of the Subsidiary Banks. The purchasers have agreed to resell to the Subsidiary Banks identical securities upon the maturities of the agreements. Securities sold under repurchase agreements were mortgage-backed securities and averaged $335,392,000 and $267,439,000 during 2020 and 2019, respectively, and the maximum amount outstanding at any month end during 2020 and 2019 was $428,148,000 and $299,827,000 respectively. Further information related to repurchase agreements at December 31, 2020 and 2019 is set forth in the following table: Collateral Securities Repurchase Borrowing Book Value of Fair Value of Balance of Weighted Average Securities Sold Securities Sold Liability Interest Rate (Dollars in Thousands) December 31, 2020 term: Overnight agreements $ 506,020 $ 507,164 $ 416,757 0.13 % 1 to 29 days — — — — 30 to 90 days — — — — Over 90 days 11,684 11,641 11,391 0.43 Total $ 517,704 $ 518,805 $ 428,148 0.14 % December 31, 2019 term: Overnight agreements $ 317,107 $ 318,397 $ 225,243 0.87 % 1 to 29 days — — — — 30 to 90 days — — — — Over 90 days 11,564 11,529 11,293 1.28 Total $ 328,671 $ 329,926 $ 236,536 0.89 % The book value and fair value of securities sold includes the entire book value and fair value of securities partially or fully pledged under repurchase agreements. |
Other Borrowed Funds
Other Borrowed Funds | 12 Months Ended |
Dec. 31, 2020 | |
Other Borrowed Funds | (9) Other Borrowed Funds Other borrowed funds include Federal Home Loan Bank borrowings, which may be short and long-term fixed borrowings issued by the Federal Home Loan Bank of Dallas and the Federal Home Loan Bank of Topeka at the market price offered at the time of funding. These borrowings are secured by mortgage-backed investment securities and a portion of our loan portfolio. Further information regarding our other borrowed funds at December 31, 2020 and 2019 is set forth in the following table: December 31, 2020 2019 (Dollars in Thousands) Federal Home Loan Bank advances—short-term Balance at year end $ — $ 190,000 Rate on balance outstanding at year end — % 1.48 % Average daily balance $ 110,776 $ 190,431 Average rate 1.19 % 2.60 % Maximum amount outstanding at any month end $ 292,000 $ 371,775 Federal Home Loan Bank advances—long-term (1) Balance at year end $ 436,327 $ 436,511 Rate on balance outstanding at year end 1.73 % 1.73 % Average daily balance $ 436,411 $ 436,593 Average rate 1.71 % 1.71 % Maximum amount outstanding at any month end $ 436,495 $ 436,675 (1) Long-term advances at December 31, 2020 and December 31, 2019 consisted of both amortizing and non-amortizing advances. The non-amortizing advances mature in the following increments: $75,000,000 in July 2028, $100,000,000 in March 2033 and $250,000,000 in August 2033 and are callable by the FHLB on a quarterly basis. Two amortizing advances are outstanding at December 31, 2020 in the amounts of $3,091,000 and $8,236,000 and mature in December 2033 and November 2033, respectively. The amortization on the amortizing long-term advances totals approximately $189,000 , $194,000 , $199,000 , $204,000 and $210,000 for the years ending December 31, 2021, December 31, 2022, December 31, 2023, December 31, 2024 and December 31, 2025, respectively. |
Junior Subordinated Deferrable
Junior Subordinated Deferrable Interest Debentures | 12 Months Ended |
Dec. 31, 2020 | |
Junior Subordinated Interest Deferrable Debentures | (10) Junior Subordinated Deferrable Interest Debentures We have formed five statutory business trusts under the laws of the State of Delaware for the purpose of issuing trust preferred securities. These statutory business trusts (the “Trusts”) have each issued Capital and Common Securities and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (the “Debentures”) we issued. As of December 31, 2020 and December 31, 2019, the principal amount of debentures outstanding totaled $134,642,000. The Debentures are subordinated and junior in right of payment to all our present and future senior indebtedness (as defined in the respective indentures) and are pari passu For financial reporting purposes, the Trusts are treated as investments and not consolidated in the consolidated financial statements. Although the Capital Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital 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 December 31, 2020 and December 31, 2019, the total $134,642,000 of the Capital Securities outstanding qualified as Tier 1 capital. The following table illustrates key information about each of the Debentures and their interest rates at December 31, 2020: 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 3.29 % LIBOR + 3.05 October 2033 October 2008 Trust IX 41,238 Quarterly 1.85 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 1.86 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 1.85 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 1.68 % LIBOR + 1.45 September 2037 September 2012 $ 134,642 (1) The Capital Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per Share ("EPS") | (11) Earnings per Share (“EPS”) Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The calculation of the basic EPS and the diluted EPS for the years ended December 31, 2020, 2019, and 2018 is set forth in the following table: Net Income Shares Per Share (Numerator) (Denominator) Amount (Dollars in Thousands, Except Per Share Amounts) December 31, 2020: Basic EPS Net income available to common shareholders $ 167,319 63,725,819 $ 2.63 Potential dilutive common shares and warrants — 127,316 Diluted EPS $ 167,319 63,853,135 $ 2.62 December 31, 2019: Basic EPS Net income available to common shareholders $ 205,104 65,476,606 $ 3.13 Potential dilutive common shares and warrants — 209,078 Diluted EPS $ 205,104 65,685,684 $ 3.12 December 31, 2018: Basic EPS Net income available to common shareholders $ 215,931 66,106,580 $ 3.27 Potential dilutive common shares — 527,240 Diluted EPS $ 215,931 66,633,820 $ 3.24 |
Employees' Profit Sharing Plan
Employees' Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2020 | |
Employees' Profit Sharing Plan | (12) Employees’ Profit Sharing Plan We have a deferred profit sharing plan for full-time employees with a minimum of one year of continuous employment. Our annual contribution to the plan is based on a percentage, as determined by our Board of Directors, of income before income taxes, as defined, for the year. Allocation of the contribution among officers and employees’ accounts is based on length of service and amount of salary earned. Profit sharing costs of $4,000,000, $4,200,000 and $3,850,000 were charged to income for the years ended December 31, 2020, 2019, and 2018, respectively. |
International Operations
International Operations | 12 Months Ended |
Dec. 31, 2020 | |
International Operations | (13) International Operations We provide international banking services for our customers through our Subsidiary Banks. Neither we nor our Subsidiary Banks have facilities located outside the United States. International operations are distinguished from domestic operations based upon the domicile of the customer. Because the resources we employ are common to both international and domestic operations, it is not practical to determine net income generated exclusively from international activities. A summary of assets attributable to international operations at December 31, 2020 and 2019 are as follows: 2020 2019 (Dollars in Thousands) Loans: Commercial $ 90,177 $ 88,979 Others 48,793 52,070 138,970 141,049 Less allowance for probable loan losses (753) (823) Net loans $ 138,217 $ 140,226 Accrued interest receivable $ 605 $ 743 At December 31, 2020, we had $118,722,000 in outstanding standby and commercial letters of credit to facilitate trade activities. Revenues directly attributable to international operations were approximately $4,676,000, $5,445,000 and $5,412,000 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | (14) Income Taxes We file a consolidated U.S. Federal and State income tax return. The current and deferred portions of net income tax expense included in the consolidated statements of income are presented below for the years ended December 31: 2020 2019 2018 (Dollars in Thousands) Current U.S. $ 43,794 $ 48,559 $ 48,144 State 3,709 2,944 3,370 Foreign 58 38 (5) Total current taxes 47,561 51,541 51,509 Deferred U.S. (2,733) 2,979 5,130 State (389) 330 13 Total deferred taxes (3,122) 3,309 5,143 Total income taxes $ 44,439 $ 54,850 $ 56,652 Total income tax expense differs from the amount computed by applying the U.S. Federal income tax rate of 21%for 2020, 2019 and 2018 to income before income taxes. The reasons for the differences for the years ended December 31 are as follows: 2020 2019 2018 (Dollars in Thousands) Computed expected tax expense $ 45,218 $ 55,086 $ 57,831 Change in taxes resulting from: Tax-exempt interest income (2,709) (2,550) (3,101) State tax, net of federal income taxes, tax credit and refunds 2,622 2,587 2,673 Resolution of IRS exam — — Other investment income (2,205) (1,480) (1,561) Deferred tax adjustment due to federal tax rate change — (1,618) Net investment in low income housing investments 1,990 623 2,518 Other (477) 584 (90) Actual tax expense $ 44,439 $ 54,850 $ 56,652 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 are reflected below: 2020 2019 (Dollars in Thousands) Deferred tax assets: Loans receivable, principally due to the allowance for probable loan losses $ 21,921 $ 12,050 Other real estate owned 1,183 2,501 Impairment charges on available-for-sale securities — 1,054 Accrued expenses 81 98 Other 5,649 6,019 Total deferred tax assets 28,834 21,722 Deferred tax liabilities: Bank premises and equipment, principally due to differences on depreciation (12,350) (12,478) Net unrealized gains on available for sale investment securities (5,679) (508) Impairment charges on available-for-sale securities (19) — Identified intangible assets and goodwill (13,807) (13,649) Other (20,551) (18,849) Total deferred tax liabilities (52,406) (45,484) Net deferred tax liability $ (23,572) $ (23,762) The net deferred tax liability of $23,572,000 at December 31, 2020 and $23,762,000 at December 31, 2019 is included in other liabilities in the consolidated statements of condition. |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2020 | |
Stock Options | (15) Stock Options On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There are 800,000 shares available for stock option grants under the 2012 Plan. Under the 2012 Plan, both qualified incentive stock options (“ISOs”) and non-qualified stock options (“NQSOs”) may be granted. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years. As of December 31, 2020, 10,102 shares were available for future grants under the 2012 Plan. The fair value of each option award granted under the plan is estimated on the date of grant using a Black-Scholes-Merton option valuation model that uses the assumptions noted in the following table. Expected volatility is based on the historical volatility of the price of our stock. We use historical data to estimate the expected dividend yield and employee termination rates within the valuation model. The expected term of options is derived from historical exercise behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 2020 2019 Expected Life (Years) 7.00 7.00 Dividend yield 6.04 % 2.93 % Interest rate 0.74 % 1.97 % Volatility 29.04 % 26.97 % A summary of option activity under the stock option plans for the twelve months ended December 31, 2020 is as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2019 658,588 $ 27.55 Plus: Options granted 35,000 18.79 Less: Options exercised 26,010 20.87 Options expired — — Options forfeited 16,451 31.94 Options outstanding at December 31, 2020 651,127 27.24 5.05 $ 6,817 Options fully vested and exercisable at December 31, 2020 409,782 $ 22.98 3.61 $ 5,953 Stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2020, 2019 and 2018 was approximately $743,000, $980,000 and $1,035,000, respectively. As of December 31, 2020, there was approximately $1,254,000 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 1.7 years. Other information pertaining to option activity during the twelve months ended December 31, 2020, 2019 and 2018 is as follows: Twelve Months Ended December 31, 2020 2019 2018 Weighted average grant date fair value of stock options granted $ 2.46 $ 7.38 $ 11.78 Total fair value of stock options vested $ 1,218,000 $ 1,333,000 $ 1,077,000 Total intrinsic value of stock options exercised $ 356,000 $ 2,373,000 $ 2,045,000 |
Long Term Restricted Stock Unit
Long Term Restricted Stock Units | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Restricted Stock Units | (16) Long Term Restricted Stock Units As a former participant in the Troubled Asset Relief Program Capital Purchase Program (the “CPP”) we were subject to certain compensation restrictions, including a prohibition on the payment or accrual of any bonuses to certain officers and employees except for awards of CPP-compliant long- term restricted stock and stock units. On December 18, 2009, our board of directors (the “Board”) adopted the 2009 International Bancshares Corporation Long-Term Restricted Stock Unit Plan (the “Plan”) to give us additional flexibility in the compensation of our officers, employees, consultants and advisors in compliance with all applicable laws and restrictions. The Plan authorizes us to issue Restricted Stock Units (“RSUs”) to our officers, employees, consultants and advisors. On December 18, 2009, pursuant to the Plan, the Board adopted resolutions creating the Long-Term Restricted Stock Unit Plan Committee to administer the Plan. RSUs issued under the Plan are not equity and are payable only in cash. The Plan provides for both the issuance of CPP-compliant long-term RSUs as well as RSUs that are not CPP-compliant. No grants have been made under the Plan since December 2012 and there are currently no outstanding grants under the Plan. The plan was terminated on August 6, 2019. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Other Tax Matters | 12 Months Ended |
Dec. 31, 2020 | |
Commitments, Contingent Liabilities and Other Tax Matters | (17) Commitments, Contingent Liabilities and Other Matters On March 15, 2020, the FRB announced that it had reduced regulatory reserve requirements to zero percent effective on March 26, 2020. Cash of approximately $125,764,000 December 31, 2019 was maintained to satisfy regulatory reserve requirements. We are involved in various legal proceedings that are in various stages of litigation. We have determined, based on discussions with our 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 statements of condition and related statements of income, comprehensive income, shareholders’ equity and cash flows. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Transactions with Related Parties | (18) Transactions with Related Parties In the ordinary course of business, the Subsidiary Banks make loans to our directors and executive officers, including their affiliates, families and companies in which they are principal owners. In the opinion of management, these loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collectability or present other unfavorable features. The aggregate amounts receivable from such related parties amounted to approximately $30,398,000 and $37,605,000 at December 31, 2020 and 2019, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk | (19) Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk In the normal course of business, the Subsidiary Banks are party to financial instruments with off-statement of condition risk to meet the financing needs of their customers. These financial instruments include commitments to their customers. These financial instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the consolidated statement of condition. The contract amounts of these instruments reflect the extent of involvement the Subsidiary Banks have in particular classes of financial instruments. At December 31, 2020, the following financial amounts of instruments, whose contract amounts represent credit risks, were outstanding: Commitments to extend credit $ 2,354,010,000 Credit card lines 13,579,000 Standby letters of credit 118,381,000 Commercial letters of credit 341,000 We enter into a standby letter of credit to guarantee performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved is represented by the contractual amounts of those instruments. Under the standby letters of credit, we are required to make payments to the beneficiary of the letters of credit upon request by the beneficiary so long as all performance criteria have been met. At December 31, 2020, the maximum potential amount of future payments is approximately $118,381,000. At December 31, 2020, the fair value of these guarantees is not significant. Unsecured letters of credit totaled approximately $39,487,000 and $49,965,000 at December 31, 2020 and 2019, respectively. We enter into commercial letters of credit on behalf of our customers which authorize a third party to draw drafts upon us up to a stipulated amount and with specific terms and conditions. A commercial letter of credit is a conditional commitment on our part to provide payment on drafts drawn in accordance with the terms of the commercial letter of credit. The Subsidiary Banks’ exposure to credit loss in the event of nonperformance by the other party to the above financial instruments is represented by the contractual amounts of the instruments. The Subsidiary Banks use the same credit policies in making commitments and conditional obligations as they do for on-statement of condition instruments. The Subsidiary Banks control the credit risk of these transactions through credit approvals, limits and monitoring procedures. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates normally less than one year or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Subsidiary Banks evaluate each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Subsidiary Banks upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include residential and commercial real estate, bank certificates of deposit, accounts receivable and inventory. The Subsidiary Banks make commercial, real estate and consumer loans to customers principally located in South, Central and Southeast Texas and the State of Oklahoma. Although the loan portfolio is diversified, a substantial portion of its debtors’ ability to honor their contracts is dependent upon the economic conditions in these areas, especially in the real estate and commercial business sectors. |
