Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | BANK OF HAWAII CORP | ||
Entity Central Index Key | 46195 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2,546,420,650 | ||
Entity Common Stock, Shares Outstanding | 43,666,990 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income | |||
Interest and Fees on Loans and Leases | $267,407 | $253,276 | $257,896 |
Income on Investment Securities | |||
Available-for-Sale | 42,475 | 53,570 | 65,972 |
Held-to-Maturity | 105,860 | 90,062 | 94,952 |
Deposits | 9 | 10 | 9 |
Funds Sold | 673 | 415 | 533 |
Other | 1,209 | 1,172 | 1,127 |
Total Interest Income | 417,633 | 398,505 | 420,489 |
Interest Expense | |||
Deposits | 9,534 | 10,143 | 12,376 |
Securities Sold Under Agreements to Repurchase | 25,905 | 26,837 | 28,897 |
Funds Purchased | 13 | 44 | 21 |
Short-Term Borrowings | 0 | 2 | 0 |
Long-Term Debt | 2,525 | 2,572 | 1,924 |
Total Interest Expense | 37,977 | 39,598 | 43,218 |
Net Interest Income | 379,656 | 358,907 | 377,271 |
Provision for Loan and Lease Losses | -4,864 | 0 | 979 |
Net Interest Income After Provision for Credit Losses | 384,520 | 358,907 | 376,292 |
Noninterest Income | |||
Trust and Asset Management | 47,798 | 47,932 | 45,229 |
Mortgage Banking | 7,571 | 19,186 | 35,644 |
Service Charges on Deposit Accounts | 35,669 | 37,124 | 37,621 |
Fees, Exchange, and Other Service Charges | 53,401 | 50,469 | 48,965 |
Investment Securities Gains (Losses), Net | 8,063 | 0 | -77 |
Annuity and Insurance | 8,065 | 9,190 | 9,553 |
Bank-Owned Life Insurance | 6,639 | 5,892 | 6,805 |
Other | 12,811 | 16,430 | 16,546 |
Total Noninterest Income | 180,017 | 186,223 | 200,286 |
Noninterest Expense | |||
Salaries and Benefits | 183,028 | 184,211 | 184,408 |
Net Occupancy | 37,296 | 38,745 | 42,965 |
Net Equipment | 18,479 | 18,366 | 19,723 |
Data Processing | 14,979 | 13,840 | 13,202 |
Professional Fees | 9,794 | 9,405 | 9,623 |
FDIC Insurance | 7,936 | 7,765 | 7,873 |
Other | 55,387 | 58,637 | 56,494 |
Total Noninterest Expense | 326,899 | 330,969 | 334,288 |
Income Before Provision for Income Taxes | 237,638 | 214,161 | 242,290 |
Provision for Income Taxes | 74,596 | 63,659 | 76,214 |
Net Income | $163,042 | $150,502 | $166,076 |
Basic Earnings Per Share (in dollars per share) | $3.71 | $3.39 | $3.68 |
Diluted Earnings Per Share (in dollars per share) | $3.69 | $3.38 | $3.67 |
Dividends Declared Per Share (in dollars per share) | $1.80 | $1.80 | $1.80 |
Basic Weighted Average Shares (in shares) | 43,899,208 | 44,380,948 | 45,115,441 |
Diluted Weighted Average Shares (in shares) | 44,125,456 | 44,572,725 | 45,249,300 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $163,042 | $150,502 | $166,076 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Net Unrealized Gains (Losses) on Investment Securities | 16,858 | -69,206 | -3,155 |
Defined Benefit Plans | -11,721 | 8,175 | -2,900 |
Other Comprehensive Income (Loss) | 5,137 | -61,031 | -6,055 |
Comprehensive Income | $168,179 | $89,471 | $160,021 |
Consolidated_Statements_of_Con
Consolidated Statements of Condition (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Interest-Bearing Deposits in Other Banks | $2,873 | $3,617 |
Funds Sold | 360,577 | 271,414 |
Investment Securities | ||
Available-for-Sale | 2,289,190 | 2,243,697 |
Held-to-Maturity (Fair Value of $4,504,495 and $4,697,587) | 4,466,679 | 4,744,519 |
Loans Held for Sale | 5,136 | 6,435 |
Loans and Leases | 6,897,589 | 6,095,387 |
Allowance for Loan and Lease Losses | -108,688 | -115,454 |
Net Loans and Leases | 6,788,901 | 5,979,933 |
Total Earning Assets | 13,913,356 | 13,249,615 |
Cash and Due From Banks | 172,126 | 188,715 |
Premises and Equipment, Net | 109,854 | 108,636 |
Accrued Interest Receivable | 44,654 | 43,930 |
Foreclosed Real Estate | 2,311 | 3,205 |
Mortgage Servicing Rights | 24,695 | 28,123 |
Goodwill | 31,517 | 31,517 |
Bank-Owned Life Insurance | 262,807 | 223,246 |
Other Assets | 225,888 | 207,293 |
Total Assets | 14,787,208 | 14,084,280 |
Deposits | ||
Noninterest-Bearing Demand | 3,832,943 | 3,681,128 |
Interest-Bearing Demand | 2,559,570 | 2,355,608 |
Savings | 4,806,575 | 4,560,150 |
Time | 1,434,001 | 1,317,770 |
Total Deposits | 12,633,089 | 11,914,656 |
Funds Purchased | 8,459 | 9,982 |
Securities Sold Under Agreements to Repurchase | 688,601 | 770,049 |
Long-Term Debt | 173,912 | 174,706 |
Retirement Benefits Payable | 55,477 | 34,965 |
Accrued Interest Payable | 5,148 | 4,871 |
Taxes Payable and Deferred Taxes | 27,777 | 34,907 |
Other Liabilities | 139,659 | 128,168 |
Total Liabilities | 13,732,122 | 13,072,304 |
Commitments, Contingencies, and Guarantees (Note 19) | ||
Shareholders' Equity | ||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2014 - 57,634,755 / 43,724,208 and December 31, 2013 - 57,480,846 / 44,490,385) | 574 | 572 |
Capital Surplus | 531,932 | 522,505 |
Accumulated Other Comprehensive Loss | -26,686 | -31,823 |
Retained Earnings | 1,234,801 | 1,151,754 |
Treasury Stock, at Cost (Shares: December 31, 2014 - 13,910,547 and December 31, 2013 - 12,990,461) | -685,535 | -631,032 |
Total Shareholders' Equity | 1,055,086 | 1,011,976 |
Total Liabilities and Shareholders' Equity | $14,787,208 | $14,084,280 |
Consolidated_Statements_of_Con1
Consolidated Statements of Condition (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Held-to-Maturity, Fair Value | $4,504,495 | $4,697,587 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, authorized shares | 500,000,000 | 500,000,000 |
Common Stock, issued shares | 57,634,755 | 57,480,846 |
Common Stock, outstanding shares | 43,724,208 | 44,490,385 |
Treasury Stock, Shares | 13,910,547 | 12,990,461 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Capital Surplus | Accum. Other Comprehensive Income | Retained Earnings | Treasury Stock |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $1,002,667 | $571 | $507,558 | $35,263 | $1,003,938 | ($544,663) |
Beginning Balance, Shares at Dec. 31, 2011 | 45,947,116 | |||||
Net Income | 166,076 | 166,076 | ||||
Increase (decrease) in shareholders' equity | ||||||
Other Comprehensive Income | -6,055 | -6,055 | ||||
Share-Based Compensation | 7,537 | 7,537 | ||||
Stock Issued During Period, Shares, Purchase and Equity Compensation Plans | 565,956 | |||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 14,529 | 0 | 524 | -3,892 | 17,897 | |
Common Stock Repurchased, Shares | -1,758,237 | |||||
Common Stock Repurchased | -81,444 | -81,444 | ||||
Cash Dividends Declared ($1.80 per share) | -81,645 | -81,645 | ||||
Ending Balance at Dec. 31, 2012 | 1,021,665 | 571 | 515,619 | 29,208 | 1,084,477 | -608,210 |
Ending Balance, Shares at Dec. 31, 2012 | 44,754,835 | |||||
Net Income | 150,502 | 150,502 | ||||
Increase (decrease) in shareholders' equity | ||||||
Other Comprehensive Income | -61,031 | -61,031 | ||||
Share-Based Compensation | 5,546 | 5,546 | ||||
Stock Issued During Period, Shares, Purchase and Equity Compensation Plans | 505,691 | |||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 15,483 | 1 | 1,340 | -2,691 | 16,833 | |
Common Stock Repurchased, Shares | -770,141 | |||||
Common Stock Repurchased | -39,655 | -39,655 | ||||
Cash Dividends Declared ($1.80 per share) | -80,534 | -80,534 | ||||
Ending Balance at Dec. 31, 2013 | 1,011,976 | 572 | 522,505 | -31,823 | 1,151,754 | -631,032 |
Ending Balance, Shares at Dec. 31, 2013 | 44,490,385 | 44,490,385 | ||||
Net Income | 163,042 | 163,042 | ||||
Increase (decrease) in shareholders' equity | ||||||
Other Comprehensive Income | 5,137 | 5,137 | ||||
Share-Based Compensation | 7,870 | 7,870 | ||||
Stock Issued During Period, Shares, Purchase and Equity Compensation Plans | 345,278 | |||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 10,767 | 2 | 1,557 | -335 | 9,543 | |
Common Stock Repurchased, Shares | -1,111,455 | |||||
Common Stock Repurchased | -64,046 | -64,046 | ||||
Cash Dividends Declared ($1.80 per share) | -79,660 | -79,660 | ||||
Ending Balance at Dec. 31, 2014 | $1,055,086 | $574 | $531,932 | ($26,686) | $1,234,801 | ($685,535) |
Ending Balance, Shares at Dec. 31, 2014 | 43,724,208 | 43,724,208 |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends Declared Per Share (in dollars per share) | $1.80 | $1.80 | $1.80 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | |||
Net Income | $163,042 | $150,502 | $166,076 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Provision for Loan and Lease Losses | -4,864 | 0 | 979 |
Depreciation and Amortization | 12,442 | 12,128 | 13,826 |
Amortization of Deferred Loan Origination Fees, Net | -2,064 | -3,275 | -3,467 |
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 50,280 | 58,575 | 58,506 |
Share-Based Compensation | 7,870 | 5,546 | 7,537 |
Benefit Plan Contributions | -1,561 | -1,229 | -6,166 |
Deferred Income Taxes | -5,211 | 503 | -16,784 |
Gain (Loss) on Sale of Loans and Leases | -2,896 | -19,952 | -19,302 |
Net Losses (Gains) on Investment Securities | -8,063 | 0 | 77 |
Proceeds from Sales of Loans Held for Sale | 72,096 | 683,772 | 616,872 |
Originations of Loans Held for Sale | -68,006 | -652,821 | -603,321 |
Tax Benefits from Share-Based Compensation | -670 | -948 | -904 |
Net Change in Other Assets and Other Liabilities | -2,915 | 9,162 | 8,559 |
Net Cash Provided by Operating Activities | 209,480 | 241,963 | 222,488 |
Investment Securities Available-for-Sale: | |||
Proceeds from Prepayments and Maturities | 325,211 | 919,579 | 1,016,364 |
Proceeds from Sales | 16,574 | 0 | 44,844 |
Purchases | -375,620 | -510,548 | -994,840 |
Investment Securities Held-to-Maturity: | |||
Proceeds from Prepayments and Maturities | 776,876 | 1,054,466 | 959,557 |
Purchases | -525,070 | -1,661,874 | -942,602 |
Payments to Acquire Life Insurance Policies | -35,000 | 0 | 0 |
Net Change in Loans and Leases | -809,382 | -257,158 | -329,436 |
Premises and Equipment, Net | -13,660 | -15,759 | -15,281 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | -640,071 | -471,294 | -261,394 |
Financing Activities | |||
Net Change in Deposits | 718,433 | 385,174 | 936,859 |
Net Change in Short-Term Borrowings | -82,971 | 9,788 | -1,166,546 |
Proceeds from Long-Term Debt | 0 | 50,000 | 100,000 |
Tax Benefits from Share-Based Compensation | 670 | 948 | 904 |
Proceeds from Issuance of Common Stock | 9,995 | 14,495 | 13,730 |
Repurchase of Common Stock | -64,046 | -39,655 | -81,444 |
Cash Dividends Paid | -79,660 | -80,534 | -81,645 |
Net Cash Provided by (Used in) Financing Activities | 502,421 | 340,216 | -278,142 |