Capital Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Capital Requirements | (20) Capital Requirements Bank regulatory agencies limit the amount of dividends, which the Subsidiary Banks can pay, without obtaining prior approval from such agencies. At December 31, 2020, the Subsidiary Banks could pay dividends of up to $948,000,000 without prior regulatory approval and without adversely affecting their “well-capitalized” status under regulatory capital rules in effect at December 31, 2020. In addition to legal requirements, regulatory authorities also consider the adequacy of the Subsidiary Banks’ total capital in relation to their deposits and other factors. These capital adequacy considerations also limit amounts available for payment of dividends. We historically have not allowed any Subsidiary Bank to pay dividends in such a manner as to impair its capital adequacy. We and the Subsidiary Banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-statement of condition items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Current quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table on the following page) of Total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. Management believes, as of December 31, 2020, that we met all capital adequacy requirements to which we are subject. 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 paused 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. Our actual capital amounts and ratios for 2020 under current guidelines are presented in the following table: For Capital Adequacy To Be Well-Capitalized Purposes Under Prompt Corrective Actual Phase In Schedule Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2020: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 1,874,641 19.05 % $ 688,678 7.000 % N/A N/A International Bank of Commerce, Laredo 1,295,437 18.19 498,492 7.000 $ 462,885 6.50 % International Bank of Commerce, Oklahoma 207,339 17.45 83,150 7.000 77,211 6.50 International Bank of Commerce, Brownsville 189,575 22.18 59,843 7.000 55,569 6.50 International Bank of Commerce, Zapata 71,369 34.51 14,476 7.000 13,442 6.50 Commerce Bank 93,426 35.64 18,347 7.000 17,037 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,105,360 21.40 % $ 1,033,017 10.500 % N/A N/A International Bank of Commerce, Laredo 1,380,685 19.39 747,737 10.500 $ 712,131 10.00 % International Bank of Commerce, Oklahoma 218,657 18.41 124,725 10.500 118,786 10.00 International Bank of Commerce, Brownsville 200,269 23.43 89,765 10.500 85,490 10.00 International Bank of Commerce, Zapata 73,510 35.55 21,714 10.500 20,680 10.00 Commerce Bank 96,240 36.72 27,521 10.500 26,210 10.00 Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 1,992,403 20.25 % $ 836,252 8.500 % N/A N/A International Bank of Commerce, Laredo 1,295,437 18.19 605,311 8.500 $ 569,705 8.00 % International Bank of Commerce, Oklahoma 207,339 17.45 100,968 8.500 95,029 8.00 International Bank of Commerce, Brownsville 189,575 22.18 72,667 8.500 68,392 8.00 International Bank of Commerce, Zapata 71,369 34.51 17,578 8.500 16,544 8.00 Commerce Bank 93,426 35.64 22,279 8.500 20,968 8.00 Tier 1 Capital (to Average Assets): Consolidated $ 1,992,403 14.92 % $ 534,228 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,295,437 13.11 395,289 4.00 494,112 5.00 % International Bank of Commerce, Oklahoma 207,339 12.98 63,879 4.00 79,848 5.00 International Bank of Commerce, Brownsville 189,575 14.55 52,101 4.00 65,127 5.00 International Bank of Commerce, Zapata 71,369 16.52 17,277 4.00 21,596 5.00 Commerce Bank 93,426 16.69 22,394 4.00 27,993 5.00 Our actual capital amounts and ratios for 2019 are also presented in the following table: To Be Well-Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2019: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 1,833,174 18.58 % $ 690,746 7.000 % N/A N/A International Bank of Commerce, Laredo 1,268,078 18.23 486,950 7.000 $ 452,168 6.50 % International Bank of Commerce, Oklahoma 201,202 16.91 83,303 7.000 77,353 6.50 International Bank of Commerce, Brownsville 185,112 22.70 57,084 7.000 53,006 6.50 International Bank of Commerce, Zapata 72,402 36.46 13,902 7.000 12,909 6.50 Commerce Bank 91,239 34.83 18,336 7.000 17,026 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,018,488 20.46 % $ 1,036,118 10.500 % N/A N/A % International Bank of Commerce, Laredo 1,315,453 18.91 730,425 10.500 $ 695,643 10.00 International Bank of Commerce, Oklahoma 206,807 17.38 124,955 10.500 119,004 10.00 International Bank of Commerce, Brownsville 192,417 23.60 85,626 10.500 81,548 10.00 International Bank of Commerce, Zapata 74,737 37.63 20,853 10.500 19,860 10.00 Commerce Bank 93,396 35.65 27,504 10.500 26,195 10.00 Tier 1 Capital (to Risk Weighted Assets): % Consolidated $ 1,953,711 19.80 % $ 838,762 8.500 % N/A N/A International Bank of Commerce, Laredo 1,268,078 18.23 591,296 8.500 $ 556,514 8.00 International Bank of Commerce, Oklahoma 201,202 16.91 101,154 8.500 95,203 8.00 International Bank of Commerce, Brownsville 185,112 22.70 69,316 8.500 65,239 8.00 International Bank of Commerce, Zapata 72,402 36.46 16,881 8.500 15,888 8.00 Commerce Bank 91,239 34.83 22,265 8.500 20,956 8.00 % Tier 1 Capital (to Average Assets): Consolidated $ 1,953,711 16.65 % $ 469,267 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,268,078 15.21 333,576 4.00 416,970 5.00 International Bank of Commerce, Oklahoma 201,202 14.79 54,406 4.00 68,007 5.00 International Bank of Commerce, Brownsville 185,112 17.41 42,529 4.00 53,161 5.00 International Bank of Commerce, Zapata 72,402 19.08 15,179 4.00 18,974 5.00 Commerce Bank 91,239 18.18 20,073 4.00 25,091 5.00 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value | (21) Fair Value 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 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data 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. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below. The following table represents financial instruments reported on the consolidated statements of condition at their fair value as of December 31, 2020 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, 2020 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,029,954 $ — $ 3,029,954 $ — States and political subdivisions 50,814 — 50,814 — Equity Securities 6,202 6,202 — — $ 3,086,970 $ 6,202 $ 3,080,768 $ — The following table represents financial instruments reported on the consolidated balance sheets at their fair value as of December 31, 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 December 31, 2019 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,285,548 $ — $ 3,285,548 $ — States and political subdivisions 93,375 — 93,375 — Equity Securities 6,095 6,095 — — $ 3,385,018 $ 6,095 $ 3,378,923 $ — For the years ended December 31, 2020 and December 31, 2019, debt investment securities available-for-sale are classified within Level 2 of the valuation hierarchy. Equity securities with readily determinable fair values are classified within Level 1. For debt securities 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 instruments are measured at fair value on a nonrecurring basis. They 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 December 31, 2020 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 Period ended Identical Observable Unobservable (Credit) December 31, Assets Inputs Inputs During 2020 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 393 $ — $ — $ 393 $ (86) Other real estate owned 6,241 — — 6,241 1,539 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the year ended December 31, 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 Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2019 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 826 $ — $ — $ 826 $ 43 Other real estate owned 21,614 — — 21,614 322 Equity investment without a readily determinable fair value 28,166 — — 28,166 4,775 Our assets measured at fair value on a non-recurring basis are limited to loans classified as Watch List – Doubtful and other real estate owned. At December 31, 2019, assets measured at fair value on a non-recurring basis also included an equity investment without a readily determinable fair value. The fair value of Watch-List Doubtful loans is derived in accordance with FASB ASC 310, “Receivables”. They 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 loan to fair value is done through a specific valuation allowance included in the ACL. The fair value of the loan 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 December 31, 2020, we had approximately $18,361,000 of doubtful commercial collateral dependent loans, of which approximately $16,587,000 had an appraisal performed within the immediately preceding twelve months and of which approximately $1,283,000 had an evaluation performed within the immediately preceding twelve months. As of December 31, 2019, we had approximately $2,955,000 of doubtful commercial collateral dependent loans, of which approximately $1,426,000 had an appraisal performed within the immediately preceding twelve months and of which approximately $847,000 had an evaluation performed within the immediately preceding twelve months. The 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 doubtful 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 ACL (formerly 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 twelve months ended December 31, 2020, 2019 and 2018, we recorded approximately $22,000, $9,611,000 and $170,000, respectively, in charges to the ACL in connection with loans transferred to other real estate owned. For the twelve months ended December 31, 2020, 2019 and 2018, we recorded approximately $1,539,000, $322,000 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 December 31, 2020 and December 31, 2019 are outlined below. Cash and Cash Equivalents For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Investment securities held-to-maturity The carrying amounts of investments held-to-maturity approximate fair value. Investment Securities For debt 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 2. 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 December 31, 2020 and December 31, 2019, the carrying amount of fixed rate performing loans was $1,812,413,000 and $1,503,811,000, respectively, and the estimated fair value was $1,747,257,000 and $1,481,239,000, 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 December 31, 2020 and December 31, 2019. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is based on currently offered rates. Time deposits are within Level 3 of the fair value hierarchy. At December 31, 2020 and December 31, 2019, the carrying amount of time deposits was $2,153,541,000 and $2,012,300,000, respectively, and the estimated fair value was $2,148,976,000 and $2,011,950,000, respectively. Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements are short-term maturities. Due to the contractual terms of the instruments, the carrying amounts approximated fair value at December 31, 2020 and December 31, 2019. 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 December 31, 2020 and December 31, 2019. Other Borrowed Funds We currently have long-term borrowings issued from the Federal Home Loan Bank (“FHLB”). At December 31, 2019, we also held some also short-term borrowings. Due to the contractual terms of the short-term borrowings, the carrying amounts approximated fair value at December 31, 2019. The long-term borrowings outstanding at December 31, 2020 and December 31, 2019 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 December 31, 2020, and December 31, 2019 the carrying amount of the fixed-rate long-term FHLB borrowings was $436,372,000 and $436,511,000, respectively and the estimated fair value was $480,475,000 and $465,017,000 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 of 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. |
International Bancshares Corpor
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition | 12 Months Ended |
Dec. 31, 2020 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition | (22) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Parent Company Only) December 31, 2020 and 2019 (Dollars in Thousands) 2020 2019 ASSETS Cash $ 66,252 $ 24,290 Other investments 77,661 106,284 Net loans 11,950 12,100 Investment in subsidiaries 2,167,516 2,120,391 Goodwill 3,365 3,365 Other assets — 264 Total assets $ 2,326,744 $ 2,266,694 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Junior subordinated deferrable interest debentures $ 134,642 $ 134,642 Due to IBC Trading 21 21 Other liabilities 14,083 13,978 Total liabilities 148,746 148,641 Shareholders’ equity: Common shares 96,241 96,215 Surplus 149,334 148,075 Retained earnings 2,289,626 2,200,568 Accumulated other comprehensive income (loss) 20,825 2,345 2,556,026 2,447,203 Less cost of shares in treasury (378,028) (329,150) Total shareholders’ equity 2,177,998 2,118,053 Total liabilities and shareholders’ equity $ 2,326,744 $ 2,266,694 |
International Bancshares Corp_2
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income | 12 Months Ended |
Dec. 31, 2020 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income | (23) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Parent Company Only) Years ended December 31, 2020, 2019 and 2018 (Dollars in Thousands) 2020 2019 2018 Income: Dividends from subsidiaries $ 130,950 $ 127,750 $ 105,000 Interest income on notes receivable 357 922 — Interest income on other investments (1,126) (514) 8,208 Other 5 18 1,988 Total income 130,186 128,176 115,196 Expenses: Interest expense (Debentures) 3,832 6,435 6,989 Provision for credit loss 27 — — Other 1,988 2,749 2,930 Total expenses 5,847 9,184 9,919 Income before federal income taxes and equity in undistributed net income of subsidiaries 124,339 118,992 105,277 Income tax expense (1,339) (1,878) 481 Income before equity in undistributed net income of subsidiaries 125,678 120,870 104,796 Equity in undistributed net income of subsidiaries 41,641 84,234 111,135 Net income $ 167,319 $ 205,104 $ 215,931 |
International Bancshares Corp_3
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2020 | |
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows | (24) International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Parent Company Only) Years ended December 31, 2020, 2019 and 2018 (Dollars in Thousands) 2020 2019 2018 Operating activities: Net income $ 167,319 $ 205,104 $ 215,931 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit loss 27 — — Unrealized loss (gain) on equity securities with readily determinable fair values 22 (16) 330 Stock compensation expense 743 980 1,035 Increase (decrease) in other liabilities 2,467 (58) (1,479) Equity in undistributed net income of subsidiaries (41,641) (84,234) (111,135) Net cash provided by operating activities 128,937 121,776 104,682 Investing activities: Net increase in notes receivable — (12,100) — (Decrease) increase in other assets and other investments 31,289 5,915 (7,891) Net cash provided by (used in) investing activities 31,289 (6,185) (7,891) Financing activities: Redemption of long-term debt — (25,774) — Proceeds from stock transactions 542 1,923 1,522 Payments of cash dividends - common (69,928) (68,670) (49,599) Repurchase of outstanding common stock warrant — — (29,005) Purchase of treasury stock (48,878) (17,845) (19,042) Net cash used in financing activities (118,264) (110,366) (96,124) Increase in cash 41,962 5,225 667 Cash at beginning of year 24,290 19,065 18,398 Cash at end of year $ 66,252 $ 24,290 $ 19,065 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation Our consolidated financial statements include the accounts of the International Bancshares Corporation, its wholly-owned Subsidiary Banks and its wholly-owned non-bank subsidiaries, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, and IBC Capital Corporation. All significant inter-company balances and transactions have been eliminated in consolidation. We, through our Subsidiary Banks, are primarily engaged in the business of banking, including the acceptance of checking and savings deposits and the making of commercial, real estate, personal, home improvement, automobile and other installment and term loans. Our primary markets are north, south, central, and southeast Texas and the state of Oklahoma. Each of our Subsidiary Banks is very active in facilitating international trade along the United States border with Mexico and elsewhere. Although our loan portfolio is diversified, the ability of our debtors to honor their contracts is primarily dependent upon the economic conditions in our trade area. In addition, the investment portfolio is directly impacted by fluctuations in market interest rates. We are subject to the regulations of certain federal agencies as well as the Texas Department of Banking and the Oklahoma Department of Banking and undergo periodic examinations by those regulatory authorities. Such agencies may require certain standards or impose certain limitations based on their judgments or changes in law and regulations. We own one insurance-related subsidiary, IBC Insurance Agency, Inc., a wholly owned subsidiary of our Subsidiary Bank, International Bank of Commerce, Laredo. The insurance-related subsidiary does not conduct underwriting activities. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statement of condition and income and expenses for the periods. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of ACL. |
Subsequent Events | Subsequent Events 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. |
Investment Securities | Investment Securities We classify debt securities into one of these categories: held-to-maturity, available-for-sale, or trading. Such classifications are reassessed for appropriate classification at each reporting date. Securities that are intended and expected to be held until maturity are classified as “held-to-maturity” and are carried at amortized cost for financial statement reporting. Securities that are not positively expected to be held until maturity, but are intended to be held for an indefinite period of time are classified as “available-for-sale” or “trading” and 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 and in shareholders’ equity as accumulated other comprehensive income (loss) until realized. In accordance with ASU 2016-13, which we adopted on January 1, 2020, available-for-sale and held-to-maturity debt securities in an unrealized loss position must be evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment would be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. The exception to this process will occur if we intend to sell an impaired available-for-sale debt security or if we will more likely than not be required to sell a credit impaired available-for-sale debt security prior to the value recovering to the security’s amortized cost. In those situations, the entire credit-related impairment amount would be required to be recognized in earnings. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at December 31, 2020 and have determined that no debt securities in an unrealized loss position are arising from credit related reasons and have therefore not recorded any allowances for debt securities in our ACL for the period. Unrealized gains and losses related to equity securities with readily determinable fair values are included in net income. We did not maintain any trading securities during the three-year period ended December 31, 2020. Mortgage-backed securities held at December 31, 2020 and 2019 represent participating interests in pools of long-term first mortgage loans originated and serviced by the issuers of the securities. Mortgage-backed securities are either issued or guaranteed by the U.S. government or its agencies including Freddie Mac, Fannie Mae, Ginnie Mae or other non-government entities. 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 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. Market interest rate fluctuations can affect the prepayment speed of principal and the yield on the security. Premiums and discounts are amortized using the level yield or “interest method” over the terms of the securities. Declines in the fair value of held-to-maturity and available-for sale-securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) our intent to hold and our determination of whether we will more likely than not be required to sell the security prior to a recovery in fair value. If we determine that (i) we intend to sell the security or (ii) it is more likely than not that we will be required to sell the security before it’s anticipated recovery, the other-than-temporary impairment that is recognized in earnings is equal to the difference between the fair value of the security and our amortized cost of the security. If we determine that we (i) do not intend to sell the security and (ii) we will not be more likely than not required to sell the security before it’s anticipated recovery, the other-than-temporary impairment is segregated into its two components (i) the amount of impairment related to credit loss and (ii) the amount of impairment related to other factors. The difference between the present value of the cash flows expected to be collected and the amortized cost is the credit loss recognized through earnings and an adjustment to the cost basis of the security. The amount of impairment related to other factors is included in other comprehensive income (loss). Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Equity Securities | Equity Securities |
Provision and Allowance for Probable Loan Losses | Provision and Allowance for Credit Losses We adopted the provisions of Accounting Standards Update No. 2016-13 to ASC 326, “Financial Instruments – Credit Losses,” on January 1, 2020. ASU 2016-13 replaces the long-standing incurred loss model with an expected credit loss model that recognizes credit losses over the life of a financial asset. Expected credit losses capture historical information, current conditions, and reasonable and supportable forecasts of future conditions. The ACL is deducted from the amortized cost of an instrument to present the net amount expected to be collected on the financial asset. Our ACL primarily consists of the aggregate ACL estimates of our Subsidiary Banks. The estimates are established through charges to operations in the form of charges to provisions for credit loss expense. Loan losses or recoveries are charged or credited directly to the ACL. The ACL of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated current expected credit losses in the current loan portfolio, including information about past events, current conditions and reasonable and supportable forecasts. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates and the view of regulatory authorities towards loan classifications. We believe that the allowance for probable loan losses is adequate. 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, financial and agricultural or real estate loans are generally considered by management to represent a loss, in whole or part, (i) when an exposure beyond any collateral coverage is apparent, (ii) when no further collection of the portion of the loan so exposed is anticipated based on actual results, (iii) when the credit enhancements, if any, are not adequate, and (iv) when the borrower’s financial condition would indicate so. Generally, unsecured consumer loans are charged-off when 90 days past due. |
Loans | Loans Loans are reported at the principal balance outstanding, net of unearned discounts. Interest income on loans is reported on an accrual basis. Loan fees and costs associated with originating the loans are accreted or amortized over the life of the loan using the interest method. We originate mortgage loans that may subsequently be sold to an unaffiliated third party. The loans are not securitized and if sold, are sold without recourse. Loans held for sale are carried at cost and the principal amount outstanding is not significant to the consolidated financial statements. |
Doubtful Loans | Doubtful Loans Doubtful loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. Doubtful loans are measured based on (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. Substantially all our doubtful 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. |
Troubled Debt Restructured Loans | Troubled Debt Restructured Loans |