Net Change in Cash and Cash Equivalents | 71,830 | 110,885 | -317,048 |
Cash and Cash Equivalents at Beginning of Period | 463,746 | 352,861 | 669,909 |
Cash and Cash Equivalents at End of Period | 535,576 | 463,746 | 352,861 |
Supplemental Information | |||
Cash Paid for Interest | 36,795 | 38,424 | 42,487 |
Cash Paid for Income Taxes | 72,127 | 75,166 | 78,667 |
Non-Cash Investing and Financing Activities: | |||
Transfer from Investment Securities Available-For-Sale to Investment Securities Held-To-Maturity | 0 | 579,888 | 0 |
Transfer from Loans to Foreclosed Real Estate | $3,950 | $5,429 | $5,406 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |
Basis of Presentation | ||
Bank of Hawaii Corporation (the "Parent") is a Delaware corporation and a bank holding company headquartered in Honolulu, Hawaii. Bank of Hawaii Corporation and its subsidiaries (collectively, the "Company") provide a broad range of financial products and services to customers in Hawaii, Guam, and other Pacific Islands. The majority of the Company's operations consist of customary commercial and consumer banking services including, but not limited to, lending, leasing, deposit services, trust and investment activities, brokerage services, and trade financing. | ||
The accounting and reporting principles of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices within the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. | ||
Certain prior period information has been reclassified to conform to the current year presentation. | ||
The following is a summary of the Company's significant accounting policies: | ||
Consolidation | ||
The Consolidated Financial Statements include the accounts of the Parent and its subsidiaries. The Parent's principal operating subsidiary is Bank of Hawaii (the "Bank"). All significant intercompany accounts and transactions have been eliminated in consolidation. | ||
Variable Interest Entities | ||
Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity's net asset value. The primary beneficiary consolidates the variable interest entity ("VIE"). The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. | ||
The Company has a limited partnership interest in several low-income housing partnerships. These partnerships provide funds for the construction and operation of apartment complexes that provide affordable housing to that segment of the population with lower family income. If these developments successfully attract a specified percentage of residents falling in that lower income range, state and/or federal income tax credits are made available to the partners. The tax credits are generally recognized over 10 years. In order to continue receiving the tax credits each year over the life of the partnership, the low-income residency targets must be maintained. | ||
Prior to January 1, 2015, the Company utilized the effective tax method whereby the Company recognized tax credits generally over 10 years and amortized the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the Company. On January 1, 2015, the Company adopted ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects" prospectively for new investments. ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The Company may also continue to utilize the effective yield method for investments made prior to January 1, 2015. See Accounting Standards Pending Adoption below for more information. | ||
Unfunded commitments to fund these low-income housing partnerships were $31.4 million and $18.1 million as of December 31, 2014 and 2013, respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. | ||
The Company also has limited partnership interest in three solar energy partnerships. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of the investment, the Company will receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. The tax credits are generally recognized over 6 years. | ||
These entities meet the definition of a VIE; however, the Company is not the primary beneficiary of the entities, as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. While the partnership agreements allow the limited partners, through a majority vote, to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. | ||
The investment in these entities is initially recorded at cost, which approximates the maximum exposure to loss as a result of the Company's involvement with these unconsolidated entities. The balance of the Company's investments in these entities was $77.5 million and $48.2 million as of December 31, 2014 and 2013, respectively, and is included in other assets in the consolidated statements of condition. | ||
Investment Securities | ||
Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities as of December 31, 2014 and 2013. Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities, comprised of debt and mortgage-backed securities, are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. | ||
Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. | ||
Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield using the interest method over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. | ||
Other-Than-Temporary-Impairments of Investment Securities | ||
The Company conducts an other-than-temporary-impairment ("OTTI") analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. As of December 31, 2014, management determined that the Company did not own any investment securities that were other-than-temporarily-impaired. | ||
Loans Held for Sale | ||
Residential mortgage loans with the intent to be sold in the secondary market are accounted for on an aggregate basis under the fair value option. Fair value is primarily determined based on quoted prices for similar loans in active markets. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized as part of the cost basis of the loan at the time of sale. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in the mortgage banking component of noninterest income. | ||
Commercial loans that management has an active plan to sell are valued on an individual basis at the lower-of-cost-or fair value. Fair value is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Any reduction in the loan's value, prior to being transferred to the held for sale category, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. Further decreases in the fair value of the loan are recognized in noninterest expense. | ||
Loans and Leases | ||
Loans are reported at the principal amount outstanding, net of unearned income including unamortized deferred loan fees and costs, and cumulative net charge-offs. Interest income is recognized on an accrual basis. Loan origination fees, certain direct costs, and unearned discounts and premiums, if any, are deferred and are generally amortized into interest income as yield adjustments using the interest method over the contractual life of the loan. Loan commitment fees are generally recognized into noninterest income. Other credit-related fees are recognized as fee income, a component of noninterest income, when earned. | ||
Direct financing leases are carried at the aggregate of lease payments receivable plus the estimated residual value of leased property, less unearned income. Leveraged leases, which are a form of direct financing leases, are carried net of non-recourse debt. Unearned income on direct financing and leveraged leases is amortized over the lease term by methods that approximate the interest method. Residual values on leased assets are periodically reviewed for impairment. | ||
Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan and lease losses (the "Allowance"). Management has determined that the Company has two portfolio segments of loans and leases (commercial and consumer) in determining the Allowance. Both quantitative and qualitative factors are used by management at the portfolio segment level in determining the adequacy of the Allowance for the Company. Classes of loans and leases are a disaggregation of a Company's portfolio segments. Classes are defined as a group of loans and leases which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has eight classes of loans and leases (commercial and industrial, commercial mortgage, construction, lease financing, residential mortgage, home equity, automobile, and other). The "other" class of loans and leases is comprised of revolving credit, credit cards, installment, and lease financing arrangements. | ||
Non-Performing Loans and Leases | ||
Generally, all classes of commercial loans and leases are placed on non-accrual status upon becoming contractually past due 90 days as to principal or interest (unless loans and leases are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), when terms are renegotiated below market levels, or where substantial doubt about full repayment of principal or interest is evident. For residential mortgage and home equity loan classes, loans past due 120 days as to principal or interest may be placed on non-accrual status, and a partial charge-off may be recorded, depending on the collateral value and/or the collectability of the loan. For automobile and other consumer loan classes, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due (180 days past due for credit cards) as to principal or interest. | ||
When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. A loan or lease may be returned to accrual status when all delinquent interest and principal become current in accordance with the terms of the loan or lease agreement and when doubt about repayment is resolved. | ||
Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor's prospects for repayment and the fair value of collateral. For the pooled segment of the Company's commercial and industrial loan class, which consists of small business loans, the entire outstanding balance of the loan remains on accrual status until it is charged off during the month that the loan becomes 120 days past due as to principal or interest. As previously mentioned, for residential mortgage and home equity loan classes, a partial charge-off may be recorded at 120 days past due as to principal or interest depending on the collateral value and/or the collectability of the loan. In the event that loans or lines in the home equity loan class is behind another financial institution's first mortgage, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest, unless the combined loan-to-value ratio is 60% or less. As noted above, loans in the automobile and other consumer loan classes are charged off in its entirety upon the loan becoming 120 days past due (180 days past due for credit cards) as to principal or interest. | ||
Impaired Loans | ||
A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans (except lease financing and small business loans), and all loans modified in a troubled debt restructuring. Impaired loans exclude lease financing and smaller balance homogeneous loans (consumer and small business non-accruing loans) that are collectively evaluated for impairment. | ||
For all classes of commercial loans, a quarterly evaluation of individual commercial borrowers is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk. | ||
When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), an impairment is recognized by establishing or adjusting an existing allocation of the Allowance, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis. | ||
Loans Modified in a Troubled Debt Restructuring | ||
Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower's financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. | ||
Reserve for Credit Losses | ||
The Company's reserve for credit losses is comprised of two components, the Allowance and the reserve for unfunded commitments (the "Unfunded Reserve"). | ||
Allowance for Loan and Lease Losses | ||
The Company maintains an Allowance adequate to cover management's estimate of probable credit losses as of the balance sheet date. Loans and leases that are charged off reduce the Allowance while recoveries of loans and leases previously charged off increase the Allowance. Other changes to the level of the Allowance are recognized through charges or credits to the provision for credit losses (the "Provision"). The Allowance considers both unimpaired and impaired loans and is developed and documented at the portfolio segment level (commercial and consumer). | ||
The level of the Allowance related to the Company's commercial portfolio segment is generally based on the credit risk ratings and historical loss experience of individual borrowers. This is supplemented as necessary by credit judgment to address observed changes in trends and conditions, and other relevant environmental and economic factors that may affect the collectability of loans and leases. Excluding those loans and leases evaluated individually for impairment, the Company's remaining commercial loans and leases are pooled and collectively evaluated for impairment based on business unit and internal risk rating segmentation. | ||
The level of the Allowance related to the Company's consumer portfolio segment is generally based on analyses of homogeneous pools of loans and leases. Loans and leases are pooled based on similar loan and lease risk characteristics for collective evaluation of impairment. Loss estimates are calculated based on historical rolling average loss rates and average delinquency flows to loss. Consumer loans that have been individually evaluated for impairment or modified in a troubled debt restructuring are excluded from the homogeneous pools. Impairment related to such loans is generally determined based on the present value of expected future cash flows discounted at the loan's original effective interest rate. | ||
The Allowance also includes an estimate for inherent losses not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), economic trends and conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of net charge-offs. In addition, the Company uses a variety of other tools to estimate probable credit losses including, but not limited to, a rolling quarterly forecast of asset quality metrics; stress testing; and performance indicators based on the Company's own experience, peers, or other industry sources. | ||
Reserve for Unfunded Commitments | ||
The Unfunded Reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker's acceptances, and standby and commercial letters of credit. The process used to determine the Unfunded Reserve is consistent with the process for determining the Allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the Unfunded Reserve is adjusted by recording an expense or recovery in other noninterest expense. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash and noninterest-bearing deposits, interest-bearing deposits, and funds sold. All amounts are readily convertible to cash and have maturities of less than 90 days. | ||
Premises and Equipment | ||
Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. | ||
Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives range up to 30 years for buildings and up to 10 years for equipment. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Capitalized leased assets are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. Repairs and maintenance are charged to expense as incurred, while improvements which extend the estimated useful life of the asset are capitalized and depreciated over the estimated remaining life of the asset. | ||
Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than its carrying amount. In that event, the Company records a loss for the difference between the carrying amount and the fair value of the asset based on quoted market prices, if applicable, or a discounted cash flow analysis. | ||
Foreclosed Real Estate | ||
Foreclosed real estate consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property's fair value at the time of acquisition, a charge-off is recorded against the Allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the Allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other noninterest income. Subsequent decreases in the property's fair value and operating expenses of the property are recognized through charges to other noninterest expense. The fair value of the property acquired is based on third party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. | ||
Mortgage Servicing Rights | ||
Mortgage servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. Mortgage servicing rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. | ||
The Company's mortgage servicing rights accounted for under the fair value method are carried on the statements of condition at fair value with changes in fair value recorded in mortgage banking income in the period in which the change occurs. Changes in the fair value of mortgage servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. | ||
The Company's mortgage servicing rights accounted for under the amortization method are initially recorded at fair value. However, these mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the mortgage servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these mortgage servicing rights exceeds fair value. | ||
Goodwill | ||
Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Company has two reporting units that were assigned goodwill: Investment Services and Retail Banking. | ||
The Company performs its annual evaluation of goodwill impairment in the fourth quarter of each year and on an interim basis if events or changes in circumstances indicate that there may be an impairment. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and the first step of the impairment test should be performed. The qualitative factors considered include, but are not limited to, macroeconomic and State of Hawaii economic conditions, industry and market conditions and trends, the Company's financial performance, market capitalization, stock price, and any Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise an impairment test is performed. The goodwill impairment test is a two-step test. The first step of the goodwill impairment test compares the estimated fair value of identified reporting units with their carrying amount, including goodwill. If the estimated fair value of a reporting unit is less than the carrying value, the second step must be performed to determine the implied fair value of the reporting unit's goodwill and the amount of goodwill impairment, if any. The implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the implied fair value of goodwill is less than the carrying amount, a loss would be recognized in other noninterest expense to reduce the carrying amount to the implied fair value of goodwill. Subsequent reversals of goodwill impairment are prohibited. For the year ended December 31, 2014, the Company's goodwill impairment evaluation indicated that there was no impairment. | ||
Non-Marketable Equity Securities | ||
The Company is required to hold non-marketable equity securities, comprised of Federal Home Loan Bank ("FHLB") of Seattle and Federal Reserve Bank ("FRB") stock, as a condition of membership. These securities are accounted for at cost which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. These securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets which are periodically evaluated for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than by recognizing temporary declines in value. | ||
Securities Sold Under Agreements to Repurchase | ||
The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the securities sold under agreements to repurchase remain in the respective asset accounts. See Note 18 to the Consolidated Financial Statements for more information. | ||
Pension and Postretirement Benefit Plans | ||
The Company incurs certain employment-related expenses associated with its two frozen pension plans and a postretirement benefit plan (the "Plans"). In order to measure the expense associated with the Plans, various assumptions are made including the discount rate, expected return on plan assets, anticipated mortality rates, and expected future healthcare costs. The assumptions are based on historical experience as well as current facts and circumstances. The Company uses a December 31 measurement date for its Plans. As of the measurement date, plan assets are determined based on fair value, generally representing observable market prices. The projected benefit obligation is primarily determined based on the present value of projected benefit distributions at an assumed discount rate. | ||
Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial gains or losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains or losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining expected lives of the pension plan participants. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. | ||