Non-Accrual Loans | Non-Accrual Loans The non-accrual loan policy of our Subsidiary Banks is to discontinue the accrual of interest on loans when management determines that it is probable that future interest accruals will be un-collectible. As it relates to consumer loans, management charges-off those loans when the loan is contractually 90 days past due. Under special circumstances, a consumer or non-consumer loan may be more than 90 days delinquent as to interest or principal and not be placed on non-accrual status. This situation generally results when a Subsidiary Bank has a borrower who is experiencing financial difficulties, but not to the extent that requires a restructuring of indebtedness. The majority of this category is composed of loans that are considered to be adequately secured and/or for which there are expected future payments. When a loan is placed on non-accrual status, any interest accrued, not paid is reversed and charged to operations against interest income. As it relates to non-consumer loans that are not 90 days past due, management will evaluate each of these loans to determine if placing the loan on non-accrual status is warranted. Interest income on non-accrual loans is recognized only to the extent payments are received or when, in management’s opinion, the debtor’s financial condition warrants reestablishment of interest accruals. |
Other Real Estate Owned and Repossessed Assets | Other Real Estate Owned and Repossessed Assets Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate 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). 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 ACL, if necessary. Any subsequent write-downs are charged against other non-interest expense through a valuation allowance. Other real estate owned totaled approximately $60,487,300 and $71,103,000 at December 31, 2020 and 2019, respectively. Other real estate owned is included in other assets. Repossessed assets consist primarily of non-real estate assets acquired by foreclosure. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the asset to be repossessed by a charge to the ACL, if necessary. Repossessed assets are included in other assets on the consolidated financial statements and totaled approximately $5,779,000 and $7,137,000 at December 31, 2020 and 2019, respectively. |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on straight-line and accelerated methods over the estimated useful lives of the assets. Repairs and maintenance are charged to operations as incurred and expenditures for renewals and betterments are capitalized. We primarily own all the property we occupy, with the exception of certain branches operating in grocery store or retail shopping centers and certain ATM locations, which are all under operating leases as classified under guidance prior to the issuance of ASU 2016-02, “Leases.” We adopted the guidance in ASU 2016-02 on January 1, 2019 and recorded a right of use asset and a lease liability other assets other liabilities |
Other Investments | Other Investments Other investments include equity investments in non-financial companies, as well as equity securities with no readily determinable fair market value. Equity investments are accounted for using the equity method of accounting. Equity securities with no readily determinable fair value are accounted for using the cost method. |
Revenue recognition | Revenue Recognition |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. We file a consolidated federal income tax return with our subsidiaries. Recognition of deferred tax assets is based on management’s assessment that the benefit related to certain temporary differences, tax operating loss carry forwards, and tax credits are more likely than not to be realized. A valuation allowance is recorded for the amount of the deferred tax items for which it is more likely than not that the tax benefits will not be realized. We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2020 and 2019, respectively, after evaluating all uncertain tax positions, we have recorded no liability for unrecognized tax benefits at the end of the reporting period. We would recognize any interest accrued on unrecognized tax benefits as other interest expense and penalties as other non-interest expense. During the years ended December 31, 2020, 2019 and 2018, we recognized no interest expense or penalties related to uncertain tax positions. We file consolidated tax returns in the U.S. Federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2017. |
Stock Options | Stock Options Compensation expense for stock awards is based on the market price of the stock on the measurement date, which is generally the date of grant, and is recognized ratably over the service period of the award. The fair value of stock options granted was estimated using the Black-Sholes-Merton option-pricing model. This model was developed for use in estimating the fair value of publicly traded options that have no vesting restrictions and are fully transferable. Additionally, the model requires the input of highly subjective assumptions. Because our employee stock options have characteristics significantly different from those of publicly traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the Black-Scholes-Merton option-pricing model does not necessarily provide a reliable single measure of the fair value of our stock options. |
Net Income Per Share | Net Income Per Share Basic Earnings Per Share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding. The computation of diluted EPS assumes the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The dilutive effect of stock options is considered in earnings per share calculations, if dilutive, using the treasury stock method. |
Goodwill and Identified Intangible Assets | Goodwill and Identified Intangible Assets Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill is tested for impairment at least annually or on an interim basis if an event triggering impairment may have occurred. As of October 1, 2020, after completing goodwill testing, we have determined that no goodwill impairment exists. Identified intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our identified intangible assets relate to core deposits and contract rights. As of December 31, 2020, we have determined that no impairment of identified intangibles exists. Identified intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. See Note 6—Goodwill and Other Intangible Assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying value of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying value of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the statement of condition and reported at the lower of the carrying value or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the statement of condition. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For purposes of the consolidated statements of cash flows, we consider all short-term investments with a maturity at date of purchase of three months or less to be cash equivalents. Also, we report transactions related to deposits and loans to customers on a net basis. |
Accounting for Transfers and Servicing of Financial Assets | Accounting for Transfers and Servicing of Financial Assets We account for transfers and servicing of financial assets and extinguishments of liabilities based on the application of a financial-components approach that focuses on control. After a transfer of financial assets, we recognize the financial and servicing assets we control and liabilities we have incurred, derecognize financial assets when control has been surrendered and derecognize liabilities when extinguished. We have retained mortgage servicing rights in connection with the sale of mortgage loans. Because we may not initially identify loans as originated for resale, all loans are initially treated as held for investment. The value of the mortgage servicing rights are reviewed periodically for impairment and are amortized in proportion to, and over the period of estimated net servicing income or net servicing losses. The value of the mortgage servicing rights is not significant to the consolidated statements of condition. |
Segments of an Enterprise and Related Information | Segments of an Enterprise and Related Information 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 financial statements presented in this report. We have five active operating subsidiaries, namely, the Subsidiary Banks. We apply the provisions of ASC Topic 280, “Segment Reporting,” in determining our reportable segments and related disclosures. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Reclassifications | Reclassifications Certain amounts in the prior year’s presentations have been reclassified to conform to the current presentation. These reclassifications had no effect on previously reported net income or shareholders’ equity. |
New Accounting Standards | New Accounting Standards In February 2016, the FASB issued Accounting Standards Update No. 2016-02 to ASC 820, “Leases.” The update 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. The update is effective for interim and annual periods beginning after December 15, 2018. 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. On January 1, 2019, we adopted the provisions of ASU 2016-02, “Leases.” 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 that 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 liability other assets other liabilities In June 2016, the FASB issued Accounting Standards Update No. 2016-13 to ASC 326, “Financial Instruments – Credit Losses.” The update amends existing standards for accounting for credit losses for financial assets. The update requires that the expected credit losses on the financial instruments held as of the end of the period being reported be measured based on historical experience, current conditions, and reasonable and supportable forecasts. The update also expands the required disclosures related to significant estimates and judgements used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s financial assets. The update also amended the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The impact of the adoption of the standard is to be recorded as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The accounting standard was effective for us on January 1, 2020. The task force formed last year, which includes key members of the teams that work with the calculation of the allowance for probable loan losses plus members representing the corporate accounting and risk management areas, has worked with the implementation of the update and validation to complete our model/tool. Based on the composition of the portfolio at December 31, 2019 and after finalizing the methodology, the adoption of the update increased our allowance for probable loan losses (referred to as the ACL under ASU 2016-13), by approximately 17.2%, resulting in a cumulative-effect adjustment to retained earnings of approximately $8.3 million, net of tax. Please refer to Note 4 – Allowance for Credit Losses and the Critical Accounting Policies discussion in Management’s Discussion and Analysis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 to ASC 350, “Intangibles – Goodwill and Other.” The update amends existing guidance in evaluating goodwill for impairment. The update requires that an entity perform its annual or interim goodwill test by comparing the fair value of a reporting unit with its carrying amount, with any impairment charges being recognized as the difference between the fair value and carrying value. The update is intended to standardize the impairment test for all business entities and also reduce the complexity and cost of evaluating goodwill for impairment. The update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of the update is not expected to have a significant impact to our consolidated financial statements. In March 2017, the FASB issued Accounting Standards Update No. 2017-08 to ASC 310, “Receivables – Nonrefundable Fees and Other Costs.” The update amends existing guidance on the amortization period for certain callable debt securities held at a premium. The update shortens the amortization period of the premium to the earliest call date. The update is effective for fiscal years beginning after December 15, 2018. The update is to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of the update did not have a significant impact to our consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update No. 2018-02 to ASC 220, “Income Statement – Reporting Comprehensive Income.” The update amends current guidance surrounding the reclassification of certain tax effects from accumulated other comprehensive income. The update is being issued as a result of the 2017 Tax Cuts and Jobs Act and the related impact to comprehensive income as a result of the application of current guidance with respect to changes in tax rates. Under current guidance, entities must re-evaluate the carrying value of deferred tax assets and liabilities and adjust them for the tax effect of the rate change and record that change through earnings. The result is that the tax effects for items that normally would only be recognized in comprehensive income will be recognized through earnings and results in stranded tax effects in accumulated other comprehensive income (loss) for the impact of the rate change. The update will allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for the stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The update is effective for all entities for fiscal years beginning after December 31, 2018. We adopted the provisions of ASU 2018-02 to ASC 220 in the second quarter of 2018. We recorded a one-time reclassification of $5,997,000 between accumulated comprehensive income (loss) and retained earnings as a result of the adoption of the accounting standards update. In August 2018, the FASB issued Accounting Standards Update No. 2018-13 to ASC 820, “Fair Value Measurement.” The update amends the existing guidance surrounding the disclosure of certain fair value measurements. The update removes certain disclosures that are no longer considered cost beneficial, modifies and, in some instances clarifies, the specific requirements of certain disclosures and adds disclosure requirements that are identified relevant. The update is effective for fiscal years beginning after December 15, 2019. The adoption of the update is not expected to have a significant impact on our consolidated financial statements. In January 20201, the FASB issued Accounting Standards Update No. 2021-01, “Reference Rate Reform (Topic 848): Scope.” The update clarifies the applicability of the practical expedients and exceptions issued in ASU 2020-04 to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. The update is intended to capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The update was effective as of the date of issuance and can be applied through December 31, 2022. We have not adopted the provisions of the update and to not anticipate that the adoption of the update will have a significant impact on our consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Amortized cost and estimated fair value by type of investment security | The amortized cost and estimated fair value by type of investment security at December 31, 2020 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 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 $ 3,006,592 $ 32,701 $ (9,339) $ 3,029,954 $ 3,029,954 Obligations of states and political subdivisions 47,697 3,131 (14) 50,814 50,814 Total investment securities $ 3,054,289 $ 35,832 $ (9,353) $ 3,080,768 $ 3,080,768 (1) Included in the carrying value of residential mortgage- backed securities are $371,407 of mortgage-backed securities issued by Ginnie Mae and $2,658,547 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, 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 Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,285,623 $ 16,534 $ (16,609) $ 3,285,548 $ 3,285,548 Obligations of states and political subdivisions 90,447 2,933 (5) 93,375 93,375 Total investment securities $ 3,376,070 $ 19,467 $ (16,614) $ 3,378,923 $ 3,378,923 (1) Included in the carrying value of residential mortgage- backed securities are $571,247 of mortgage-backed securities issued by Ginnie Mae, $2,714,301 of mortgage-backed securities issued by Fannie Mae and Freddie Mac |
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 $ 1,200 $ 1,200 $ — $ — Due after one year through five years 2,200 2,200 — — Due after five years through ten years — — 355 356 Due after ten years — — 47,342 50,458 Residential mortgage-backed securities — — 3,006,592 3,029,954 Total investment securities $ 3,400 $ 3,400 $ 3,054,289 $ 3,080,768 |
Gross unrealized losses on investment securities and the related fair value | 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, 2020 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 $ 1,462,232 $ (9,339) $ — $ — $ 1,462,232 $ (9,339) Obligations of states and political subdivisions — — 757 (14) 757 (14) $ 1,462,232 $ (9,339) $ 757 $ (14) $ 1,462,989 $ (9,353) 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 loss position, at December 31, 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 $ 523,031 $ (2,269) $ 1,448,109 $ (14,340) $ 1,971,140 $ (16,609) Obligations of states and political subdivisions 766 (5) — — 766 (5) $ 523,797 $ (2,274) $ 1,448,109 $ (14,340) $ 1,971,906 $ (16,614) |
Summary of unrealized and realized gains and losses recognized in net income on equity securities | Year Ended December 31, 2020 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 107 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 107 Year Ended December 31, 2019 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 158 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ 158 Year Ended December 31, 2018 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (388) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (388) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of loans, by loan type | December 31, December 31, 2020 2019 (Dollars in Thousands) Commercial, financial and agricultural $ 4,516,288 $ 3,379,837 Real estate - mortgage 999,144 1,140,377 Real estate - construction 1,846,757 2,185,883 Consumer 40,595 47,800 Foreign 138,970 141,049 Total loans $ 7,541,754 $ 6,894,946 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans individually or collectively evaluated for their impairment and related allowance, by loan class | December 31, 2020 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, $ 11,145 $ 18,152 $ 16,533 $ 1,786 $ 3,762 $ 7,535 $ 542 $ 823 $ 60,278 Adoption of ASU 2016-13 4,247 13,391 (4,292) (355) (1,580) (429) (225) (410) 10,347 Losses charge to allowance (8,936) (19) (55) — (160) (124) (280) — (9,574) Recoveries credited to allowance 2,191 35 117 — 21 186 69 10 2,629 Net losses charged to allowance (6,745) 16 62 — (139) 62 (211) 10 (6,945) Provision (credit) charged to operations 13,261 6,053 17,697 3,620 1,831 2,402 185 330 45,379 Balance at December 31, $ 21,908 $ 37,612 $ 30,000 $ 5,051 $ 3,874 $ 9,570 $ 291 $ 753 $ 109,059 December 31, 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 charge to allowance (14,412) (39) (7,353) — (201) (435) (487) (1) (22,928) Recoveries credited to allowance 2,196 113 318 — 26 286 40 — 2,979 Net losses charged to allowance (12,216) 74 (7,035) — (175) (149) (447) (1) (19,949) Provision (credit) charged to operations 10,765 2,955 4,215 (22) 470 (35) 542 (47) 18,843 Balance at December 31, $ 11,145 $ 18,152 $ 16,533 $ 1,786 $ 3,762 $ 7,535 $ 542 $ 823 $ 60,278 December 31, 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 charge to allowance (14,220) (1) (70) — (122) (347) (362) (3) (15,125) Recoveries credited to allowance 1,981 25 246 — 36 369 43 10 2,710 Net losses charged to allowance (12,239) 24 176 — (86) 22 (319) 7 (12,415) Provision (credit) charged to operations (3,070) 3,424 2,514 699 603 1,594 326 22 6,112 Balance at December 31, $ 12,596 $ 15,123 $ 19,353 $ 1,808 $ 3,467 $ 7,719 $ 447 $ 871 $ 61,384 December 31, 2020 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,189 $ 209 $ 1,784,747 $ 21,699 Commercial real estate: other construction & land development 17,496 70 1,829,261 37,542 Commercial real estate: farmland & commercial 439 — 2,288,869 30,000 Commercial real estate: multifamily 134 — 440,910 5,051 Residential: first lien 151 — 404,968 3,874 Residential: junior lien 38 — 593,987 9,570 Consumer — — 40,595 291 Foreign — — 138,970 753 Total $ 19,447 $ 279 $ 7,522,307 $ 108,780 December 31, 2019 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,935 $ 249 $ 1,290,725 $ 10,895 Commercial real estate: other construction & land development 938 116 2,184,945 18,037 Commercial real estate: farmland & commercial 1,208 — 1,895,539 16,533 Commercial real estate: multifamily 165 — 190,265 1,786 Residential: first lien 6,278 — 427,623 3,762 Residential: junior lien 692 — 705,784 7,535 Consumer 1,195 — 46,605 542 Foreign 264 — 140,785 823 Total $ 12,675 $ 365 $ 6,882,271 $ 59,913 |
Loans accounted on non-accrual basis, by loan class | December 31, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ 1,189 $ 1,901 Commercial real estate: other construction & land development 17,496 938 Commercial real estate: farmland & commercial 439 1,208 Commercial real estate: multifamily 134 165 Residential: first lien 526 670 Residential: junior lien 38 — Consumer — 4 Total non-accrual loans $ 19,822 $ 4,886 |