The Company recognizes in its statement of condition an asset for a plan's overfunded status or a liability for a plan's underfunded status. The Company also measures the Plans' assets and obligations that determine its funded status as of the end of the year and recognizes those changes in other comprehensive income, net of tax. | ||
Income Taxes | ||
The Parent files a consolidated federal income tax return with the Bank and its subsidiaries. Calculation of the Company's provision for income taxes requires the interpretation of income tax laws and regulations and the use of estimates and judgments in its determination. The Company is subject to examination by governmental authorities that may give rise to income tax issues due to differing interpretations. Changes to the liability for income taxes also occur due to changes in income tax rates, implementation of new business strategies, resolution of issues with taxing authorities, and newly enacted statutory, judicial, and regulatory guidance. | ||
Deferred income taxes are provided to reflect the tax effect of temporary differences between financial statement carrying amounts and the corresponding tax basis of assets and liabilities. Deferred income taxes are calculated by applying enacted statutory tax rates and tax laws to future years in which temporary differences are expected to reverse. The impact on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that the tax rate change is enacted. A deferred tax valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. | ||
The Company's tax sharing policy provides for the settlement of income taxes between each relevant subsidiary as if the subsidiary had filed a separate return. Payments are made to the Parent by subsidiaries with tax liabilities and subsidiaries that generate tax benefits receive payments for those benefits as used. | ||
The Company maintains reserves for certain tax positions that arise in the normal course of business. As of December 31, 2014, these positions were evaluated based on an assessment of probabilities as to the likelihood of whether a liability had been incurred. Such assessments are reviewed as events occur and adjustments to the reserves are made as appropriate. In evaluating a tax position for recognition, the Company judgmentally evaluates whether it is more likely than not that a tax position will be sustained upon examination, including resolution of related appeals or litigation processes, based on the technical merits of the position. If the tax position meets the more likely than not recognition threshold, the tax position is measured and recognized in the Company's Consolidated Financial Statements as the largest amount of tax benefit that, in management's judgment, is greater than 50% likely of being realized upon ultimate settlement. | ||
Treasury Stock | ||
Shares of the Parent's common stock that are repurchased are recorded in treasury stock at cost. On the date of subsequent re-issuance, the treasury stock account is reduced by the cost of such stock on a first-in, first-out basis. | ||
Earnings Per Share | ||
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, assuming conversion of all potentially dilutive common stock equivalents. | ||
Derivative Financial Instruments | ||
In the ordinary course of business, the Company enters into derivative financial instruments as an end-user in connection with its risk management activities and to accommodate the needs of its customers. The Company has elected not to qualify for hedge accounting methods addressed under current provisions of GAAP. Derivative financial instruments are stated at fair value on the consolidated statements of condition with changes in fair value reported in current period earnings. | ||
Share-Based Compensation | ||
The Company may grant share-based compensation to employees and non-employee directors in the form of restricted stock, restricted stock units and stock options. Share-based compensation expense is measured based on the fair value of the award at the date of grant and is recognized in the statement of income on a straight-line basis over the requisite service period for service-based awards. The fair value of restricted stock is determined based on the closing price of the Parent's common stock on the date of grant. The Company recognizes compensation expense related to restricted stock on a straight-line basis over the vesting period for service-based awards, plus additional recognition of costs associated with accelerated vesting based on the projected attainment of Company performance measures. Beginning in 2014, the Company issued restricted stock units ("RSUs") payable solely in cash which are accounted for as other liabilities in the statement of condition. The fair value of RSUs is initially valued based on the closing price of the Parent's common stock on the date of grant and is amortized in the statement of income over the vesting period. The RSUs are subsequently remeasured in the same manner described above at the end of each reporting period until settlement. The fair value of stock options is estimated at the date of grant using a Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Parent's common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Parent's common stock at the time of grant. The amortization of the expense related to stock options reflects estimated forfeitures, adjusted for actual forfeiture experience. Amortization expense related to stock options is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders' equity. As the expense related to stock options is recognized, a deferred tax asset is established that represents an estimate of future income tax deductions from the release of restrictions or the exercise of stock options. | ||
Advertising Costs | ||
Advertising costs are expensed as incurred. Advertising costs were $5.3 million, $5.0 million, and $4.7 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||
International Operations | ||
The Bank has operations that are conducted in certain Pacific Islands that are denominated in U.S. dollars. These operations are classified as domestic. | ||
Fair Value Measurements | ||
Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. Fair value is based on the assumptions that management believes market participants would use when pricing an asset or liability. Fair value measurement and disclosure guidance established a three-level fair value hierarchy that prioritizes the use of inputs used in valuation methodologies. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company's assets and liabilities on a quarterly basis. The three-level fair value hierarchy is as follows: | ||
Level 1: | Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. | |
Level 2: | Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. | |
Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed. | |
In determining fair value measurements, management assesses whether the volume and level of activity for an asset or liability have significantly decreased. In such instances, management determines whether recent quoted prices are associated with illiquid or inactive markets. If management concludes that quoted prices are associated with illiquid or inactive markets, adjustments to quoted prices may be necessary or management may conclude that a change in valuation technique or the use of multiple valuation techniques may be appropriate to estimate an asset or liability's fair value. See Note 14 and Note 20 to the Consolidated Financial Statements for the required fair value measurement disclosures. | ||
Accounting Standards Adopted in 2014 | ||
In July 2013, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." The provisions of ASU No. 2013-11 require an entity to present an unrecognized tax benefit, or portion thereof, in the statement of financial position as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward, with certain exceptions related to availability. The Company adopted the provisions of ASU No. 2013-11 effective January 1, 2014. The adoption of ASU No. 2013-11 had no impact on the Company's Consolidated Financial Statements. | ||
Accounting Standards Pending Adoption | ||
In January 2014, the FASB issued ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." As noted above, ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. This new guidance also requires new disclosures for all investors in these projects. ASU No. 2014-01 is effective for interim and annual reporting periods beginning after December 15, 2014. Upon adoption, the guidance must be applied retrospectively to all periods presented. However, entities that used the effective yield method to account for investments in these projects before adoption may continue to do so for these pre-existing investments. The Company currently accounts for such investments using the effective yield method and plans to continue to do so for these pre-existing investments after adopting ASU No. 2014-01 on January 1, 2015. The Company expects investments made after January 1, 2015 to meet the criteria required for the proportional amortization method and plans to make such an accounting policy election. The adoption of ASU No. 2014-01 did not have a material impact on the Company's Consolidated Financial Statements. | ||
In January 2014, the FASB issued ASU No. 2014-04, "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) The creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) The borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both: (1) The amount of foreclosed residential real estate property held by the creditor; and (2) The recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 did not have a material impact on the Company's Consolidated Financial Statements. | ||
In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions of ASU No. 2014-09 and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. | ||
In June 2014, the FASB issued ASU No. 2014-11, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for public companies for the first interim or annual period beginning after December 15, 2014. In addition, for public companies, the disclosure for certain transactions accounted for as a sale is effective for the first interim or annual reporting periods beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required to be presented for annual reporting periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. As of December 31, 2014, all of the Company's repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on the Company's Consolidated Financial Statements. | ||