Impaired loans, by loan class | December 31, 2019 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 510 $ 516 $ 249 $ 514 $ — Commercial real estate: other construction & land development 126 169 116 131 — Total impaired loans with related allowance $ 636 $ 685 $ 365 $ 645 $ — December 31, 2019 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 1,425 $ 1,516 $ 18,794 $ 2 Commercial real estate: other construction & land development 812 1,133 1,737 — Commercial real estate: farmland & commercial 1,208 1,841 22,357 — Commercial real estate: multifamily 165 168 651 — Residential: first lien 6,278 6,445 6,988 309 Residential: junior lien 692 692 1,023 42 Consumer 1,195 1,196 1,117 — Foreign 264 264 278 12 Total impaired loans with no related allowance $ 12,039 $ 13,255 $ 52,945 $ 365 |
Loans accounted for as trouble debt restructuring, by Watch List Doubtful loans | December 31, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ — $ 32 Residential: first lien 4,078 5,608 Residential: junior lien 521 692 Consumer 989 1,192 Foreign 233 264 Total troubled debt restructuring $ 5,821 $ 7,788 |
Information regarding the aging of past due loans, by loan class | December 31, 2020 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 $ 1,931 $ 1,109 $ 563 $ 318 $ 3,603 $ 1,782,333 $ 1,785,936 Commercial real estate: other construction & land development 1,059 854 16,587 — 18,500 1,828,257 1,846,757 Commercial real estate: farmland & commercial 2,435 219 186 186 2,840 2,286,468 2,289,308 Commercial real estate: multifamily 126 — — — 126 440,918 441,044 Residential: first lien 2,399 926 6,165 5,890 9,490 395,629 405,119 Residential: junior lien 561 247 1,197 1,197 2,005 592,020 594,025 Consumer 318 71 79 79 468 40,127 40,595 Foreign 478 180 568 568 1,226 137,744 138,970 Total past due loans $ 9,307 $ 3,606 $ 25,345 $ 8,238 $ 38,258 $ 7,503,496 $ 7,541,754 December 31, 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 $ 3,134 $ 626 $ 1,292 $ 421 $ 5,052 $ 1,287,608 $ 1,292,660 Commercial real estate: other construction & land development 509 55 — — 564 2,185,319 2,185,883 Commercial real estate: farmland & commercial 8,058 2,031 54,928 54,878 65,017 1,831,730 1,896,747 Commercial real estate: multifamily 313 — 165 — 478 189,952 190,430 Residential: first lien 3,229 1,670 3,660 3,107 8,559 425,342 433,901 Residential: junior lien 1,112 477 1,200 1,200 2,789 703,687 706,476 Consumer 467 75 88 88 630 47,170 47,800 Foreign 1,347 3 11 11 1,361 139,688 141,049 Total past due loans $ 18,169 $ 4,937 $ 61,344 $ 59,705 $ 84,450 $ 6,810,496 $ 6,894,946 |
Summary of the loan portfolio by credit quality indicator, by loan class | 2020 2019 2018 2017 2016 Prior Total (Dollars in Thousands) Balance at December 31, 2020 Domestic Commercial Pass $ 1,168,671 $ 240,869 $ 145,670 $ 85,434 $ 13,901 $ 10,000 $ 1,664,545 Special Review 75,638 — — — — — 75,638 Watch List - Pass 39,886 11 — 3 — 17 39,917 Watch List - Substandard 3,360 683 289 — 315 — 4,647 Watch List - Doubtful 777 161 92 159 — — 1,189 Total Commercial $ 1,288,332 $ 241,724 $ 146,051 $ 85,596 $ 14,216 $ 10,017 $ 1,785,936 Commercial real estate: other construction & land development Pass $ 773,165 $ 576,707 $ 320,308 $ 78,174 $ 10,534 $ 3,343 $ 1,762,231 Special Review 20,828 21,650 — — — — 42,478 Watch List - Pass 23,101 1,451 — — — — 24,552 Watch List - Doubtful 16,702 794 — — — — 17,496 Total Commercial real estate: other construction & land development $ 833,796 $ 600,602 $ 320,308 $ 78,174 $ 10,534 $ 3,343 $ 1,846,757 Commercial real estate: farmland & commercial Pass $ 884,070 $ 373,993 $ 386,268 $ 189,639 $ 202,500 $ 116,729 $ 2,153,199 Special Review 3,041 — 4,758 177 3,218 — 11,194 Watch List - Pass 61,637 942 277 80 — — 62,936 Watch List - Substandard 53,809 4,986 — 2,269 475 1 61,540 Watch List - Doubtful — 202 — — — 237 439 Total Commercial real estate: farmland & commercial $ 1,002,557 $ 380,123 $ 391,303 $ 192,165 $ 206,193 $ 116,967 $ 2,289,308 Commercial real estate: multifamily Pass $ 74,577 $ 208,356 $ 82,818 $ 64,110 $ 6,801 $ 4,248 $ 440,910 Watch List - Doubtful 134 — — — — — 134 Total Commercial real estate: multifamily $ 74,711 $ 208,356 $ 82,818 $ 64,110 $ 6,801 $ 4,248 $ 441,044 Residential: first lien Pass $ 81,004 $ 62,165 $ 72,299 $ 54,593 $ 29,250 $ 105,463 $ 404,774 Watch List - Pass — 14 131 — — — 145 Watch List - Substandard — — — — 49 — 49 Watch List - Doubtful 86 — — — — 65 151 Total Residential: first lien $ 81,090 $ 62,179 $ 72,430 $ 54,593 $ 29,299 $ 105,528 $ 405,119 Residential: junior lien Pass $ 196,308 $ 108,276 $ 61,636 $ 75,056 $ 56,705 $ 94,454 $ 592,435 Special Review 740 — — 812 — — 1,552 Watch List- Doubtful — — 38 — — — 38 Total Residential: junior lien $ 197,048 $ 108,276 $ 61,674 $ 75,868 $ 56,705 $ 94,454 $ 594,025 Consumer Pass $ 30,910 $ 7,159 $ 875 $ 225 $ 55 $ 1,371 $ 40,595 Total Consumer $ 30,910 $ 7,159 $ 875 $ 225 $ 55 $ 1,371 $ 40,595 Foreign Pass $ 93,236 $ 19,092 $ 11,572 $ 6,192 $ 3,533 $ 5,345 $ 138,970 Total Foreign $ 93,236 $ 19,092 $ 11,572 $ 6,192 $ 3,533 $ 5,345 $ 138,970 Total Loans $ 3,601,680 $ 1,627,511 $ 1,087,031 $ 556,923 $ 327,336 $ 341,273 $ 7,541,754 December 31, 2019 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 1,228,110 $ 569 $ 39 $ 62,007 $ 1,935 Commercial real estate: other construction & land development 2,090,370 18,721 41,949 33,905 938 Commercial real estate: farmland & commercial 1,710,446 13,184 20,183 151,726 1,208 Commercial real estate: multifamily 190,265 — — — 165 Residential: first lien 426,546 253 144 680 6,278 Residential: junior lien 704,958 826 — — 692 Consumer 46,605 — — — 1,195 Foreign 140,785 — — — 264 Total $ 6,538,085 $ 33,553 $ 62,315 $ 248,318 $ 12,675 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of bank premises and equipment, by asset classification | Estimated useful lives 2020 2019 (Dollars in Thousands) Bank buildings and improvements 5 - 39 years $ 577,656 $ 573,257 Furniture, equipment and vehicles 1 - 20 years 311,313 313,880 Land 117,848 118,099 Less: accumulated depreciation (526,939) (498,641) Bank premises and equipment, net $ 479,878 $ 506,595 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of the entity's identified intangible assets | Carrying Accumulated Amount Amortization Net (Dollars in Thousands) December 31, 2020: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — December 31, 2019: Core deposit premium $ 58,675 $ 58,675 $ — Identified intangible (contract rights) 2,022 2,022 — Total identified intangibles $ 60,697 $ 60,697 $ — |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of deposits and related interest expense | 2020 2019 (Dollars in Thousands) Deposits: Demand - non-interest bearing Domestic $ 3,781,277 $ 2,815,835 Foreign 934,537 730,070 Total demand non-interest bearing 4,715,814 3,545,905 Savings and interest bearing demand Domestic 2,919,314 2,477,668 Foreign 933,191 790,161 Total savings and interest bearing demand 3,852,505 3,267,829 Time, certificates of deposit $100,000 or more Domestic 797,692 636,005 Foreign 822,387 827,031 Less than $100,000 Domestic 291,473 302,620 Foreign 241,989 246,644 Total time, certificates of deposit 2,153,541 2,012,300 Total deposits $ 10,721,860 $ 8,826,034 2020 2019 2018 (Dollars in Thousands) Interest expense: Savings and interest bearing demand Domestic $ 5,098 $ 13,462 $ 11,029 Foreign 1,260 2,917 1,735 Total savings and interest bearing demand 6,358 16,379 12,764 Time, certificates of deposit $100,000 or more Domestic 8,827 7,804 4,741 Foreign 7,536 9,407 5,798 Less than $100,000 Domestic 1,781 2,232 1,589 Foreign 1,086 1,527 968 Total time, certificates of deposit 19,230 20,970 13,096 Total interest expense on deposits $ 25,588 $ 37,349 $ 25,860 |
Scheduled maturities of time deposits | Scheduled maturities of time deposits as of December 31, 2020 were as follows: Total (in thousands) 2021 $ 1,971,433 2022 141,388 2023 28,781 2024 11,205 2025 681 Thereafter 53 Total $ 2,153,541 |
Scheduled maturities of time deposits in amounts of $100,000 or more | Total (in thousands) Due within 3 months or less $ 606,807 Due after 3 months and within 6 months 385,859 Due after 6 months and within 12 months 498,626 Due after 12 months 129,792 $ 1,621,084 |
Securities Sold Under Repurch_2
Securities Sold Under Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of repurchase agreements | Collateral Securities Repurchase Borrowing Book Value of Fair Value of Balance of Weighted Average Securities Sold Securities Sold Liability Interest Rate (Dollars in Thousands) December 31, 2020 term: Overnight agreements $ 506,020 $ 507,164 $ 416,757 0.13 % 1 to 29 days — — — — 30 to 90 days — — — — Over 90 days 11,684 11,641 11,391 0.43 Total $ 517,704 $ 518,805 $ 428,148 0.14 % December 31, 2019 term: Overnight agreements $ 317,107 $ 318,397 $ 225,243 0.87 % 1 to 29 days — — — — 30 to 90 days — — — — Over 90 days 11,564 11,529 11,293 1.28 Total $ 328,671 $ 329,926 $ 236,536 0.89 % |
Other Borrowed Funds (Tables)
Other Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of other borrowed funds | December 31, 2020 2019 (Dollars in Thousands) Federal Home Loan Bank advances—short-term Balance at year end $ — $ 190,000 Rate on balance outstanding at year end — % 1.48 % Average daily balance $ 110,776 $ 190,431 Average rate 1.19 % 2.60 % Maximum amount outstanding at any month end $ 292,000 $ 371,775 Federal Home Loan Bank advances—long-term (1) Balance at year end $ 436,327 $ 436,511 Rate on balance outstanding at year end 1.73 % 1.73 % Average daily balance $ 436,411 $ 436,593 Average rate 1.71 % 1.71 % Maximum amount outstanding at any month end $ 436,495 $ 436,675 (1) Long-term advances at December 31, 2020 and December 31, 2019 consisted of both amortizing and non-amortizing advances. The non-amortizing advances mature in the following increments: $75,000,000 in July 2028, $100,000,000 in March 2033 and $250,000,000 in August 2033 and are callable by the FHLB on a quarterly basis. Two amortizing advances are outstanding at December 31, 2020 in the amounts of $3,091,000 and $8,236,000 and mature in December 2033 and November 2033, respectively. The amortization on the amortizing long-term advances totals approximately $189,000 , $194,000 , $199,000 , $204,000 and $210,000 for the years ending December 31, 2021, December 31, 2022, December 31, 2023, December 31, 2024 and December 31, 2025, respectively. |
Junior Subordinated Deferrabl_2
Junior Subordinated Deferrable Interest Debentures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Junior subordinated interest deferrable debentures, major types of business trusts | The following table illustrates key information about each of the Debentures and their interest rates at December 31, 2020: 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 3.29 % LIBOR + 3.05 October 2033 October 2008 Trust IX 41,238 Quarterly 1.85 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 1.86 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 1.85 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 1.68 % LIBOR + 1.45 September 2037 September 2012 $ 134,642 (1) The Capital Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of calculation of the basic EPS and the diluted EPS | Net Income Shares Per Share (Numerator) (Denominator) Amount (Dollars in Thousands, Except Per Share Amounts) December 31, 2020: Basic EPS Net income available to common shareholders $ 167,319 63,725,819 $ 2.63 Potential dilutive common shares and warrants — 127,316 Diluted EPS $ 167,319 63,853,135 $ 2.62 December 31, 2019: Basic EPS Net income available to common shareholders $ 205,104 65,476,606 $ 3.13 Potential dilutive common shares and warrants — 209,078 Diluted EPS $ 205,104 65,685,684 $ 3.12 December 31, 2018: Basic EPS Net income available to common shareholders $ 215,931 66,106,580 $ 3.27 Potential dilutive common shares — 527,240 Diluted EPS $ 215,931 66,633,820 $ 3.24 |
International Operations (Table
International Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of assets attributable to international operations | 2020 2019 (Dollars in Thousands) Loans: Commercial $ 90,177 $ 88,979 Others 48,793 52,070 138,970 141,049 Less allowance for probable loan losses (753) (823) Net loans $ 138,217 $ 140,226 Accrued interest receivable $ 605 $ 743 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of current and deferred portions of net income tax expense | 2020 2019 2018 (Dollars in Thousands) Current U.S. $ 43,794 $ 48,559 $ 48,144 State 3,709 2,944 3,370 Foreign 58 38 (5) Total current taxes 47,561 51,541 51,509 Deferred U.S. (2,733) 2,979 5,130 State (389) 330 13 Total deferred taxes (3,122) 3,309 5,143 Total income taxes $ 44,439 $ 54,850 $ 56,652 |
Schedule of income tax expense differences from the amount computed by applying the U.S. Federal income tax rate to income before income taxes | 2020 2019 2018 (Dollars in Thousands) Computed expected tax expense $ 45,218 $ 55,086 $ 57,831 Change in taxes resulting from: Tax-exempt interest income (2,709) (2,550) (3,101) State tax, net of federal income taxes, tax credit and refunds 2,622 2,587 2,673 Resolution of IRS exam — — Other investment income (2,205) (1,480) (1,561) Deferred tax adjustment due to federal tax rate change — (1,618) Net investment in low income housing investments 1,990 623 2,518 Other (477) 584 (90) Actual tax expense $ 44,439 $ 54,850 $ 56,652 |
Schedule of tax effects of temporary difference that give rise to significant portions of the deferred tax assets and deferred tax liabilities | 2020 2019 (Dollars in Thousands) Deferred tax assets: Loans receivable, principally due to the allowance for probable loan losses $ 21,921 $ 12,050 Other real estate owned 1,183 2,501 Impairment charges on available-for-sale securities — 1,054 Accrued expenses 81 98 Other 5,649 6,019 Total deferred tax assets 28,834 21,722 Deferred tax liabilities: Bank premises and equipment, principally due to differences on depreciation (12,350) (12,478) Net unrealized gains on available for sale investment securities (5,679) (508) Impairment charges on available-for-sale securities (19) — Identified intangible assets and goodwill (13,807) (13,649) Other (20,551) (18,849) Total deferred tax liabilities (52,406) (45,484) Net deferred tax liability $ (23,572) $ (23,762) |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Black-Scholes-Merton option valuation model assumptions | 2020 2019 Expected Life (Years) 7.00 7.00 Dividend yield 6.04 % 2.93 % Interest rate 0.74 % 1.97 % Volatility 29.04 % 26.97 % |
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, 2019 658,588 $ 27.55 Plus: Options granted 35,000 18.79 Less: Options exercised 26,010 20.87 Options expired — — Options forfeited 16,451 31.94 Options outstanding at December 31, 2020 651,127 27.24 5.05 $ 6,817 Options fully vested and exercisable at December 31, 2020 409,782 $ 22.98 3.61 $ 5,953 |
Schedule of other information pertaining to option activity | Twelve Months Ended December 31, 2020 2019 2018 Weighted average grant date fair value of stock options granted $ 2.46 $ 7.38 $ 11.78 Total fair value of stock options vested $ 1,218,000 $ 1,333,000 $ 1,077,000 Total intrinsic value of stock options exercised $ 356,000 $ 2,373,000 $ 2,045,000 |
Financial Instruments with Of_2
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of financial amounts of instruments, whose contract amounts represent credit risks | Commitments to extend credit $ 2,354,010,000 Credit card lines 13,579,000 Standby letters of credit 118,381,000 Commercial letters of credit 341,000 |
Capital Requirements (Tables)
Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of the Company's and the bank subsidiaries' actual capital amounts and ratios | For Capital Adequacy To Be Well-Capitalized Purposes Under Prompt Corrective Actual Phase In Schedule Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2020: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 1,874,641 19.05 % $ 688,678 7.000 % N/A N/A International Bank of Commerce, Laredo 1,295,437 18.19 498,492 7.000 $ 462,885 6.50 % International Bank of Commerce, Oklahoma 207,339 17.45 83,150 7.000 77,211 6.50 International Bank of Commerce, Brownsville 189,575 22.18 59,843 7.000 55,569 6.50 International Bank of Commerce, Zapata 71,369 34.51 14,476 7.000 13,442 6.50 Commerce Bank 93,426 35.64 18,347 7.000 17,037 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,105,360 21.40 % $ 1,033,017 10.500 % N/A N/A International Bank of Commerce, Laredo 1,380,685 19.39 747,737 10.500 $ 712,131 10.00 % International Bank of Commerce, Oklahoma 218,657 18.41 124,725 10.500 118,786 10.00 International Bank of Commerce, Brownsville 200,269 23.43 89,765 10.500 85,490 10.00 International Bank of Commerce, Zapata 73,510 35.55 21,714 10.500 20,680 10.00 Commerce Bank 96,240 36.72 27,521 10.500 26,210 10.00 Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 1,992,403 20.25 % $ 836,252 8.500 % N/A N/A International Bank of Commerce, Laredo 1,295,437 18.19 605,311 8.500 $ 569,705 8.00 % International Bank of Commerce, Oklahoma 207,339 17.45 100,968 8.500 95,029 8.00 International Bank of Commerce, Brownsville 189,575 22.18 72,667 8.500 68,392 8.00 International Bank of Commerce, Zapata 71,369 34.51 17,578 8.500 16,544 8.00 Commerce Bank 93,426 35.64 22,279 8.500 20,968 8.00 Tier 1 Capital (to Average Assets): Consolidated $ 1,992,403 14.92 % $ 534,228 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,295,437 13.11 395,289 4.00 494,112 5.00 % International Bank of Commerce, Oklahoma 207,339 12.98 63,879 4.00 79,848 5.00 International Bank of Commerce, Brownsville 189,575 14.55 52,101 4.00 65,127 5.00 International Bank of Commerce, Zapata 71,369 16.52 17,277 4.00 21,596 5.00 Commerce Bank 93,426 16.69 22,394 4.00 27,993 5.00 To Be Well-Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (greater than (greater than (greater than (greater than or equal to) or equal to) or equal to) or equal to) (Dollars in Thousands) As of December 31, 2019: Common Equity Tier 1 (to Risk Weighted Assets): Consolidated $ 1,833,174 18.58 % $ 690,746 7.000 % N/A N/A International Bank of Commerce, Laredo 1,268,078 18.23 486,950 7.000 $ 452,168 6.50 % International Bank of Commerce, Oklahoma 201,202 16.91 83,303 7.000 77,353 6.50 International Bank of Commerce, Brownsville 185,112 22.70 57,084 7.000 53,006 6.50 International Bank of Commerce, Zapata 72,402 36.46 13,902 7.000 12,909 6.50 Commerce Bank 91,239 34.83 18,336 7.000 17,026 6.50 Total Capital (to Risk Weighted Assets): Consolidated $ 2,018,488 20.46 % $ 1,036,118 10.500 % N/A N/A % International Bank of Commerce, Laredo 1,315,453 18.91 730,425 10.500 $ 695,643 10.00 International Bank of Commerce, Oklahoma 206,807 17.38 124,955 10.500 119,004 10.00 International Bank of Commerce, Brownsville 192,417 23.60 85,626 10.500 81,548 10.00 International Bank of Commerce, Zapata 74,737 37.63 20,853 10.500 19,860 10.00 Commerce Bank 93,396 35.65 27,504 10.500 26,195 10.00 Tier 1 Capital (to Risk Weighted Assets): % Consolidated $ 1,953,711 19.80 % $ 838,762 8.500 % N/A N/A International Bank of Commerce, Laredo 1,268,078 18.23 591,296 8.500 $ 556,514 8.00 International Bank of Commerce, Oklahoma 201,202 16.91 101,154 8.500 95,203 8.00 International Bank of Commerce, Brownsville 185,112 22.70 69,316 8.500 65,239 8.00 International Bank of Commerce, Zapata 72,402 36.46 16,881 8.500 15,888 8.00 Commerce Bank 91,239 34.83 22,265 8.500 20,956 8.00 % Tier 1 Capital (to Average Assets): Consolidated $ 1,953,711 16.65 % $ 469,267 4.00 % $ N/A N/A International Bank of Commerce, Laredo 1,268,078 15.21 333,576 4.00 416,970 5.00 International Bank of Commerce, Oklahoma 201,202 14.79 54,406 4.00 68,007 5.00 International Bank of Commerce, Brownsville 185,112 17.41 42,529 4.00 53,161 5.00 International Bank of Commerce, Zapata 72,402 19.08 15,179 4.00 18,974 5.00 Commerce Bank 91,239 18.18 20,073 4.00 25,091 5.00 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Assets and liabilities measured at fair value on a recurring basis | The following table represents financial instruments reported on the consolidated statements of condition at their fair value as of December 31, 2020 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, 2020 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,029,954 $ — $ 3,029,954 $ — States and political subdivisions 50,814 — 50,814 — Equity Securities 6,202 6,202 — — $ 3,086,970 $ 6,202 $ 3,080,768 $ — The following table represents financial instruments reported on the consolidated balance sheets at their fair value as of December 31, 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 December 31, 2019 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,285,548 $ — $ 3,285,548 $ — States and political subdivisions 93,375 — 93,375 — Equity Securities 6,095 6,095 — — $ 3,385,018 $ 6,095 $ 3,378,923 $ — |
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 December 31, 2020 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 Period ended Identical Observable Unobservable (Credit) December 31, Assets Inputs Inputs During 2020 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 393 $ — $ — $ 393 $ (86) Other real estate owned 6,241 — — 6,241 1,539 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the year ended December 31, 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 Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2019 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 826 $ — $ — $ 826 $ 43 Other real estate owned 21,614 — — 21,614 322 Equity investment without a readily determinable fair value 28,166 — — 28,166 4,775 |
International Bancshares Corp_4
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of condensed statements of condition of Parent Company | (Dollars in Thousands) 2020 2019 ASSETS Cash $ 66,252 $ 24,290 Other investments 77,661 106,284 Net loans 11,950 12,100 Investment in subsidiaries 2,167,516 2,120,391 Goodwill 3,365 3,365 Other assets — 264 Total assets $ 2,326,744 $ 2,266,694 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Junior subordinated deferrable interest debentures $ 134,642 $ 134,642 Due to IBC Trading 21 21 Other liabilities 14,083 13,978 Total liabilities 148,746 148,641 Shareholders’ equity: Common shares 96,241 96,215 Surplus 149,334 148,075 Retained earnings 2,289,626 2,200,568 Accumulated other comprehensive income (loss) 20,825 2,345 2,556,026 2,447,203 Less cost of shares in treasury (378,028) (329,150) Total shareholders’ equity 2,177,998 2,118,053 Total liabilities and shareholders’ equity $ 2,326,744 $ 2,266,694 |
International Bancshares Corp_5
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of condensed statements of income of Parent Company | (Dollars in Thousands) 2020 2019 2018 Income: Dividends from subsidiaries $ 130,950 $ 127,750 $ 105,000 Interest income on notes receivable 357 922 — Interest income on other investments (1,126) (514) 8,208 Other 5 18 1,988 Total income 130,186 128,176 115,196 Expenses: Interest expense (Debentures) 3,832 6,435 6,989 Provision for credit loss 27 — — Other 1,988 2,749 2,930 Total expenses 5,847 9,184 9,919 Income before federal income taxes and equity in undistributed net income of subsidiaries 124,339 118,992 105,277 Income tax expense (1,339) (1,878) 481 Income before equity in undistributed net income of subsidiaries 125,678 120,870 104,796 Equity in undistributed net income of subsidiaries 41,641 84,234 111,135 Net income $ 167,319 $ 205,104 $ 215,931 |
International Bancshares Corp_6
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of condensed statements of cash flows of Parent Company | (Dollars in Thousands) 2020 2019 2018 Operating activities: Net income $ 167,319 $ 205,104 $ 215,931 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit loss 27 — — Unrealized loss (gain) on equity securities with readily determinable fair values 22 (16) 330 Stock compensation expense 743 980 1,035 Increase (decrease) in other liabilities 2,467 (58) (1,479) Equity in undistributed net income of subsidiaries (41,641) (84,234) (111,135) Net cash provided by operating activities 128,937 121,776 104,682 Investing activities: Net increase in notes receivable — (12,100) — (Decrease) increase in other assets and other investments 31,289 5,915 (7,891) Net cash provided by (used in) investing activities 31,289 (6,185) (7,891) Financing activities: Redemption of long-term debt — (25,774) — Proceeds from stock transactions 542 1,923 1,522 Payments of cash dividends - common (69,928) (68,670) (49,599) Repurchase of outstanding common stock warrant — — (29,005) Purchase of treasury stock (48,878) (17,845) (19,042) Net cash used in financing activities (118,264) (110,366) (96,124) Increase in cash 41,962 5,225 667 Cash at beginning of year 24,290 19,065 18,398 Cash at end of year $ 66,252 $ 24,290 $ 19,065 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Jan. 01, 2020USD ($) | Oct. 01, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) |
Number of insurance-related subsidiaries | item | 1 | ||||||
Investment Securities | |||||||
Number of components in which other-than-temporary impairment is segregated | item | 2 | ||||||
Non-Accrual Loans | |||||||
Period of charge off for past due unsecured consumer loans | 90 days | ||||||
Minimum period that past due unsecured loans outstanding may not be placed on nonaccrual status under special circumstances | 90 days | ||||||
Maximum period of non-consumer loans outstanding that is used to evaluate whether loans should be placed on non-accrual status | 90 days | ||||||
Other Real Estate Owned and Repossessed Assets | |||||||
Other real estate owned | $ 60,487,300 | $ 71,103,000 | |||||
Repossessed assets | 7,137,000 | ||||||
Income Taxes | |||||||
Percentage of likelihood of realization of recognized tax benefit | 50.00% | ||||||
Liability for unrecognized tax benefits | $ 0 | 0 | |||||
Interest expense related to uncertain tax positions | 0 | 0 | $ 0 | ||||
Penalties related to uncertain tax positions | 0 | 0 | $ 0 | ||||
Goodwill and Identified Intangible Assets | |||||||
Goodwill impairment loss | $ 0 | ||||||
Impairment of identified intangible assets | $ 0 | ||||||
Segments of an Enterprise and Related Information | |||||||
Number of operating segments | item | 1 | ||||||
Number of active operating bank subsidiaries | item | 5 | ||||||
New Accounting Standards | |||||||
One-time reclassification from AOCI to retained earnings, relating to the Tax Cuts and Jobs Act of 2017 | $ 5,997,000 | ||||||
Right-of-use asset amortization | $ 1,357,000 | 1,019,000 | |||||
Retained Earnings (Accumulated Deficit) | $ 2,289,626,000 | $ 2,200,568,000 | |||||
ASU 2016-02 | |||||||
New Accounting Standards | |||||||
Right of use asset, statement of Financial Position Location | us-gaap:OtherAssets | ||||||
Lease liability, statement of Financial Position Location | us-gaap:OtherLiabilities | ||||||
ASU 2016-02 | Adjusted Balance | |||||||
New Accounting Standards | |||||||
Right of use asset | $ 6,400,000 | ||||||
Lease liability | $ 6,400,000 | ||||||
ASU 2016-13 | Adjustment | |||||||
New Accounting Standards | |||||||
Percentage of Increase in Allowance for Loan Losses | 17.20% | ||||||
Retained Earnings (Accumulated Deficit) | $ 8,300,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Held-to-maturity securities | ||
Amortized cost | $ 3,400,000 | $ 2,400,000 |
Estimated fair value | 3,400,000 | 2,400,000 |
Carrying Value | 3,400,000 | 2,400,000 |
Available-for-sale securities | ||
Amortized cost | 3,054,289,000 | 3,376,070,000 |
Gross unrealized gains | 35,832,000 | |
Gross unrealized losses | (9,353,000) | |
Available for sale debt securities | 3,080,768,000 | 3,378,923,000 |
Total Amortized cost | 3,054,289,000 | 3,376,070,000 |
Total Gross unrealized gains | 19,467,000 | |
Total Gross unrealized losses | 16,614,000 | |
Available for sale debt securities and equity securities | 3,080,768,000 | |
Estimate of Fair Value Measurement [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities and equity securities | 3,080,768,000 | 3,378,923,000 |
Reported Value Measurement [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities and equity securities | 3,080,768,000 | 3,378,923,000 |
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-sale securities | ||
Amortized cost | 3,006,592,000 | 3,285,623,000 |
Gross unrealized gains | 32,701,000 | 16,534,000 |
Gross unrealized losses | (9,339,000) | (16,609,000) |
Collateralized Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,029,954,000 | 3,285,548,000 |
Collateralized Mortgage Backed Securities [Member] | Reported Value Measurement [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,029,954,000 | 3,285,548,000 |
US Government Corporations and Agencies Securities [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities | 371,407,000 | 571,247,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities | 2,658,547,000 | 2,714,301 |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities | ||
Amortized cost | 47,697,000 | 90,447,000 |
Gross unrealized gains | 3,131,000 | 2,933,000 |
Gross unrealized losses | (14,000) | (5,000) |
US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities | 50,814,000 | 93,375,000 |
US States and Political Subdivisions Debt Securities [Member] | Reported Value Measurement [Member] | ||
Available-for-sale securities | ||
Available for sale debt securities | 50,814,000 | 93,375,000 |
Other Debt Obligations [Member] | ||
Held-to-maturity securities | ||
Amortized cost | 3,400,000 | 2,400,000 |
Estimated fair value | 3,400,000 | 2,400,000 |
Carrying Value | $ 3,400,000 | $ 2,400,000 |
Investment Securities (Contract
Investment Securities (Contractual Maturities and Estimated Fair Values) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | |||
Due in one year or less, held-to-maturity debt securities amortized cost | $ 1,200,000 | ||
Due after one year through five years, held-to-maturity debt securities amortized cost | 2,200,000 | ||
Amortized cost, held-to-maturity debt securities | 3,400,000 | $ 2,400,000 | |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | |||
Due in one year or less, held-to-maturity debt securities, Estimated fair value | 1,200,000 | ||
Due after one year through five years, held-to-maturity debt securities, Estimated fair value | 2,200,000 | ||
Estimated fair value | 3,400,000 | 2,400,000 | |
Available-for-sale debt securities amortized cost disclosures | |||
Due after five years through ten years, available-for-sale debt securities amortized cost | 355,000 | ||
Due after ten years, available-for-sale debt securities amortized cost | 47,342,000 | ||
Residential mortgage-backed securities, amortized cost | 3,006,592,000 | ||
Amortized cost, Available-for-sale securities | 3,054,289,000 | 3,376,070,000 | |
Available for sale debt securities, Estimated Fair Value Disclosures | |||
Due after five years through ten years, available-for-sale debt securities, Estimated Fair Value | 356,000 | ||
Due after ten years, available-for-sale debt securities, Estimated Fair Value | 50,458,000 | ||
Residential mortgage-backed securities, Estimated Fair Value | 3,029,954,000 | ||
Estimated fair value, Available for sale securities | 3,080,768,000 | 3,378,923,000 | |
Available for sale debt securities, Estimated Fair Value Disclosures | |||
Proceeds from sales and calls of available for sale securities | 42,350,000 | 94,585,000 | $ 38,175,000 |
Proceeds from sales and calls of available for sale securities | 42,350,000 | 94,585,000 | 59,782,000 |
Proceeds from sales of mortgage-backed securities | 0 | 0 | 0 |
Gross gains realized on sales | 1,000 | 3,000 | 3,000 |
Gross losses realized on sales | 6,000 | $ 15,000 | $ 144,000 |
Collateral Pledged | |||
Available-for-sale debt securities amortized cost disclosures | |||
Amortized cost, Available-for-sale securities | 1,220,400,000 | ||
Available for sale debt securities, Estimated Fair Value Disclosures | |||
Fair value of available for sale investment securities pledged | $ 1,224,268,000 |
Investment Securities (Fair Val
Investment Securities (Fair Value and Gross Unrealized Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Available for sale: | ||
Fair value, less than 12 months | $ 1,462,232 | |
Marketable securities, less than 12 months | $ 523,797 | |
Unrealized losses, less than 12 Months | (9,339) | |
Marketable securities, less than 12 Months | (2,274) | |
Fair value, 12 months or more | 757 | |
Marketable securities, 12 months or more | 1,448,109 | |
Unrealized losses, 12 Months or More | (14) | |
Marketable securities, 12 Months or More | (14,340) | |
Fair value, Total | 1,462,989 | |
Marketable securities, Total | 1,971,906 | |
Unrealized losses, Total | (9,353) | |
Marketable securities, Total | 16,614 | |
Collateralized Mortgage Backed Securities [Member] | ||
Available for sale: | ||
Fair value, less than 12 months | 523,031 | 1,462,232 |
Unrealized losses, less than 12 Months | (2,269) | (9,339) |
Fair value, 12 months or more | 1,448,109 | |
Unrealized losses, 12 Months or More | (14,340) | |
Fair value, Total | 1,971,140 | 1,462,232 |
Unrealized losses, Total | (16,609) | (9,339) |
US States and Political Subdivisions Debt Securities [Member] | ||
Available for sale: | ||
Fair value, less than 12 months | 766 | |
Unrealized losses, less than 12 Months | (5) | |
Fair value, 12 months or more | 757 | |
Unrealized losses, 12 Months or More | (14) | |
Fair value, Total | 766 | 757 |
Unrealized losses, Total | $ (5) | $ (14) |
Investment Securities (Unrealiz
Investment Securities (Unrealized and realized gains and losses recognized in net income on equity securities ) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Securities | |||
Equity Securities | $ 6,202,000 | $ 6,095,000 | |
Summary of unrealized and realized gains and losses recognized in net income on equity securities | |||
Net gains (losses) recognized during the period on equity securities | 107,000 | 158,000 | $ (388,000) |
Unrealized gain on equity securities with readily determinable fair values | $ 107,000 | $ 158,000 | $ (388,000) |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of loans, by loan type | ||
Total loans | $ 7,541,754 | $ 6,894,946 |
Commercial, financial and agricultural | ||
Summary of loans, by loan type | ||
Total loans | 4,516,288 | 3,379,837 |
Real estate - mortgage | ||
Summary of loans, by loan type | ||
Total loans | 999,144 | 1,140,377 |
Commercial Real Estate Portfolio Segment [Member] | ||
Summary of loans, by loan type | ||
Total loans | 1,846,757 | 2,185,883 |
Consumer | ||
Summary of loans, by loan type | ||
Total loans | 40,595 | 47,800 |
Foreign | ||
Summary of loans, by loan type | ||
Total loans | $ 138,970 | $ 141,049 |
Allowance for Credit Losses (By
Allowance for Credit Losses (By Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Credit Losses | |||||
Balance at the beginning of the period | $ 61,384 | $ 60,278 | $ 61,384 | $ 67,687 | |
Losses charged to allowance | (9,574) | (22,928) | (15,125) | ||
Recoveries credited to allowance | 2,629 | 2,979 | 2,710 | ||
Net (losses) recoveries charged to allowance | (6,945) | (19,949) | (12,415) | ||
Provision charged (credited) to operations | 45,379 | 18,843 | 6,112 | ||
Balance at the end of the period | 109,059 | 60,278 | 61,384 | ||
Nonperforming Financing Receivable [Member] | |||||
Allowance for Credit Losses | |||||
Provision charged (credited) to operations | $ (9,500) | (9,500) | |||
ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 10,347 | ||||
Balance at the end of the period | 10,347 | ||||
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 12,596 | 11,145 | 12,596 | 27,905 | |
Losses charged to allowance | (8,936) | (14,412) | (14,220) | ||
Recoveries credited to allowance | 2,191 | 2,196 | 1,981 | ||
Net (losses) recoveries charged to allowance | (6,745) | (12,216) | (12,239) | ||
Provision charged (credited) to operations | 13,261 | 10,765 | (3,070) | ||
Balance at the end of the period | 21,908 | 11,145 | 12,596 | ||
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 4,247 | ||||
Balance at the end of the period | 4,247 | ||||
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 19,353 | 16,533 | 19,353 | 16,663 | |
Losses charged to allowance | (55) | (70) | |||
Recoveries credited to allowance | 117 | 246 | |||
Net (losses) recoveries charged to allowance | 62 | 176 | |||
Provision charged (credited) to operations | 17,697 | 2,514 | |||
Balance at the end of the period | 30,000 | 16,533 | 19,353 | ||
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | (4,292) | ||||
Balance at the end of the period | (4,292) | ||||
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 1,808 | 1,786 | 1,808 | 1,109 | |
Provision charged (credited) to operations | 3,620 | (22) | 699 | ||
Balance at the end of the period | 5,051 | 1,786 | 1,808 | ||
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | (355) | ||||
Balance at the end of the period | (355) | ||||
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 15,123 | 18,152 | 15,123 | 11,675 | |
Losses charged to allowance | (19) | (39) | (1) | ||
Recoveries credited to allowance | 35 | 113 | 25 | ||
Net (losses) recoveries charged to allowance | 16 | 74 | 24 | ||
Provision charged (credited) to operations | 6,053 | 2,955 | 3,424 | ||
Balance at the end of the period | 37,612 | 18,152 | 15,123 | ||
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 13,391 | ||||
Balance at the end of the period | 13,391 | ||||
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 19,353 | 16,533 | 19,353 | ||
Losses charged to allowance | (7,353) | ||||
Recoveries credited to allowance | 318 | ||||
Net (losses) recoveries charged to allowance | (7,035) | ||||
Provision charged (credited) to operations | 4,215 | ||||
Balance at the end of the period | 16,533 | 19,353 | |||
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 3,467 | 3,762 | 3,467 | 2,950 | |
Losses charged to allowance | (160) | (201) | (122) | ||
Recoveries credited to allowance | 21 | 26 | 36 | ||
Net (losses) recoveries charged to allowance | (139) | (175) | (86) | ||
Provision charged (credited) to operations | 1,831 | 470 | 603 | ||
Balance at the end of the period | 3,874 | 3,762 | 3,467 | ||
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | (1,580) | ||||
Balance at the end of the period | (1,580) | ||||
Real estate - mortgage | Domestic | Residential Junior Lien | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 7,719 | 7,535 | 7,719 | 6,103 | |
Losses charged to allowance | (124) | (435) | (347) | ||
Recoveries credited to allowance | 186 | 286 | 369 | ||
Net (losses) recoveries charged to allowance | 62 | (149) | 22 | ||
Provision charged (credited) to operations | 2,402 | (35) | 1,594 | ||
Balance at the end of the period | 9,570 | 7,535 | 7,719 | ||
Real estate - mortgage | Domestic | Residential Junior Lien | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | (429) | ||||
Balance at the end of the period | (429) | ||||
Consumer | Domestic | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | 447 | 542 | 447 | 440 | |
Losses charged to allowance | (280) | (487) | (362) | ||
Recoveries credited to allowance | 69 | 40 | 43 | ||
Net (losses) recoveries charged to allowance | (211) | (447) | (319) | ||
Provision charged (credited) to operations | 185 | 542 | 326 | ||
Balance at the end of the period | 291 | 542 | 447 | ||
Consumer | Domestic | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | (225) | ||||
Balance at the end of the period | (225) | ||||
Foreign | Foreign | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | $ 871 | 823 | 871 | 842 | |
Losses charged to allowance | (1) | (3) | |||
Recoveries credited to allowance | 10 | 10 | |||
Net (losses) recoveries charged to allowance | 10 | (1) | 7 | ||
Provision charged (credited) to operations | 330 | (47) | 22 | ||
Balance at the end of the period | 753 | 823 | $ 871 | ||
Foreign | Foreign | ASU 2016-13 | |||||
Allowance for Credit Losses | |||||
Balance at the beginning of the period | $ (410) | ||||
Balance at the end of the period | $ (410) |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impairment By Loan Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | $ 19,447 | $ 12,675 |
Loans Individually Evaluated for Impairment, Allowance | 279 | 365 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 7,522,307 | 6,882,271 |
Loans Collectively Evaluated for Impairment, Allowance | 108,780 | 59,913 |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 1,189 | 1,935 |
Loans Individually Evaluated for Impairment, Allowance | 209 | 249 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 1,784,747 | 1,290,725 |
Loans Collectively Evaluated for Impairment, Allowance | 21,699 | 10,895 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 439 | 1,208 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,288,869 | 1,895,539 |
Loans Collectively Evaluated for Impairment, Allowance | 30,000 | 16,533 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 134 | 165 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 440,910 | 190,265 |
Loans Collectively Evaluated for Impairment, Allowance | 5,051 | 1,786 |
Commercial Real Estate Portfolio Segment [Member] | Domestic | 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 | 17,496 | 938 |
Loans Individually Evaluated for Impairment, Allowance | 70 | 116 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 1,829,261 | 2,184,945 |
Loans Collectively Evaluated for Impairment, Allowance | 37,542 | 18,037 |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 151 | 6,278 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 404,968 | 427,623 |
Loans Collectively Evaluated for Impairment, Allowance | 3,874 | 3,762 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 38 | 692 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 593,987 | 705,784 |
Loans Collectively Evaluated for Impairment, Allowance | 9,570 | 7,535 |
Consumer | Domestic | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 1,195 | |
Loans Collectively Evaluated for Impairment, Recorded Investment | 40,595 | 46,605 |
Loans Collectively Evaluated for Impairment, Allowance | 291 | 542 |
Foreign | Foreign | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 264 | |
Loans Collectively Evaluated for Impairment, Recorded Investment | 138,970 | 140,785 |
Loans Collectively Evaluated for Impairment, Allowance | $ 753 | $ 823 |
Allowance for Credit Losses (No
Allowance for Credit Losses (Non-accrual Basis By Loan Class) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | $ 19,822,000 | $ 4,886,000 | $ 15,791,000 |
Reduced interest income on non-accrual loans | 694,000 | 340,000 | $ 1,119,000 |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 1,189,000 | 1,901,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 439,000 | 1,208,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 134,000 | 165,000 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 17,496,000 | 938,000 | |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | 526,000 | 670,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | $ 38,000 | ||
Consumer | Domestic | |||
Loan loss allowances, financing receivable past due | |||
Non-accrual loans, total | $ 4,000 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Impaired Loans) (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Feb. 22, 2021USD ($) | Feb. 19, 2021USD ($)loan | Dec. 31, 2020USD ($) | |
Recorded investment: | ||||
Total impaired loans with related allowance | $ 636,000 | |||