In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation - Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. However, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for interim or annual reporting periods beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments in this ASU either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. As of December 31, 2014, the Company did not have any share-based payment awards that included performance targets that could be achieved after the requisite service period. As such, the adoption of ASU No. 2014-12 is not expected to have a material impact on the Company's Consolidated Financial Statements. | ||
In August 2014, the FASB issued ASU No. 2014-14, “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” The objective of this guidance is to reduce diversity in practice related to how creditors classify government-guaranteed mortgage loans, including FHA or VA guaranteed loans, upon foreclosure. Some creditors reclassify those loans to real estate consistent with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments in this guidance require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure; (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU No. 2014-14 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-14 did not have a material impact on the Company's Consolidated Financial Statements. |
Restrictions_on_Cash
Restrictions on Cash | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash | The Company is required to maintain cash on hand or on deposit with the Federal Reserve Bank based on the amount of certain customer deposits, mainly checking accounts. The Bank's average required reserve balances were $92.3 million and $94.2 million as of December 31, 2014 and 2013, respectively. |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Investment Securities | The amortized cost, gross unrealized gains and losses, and fair value of the Company's investment securities as of December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 325,365 | $ | 5,933 | $ | (40 | ) | $ | 331,258 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 723,474 | 21,941 | (1,445 | ) | 743,970 | |||||||||||||||||||
Debt Securities Issued by Corporations | 298,272 | 546 | (3,985 | ) | 294,833 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 452,493 | 10,986 | (1,043 | ) | 462,436 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 276,390 | 2,262 | (191 | ) | 278,461 | |||||||||||||||||||
Commercial - Government Agencies | 186,813 | — | (8,581 | ) | 178,232 | |||||||||||||||||||
Total Mortgage-Backed Securities | 915,696 | 13,248 | (9,815 | ) | 919,129 | |||||||||||||||||||
Total | $ | 2,262,807 | $ | 41,668 | $ | (15,285 | ) | $ | 2,289,190 | |||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 498,767 | $ | 2,008 | $ | (1,159 | ) | $ | 499,616 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 249,559 | 15,459 | — | 265,018 | ||||||||||||||||||||
Debt Securities Issued by Corporations | 166,686 | 109 | (3,442 | ) | 163,353 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 2,862,369 | 45,407 | (20,636 | ) | 2,887,140 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 379,365 | 3,635 | (15 | ) | 382,985 | |||||||||||||||||||
Commercial - Government Agencies | 309,933 | 241 | (3,791 | ) | 306,383 | |||||||||||||||||||
Total Mortgage-Backed Securities | 3,551,667 | 49,283 | (24,442 | ) | 3,576,508 | |||||||||||||||||||
Total | $ | 4,466,679 | $ | 66,859 | $ | (29,043 | ) | $ | 4,504,495 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 390,873 | $ | 6,640 | $ | (234 | ) | $ | 397,279 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 691,861 | 8,396 | (13,455 | ) | 686,802 | |||||||||||||||||||
Debt Securities Issued by Corporations | 280,172 | 1,165 | (7,836 | ) | 273,501 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 641,227 | 13,816 | (1,849 | ) | 653,194 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 21,865 | 1,403 | — | 23,268 | ||||||||||||||||||||
Commercial - Government Agencies | 219,859 | — | (10,206 | ) | 209,653 | |||||||||||||||||||
Total Mortgage-Backed Securities | 882,951 | 15,219 | (12,055 | ) | 886,115 | |||||||||||||||||||
Total | $ | 2,245,857 | $ | 31,420 | $ | (33,580 | ) | $ | 2,243,697 | |||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 433,987 | $ | 3,045 | $ | (3,667 | ) | $ | 433,365 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 253,039 | 817 | (133 | ) | 253,723 | |||||||||||||||||||
Debt Securities Issued by Corporations | 190,181 | — | (5,708 | ) | 184,473 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 3,523,343 | 31,786 | (66,572 | ) | 3,488,557 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 21,602 | 1,423 | — | 23,025 | ||||||||||||||||||||
Commercial - Government Agencies | 322,367 | — | (7,923 | ) | 314,444 | |||||||||||||||||||
Total Mortgage-Backed Securities | 3,867,312 | 33,209 | (74,495 | ) | 3,826,026 | |||||||||||||||||||
Total | $ | 4,744,519 | $ | 37,071 | $ | (84,003 | ) | $ | 4,697,587 | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 855,070 | $ | 14,936 | $ | (17 | ) | $ | 869,989 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 753,207 | 30,159 | (955 | ) | 782,411 | |||||||||||||||||||
Debt Securities Issued by Corporations | 82,450 | 1,984 | — | 84,434 | ||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 1,041,669 | 27,283 | (292 | ) | 1,068,660 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 35,234 | 2,064 | — | 37,298 | ||||||||||||||||||||
Commercial - Government Agencies | 524,055 | 1,907 | (1,197 | ) | 524,765 | |||||||||||||||||||
Total Mortgage-Backed Securities | 1,600,958 | 31,254 | (1,489 | ) | 1,630,723 | |||||||||||||||||||
Total | $ | 3,291,685 | $ | 78,333 | $ | (2,461 | ) | $ | 3,367,557 | |||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 190,168 | $ | 5,198 | $ | — | $ | 195,366 | ||||||||||||||||
Debt Securities Issued by Corporations | 24,000 | 4 | — | 24,004 | ||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 3,349,403 | 86,673 | (1,366 | ) | 3,434,710 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 31,494 | 2,102 | — | 33,596 | ||||||||||||||||||||
Total Mortgage-Backed Securities | 3,380,897 | 88,775 | (1,366 | ) | 3,468,306 | |||||||||||||||||||
Total | $ | 3,595,065 | $ | 93,977 | $ | (1,366 | ) | $ | 3,687,676 | |||||||||||||||
The table below presents an analysis of the contractual maturities of the Company's investment securities as of December 31, 2014. Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates. | ||||||||||||||||||||||||
(dollars in thousands) | Amortized | Fair Value | ||||||||||||||||||||||
Cost | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Due in One Year or Less | $ | 91,768 | $ | 92,943 | ||||||||||||||||||||
Due After One Year Through Five Years | 244,200 | 247,459 | ||||||||||||||||||||||
Due After Five Years Through Ten Years | 644,960 | 651,880 | ||||||||||||||||||||||
Due After Ten Years | 100,999 | 107,792 | ||||||||||||||||||||||
1,081,927 | 1,100,074 | |||||||||||||||||||||||
Debt Securities Issued by Government Agencies | 265,184 | 269,987 | ||||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 452,493 | 462,436 | ||||||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 276,390 | 278,461 | ||||||||||||||||||||||
Commercial - Government Agencies | 186,813 | 178,232 | ||||||||||||||||||||||
Total Mortgage-Backed Securities | 915,696 | 919,129 | ||||||||||||||||||||||
Total | $ | 2,262,807 | $ | 2,289,190 | ||||||||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Due in One Year or Less | $ | 99,658 | $ | 100,751 | ||||||||||||||||||||
Due After One Year Through Five Years | 410,000 | 410,083 | ||||||||||||||||||||||
Due After Five Years Through Ten Years | 220,502 | 225,179 | ||||||||||||||||||||||
Due After Ten Years | 184,852 | 191,974 | ||||||||||||||||||||||
915,012 | 927,987 | |||||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 2,862,369 | 2,887,140 | ||||||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 379,365 | 382,985 | ||||||||||||||||||||||
Commercial - Government Agencies | 309,933 | 306,383 | ||||||||||||||||||||||
Total Mortgage-Backed Securities | 3,551,667 | 3,576,508 | ||||||||||||||||||||||
Total | $ | 4,466,679 | $ | 4,504,495 | ||||||||||||||||||||
Investment securities with carrying values of $2.8 billion, $2.6 billion, and $2.9 billion as of December 31, 2014, 2013, and 2012, respectively, were pledged to secure deposits of governmental entities and securities sold under agreements to repurchase. | ||||||||||||||||||||||||
The table below presents the gains and losses from the sales of investment securities for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Gross Gains on Sales of Investment Securities | $ | 8,063 | $ | — | $ | 255 | ||||||||||||||||||
Gross Losses on Sales of Investment Securities | — | — | (332 | ) | ||||||||||||||||||||
Net Gains (Losses) on Sales of Investment Securities | $ | 8,063 | $ | — | $ | (77 | ) | |||||||||||||||||
The income tax expense related to the Company's net realized gains on the sales of investment securities was $3.2 million in 2014. There were no sales of investment securities in 2013. The income tax benefit related to the Company's net realized losses on the sales of investment securities was not material in 2012. | ||||||||||||||||||||||||
The Company's investment securities in an unrealized loss position, segregated by continuous length of impairment, were as follows: | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
(dollars in thousands) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Available-for-Sales: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 1,729 | $ | (2 | ) | $ | 5,546 | $ | (38 | ) | $ | 7,275 | $ | (40 | ) | |||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by States | 78,068 | (305 | ) | 94,543 | (1,140 | ) | 172,611 | (1,445 | ) | |||||||||||||||
and Political Subdivisions | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 73,829 | (1,171 | ) | 180,335 | (2,814 | ) | 254,164 | (3,985 | ) | |||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 3,025 | (8 | ) | 12,215 | (1,035 | ) | 15,240 | (1,043 | ) | |||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 103,824 | (191 | ) | — | — | 103,824 | (191 | ) | ||||||||||||||||
Commercial - Government Agencies | — | — | 178,232 | (8,581 | ) | 178,232 | (8,581 | ) | ||||||||||||||||
Total Mortgage-Backed Securities | 106,849 | (199 | ) | 190,447 | (9,616 | ) | 297,296 | (9,815 | ) | |||||||||||||||