Total impaired loans with no related allowance | 12,039,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with an allowance recorded | 685,000 | |||
Total impaired loans with no related allowance recorded | 13,255,000 | |||
Related Allowance | 365,000 | |||
Average recorded investment: | ||||
Total impaired loans with an allowance recorded | 645,000 | |||
Total impaired loans with no related allowance recorded | 52,945,000 | |||
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 365,000 | |||
Total trouble debt restructuring | 7,788,000 | $ 5,821,000 | ||
Amount of loans with some degree of payment deferral | $ 1,011,570,000 | |||
Loans | 6,894,946,000 | 7,541,754,000 | ||
Period of charge off for past due unsecured commercial loans | 90 days | |||
Percentage of loan payments on deferral period | 78.00% | |||
Percentage of loan sort of deferral program for relief | 13.00% | |||
Paycheck protection program loans (COVID-19 program) | ||||
Interest Recognized | ||||
Number of loans | loan | 3,500 | |||
Amount of loans outstanding | $ 395,872,000 | |||
Domestic | Commercial Loan [Member] | ||||
Interest Recognized | ||||
Loans | 1,785,936,000 | |||
Domestic | Commercial Real Estate: other construction and land development | ||||
Interest Recognized | ||||
Loans | 1,846,757,000 | |||
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ||||
Interest Recognized | ||||
Loans | 2,289,308,000 | |||
Domestic | Commercial Real Estate Multifamily Receivable [Member] | ||||
Interest Recognized | ||||
Loans | 441,044,000 | |||
Domestic | Residential First Mortgage Financing Receivable [Member] | ||||
Interest Recognized | ||||
Loans | 405,119,000 | |||
Domestic | Residential Junior Lien | ||||
Interest Recognized | ||||
Loans | 594,025,000 | |||
Commercial, financial and agricultural | ||||
Interest Recognized | ||||
Loans | 3,379,837,000 | 4,516,288,000 | ||
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | ||||
Recorded investment: | ||||
Total impaired loans with related allowance | 510,000 | |||
Total impaired loans with no related allowance | 1,425,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with an allowance recorded | 516,000 | |||
Total impaired loans with no related allowance recorded | 1,516,000 | |||
Related Allowance | 249,000 | |||
Average recorded investment: | ||||
Total impaired loans with an allowance recorded | 514,000 | |||
Total impaired loans with no related allowance recorded | 18,794,000 | |||
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 2,000 | |||
Total trouble debt restructuring | 32,000 | |||
Loans | 1,292,660,000 | 1,785,936,000 | ||
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 1,208,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 1,841,000 | |||
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 22,357,000 | |||
Interest Recognized | ||||
Loans | 1,896,747,000 | 2,289,308,000 | ||
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 165,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 168,000 | |||
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 651,000 | |||
Interest Recognized | ||||
Loans | 190,430,000 | 441,044,000 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Interest Recognized | ||||
Loans | 2,185,883,000 | 1,846,757,000 | ||
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | ||||
Recorded investment: | ||||
Total impaired loans with related allowance | 126,000 | |||
Total impaired loans with no related allowance | 812,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with an allowance recorded | 169,000 | |||
Total impaired loans with no related allowance recorded | 1,133,000 | |||
Related Allowance | 116,000 | |||
Average recorded investment: | ||||
Total impaired loans with an allowance recorded | 131,000 | |||
Total impaired loans with no related allowance recorded | 1,737,000 | |||
Interest Recognized | ||||
Loans | 2,185,883,000 | 1,846,757,000 | ||
Real estate - mortgage | ||||
Interest Recognized | ||||
Loans | 1,140,377,000 | 999,144,000 | ||
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 6,278,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 6,445,000 | |||
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 6,988,000 | |||
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 309,000 | |||
Total trouble debt restructuring | 5,608,000 | 4,078,000 | ||
Loans | 433,901,000 | 405,119,000 | ||
Real estate - mortgage | Domestic | Residential Junior Lien | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 692,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 692,000 | |||
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 1,023,000 | |||
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 42,000 | |||
Total trouble debt restructuring | 692,000 | 521,000 | ||
Loans | 706,476,000 | 594,025,000 | ||
Consumer | ||||
Interest Recognized | ||||
Loans | 47,800,000 | 40,595,000 | ||
Consumer | Domestic | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 1,195,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 1,196,000 | |||
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 1,117,000 | |||
Interest Recognized | ||||
Total trouble debt restructuring | 1,192,000 | 989,000 | ||
Loans | 47,800,000 | 40,595,000 | ||
Foreign | ||||
Interest Recognized | ||||
Loans | 141,049,000 | 138,970,000 | ||
Foreign | Foreign | ||||
Recorded investment: | ||||
Total impaired loans with no related allowance | 264,000 | |||
Unpaid principal balance: | ||||
Total impaired loans with no related allowance recorded | 264,000 | |||
Average recorded investment: | ||||
Total impaired loans with no related allowance recorded | 278,000 | |||
Interest Recognized | ||||
Total impaired loans with no related allowance recorded | 12,000 | |||
Total trouble debt restructuring | 264,000 | 233,000 | ||
Loans | $ 141,049,000 | $ 138,970,000 |
Allowance for Credit Losses (Ag
Allowance for Credit Losses (Aging By Loan Class) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | $ 8,238,000 | $ 59,705,000 | $ 40,674,000 |
Past due | 38,258,000 | 84,450,000 | |
Loans, current | 7,503,496,000 | 6,810,496,000 | |
Total loans | 7,541,754,000 | 6,894,946,000 | |
30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 9,307,000 | 18,169,000 | |
60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 3,606,000 | 4,937,000 | |
90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 25,345,000 | 61,344,000 | |
Domestic | Commercial Loan [Member] | |||
Financing receivable recorded investment | |||
Total loans | 1,785,936,000 | ||
Domestic | Commercial Real Estate: other construction and land development | |||
Financing receivable recorded investment | |||
Total loans | 1,846,757,000 | ||
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | |||
Financing receivable recorded investment | |||
Total loans | 2,289,308,000 | ||
Domestic | Commercial Real Estate Multifamily Receivable [Member] | |||
Financing receivable recorded investment | |||
Total loans | 441,044,000 | ||
Domestic | Residential First Mortgage Financing Receivable [Member] | |||
Financing receivable recorded investment | |||
Total loans | 405,119,000 | ||
Domestic | Residential Junior Lien | |||
Financing receivable recorded investment | |||
Total loans | 594,025,000 | ||
Commercial, financial and agricultural | |||
Financing receivable recorded investment | |||
Total loans | 4,516,288,000 | 3,379,837,000 | |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 318,000 | 421,000 | |
Past due | 3,603,000 | 5,052,000 | |
Loans, current | 1,782,333,000 | 1,287,608,000 | |
Total loans | 1,785,936,000 | 1,292,660,000 | |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 1,931,000 | 3,134,000 | |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 1,109,000 | 626,000 | |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 563,000 | 1,292,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 186,000 | 54,878,000 | |
Past due | 2,840,000 | 65,017,000 | |
Loans, current | 2,286,468,000 | 1,831,730,000 | |
Total loans | 2,289,308,000 | 1,896,747,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 2,435,000 | 8,058,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 219,000 | 2,031,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 186,000 | 54,928,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | |||
Financing receivable recorded investment | |||
Past due | 126,000 | 478,000 | |
Loans, current | 440,918,000 | 189,952,000 | |
Total loans | 441,044,000 | 190,430,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 126,000 | 313,000 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 165,000 | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Financing receivable recorded investment | |||
Total loans | 1,846,757,000 | 2,185,883,000 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | |||
Financing receivable recorded investment | |||
Past due | 18,500,000 | 564,000 | |
Loans, current | 1,828,257,000 | 2,185,319,000 | |
Total loans | 1,846,757,000 | 2,185,883,000 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 1,059,000 | 509,000 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 854,000 | 55,000 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 16,587,000 | ||
Real estate - mortgage | |||
Financing receivable recorded investment | |||
Total loans | 999,144,000 | 1,140,377,000 | |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 5,890,000 | 3,107,000 | |
Past due | 9,490,000 | 8,559,000 | |
Loans, current | 395,629,000 | 425,342,000 | |
Total loans | 405,119,000 | 433,901,000 | |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 2,399,000 | 3,229,000 | |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 926,000 | 1,670,000 | |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 6,165,000 | 3,660,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 1,197,000 | 1,200,000 | |
Past due | 2,005,000 | 2,789,000 | |
Loans, current | 592,020,000 | 703,687,000 | |
Total loans | 594,025,000 | 706,476,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 561,000 | 1,112,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 247,000 | 477,000 | |
Real estate - mortgage | Domestic | Residential Junior Lien | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 1,197,000 | 1,200,000 | |
Consumer | |||
Financing receivable recorded investment | |||
Total loans | 40,595,000 | 47,800,000 | |
Consumer | Domestic | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 79,000 | 88,000 | |
Past due | 468,000 | 630,000 | |
Loans, current | 40,127,000 | 47,170,000 | |
Total loans | 40,595,000 | 47,800,000 | |
Consumer | Domestic | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 318,000 | 467,000 | |
Consumer | Domestic | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 71,000 | 75,000 | |
Consumer | Domestic | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | 79,000 | 88,000 | |
Foreign | |||
Financing receivable recorded investment | |||
Total loans | 138,970,000 | 141,049,000 | |
Foreign | Foreign | |||
Financing receivable recorded investment | |||
Past due 90 days or Greater and Still Accruing | 568,000 | 11,000 | |
Past due | 1,226,000 | 1,361,000 | |
Loans, current | 137,744,000 | 139,688,000 | |
Total loans | 138,970,000 | 141,049,000 | |
Foreign | Foreign | 30 to 59 Days | |||
Financing receivable recorded investment | |||
Past due | 478,000 | 1,347,000 | |
Foreign | Foreign | 60 to 89 Days | |||
Financing receivable recorded investment | |||
Past due | 180,000 | 3,000 | |
Foreign | Foreign | 90 Days or Greater | |||
Financing receivable recorded investment | |||
Past due | $ 568,000 | $ 11,000 |
Allowance for Credit Losses (Po
Allowance for Credit Losses (Portfolio Credit Quality) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loan portfolio by credit quality indicator | ||
2020 | $ 3,601,680 | |
2019 | 1,627,511 | |
2018 | 1,087,031 | |
2017 | 556,923 | |
2016 | 327,336 | |
Prior | 341,273 | |
Total loans | 7,541,754 | $ 6,894,946 |
Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 6,538,085 | |
Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 33,553 | |
Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 62,315 | |
Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 248,318 | |
Domestic | Commercial Loan [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 1,288,332 | |
2019 | 241,724 | |
2018 | 146,051 | |
2017 | 85,596 | |
2016 | 14,216 | |
Prior | 10,017 | |
Total loans | 1,785,936 | |
Domestic | Commercial Loan [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 1,168,671 | |
2019 | 240,869 | |
2018 | 145,670 | |
2017 | 85,434 | |
2016 | 13,901 | |
Prior | 10,000 | |
Total loans | 1,664,545 | 1,228,110 |
Domestic | Commercial Loan [Member] | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 75,638 | |
Total loans | 75,638 | 569 |
Domestic | Commercial Loan [Member] | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 39,886 | |
2019 | 11 | |
2017 | 3 | |
Prior | 17 | |
Total loans | 39,917 | 39 |
Domestic | Commercial Loan [Member] | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 3,360 | |
2019 | 683 | |
2018 | 289 | |
2016 | 315 | |
Total loans | 4,647 | 62,007 |
Domestic | Commercial Loan [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 777 | |
2019 | 161 | |
2018 | 92 | |
2017 | 159 | |
Total loans | 1,189 | |
Domestic | Commercial Real Estate: other construction and land development | ||
Loan portfolio by credit quality indicator | ||
2020 | 833,796 | |
2019 | 600,602 | |
2018 | 320,308 | |
2017 | 78,174 | |
2016 | 10,534 | |
Prior | 3,343 | |
Total loans | 1,846,757 | |
Domestic | Commercial Real Estate: other construction and land development | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 773,165 | |
2019 | 576,707 | |
2018 | 320,308 | |
2017 | 78,174 | |
2016 | 10,534 | |
Prior | 3,343 | |
Total loans | 1,762,231 | |
Domestic | Commercial Real Estate: other construction and land development | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 20,828 | |
2019 | 21,650 | |
Total loans | 42,478 | |
Domestic | Commercial Real Estate: other construction and land development | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 23,101 | |
2019 | 1,451 | |
Total loans | 24,552 | |
Domestic | Commercial Real Estate: other construction and land development | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 16,702 | |
2019 | 794 | |
Total loans | 17,496 | |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 1,002,557 | |
2019 | 380,123 | |
2018 | 391,303 | |
2017 | 192,165 | |
2016 | 206,193 | |
Prior | 116,967 | |
Total loans | 2,289,308 | |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 884,070 | |
2019 | 373,993 | |
2018 | 386,268 | |
2017 | 189,639 | |
2016 | 202,500 | |
Prior | 116,729 | |
Total loans | 2,153,199 | 1,710,446 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 3,041 | |
2018 | 4,758 | |
2017 | 177 | |
2016 | 3,218 | |
Total loans | 11,194 | 13,184 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 61,637 | |
2019 | 942 | |
2018 | 277 | |
2017 | 80 | |
Total loans | 62,936 | 20,183 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 53,809 | |
2019 | 4,986 | |
2017 | 2,269 | |
2016 | 475 | |
Prior | 1 | |
Total loans | 61,540 | 151,726 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2019 | 202 | |
Prior | 237 | |
Total loans | 439 | |
Domestic | Commercial Real Estate Multifamily Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 74,711 | |
2019 | 208,356 | |
2018 | 82,818 | |
2017 | 64,110 | |
2016 | 6,801 | |
Prior | 4,248 | |
Total loans | 441,044 | |
Domestic | Commercial Real Estate Multifamily Receivable [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 74,577 | |
2019 | 208,356 | |
2018 | 82,818 | |
2017 | 64,110 | |
2016 | 6,801 | |
Prior | 4,248 | |
Total loans | 440,910 | 190,265 |
Domestic | Commercial Real Estate Multifamily Receivable [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 134 | |
Total loans | 134 | |
Domestic | Residential First Mortgage Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 81,090 | |
2019 | 62,179 | |
2018 | 72,430 | |
2017 | 54,593 | |
2016 | 29,299 | |
Prior | 105,528 | |
Total loans | 405,119 | |
Domestic | Residential First Mortgage Financing Receivable [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 81,004 | |
2019 | 62,165 | |
2018 | 72,299 | |
2017 | 54,593 | |
2016 | 29,250 | |
Prior | 105,463 | |
Total loans | 404,774 | 426,546 |
Domestic | Residential First Mortgage Financing Receivable [Member] | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 253 | |
Domestic | Residential First Mortgage Financing Receivable [Member] | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2019 | 14 | |
2018 | 131 | |
Total loans | 145 | 144 |
Domestic | Residential First Mortgage Financing Receivable [Member] | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
2016 | 49 | |
Total loans | 49 | 680 |
Domestic | Residential First Mortgage Financing Receivable [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 86 | |
Prior | 65 | |
Total loans | 151 | |
Domestic | Residential Junior Lien | ||
Loan portfolio by credit quality indicator | ||
2020 | 197,048 | |
2019 | 108,276 | |
2018 | 61,674 | |
2017 | 75,868 | |
2016 | 56,705 | |
Prior | 94,454 | |
Total loans | 594,025 | |
Domestic | Residential Junior Lien | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 196,308 | |
2019 | 108,276 | |
2018 | 61,636 | |
2017 | 75,056 | |
2016 | 56,705 | |
Prior | 94,454 | |
Total loans | 592,435 | 704,958 |
Domestic | Residential Junior Lien | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 740 | |
2017 | 812 | |
Total loans | 1,552 | 826 |
Domestic | Residential Junior Lien | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2018 | 38 | |
Total loans | 38 | |
Commercial, financial and agricultural | ||
Loan portfolio by credit quality indicator | ||
Total loans | 4,516,288 | 3,379,837 |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 1,785,936 | 1,292,660 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 2,289,308 | 1,896,747 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 441,044 | 190,430 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 1,846,757 | 2,185,883 |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | ||
Loan portfolio by credit quality indicator | ||
Total loans | 1,846,757 | 2,185,883 |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 2,090,370 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 18,721 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 41,949 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 33,905 | |
Real estate - mortgage | ||
Loan portfolio by credit quality indicator | ||
Total loans | 999,144 | 1,140,377 |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Total loans | 405,119 | 433,901 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan portfolio by credit quality indicator | ||
Total loans | 594,025 | 706,476 |
Consumer | ||
Loan portfolio by credit quality indicator | ||
Total loans | 40,595 | 47,800 |
Consumer | Domestic | ||
Loan portfolio by credit quality indicator | ||
2020 | 30,910 | |
2019 | 7,159 | |
2018 | 875 | |
2017 | 225 | |
2016 | 55 | |
Prior | 1,371 | |
Total loans | 40,595 | 47,800 |
Consumer | Domestic | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 30,910 | |
2019 | 7,159 | |
2018 | 875 | |
2017 | 225 | |
2016 | 55 | |
Prior | 1,371 | |
Total loans | 40,595 | 46,605 |
Foreign | ||
Loan portfolio by credit quality indicator | ||
Total loans | 138,970 | 141,049 |
Foreign | Foreign | ||
Loan portfolio by credit quality indicator | ||
2020 | 93,236 | |
2019 | 19,092 | |
2018 | 11,572 | |
2017 | 6,192 | |
2016 | 3,533 | |
Prior | 5,345 | |
Total loans | 138,970 | 141,049 |
Foreign | Foreign | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
2020 | 93,236 | |
2019 | 19,092 | |
2018 | 11,572 | |
2017 | 6,192 | |
2016 | 3,533 | |
Prior | 5,345 | |
Total loans | $ 138,970 | $ 140,785 |
Allowance for Credit Losses (_3
Allowance for Credit Losses (Portfolio Credit Quality By Loan Class) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 7,541,754 | $ 6,894,946 |
Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 6,538,085 | |
Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 33,553 | |
Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 62,315 | |
Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 248,318 | |
Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 12,675 | |
Commercial Loan [Member] | ||
Loan portfolio by credit quality indicator | ||
Number of additional relationships reclassified from Pass to Watch List - Pass | item | 2 | |
Number of relationships secured by oil and gas properties reclassified from pass to watch list pass | item | 1 | |
Number of relationships secured by accounts receivable and inventory that were reclassified from pass category to watch list - pass | item | 1 | |
Commercial Real Estate: other construction and land development | ||
Loan portfolio by credit quality indicator | ||
Number of relationships secured by real estate planned for lot development that were reclassified from Watch List pass category to special review category. | item | 1 | |
Number of relationships secured by commercial property that were reclassified from Watch List pass category to special review category. | item | 1 | |
Number of relationships secured by commercial real estate that were reclassified from Watch List pass category to special review category. | item | 1 | |
Commercial Real Estate Farmland and Commercial Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Number of relationships secured by commercial real estate that were reclassified from Pass category. | item | 2 | |
Domestic | Commercial Loan [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 1,785,936 | |
Domestic | Commercial Loan [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,664,545 | 1,228,110 |
Domestic | Commercial Loan [Member] | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 75,638 | 569 |
Domestic | Commercial Loan [Member] | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 39,917 | 39 |
Domestic | Commercial Loan [Member] | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 4,647 | 62,007 |
Domestic | Commercial Loan [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,189 | |
Domestic | Commercial Loan [Member] | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,935 | |
Domestic | Commercial Real Estate: other construction and land development | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,846,757 | |
Domestic | Commercial Real Estate: other construction and land development | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,762,231 | |
Domestic | Commercial Real Estate: other construction and land development | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 42,478 | |
Domestic | Commercial Real Estate: other construction and land development | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 24,552 | |
Domestic | Commercial Real Estate: other construction and land development | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 17,496 | |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,289,308 | |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,153,199 | 1,710,446 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 11,194 | 13,184 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 62,936 | 20,183 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 61,540 | 151,726 |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 439 | |
Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,208 | |
Domestic | Commercial Real Estate Multifamily Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 441,044 | |
Domestic | Commercial Real Estate Multifamily Receivable [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 440,910 | 190,265 |
Domestic | Commercial Real Estate Multifamily Receivable [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 134 | |
Domestic | Commercial Real Estate Multifamily Receivable [Member] | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 165 | |
Domestic | Residential First Mortgage Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 405,119 | |
Domestic | Residential First Mortgage Financing Receivable [Member] | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 404,774 | 426,546 |
Domestic | Residential First Mortgage Financing Receivable [Member] | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 253 | |
Domestic | Residential First Mortgage Financing Receivable [Member] | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 145 | 144 |
Domestic | Residential First Mortgage Financing Receivable [Member] | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 49 | 680 |
Domestic | Residential First Mortgage Financing Receivable [Member] | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 151 | |
Domestic | Residential First Mortgage Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 6,278 | |
Domestic | Residential Junior Lien | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 594,025 | |
Domestic | Residential Junior Lien | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 592,435 | 704,958 |
Domestic | Residential Junior Lien | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,552 | 826 |
Domestic | Residential Junior Lien | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 38 | |
Domestic | Residential Junior Lien | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 692 | |
Commercial, financial and agricultural | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 4,516,288 | 3,379,837 |
Commercial, financial and agricultural | Domestic | Commercial Loan [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,785,936 | 1,292,660 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Farmland and Commercial Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,289,308 | 1,896,747 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate Multifamily Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 441,044 | 190,430 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,846,757 | 2,185,883 |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,846,757 | 2,185,883 |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,090,370 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Special Mention [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 18,721 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Special Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 41,949 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Substandard [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 33,905 | |
Commercial Real Estate Portfolio Segment [Member] | Domestic | Commercial Real Estate: other construction and land development | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 938 | |
Real estate - mortgage | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 999,144 | 1,140,377 |
Real estate - mortgage | Domestic | Residential First Mortgage Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 405,119 | 433,901 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 594,025 | 706,476 |
Consumer | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 40,595 | 47,800 |
Consumer | Domestic | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 40,595 | 47,800 |
Consumer | Domestic | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 40,595 | 46,605 |
Consumer | Domestic | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,195 | |
Foreign | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 138,970 | 141,049 |
Foreign | Foreign | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 138,970 | 141,049 |
Foreign | Foreign | Pass [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 138,970 | 140,785 |
Foreign | Foreign | Nonperforming Financing Receivable [Member] | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 264 |
Bank Premises and Equipment (De
Bank Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Bank premises and equipment | ||
Less: accumulated depreciation | $ (526,939) | $ (498,641) |
Bank premises and equipment, net | 479,878 | 506,595 |
Building and Building Improvements [Member] | ||
Bank premises and equipment | ||
Bank premises and equipment, gross | $ 577,656 | 573,257 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Bank premises and equipment | ||
Estimated useful lives | 5 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Bank premises and equipment | ||
Estimated useful lives | 39 years | |
Furniture Equipment and Vehicles [Member] | ||
Bank premises and equipment | ||
Bank premises and equipment, gross | $ 311,313 | 313,880 |
Furniture Equipment and Vehicles [Member] | Minimum [Member] | ||
Bank premises and equipment | ||
Estimated useful lives | 1 year | |
Furniture Equipment and Vehicles [Member] | Maximum [Member] | ||
Bank premises and equipment | ||
Estimated useful lives | 20 years | |
Land [Member] | ||
Bank premises and equipment | ||
Bank premises and equipment, gross | $ 117,848 | $ 118,099 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Identified intangible assets | |||
Carrying Amount | $ 60,697,000 | $ 60,697,000 | |
Accumulated Amortization | 60,697,000 | 60,697,000 | |
Amortization expense | 0 | 0 | $ 0 |
Estimated amortization expense for each of the five succeeding fiscal years and thereafter | |||
Changes in carrying amount of goodwill | 0 | 0 | |
Core Deposits [Member] | |||
Identified intangible assets | |||
Carrying Amount | 58,675,000 | 58,675,000 | |
Accumulated Amortization | 58,675,000 | 58,675,000 | |
Contractual Rights [Member] | |||
Identified intangible assets | |||
Carrying Amount | 2,022,000 | 2,022,000 | |
Accumulated Amortization | $ 2,022,000 | $ 2,022,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Demand non-interest bearing | |||
Domestic | $ 3,781,277 | $ 2,815,835 | |
Foreign | 934,537 | 730,070 | |
Total demand non-interest bearing | 4,715,814 | 3,545,905 | |
Savings and interest bearing demand | |||
Domestic | 2,919,314 | 2,477,668 | |
Foreign | 933,191 | 790,161 | |
Total savings and interest bearing demand | 3,852,505 | 3,267,829 | |
$100,000 or more | |||
Time, certificate of deposit | 1,621,084 | ||
Less than $100,000 | |||
Domestic | 291,473 | 302,620 | |
Foreign | 241,989 | 246,644 | |
Total time, certificates of deposit | 2,153,541 | 2,012,300 | |
Total deposits | 10,721,860 | 8,826,034 | |
Savings and interest bearing demand | |||
Domestic | 5,098 | 13,462 | $ 11,029 |
Foreign | 1,260 | 2,917 | 1,735 |
Total savings and interest bearing demand | 6,358 | 16,379 | 12,764 |
$100,000 or more | |||
Domestic | 8,827 | 7,804 | 4,741 |
Foreign | 7,536 | 9,407 | 5,798 |
Less than $100,000 | |||
Domestic | 1,781 | 2,232 | 1,589 |
Foreign | 1,086 | 1,527 | 968 |
Total time, certificates of deposit | 19,230 | 20,970 | 13,096 |
Total interest expense on deposits | 25,588 | 37,349 | $ 25,860 |
Domestic | |||
$100,000 or more | |||
Time, certificate of deposit | 797,692 | 636,005 | |
Foreign | |||
$100,000 or more | |||
Time, certificate of deposit | $ 822,387 | $ 827,031 |
Deposits (Scheduled Maturities)
Deposits (Scheduled Maturities) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Scheduled maturities of time deposits | |||
2021 | $ 1,971,433,000 | ||
2022 | 141,388,000 | ||
2023 | 28,781,000 | ||
2024 | 11,205,000 | ||
2025 | 681,000 | ||
Thereafter | 53,000 | ||
Total time, certificates of deposit | 2,153,541,000 | $ 2,012,300,000 | |
Time Deposits 250,000 or exceed | 250,000 | $ 1,085,404,000 | $ 929,860 |
Scheduled maturities of time deposits in amounts of $100,000 or more | |||
Due within 3 months or less | 606,807,000 | ||
Due after 3 months and within 6 months | 385,859,000 | ||
Due after 6 months and within 12 months | 498,626,000 | ||
Due after 12 months | 129,792,000 | ||
Total | $ 1,621,084,000 |
Securities Sold Under Repurch_3
Securities Sold Under Repurchase Agreements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Collateral Securities and Repurchase Borrowing agreements | ||
Average outstanding amount | $ 335,392,000 | $ 267,439,000 |
Maximum amount outstanding at any month end | 428,148,000 | 299,827,000 |
Collateralized Securities, Book Value of Securities Sold | 517,704,000 | 328,671,000 |
Collateralized securities, Fair Value of Securities Sold | 518,805,000 | 329,926,000 |
Repurchase Borrowing, Balance of Liability | $ 428,148,000 | $ 236,536,000 |
Repurchase Borrowing, Weighted Average Interest Rate (as a percent) | 0.14% | 0.89% |
Maturity Overnight [Member] | ||
Collateral Securities and Repurchase Borrowing agreements | ||
Collateralized Securities, Book Value of Securities Sold | $ 506,020,000 | $ 317,107,000 |
Collateralized securities, Fair Value of Securities Sold | 507,164,000 | 318,397,000 |
Repurchase Borrowing, Balance of Liability | $ 416,757,000 | $ 225,243,000 |
Repurchase Borrowing, Weighted Average Interest Rate (as a percent) | 0.13% | 0.87% |
Maturity over 90 days [Member] | ||
Collateral Securities and Repurchase Borrowing agreements | ||
Collateralized Securities, Book Value of Securities Sold | $ 11,684,000 | $ 11,564,000 |
Collateralized securities, Fair Value of Securities Sold | 11,641,000 | 11,529,000 |
Repurchase Borrowing, Balance of Liability | $ 11,391,000 | $ 11,293,000 |
Repurchase Borrowing, Weighted Average Interest Rate (as a percent) | 0.43% | 1.28% |
Other Borrowed Funds (Details)
Other Borrowed Funds (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 436,327,000 | $ 626,511,000 |
Short-term Debt [Member] | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 190,000,000 | |
Rate on balance outstanding at year end (as a percent) | 1.48% | |
Average daily balance | $ 110,776,000 | $ 190,431,000 |
Average rate (as a percent) | 1.19% | 2.60% |
Maximum amount outstanding at any month end | $ 292,000,000 | $ 371,775,000 |
Long-term Debt [Member] | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 436,327,000 | $ 436,511,000 |
Rate on balance outstanding at year end (as a percent) | 1.73% | 1.73% |
Average daily balance | $ 436,411,000 | $ 436,593,000 |
Average rate (as a percent) | 1.71% | 1.71% |
Maximum amount outstanding at any month end | $ 436,495,000 | $ 436,675,000 |
Long-term Debt [Member] | Federal Home Loan Bank advances maturing July 2028 | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | 75,000,000 | |
Long-term Debt [Member] | Federal Home Loan Bank advances maturing March 2033 | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | 100,000,000 | |
Long-term Debt [Member] | Federal Home Loan Bank advances maturing August 2033 | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 250,000,000 | |
Long-term Debt [Member] | Federal Home Loan Bank amortizing advances | ||
Federal Home Loan Bank advances | ||
Number of amortizing advances | loan | 2 | |
Amortizing in 2021 | $ 189,000 | |
Amortizing in 2022 | 194,000 | |
Amortizing in 2023 | 199,000 | |
Amortizing in 2024 | 204,000 | |
Amortizing in 2025 | 210,000 | |
Long-term Debt [Member] | Federal Home Loan Bank advances maturing December 2033 | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | 3,091,000 | |
Long-term Debt [Member] | Federal Home Loan Bank advances maturing November 2033 | ||
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 8,236,000 |
Junior Subordinated Deferrabl_3
Junior Subordinated Deferrable Interest Debentures (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Number of statutory business trusts issuing trust preferred securities | item | 5 | |
Junior subordinated deferrable interest debentures | $ 134,642 | $ 134,642 |
Maximum number of consecutive quarterly period available for deferral of interest payment on Trusts 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 | |
Trust XI | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | 25,990 | |
Trust X | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 21,021 |
Junior Subordinated Deferrabl_4
Junior Subordinated Deferrable Interest Debentures (Key Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 134,642 | $ 134,642 |
Trust VIII | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,774 | |
Interest rate (as a percent) | 3.29% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 3.05% | |
Trust IX | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 41,238 | |
Interest rate (as a percent) | 1.85% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust X | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 21,021 | |
Interest rate (as a percent) | 1.86% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.65% | |
Trust XI | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,990 | |
Interest rate (as a percent) | 1.85% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust XII | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 20,619 | |
Interest rate (as a percent) | 1.68% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.45% |
Earnings per Share ("EPS") (Det
Earnings per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic EPS | |||
Net income | $ 167,319 | $ 205,104 | $ 215,931 |
Shares (Denominator) | 63,725,819 | 65,476,606 | 66,106,580 |
Per Share Amount | $ 2.63 | $ 3.13 | $ 3.27 |
Diluted EPS | |||
Net Income | $ 167,319 | $ 205,104 | $ 215,931 |
Potential dilutive common shares and warrants | 127,316 | 209,078 | 527,240 |
Shares (Denominator) | 63,853,135 | 65,685,684 | 66,633,820 |
Per Share Amount (in dollars per share) | $ 2.62 | $ 3.12 | $ 3.24 |
Employees' Profit Sharing Plan
Employees' Profit Sharing Plan (Details) - Deferred Profit Sharing [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employees' profit sharing plan | |||
Minimum period of continuous employment to be fully vested | 1 year | ||
Profit sharing costs | $ 4,000 | $ 4,200 | $ 3,850 |
International Operations (Detai
International Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans | ||||
Loans | $ 7,541,754 | $ 6,894,946 | ||
Less allowance for credit losses | (109,059) | (60,278) | $ (61,384) | $ (67,687) |
Net loans | 7,432,695 | 6,834,668 | ||
Accrued interest receivable | 37,881 | 36,620 | ||
International Banking Services [Member] | ||||
Loans | ||||
Accrued interest receivable | 605 | 743 | ||
Outstanding standby and commercial letters of credit | 118,722 | |||
Revenues | 4,676 | 5,445 | $ 5,412 | |
International Banking Services [Member] | Foreign | ||||
Loans | ||||
Loans | 138,970 | 141,049 | ||
Less allowance for credit losses | (753) | (823) | ||
Net loans | 138,217 | 140,226 | ||
International Banking Services [Member] | Foreign | Commercial | ||||
Loans | ||||
Loans | 90,177 | 88,979 | ||
International Banking Services [Member] | Foreign | Others | ||||
Loans | ||||
Loans | $ 48,793 | $ 52,070 |
Income Taxes (Current and Defer
Income Taxes (Current and Deferred Portions of Net Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
U.S. | $ 43,794 | $ 48,559 | $ 48,144 |
State | 3,709 | 2,944 | 3,370 |
Foreign | 58 | 38 | (5) |
Total current taxes | 47,561 | 51,541 | 51,509 |
Deferred | |||
U.S. | (2,733) | 2,979 | 5,130 |
State | (389) | 330 | 13 |
Total deferred taxes | (3,122) | 3,309 | 5,143 |
Total income taxes | $ 44,439 | $ 54,850 | $ 56,652 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense Differences from the Amount Computed by Applying the U.S. Federal Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Reasons for the difference of income tax expense | |||
Computed expected tax expense | $ 45,218 | $ 55,086 | $ 57,831 |
Change in taxes resulting from: | |||
Tax-exempt interest income | (2,709) | (2,550) | (3,101) |
State tax, net of federal income taxes and tax credit and refunds | 2,622 | 2,587 | 2,673 |
Other investment income | (2,205) | (1,480) | (1,561) |
Deferred tax adjustment due to federal tax rate change | (1,618) | ||
Net investment expense, low income housing investment | 1,990 | 623 | 2,518 |
Other | (477) | 584 | (90) |
Total income taxes | $ 44,439 | $ 54,850 | $ 56,652 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax assets: | |||
Loans receivable, principally due to the allowance for probable loan losses | $ 21,921 | $ 12,050 | |
Other real estate owned | 1,183 | 2,501 | |
Impairment charges on available-for-sale securities | 1,054 | ||
Accrued expenses | 81 | 98 | |
Other | 5,649 | 6,019 | |
Total deferred tax assets | 28,834 | 21,722 | |
Deferred tax liabilities: | |||
Bank premises and equipment, principally due to differences on depreciation | (12,350) | (12,478) | |
Net unrealized gains on available for sale investment securities | (5,679) | (508) | |
Impairment charges on available-for-securities | (19) | ||
Identified intangible assets and goodwill | (13,807) | (13,649) | |
Other | (20,551) | (18,849) | |
Total deferred tax liabilities | 52,406 | 45,484 | |
Net deferred tax liability | $ (23,572) | $ (23,762) | |
U.S. Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Stock Options (Details)
Stock Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 05, 2012 | |
Employee Stock Option [Member] | ||||
Stock option details | ||||
Shares available for future grants | 10,102 | 800,000 | ||
Maximum exercisable period for options granted | 10 years | |||
Black-Scholes-Merton option valuation model assumptions | ||||
Expected Life (Years) | 7 years | 7 years | ||
Dividend yield (as a percent) | 6.04% | 2.93% | ||
Interest rate (as a percent) | 0.74% | 1.97% | ||
Volatility (as a percent) | 29.04% | 26.97% | ||
Number of options granted (in shares) | 35,000 | |||
Stock option activity | ||||
Options outstanding at the beginning of the period (in shares) | 658,588 | |||
Plus: Options granted (in shares) | 35,000 | |||
Less: | ||||
Exercise of stock options (in shares) | 26,010 | |||
Options forfeited (in shares) | 16,451 | |||
Options outstanding at the end of the period (in shares) | 651,127 | 658,588 | ||
Options fully vested and exercisable at the end of the period (in shares) | 409,782 | |||
Stock Options, Weighted average exercise price | ||||
Options outstanding at the beginning, weighted average exercise price (in dollars per share) | $ 27.55 | |||
Plus: Options granted, weighted average exercise price (in dollars per share) | 18.79 | |||
Less: | ||||
Options exercised, weighted average exercise price (in dollars per share) | 20.87 | |||
Options forfeited, weighted average exercise price (in dollars per share) | 31.94 | |||
Options outstanding at the end, weighted average exercise price (in dollars per share) | 27.24 | $ 27.55 | ||
Options fully vested and exercisable at the end, weighted average exercise price (in dollars per share) | $ 22.98 | |||
Stock Options, Weighted average remaining contractual term (years) | ||||
Options outstanding at the end, weighted average remaining contractual term (years) | 5 years 18 days | |||
Options fully vested and exercisable at the end, weighted average remaining contractual term (years) | 3 years 7 months 9 days | |||
Stock Options, Aggregate intrinsic value | ||||
Options outstanding at the end, aggregate intrinsic value | $ 6,817,000 | |||
Options fully vested and exercisable at the end, aggregate intrinsic value | 5,953,000 | |||
Stock-based compensation expense | 743,000 | $ 980,000 | $ 1,035,000 | |
Stock-based compensation cost, unrecognized, related to non-vested options | $ 1,254,000 | |||
Stock-based compensation cost, unrecognized, related to non-vested options, weighted-average period of recognition | 1 year 8 months 12 days | |||
Other information pertaining to option activity | ||||
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 2.46 | $ 7.38 | $ 11.78 | |