Total | $ | 260,475 | $ | (1,677 | ) | $ | 470,871 | $ | (13,608 | ) | $ | 731,346 | $ | (15,285 | ) | |||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 70,016 | $ | (134 | ) | $ | 144,222 | $ | (1,025 | ) | $ | 214,238 | $ | (1,159 | ) | |||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 46,196 | (349 | ) | 82,109 | (3,093 | ) | 128,305 | (3,442 | ) | |||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 280,967 | (1,207 | ) | 845,911 | (19,429 | ) | 1,126,878 | (20,636 | ) | |||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 45,754 | (15 | ) | — | — | 45,754 | (15 | ) | ||||||||||||||||
Commercial - Government Agencies | 124,594 | (179 | ) | 171,091 | (3,612 | ) | 295,685 | (3,791 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 451,315 | (1,401 | ) | 1,017,002 | (23,041 | ) | 1,468,317 | (24,442 | ) | |||||||||||||||
Total | $ | 567,527 | $ | (1,884 | ) | $ | 1,243,333 | $ | (27,159 | ) | $ | 1,810,860 | $ | (29,043 | ) | |||||||||
31-Dec-13 | ||||||||||||||||||||||||
Available-for-Sales: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 26,181 | $ | (225 | ) | $ | 2,117 | $ | (9 | ) | $ | 28,298 | $ | (234 | ) | |||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by States | 415,718 | (10,934 | ) | 42,607 | (2,521 | ) | 458,325 | (13,455 | ) | |||||||||||||||
and Political Subdivisions | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 200,364 | (7,836 | ) | — | — | 200,364 | (7,836 | ) | ||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 76,744 | (781 | ) | 10,027 | (1,068 | ) | 86,771 | (1,849 | ) | |||||||||||||||
Commercial - Government Agencies | 164,478 | (7,935 | ) | 45,175 | (2,271 | ) | 209,653 | (10,206 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 241,222 | (8,716 | ) | 55,202 | (3,339 | ) | 296,424 | (12,055 | ) | |||||||||||||||
Total | $ | 883,485 | $ | (27,711 | ) | $ | 99,926 | $ | (5,869 | ) | $ | 983,411 | $ | (33,580 | ) | |||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 271,469 | $ | (3,667 | ) | $ | — | $ | — | $ | 271,469 | $ | (3,667 | ) | ||||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by States | 52,026 | (133 | ) | — | — | 52,026 | (133 | ) | ||||||||||||||||
and Political Subdivisions | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 163,736 | (4,278 | ) | 20,736 | (1,430 | ) | 184,472 | (5,708 | ) | |||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 1,767,086 | (54,067 | ) | 190,939 | (12,505 | ) | 1,958,025 | (66,572 | ) | |||||||||||||||
Commercial - Government Agencies | 224,277 | (4,753 | ) | 90,167 | (3,170 | ) | 314,444 | (7,923 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 1,991,363 | (58,820 | ) | 281,106 | (15,675 | ) | 2,272,469 | (74,495 | ) | |||||||||||||||
Total | $ | 2,478,594 | $ | (66,898 | ) | $ | 301,842 | $ | (17,105 | ) | $ | 2,780,436 | $ | (84,003 | ) | |||||||||
The Company does not believe that the investment securities that were in an unrealized loss position as of December 31, 2014, which was comprised of 175 securities, represent an other-than-temporary impairment. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. As of December 31, 2014, the gross unrealized losses reported for mortgage-backed securities were mostly related to investment securities issued by the Government National Mortgage Association. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost bases, which may be at maturity. | ||||||||||||||||||||||||
Interest income from taxable and non-taxable investment securities for the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Taxable | $ | 127,128 | $ | 125,379 | $ | 144,111 | ||||||||||||||||||
Non-Taxable | 21,207 | 18,253 | 16,813 | |||||||||||||||||||||
Total Interest Income from Investment Securities | $ | 148,335 | $ | 143,632 | $ | 160,924 | ||||||||||||||||||
As of December 31, 2014, included in the Company's investment securities portfolio were debt securities issued by political subdivisions within the State of Hawaii of $596.2 million, representing 59% of the total fair value of the Company's municipal debt securities. Of the entire Hawaii municipal bond portfolio, 92% were credit-rated Aa2 or better by Moody's while most of the remaining Hawaii municipal bonds were credit-rated A2 or better by at least one nationally recognized statistical rating organization. Approximately 76% of the Company's Hawaii municipal bond holdings were general obligation issuances. As of December 31, 2014, there were no other holdings of municipal debt securities that were issued by a single state or political subdivision which comprised more than 10% of the total fair value of the Company's municipal debt securities. | ||||||||||||||||||||||||
As of December 31, 2014, the carrying value of the Company’s Federal Home Loan Bank and Federal Reserve Bank stock was as follows: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Federal Home Loan Bank Stock | $ | 47,075 | $ | 58,021 | ||||||||||||||||||||
Federal Reserve Bank Stock | 19,299 | 19,138 | ||||||||||||||||||||||
Total | $ | 66,374 | $ | 77,159 | ||||||||||||||||||||
These securities can only be redeemed or sold at their par value and only to the respective issuing government-supported institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and periodically evaluates these securities for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than by recognizing temporary declines in value. | ||||||||||||||||||||||||
In September 2014, the FHLB of Seattle and the FHLB of Des Moines announced that they had entered into a definitive agreement to merge the two Banks. The merger agreement has been unanimously approved by the Federal Housing Finance Agency and the boards of directors of both Banks. The closing of the merger is subject to certain closing conditions, including approval by the member-owners of both Banks. | ||||||||||||||||||||||||
Visa Class B Restricted Shares | ||||||||||||||||||||||||
In 2008, the Company received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly traded Class A common shares. This conversion will not occur until the settlement of certain litigation which is indemnified by Visa members such as the Company. Visa funded an escrow account from its initial public offering to settle these litigation claims. Should this escrow account not be sufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing each member bank's Class B conversion ratio to unrestricted Class A shares. As of December 31, 2014, the conversion ratio was 0.4121. | ||||||||||||||||||||||||
For the year ended December 31, 2014, the Company recorded a $7.9 million net gain on the sale of 90,500 Visa Class B restricted shares. Concurrent with these sales, the Company entered into an agreement with the buyer that requires payment to the buyer in the event Visa further reduces the conversion ratio. Based on the existing transfer restriction and the uncertainty of the covered litigation, the remaining 397,514 Class B shares (163,816 Class A equivalents) that the Company owns are carried at a zero cost basis. The Company also contributed 21,600 Visa Class B restricted shares to the Bank of Hawaii Foundation during 2014. The contribution had no impact on noninterest expense; however, the contribution favorably impacted our effective tax rate in 2014. |
Loans_and_Leases_and_the_Allow
Loans and Leases and the Allowance for Loan and Lease Losses | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases and Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||
Loans and Leases and the Allowance for Loan and Lease Losses | Loans and Leases | |||||||||||||||||||||||||||||||
The Company's loan and lease portfolio was comprised of the following as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,055,243 | $ | 911,367 | ||||||||||||||||||||||||||||
Commercial Mortgage | 1,437,513 | 1,247,510 | ||||||||||||||||||||||||||||||
Construction | 109,183 | 107,349 | ||||||||||||||||||||||||||||||
Lease Financing | 226,189 | 262,207 | ||||||||||||||||||||||||||||||
Total Commercial | 2,828,128 | 2,528,433 | ||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 2,571,090 | 2,282,894 | ||||||||||||||||||||||||||||||
Home Equity | 866,688 | 773,385 | ||||||||||||||||||||||||||||||
Automobile | 323,848 | 255,986 | ||||||||||||||||||||||||||||||
Other 1 | 307,835 | 254,689 | ||||||||||||||||||||||||||||||
Total Consumer | 4,069,461 | 3,566,954 | ||||||||||||||||||||||||||||||
Total Loans and Leases | $ | 6,897,589 | $ | 6,095,387 | ||||||||||||||||||||||||||||
1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||||||||||||||||||
Total loans and leases were reported net of unearned income of $57.0 million and $63.1 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Commercial loans and residential mortgage loans of $1.0 billion and $0.9 billion were pledged to secure an undrawn FRB line of credit as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, residential mortgage loans of approximately $1.1 billion and $1.5 billion, respectively, were pledged under a blanket pledge arrangement to secure FHLB advances. See Note 10 for FHLB advances outstanding as of December 31, 2014 and 2013 . | ||||||||||||||||||||||||||||||||
Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income, were $2.4 million, $8.7 million, and $22.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. There were no sales of commercial loans for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||||||||||||||||||
Substantially all of the Company's lending activity is with customers located in Hawaii. A substantial portion of the Company's real estate loans are secured by real estate in Hawaii. | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||
The following presents by portfolio segment, the activity in the Allowance for the years ended December 31, 2014 and 2013. The following also presents by portfolio segment, the balance in the Allowance disaggregated on the basis of the Company's impairment measurement method and the related recorded investment in loans and leases as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Consumer | Total | |||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | 71,446 | $ | 44,008 | $ | 115,454 | ||||||||||||||||||||||||||
Loans and Leases Charged-Off | (2,068 | ) | (13,371 | ) | (15,439 | ) | ||||||||||||||||||||||||||
Recoveries on Loans and Leases Previously Charged-Off | 4,721 | 8,816 | 13,537 | |||||||||||||||||||||||||||||
Net Loans and Leases Recovered (Charged-Off) | 2,653 | (4,555 | ) | (1,902 | ) | |||||||||||||||||||||||||||