Total fair value of stock options vested | $ 1,218,000 | $ 1,333,000 | $ 1,077,000 | |
Total intrinsic value of stock options exercised | $ 356,000 | $ 2,373,000 | $ 2,045,000 | |
Incentive Stock Options to 10 Percent Shareholders [Member] | ||||
Stock option details | ||||
Maximum exercisable period for options granted | 5 years |
Long Term Restricted Stock Un_2
Long Term Restricted Stock Units (Details) - International Bancshares Corporation, Long Term Restricted Stock Unit Plan 2009 [Member] - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2020shares | |
Long-Term Restricted Stock Units | |
Granted units | 0 |
Outstanding grants (in shares) | 0 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Other Tax Matters (Details) | Dec. 31, 2019USD ($) |
Commitments and Contingent Liabilities and Other Matters, details | |
Approximate cash maintained to satisfy regulatory reserve requirements | $ 125,764,000 |
Transactions with Related Par_2
Transactions with Related Parties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Aggregate amount receivable from related parties | $ 30,398,000 | $ 37,605,000 |
Financial Instruments with Of_3
Financial Instruments with Off-Statement of Condition Risk and Concentrations of Credit Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Maximum [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Credit risk commitment, maximum expiration date | 1 year | |
Commitments to Extend Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | $ 2,354,010,000 | |
Line of Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | 13,579,000 | |
Standby Letters of Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | 118,381,000 | |
Guarantee obligations, maximum exposure | 118,381,000 | |
Commercial Letters of Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Outstanding amount of financial instruments whose, contract amounts represent credit risks | 341,000 | |
Unsecured Letters of Credit [Member] | ||
Financial amounts of instruments, whose contract amounts represent credit risks | ||
Unsecured letters of credit | $ 39,487,000 | $ 49,965,000 |
Capital Requirements (Details)
Capital Requirements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Payments for repurchase of warrants | $ 29,005,000 | |
Dividend payable by subsidiaries, maximum | $ 948,000,000 |
Capital Requirements (Capital A
Capital Requirements (Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Capital Requirements | ||
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 | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 134,642 | $ 134,642 |
Parent Company [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 1,874,641 | $ 1,833,174 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 19.05% | 18.58% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 2,105,360 | $ 2,018,488 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 1,992,403 | 1,953,711 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 1,992,403 | $ 1,953,711 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 21.40 | 20.46 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 20.25 | 19.80 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 14.92 | 16.65 |
Parent Company [Member] | Minimum [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 688,678 | $ 690,746 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 7.00% | 7.00% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 1,033,017 | $ 1,036,118 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 836,252 | 838,762 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 534,228 | $ 469,267 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 10.500 | 10.500 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8.500 | 8.500 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
International Bank of Commerce Laredo [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 1,295,437 | $ 1,268,078 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 18.19% | 18.23% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 1,380,685 | $ 1,315,453 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 1,295,437 | 1,268,078 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 1,295,437 | $ 1,268,078 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 19.39 | 18.91 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 18.19 | 18.23 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 13.11 | 15.21 |
International Bank of Commerce Laredo [Member] | Minimum [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 498,492 | $ 486,950 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 462,885 | $ 452,168 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 7.00% | 7.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 747,737 | $ 730,425 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 712,131 | 695,643 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 605,311 | 591,296 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 569,705 | 556,514 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | 395,289 | 333,576 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 494,112 | $ 416,970 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 10.500 | 10.500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8.500 | 8.500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8 | 8 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5 | 5 |
International Bank Of Commerce Oklahoma | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 207,339 | $ 201,202 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 17.45% | 16.91% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 218,657 | $ 206,807 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 207,339 | 201,202 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 207,339 | $ 201,202 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 18.41 | 17.38 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 17.45 | 16.91 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 12.98 | 14.79 |
International Bank Of Commerce Oklahoma | Minimum [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 83,150 | $ 83,303 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 77,211 | $ 77,353 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 7.00% | 7.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 124,725 | $ 124,955 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 118,786 | 119,004 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 100,968 | 101,154 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 95,029 | 95,203 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | 63,879 | 54,406 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 79,848 | $ 68,007 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 10.500 | 10.500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8.500 | 8.500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8 | 8 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5 | 5 |
International Bank of Commerce Brownsville [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 189,575 | $ 185,112 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 22.18% | 22.70% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 200,269 | $ 192,417 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 189,575 | 185,112 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 189,575 | $ 185,112 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 23.43 | 23.60 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 22.18 | 22.70 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 14.55 | 17.41 |
International Bank of Commerce Brownsville [Member] | Minimum [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 59,843 | $ 57,084 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 55,569 | $ 53,006 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 7.00% | 7.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 89,765 | $ 85,626 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 85,490 | 81,548 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 72,667 | 69,316 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 68,392 | 65,239 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | 52,101 | 42,529 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 65,127 | $ 53,161 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 10.500 | 10.500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8.500 | 8.500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8 | 8 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5 | 5 |
International Bank of Commerce Zapata [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 71,369 | $ 72,402 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 34.51% | 36.46% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 73,510 | $ 74,737 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 71,369 | 72,402 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 71,369 | $ 72,402 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 35.55 | 37.63 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 34.51 | 36.46 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 16.52 | 19.08 |
International Bank of Commerce Zapata [Member] | Minimum [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 14,476 | $ 13,902 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 13,442 | $ 12,909 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 7.00% | 7.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 21,714 | $ 20,853 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 20,680 | 19,860 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 17,578 | 16,881 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 16,544 | 15,888 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | 17,277 | 15,179 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 21,596 | $ 18,974 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 10.500 | 10.500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8.500 | 8.500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8 | 8 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5 | 5 |
Commerce Bank [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 93,426 | $ 91,239 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 35.64% | 34.83% |
Total Capital (to Risk Weighted Assets), Actual Amount | $ 96,240 | |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 93,426 | $ 93,396 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 93,426 | $ 91,239 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 36.72 | 35.65 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 35.64 | 34.83 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 16.69 | 18.18 |
Commerce Bank [Member] | Minimum [Member] | ||
Capital Requirements | ||
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 18,347 | $ 18,336 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 17,037 | $ 17,026 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 7.00% | 7.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | $ 27,521 | $ 27,504 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 26,210 | 26,195 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 22,279 | 22,265 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 20,968 | 20,956 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | 22,394 | 20,073 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 27,993 | $ 25,091 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 10.500 | 10.500 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8.500 | 8.500 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8 | 8 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5 | 5 |
Fair Value (Fair Value By Level
Fair Value (Fair Value By Level) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Available for sale debt securities | $ 3,080,768,000 | $ 3,378,923,000 |
Equity Securities | 6,202,000 | 6,095,000 |
Marketable Securities | 3,090,370,000 | 3,387,418,000 |
Estimate of Fair Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Assets: | ||
Available for sale debt securities | 3,029,954,000 | 3,285,548,000 |
Estimate of Fair Value Measurement [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets: | ||
Available for sale debt securities | 50,814,000 | 93,375,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Equity Securities | 6,202,000 | 6,095,000 |
Marketable Securities | 6,202,000 | 6,095,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Marketable Securities | 3,080,768,000 | 3,378,923,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Assets: | ||
Available for sale debt securities | 3,029,954,000 | 3,285,548,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets: | ||
Available for sale debt securities | 50,814,000 | 93,375,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Equity Securities | 6,202,000 | 6,095,000 |
Marketable Securities | 3,086,970,000 | 3,385,018,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Assets: | ||
Available for sale debt securities | 3,029,954,000 | 3,285,548,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets: | ||
Available for sale debt securities | $ 50,814,000 | $ 93,375,000 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurement and Assumptions) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||
Impaired Loans | $ 18,361,000 | $ 2,955,000 | |
Non-financial assets: | |||
Other real estate owned | 60,487,300 | 71,103,000 | |
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 | 22,000 | 9,611,000 | $ 170,000 |
Adjustment to fair value in connection with other real estate owned | 1,539,000 | 322,000 | $ 3,071,000 |
Impaired commercial collateral dependent receivables appraisals to determine fair value within immediately preceding twelve months | 16,587,000 | 1,426,000 | |
Impaired collateral dependent commercial loans with internal evaluation completed within last twelve months | 1,283,000 | 847,000 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets: | |||
Equity investments without a readily determinable fair value | 28,166,000 | ||
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Change in net provision, impaired loans | (86,000) | 43,000 | |
Change in net provision, other real estate owned | 1,539,000 | 322,000 | |
Change in net provision, equity investment without readily determinable fair value | 4,775,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Impaired Loans | 393,000 | 826,000 | |
Equity investments without a readily determinable fair value | 28,166,000 | ||
Non-financial assets: | |||
Other real estate owned | 6,241,000 | 21,614,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Estimate of Fair Value Measurement [Member] | |||
Assets: | |||
Impaired Loans | 393,000 | 826,000 | |
Non-financial assets: | |||
Other real estate owned | $ 6,241,000 | $ 21,614,000 |
Fair Value (Other Assumptions)
Fair Value (Other Assumptions) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits | ||
Carrying amount of time deposits | $ 2,153,541,000 | $ 2,012,300,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Loans | ||
Carrying amount of fixed rate performing loans | 1,812,413,000 | 1,503,811,000 |
Estimated fair value of fixed rate performing loans | 1,747,257,000 | 1,481,239,000 |
Deposits | ||
Carrying amount of time deposits | 2,153,541,000 | 2,012,300,000 |
Estimated fair value of time deposits | 2,148,976,000 | 2,011,950,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Other borrowed funds | ||
Carrying amount of the long-term FHLB borrowings | 436,372,000 | 436,511,000 |
Estimated fair value of long-term FHLB borrowings | $ 480,475,000 | $ 465,017,000 |
International Bancshares Corp_7
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Other investments | $ 254,413 | $ 318,427 | ||
Notes loans | 7,432,695 | 6,834,668 | ||
Goodwill | 282,532 | 282,532 | ||
Other assets | 162,079 | 200,121 | ||
Total assets | 14,029,467 | 12,112,894 | ||
Liabilities: | ||||
Junior subordinated deferrable interest debentures | 134,642 | 134,642 | ||
Other liabilities | 130,492 | 171,118 | ||
Total liabilities | 11,851,469 | 9,994,841 | ||
Shareholders' equity: | ||||
Common shares | 96,241 | 96,215 | ||
Surplus | 149,334 | 148,075 | ||
Retained earnings | 2,289,626 | 2,200,568 | ||
Accumulated other comprehensive income (loss) | 20,825 | 2,345 | ||
Total shareholders' equity before treasury stock | 2,556,026 | 2,447,203 | ||
Less cost of shares in treasury | (378,028) | (329,150) | ||
Total shareholders' equity | 2,177,998 | 2,118,053 | $ 1,939,582 | $ 1,838,980 |
Total liabilities and shareholders' equity | 14,029,467 | 12,112,894 | ||
Parent Company [Member] | Reportable Legal Entities | ||||
ASSETS | ||||
Cash | 66,252 | 24,290 | ||
Other investments | 77,661 | 106,284 | ||
Notes loans | 11,950 | 12,100 | ||
Investment in subsidiaries | 2,167,516 | 2,120,391 | ||
Goodwill | 3,365 | 3,365 | ||
Other assets | 264 | |||
Total assets | 2,326,744 | 2,266,694 | ||
Liabilities: | ||||
Junior subordinated deferrable interest debentures | 134,642 | 134,642 | ||
Due to IBC Trading | 21 | 21 | ||
Other liabilities | 14,083 | 13,978 | ||
Total liabilities | 148,746 | 148,641 | ||
Shareholders' equity: | ||||
Common shares | 96,241 | 96,215 | ||
Surplus | 149,334 | 148,075 | ||
Retained earnings | 2,289,626 | 2,200,568 | ||
Accumulated other comprehensive income (loss) | 20,825 | 2,345 | ||
Total shareholders' equity before treasury stock | 2,556,026 | 2,447,203 | ||
Less cost of shares in treasury | (378,028) | (329,150) | ||
Total shareholders' equity | 2,177,998 | 2,118,053 | ||
Total liabilities and shareholders' equity | $ 2,326,744 | $ 2,266,694 |
International Bancshares Corp_8
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses: | |||
Interest expense (Debentures) | $ 3,832 | $ 6,435 | $ 6,989 |
Provision for credit loss | 45,379 | 18,843 | 6,112 |
Income before federal income taxes and equity in undistributed net income of subsidiaries | 211,758 | 259,954 | 272,583 |
Income tax expense | 44,439 | 54,850 | 56,652 |
Net income | 167,319 | 205,104 | 215,931 |
Parent Company [Member] | Reportable Legal Entities | |||
Income: | |||
Dividends from subsidiaries | 130,950 | 127,750 | 105,000 |
Interest income on notes receivable | 357 | 922 | |
Interest income on other investments | (1,126) | (514) | 8,208 |
Other | 5 | 18 | 1,988 |
Total income | 130,186 | 128,176 | 115,196 |
Expenses: | |||
Interest expense (Debentures) | 3,832 | 6,435 | 6,989 |
Provision for credit loss | 27 | ||
Other | 1,988 | 2,749 | 2,930 |
Total expenses | 5,847 | 9,184 | 9,919 |
Income before federal income taxes and equity in undistributed net income of subsidiaries | 124,339 | 118,992 | 105,277 |
Income tax expense | (1,339) | (1,878) | 481 |
Income before equity in undistributed net income of subsidiaries | 125,678 | 120,870 | 104,796 |
Equity in undistributed net income of subsidiaries | 41,641 | 84,234 | 111,135 |
Net income | $ 167,319 | $ 205,104 | $ 215,931 |
International Bancshares Corp_9
International Bancshares Corporation (Parent Company Only) Financial Information Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 167,319 | $ 205,104 | $ 215,931 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Investment securities transactions, net | 5 | 12 | 141 |
Provision for probable loan losses | 45,379 | 18,843 | 6,112 |
Unrealized loss (gain) on equity securities with readily determinable fair values | (107) | (158) | 388 |
Stock compensation expense | 743 | 980 | 1,035 |
Increase (decrease) in other liabilities | (13,932) | 32,157 | 24,916 |
Net cash provided by operating activities | 305,133 | 311,565 | 229,847 |
Investing activities: | |||
Net cash (used in) provided by investing activities | (343,705) | (318,058) | 379,440 |
Financing activities: | |||
Redemption of long-term debt | (25,774) | ||
Proceeds from stock transactions | 542 | 1,923 | 1,522 |
Payments of cash dividends - common | (69,928) | (68,670) | (49,599) |
Repurchase of outstanding common stock warrant | (29,005) | ||
Purchase of treasury stock | (48,878) | (17,845) | (19,042) |
Net cash used in financing activities | 1,778,990 | (53,484) | (557,847) |
Increase (decrease) in cash and cash equivalents | 1,740,418 | (59,977) | 51,440 |
Cash and cash equivalents at beginning of period | 256,820 | 316,797 | 265,357 |
Cash and cash equivalents at end of period | 1,997,238 | 256,820 | 316,797 |
Parent Company [Member] | Reportable Legal Entities | |||
Operating activities: | |||
Net income | 167,319 | 205,104 | 215,931 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for probable loan losses | 27 | ||
Unrealized loss (gain) on equity securities with readily determinable fair values | 22 | (16) | 330 |
Stock compensation expense | 743 | 980 | 1,035 |
Increase (decrease) in other liabilities | 2,467 | (58) | (1,479) |
Equity in undistributed net income of subsidiaries | (41,641) | (84,234) | (111,135) |
Net cash provided by operating activities | 128,937 | 121,776 | 104,682 |
Investing activities: | |||
Net increase in notes receivable | (12,100) | ||
(Decrease) increase in other assets and other investments | 31,289 | 5,915 | (7,891) |
Net cash (used in) provided by investing activities | 31,289 | (6,185) | (7,891) |
Financing activities: | |||
Redemption of long-term debt | (25,774) | ||
Proceeds from stock transactions | 542 | 1,923 | 1,522 |
Payments of cash dividends - common | (69,928) | (68,670) | (49,599) |
Repurchase of outstanding common stock warrant | (29,005) | ||
Purchase of treasury stock | (48,878) | (17,845) | (19,042) |
Net cash used in financing activities | (118,264) | (110,366) | (96,124) |
Increase (decrease) in cash and cash equivalents | 41,962 | 5,225 | 667 |
Cash and cash equivalents at beginning of period | 24,290 | 19,065 | 18,398 |
Cash and cash equivalents at end of period | $ 66,252 | $ 24,290 | $ 19,065 |