Provision for Credit Losses | (9,548 | ) | 4,684 | (4,864 | ) | |||||||||||||||||||||||||||
Balance at End of Period | $ | 64,551 | $ | 44,137 | $ | 108,688 | ||||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 2,387 | $ | 3,561 | $ | 5,948 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 62,164 | 40,576 | 102,740 | |||||||||||||||||||||||||||||
Total | $ | 64,551 | $ | 44,137 | $ | 108,688 | ||||||||||||||||||||||||||
Recorded Investment in Loans and Leases: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 25,116 | $ | 39,631 | $ | 64,747 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 2,803,012 | 4,029,830 | 6,832,842 | |||||||||||||||||||||||||||||
Total | $ | 2,828,128 | $ | 4,069,461 | $ | 6,897,589 | ||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | 72,704 | $ | 56,153 | $ | 128,857 | ||||||||||||||||||||||||||
Loans and Leases Charged-Off | (8,099 | ) | (17,021 | ) | (25,120 | ) | ||||||||||||||||||||||||||
Recoveries on Loans and Leases Previously Charged-Off | 2,644 | 9,073 | 11,717 | |||||||||||||||||||||||||||||
Net Loans and Leases Charged-Off | (5,455 | ) | (7,948 | ) | (13,403 | ) | ||||||||||||||||||||||||||
Provision for Credit Losses | 4,197 | (4,197 | ) | — | ||||||||||||||||||||||||||||
Balance at End of Period | $ | 71,446 | $ | 44,008 | $ | 115,454 | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 9,054 | $ | 3,722 | $ | 12,776 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 62,392 | 40,286 | 102,678 | |||||||||||||||||||||||||||||
Total | $ | 71,446 | $ | 44,008 | $ | 115,454 | ||||||||||||||||||||||||||
Recorded Investment in Loans and Leases: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 38,469 | $ | 38,646 | $ | 77,115 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 2,489,964 | 3,528,308 | 6,018,272 | |||||||||||||||||||||||||||||
Total | $ | 2,528,433 | $ | 3,566,954 | $ | 6,095,387 | ||||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | 80,562 | $ | 58,044 | $ | 138,606 | ||||||||||||||||||||||||||
Loans and Leases Charged-Off | (3,947 | ) | (20,212 | ) | (24,159 | ) | ||||||||||||||||||||||||||
Recoveries on Loans and Leases Previously Charged-Off | 4,191 | 9,240 | 13,431 | |||||||||||||||||||||||||||||
Net Loans and Leases Recovered (Charged-Off) | 244 | (10,972 | ) | (10,728 | ) | |||||||||||||||||||||||||||
Provision for Credit Losses | (8,102 | ) | 9,081 | 979 | ||||||||||||||||||||||||||||
Balance at End of Period | $ | 72,704 | $ | 56,153 | $ | 128,857 | ||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 161 | $ | 3,564 | $ | 3,725 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 72,543 | 52,589 | 125,132 | |||||||||||||||||||||||||||||
Total | $ | 72,704 | $ | 56,153 | $ | 128,857 | ||||||||||||||||||||||||||
Recorded Investment in Loans and Leases: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 13,098 | $ | 37,500 | $ | 50,598 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 2,302,795 | 3,501,128 | 5,803,923 | |||||||||||||||||||||||||||||
Total | $ | 2,315,893 | $ | 3,538,628 | $ | 5,854,521 | ||||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||||||||
The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk-rated and monitored collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment. | ||||||||||||||||||||||||||||||||
The following are the definitions of the Company's credit quality indicators: | ||||||||||||||||||||||||||||||||
Pass: | Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Management believes that there is a low likelihood of loss related to those loans and leases that are considered pass. | |||||||||||||||||||||||||||||||
Special Mention: | Loans and leases in the classes within the commercial portfolio segment that have potential weaknesses that deserve management's close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The special mention credit quality indicator is not used for classes of loans and leases that are included in the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans and leases that are considered special mention. | |||||||||||||||||||||||||||||||
Classified: | Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection and the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection, the first mortgage is with the Company, and the current combined loan-to-value ratio is 60% or less. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered classified for a period of up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from classified status. Management believes that there is a distinct possibility that the Company will sustain some loss if the deficiencies related to classified loans and leases are not corrected in a timely manner. | |||||||||||||||||||||||||||||||
The Company's credit quality indicators are periodically updated on a case-by-case basis. The following presents by class and by credit quality indicator, the recorded investment in the Company's loans and leases as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Commercial | Construction | Lease | Total | |||||||||||||||||||||||||||
and Industrial | Mortgage | Financing | Commercial | |||||||||||||||||||||||||||||
Pass | $ | 1,001,474 | $ | 1,358,812 | $ | 107,381 | $ | 225,783 | $ | 2,693,450 | ||||||||||||||||||||||
Special Mention | 17,364 | 45,082 | — | 17 | 62,463 | |||||||||||||||||||||||||||
Classified | 36,405 | 33,619 | 1,802 | 389 | 72,215 | |||||||||||||||||||||||||||
Total | $ | 1,055,243 | $ | 1,437,513 | $ | 109,183 | $ | 226,189 | $ | 2,828,128 | ||||||||||||||||||||||
(dollars in thousands) | Residential | Home | Automobile | Other 1 | Total | |||||||||||||||||||||||||||
Mortgage | Equity | Consumer | ||||||||||||||||||||||||||||||
Pass | $ | 2,556,140 | $ | 862,258 | $ | 323,232 | $ | 307,123 | $ | 4,048,753 | ||||||||||||||||||||||
Classified | 14,950 | 4,430 | 616 | 712 | 20,708 | |||||||||||||||||||||||||||
Total | $ | 2,571,090 | $ | 866,688 | $ | 323,848 | $ | 307,835 | $ | 4,069,461 | ||||||||||||||||||||||
Total Recorded Investment in Loans and Leases | $ | 6,897,589 | ||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Commercial | Construction | Lease | Total | |||||||||||||||||||||||||||
and Industrial | Mortgage | Financing | Commercial | |||||||||||||||||||||||||||||
Pass | $ | 867,813 | $ | 1,176,941 | $ | 104,377 | $ | 261,486 | $ | 2,410,617 | ||||||||||||||||||||||
Special Mention | 5,854 | 24,587 | — | 31 | 30,472 | |||||||||||||||||||||||||||
Classified | 37,700 | 45,982 | 2,972 | 690 | 87,344 | |||||||||||||||||||||||||||
Total | $ | 911,367 | $ | 1,247,510 | $ | 107,349 | $ | 262,207 | $ | 2,528,433 | ||||||||||||||||||||||
(dollars in thousands) | Residential | Home | Automobile | Other 1 | Total | |||||||||||||||||||||||||||
Mortgage | Equity | Consumer | ||||||||||||||||||||||||||||||
Pass | $ | 2,261,891 | $ | 769,051 | $ | 255,664 | $ | 253,910 | $ | 3,540,516 | ||||||||||||||||||||||
Classified | 21,003 | 4,334 | 322 | 779 | 26,438 | |||||||||||||||||||||||||||
Total | $ | 2,282,894 | $ | 773,385 | $ | 255,986 | $ | 254,689 | $ | 3,566,954 | ||||||||||||||||||||||
Total Recorded Investment in Loans and Leases | $ | 6,095,387 | ||||||||||||||||||||||||||||||
1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||||||||||||||||||
Aging Analysis | ||||||||||||||||||||||||||||||||
The following presents by class, an aging analysis of the Company's loan and lease portfolio as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
(dollars in thousands) | 30 - 59 | 60 - 89 | Past Due | Non- | Total | Current | Total Loans | Non-Accrual | ||||||||||||||||||||||||
Days | Days | 90 Days | Accrual | Past Due and | and Leases | Loans and | ||||||||||||||||||||||||||
Past Due | Past Due | or More | Non-Accrual | Leases that | ||||||||||||||||||||||||||||
are Current 2 | ||||||||||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 992 | $ | 356 | $ | 2 | $ | 9,088 | $ | 10,438 | $ | 1,044,805 | $ | 1,055,243 | $ | 7,819 | ||||||||||||||||
Commercial Mortgage | 458 | — | — | 745 | 1,203 | 1,436,310 | 1,437,513 | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | 109,183 | 109,183 | — | ||||||||||||||||||||||||
Lease Financing | — | — | — | — | — | 226,189 | 226,189 | — | ||||||||||||||||||||||||
Total Commercial | 1,450 | 356 | 2 | 9,833 | 11,641 | 2,816,487 | 2,828,128 | 7,819 | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 4,907 | 2,107 | 4,506 | 14,841 | 26,361 | 2,544,729 | 2,571,090 | 632 | ||||||||||||||||||||||||
Home Equity | 3,461 | 2,661 | 2,596 | 3,097 | 11,815 | 854,873 | 866,688 | 375 | ||||||||||||||||||||||||
Automobile | 7,862 | 1,483 | 616 | — | 9,961 | 313,887 | 323,848 | — | ||||||||||||||||||||||||
Other 1 | 2,416 | 1,049 | 941 | — | 4,406 | 303,429 | 307,835 | — | ||||||||||||||||||||||||
Total Consumer | 18,646 | 7,300 | 8,659 | 17,938 | 52,543 | 4,016,918 | 4,069,461 | 1,007 | ||||||||||||||||||||||||
Total | $ | 20,096 | $ | 7,656 | $ | 8,661 | $ | 27,771 | $ | 64,184 | $ | 6,833,405 | $ | 6,897,589 | $ | 8,826 | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,701 | $ | 1,962 | $ | 1,173 | $ | 11,929 | $ | 16,765 | $ | 894,602 | $ | 911,367 | $ | 3,603 | ||||||||||||||||
Commercial Mortgage | 932 | — | — | 2,512 | 3,444 | 1,244,066 | 1,247,510 | 778 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | 107,349 | 107,349 | — | ||||||||||||||||||||||||
Lease Financing | — | — | — | — | — | 262,207 | 262,207 | — | ||||||||||||||||||||||||
Total Commercial | 2,633 | 1,962 | 1,173 | 14,441 | 20,209 | 2,508,224 | 2,528,433 | 4,381 | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 6,984 | 4,746 | 4,564 | 20,264 | 36,558 | 2,246,336 | 2,282,894 | 5,883 | ||||||||||||||||||||||||
Home Equity | 3,926 | 2,867 | 3,009 | 1,740 | 11,542 | 761,843 | 773,385 | 265 | ||||||||||||||||||||||||
Automobile | 4,688 | 971 | 322 | — | 5,981 | 250,005 | 255,986 | — | ||||||||||||||||||||||||
Other 1 | 2,426 | 5,295 | 790 | — | 8,511 | 246,178 | 254,689 | — | ||||||||||||||||||||||||
Total Consumer | 18,024 | 13,879 | 8,685 | 22,004 | 62,592 | 3,504,362 | 3,566,954 | 6,148 | ||||||||||||||||||||||||
Total | $ | 20,657 | $ | 15,841 | $ | 9,858 | $ | 36,445 | $ | 82,801 | $ | 6,012,586 | $ | 6,095,387 | $ | 10,529 | ||||||||||||||||
1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||||||||||||||||||
2 Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected. | ||||||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
The following presents by class, information related to impaired loans as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Unpaid | Related | |||||||||||||||||||||||||||||
Investment | Principal | Allowance for | ||||||||||||||||||||||||||||||
Balance | Loan Losses | |||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Impaired Loans with No Related Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 9,763 | $ | 15,013 | $ | — | ||||||||||||||||||||||||||
Commercial Mortgage | 6,480 | 6,480 | — | |||||||||||||||||||||||||||||
Construction | 1,689 | 1,689 | — | |||||||||||||||||||||||||||||
Total Commercial | 17,932 | 23,182 | — | |||||||||||||||||||||||||||||
Total Impaired Loans with No Related Allowance Recorded | $ | 17,932 | $ | 23,182 | $ | — | ||||||||||||||||||||||||||
Impaired Loans with an Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 7,184 | $ | 13,784 | $ | 2,387 | ||||||||||||||||||||||||||
Total Commercial | 7,184 | 13,784 | 2,387 | |||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 32,331 | 37,989 | 3,445 | |||||||||||||||||||||||||||||
Home Equity | 1,012 | 1,012 | 16 | |||||||||||||||||||||||||||||
Automobile | 5,375 | 5,375 | 66 | |||||||||||||||||||||||||||||
Other 1 | 913 | 913 | 34 | |||||||||||||||||||||||||||||
Total Consumer | 39,631 | 45,289 | 3,561 | |||||||||||||||||||||||||||||
Total Impaired Loans with an Allowance Recorded | $ | 46,815 | $ | 59,073 | $ | 5,948 | ||||||||||||||||||||||||||
Impaired Loans: | ||||||||||||||||||||||||||||||||
Commercial | $ | 25,116 | $ | 36,966 | $ | 2,387 | ||||||||||||||||||||||||||
Consumer | 39,631 | 45,289 | 3,561 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 64,747 | $ | 82,255 | $ | 5,948 | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Impaired Loans with No Related Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 12,709 | $ | 17,967 | $ | — | ||||||||||||||||||||||||||
Commercial Mortgage | 14,898 | 14,898 | — | |||||||||||||||||||||||||||||
Construction | 1,059 | 1,064 | — | |||||||||||||||||||||||||||||
Total Commercial | 28,666 | 33,929 | — | |||||||||||||||||||||||||||||
Total Impaired Loans with No Related Allowance Recorded | $ | 28,666 | $ | 33,929 | $ | — | ||||||||||||||||||||||||||
Impaired Loans with an Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 9,803 | $ | 16,403 | $ | 9,054 | ||||||||||||||||||||||||||
Total Commercial | 9,803 | 16,403 | 9,054 | |||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 32,338 | 38,420 | 3,619 | |||||||||||||||||||||||||||||
Home Equity | 796 | 796 | 13 | |||||||||||||||||||||||||||||
Automobile | 5,183 | 5,183 | 77 | |||||||||||||||||||||||||||||
Other 1 | 329 | 329 | 13 | |||||||||||||||||||||||||||||
Total Consumer | 38,646 | 44,728 | 3,722 | |||||||||||||||||||||||||||||
Total Impaired Loans with an Allowance Recorded | $ | 48,449 | $ | 61,131 | $ | 12,776 | ||||||||||||||||||||||||||
Impaired Loans: | ||||||||||||||||||||||||||||||||
Commercial | $ | 38,469 | $ | 50,332 | $ | 9,054 | ||||||||||||||||||||||||||
Consumer | 38,646 | 44,728 | 3,722 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 77,115 | $ | 95,060 | $ | 12,776 | ||||||||||||||||||||||||||
1 Comprised of other revolving credit and installment financing. | ||||||||||||||||||||||||||||||||
The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||
Impaired Loans with No Related Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 11,167 | $ | 318 | $ | 9,346 | $ | 115 | ||||||||||||||||||||||||
Commercial Mortgage | 8,529 | 225 | 7,574 | 150 | ||||||||||||||||||||||||||||
Construction | 1,570 | 93 | 591 | 27 | ||||||||||||||||||||||||||||
Total Commercial | 21,266 | 636 | 17,511 | 292 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Other 1 | 6 | — | — | — | ||||||||||||||||||||||||||||
Total Consumer | 6 | — | — | — | ||||||||||||||||||||||||||||
Total Impaired Loans with No Related Allowance Recorded | $ | 21,272 | $ | 636 | $ | 17,511 | $ | 292 | ||||||||||||||||||||||||
Impaired Loans with an Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 8,045 | $ | 118 | $ | 6,435 | $ | 190 | ||||||||||||||||||||||||
Commercial Mortgage | — | — | 32 | 51 | ||||||||||||||||||||||||||||
Total Commercial | 8,045 | 118 | 6,467 | 241 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 31,998 | 1,028 | 31,518 | 800 | ||||||||||||||||||||||||||||
Home Equity | 964 | 34 | 159 | 4 | ||||||||||||||||||||||||||||
Automobile | 5,263 | 433 | 5,230 | 490 | ||||||||||||||||||||||||||||
Other 1 | 560 | 49 | 279 | 15 | ||||||||||||||||||||||||||||
Total Consumer | 38,785 | 1,544 | 37,186 | 1,309 | ||||||||||||||||||||||||||||
Total Impaired Loans with an Allowance Recorded | $ | 46,830 | $ | 1,662 | $ | 43,653 | $ | 1,550 | ||||||||||||||||||||||||
Impaired Loans: | ||||||||||||||||||||||||||||||||
Commercial | $ | 29,311 | $ | 754 | $ | 23,978 | $ | 533 | ||||||||||||||||||||||||
Consumer | 38,791 | 1,544 | 37,186 | 1,309 | ||||||||||||||||||||||||||||
Total Impaired Loans | $ | 68,102 | $ | 2,298 | $ | 61,164 | $ | 1,842 | ||||||||||||||||||||||||
1 Comprised of other revolving credit and installment financing. | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2012, the average recorded investment in impaired loans was $47.4 million and the interest income recognized on impaired loans was $1.2 million. For the years ended December 31, 2014, 2013, and 2012, the amount of interest income recognized by the Company within the period that the loans were impaired were primarily related to loans modified in a troubled debt restructuring that remained on accrual status. For the years ended December 31, 2014, 2013, and 2012, the amount of interest income recognized using a cash-basis method of accounting during the time within that period that the loans were impaired was not material. | ||||||||||||||||||||||||||||||||
Modifications | ||||||||||||||||||||||||||||||||
A modification of a loan constitutes a troubled debt restructuring ("TDR") when the Company for economic or legal reasons related to a borrower's financial difficulties grants a concession to the borrower that it would not otherwise consider. Loans modified in a TDR were $60.2 million and $63.7 million as of December 31, 2014 and 2013, respectively. There were no commitments to lend additional funds on loans modified in a TDR as of December 31, 2014. As of December 31, 2013, there were $1.9 million in available commitments under revolving credit lines that have been modified in a TDR. | ||||||||||||||||||||||||||||||||
The Company offers various types of concessions when modifying a loan or lease. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial mortgage and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a co-borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. Residential mortgage loans modified in a TDR generally include a lower interest rate and the loan being fully amortized for up to 40 years from the modification effective date. In some cases, the Company may forbear a portion of the unpaid principal balance with a balloon payment due upon maturity or pay-off of the loan. Land loans are also included in the class of residential mortgage loans. Land loans are typically structured as interest-only monthly payments with a balloon payment due at maturity. Land loan modifications usually involve extending the interest-only payments up to an additional five years with a balloon payment due at maturity, or re-amortizing the remaining balance over a period up to 360 months. Interest rates are not changed for land loan modifications. Home equity modifications are made infrequently and uniquely designed to meet the specific needs of each borrower. Automobile loans modified in a TDR are primarily comprised of loans where the Company has lowered monthly payments by extending the term. | ||||||||||||||||||||||||||||||||
Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific Allowance associated with the loan. An Allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. | ||||||||||||||||||||||||||||||||
The following presents by class, information related to loans modified in a TDR during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Loans Modified as a TDR for the | Loans Modified as a TDR for the | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number of | Recorded | Increase in | Number of | Recorded | Increase in | ||||||||||||||||||||||||||
(dollars in thousands) | Contracts | Investment | Allowance | Contracts | Investment | Allowance | ||||||||||||||||||||||||||
(as of period end) 1 | (as of period end) | (as of period end) 1 | (as of period end) | |||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | 19 | $ | 10,263 | $ | 2,360 | 36 | $ | 9,279 | $ | 1,056 | ||||||||||||||||||||||
Commercial Mortgage | 1 | 315 | — | 5 | 12,386 | — | ||||||||||||||||||||||||||
Construction | — | — | — | 1 | 1,059 | — | ||||||||||||||||||||||||||
Total Commercial | 20 | 10,578 | 2,360 | 42 | 22,724 | 1,056 | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 17 | 6,329 | 278 | 22 | 7,855 | 1,113 | ||||||||||||||||||||||||||
Home Equity | 2 | 156 | 2 | 3 | 649 | 67 | ||||||||||||||||||||||||||
Automobile | 131 | 2,576 | 32 | 153 | 2,106 | 31 | ||||||||||||||||||||||||||
Other 2 | 84 | 666 | 25 | 17 | 180 | 7 | ||||||||||||||||||||||||||
Total Consumer | 234 | 9,727 | 337 | 195 | 10,790 | 1,218 | ||||||||||||||||||||||||||
Total | 254 | $ | 20,305 | $ | 2,697 | 237 | $ | 33,514 | $ | 2,274 | ||||||||||||||||||||||
1 | The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. | |||||||||||||||||||||||||||||||
2 | Comprised of other revolving credit and installment financing. | |||||||||||||||||||||||||||||||
The following presents by class, loans modified in a TDR that defaulted during the year ended December 31, 2014 and 2013, and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification. | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
TDRs that Defaulted During the Period, | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||
Within Twelve Months of their Modification Date | Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||
(dollars in thousands) | (as of period end) 1 | (as of period end) 1 | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | 4 | $ | 728 | 2 | $ | 985 | ||||||||||||||||||||||||||
Total Commercial | 4 | 728 | 2 | 985 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 2 | 506 | 1 | 438 | ||||||||||||||||||||||||||||
Automobile | 6 | 77 | 13 | 178 | ||||||||||||||||||||||||||||
Other 2 | 6 | 48 | — | — | ||||||||||||||||||||||||||||
Total Consumer | 14 | 631 | 14 | 616 | ||||||||||||||||||||||||||||
Total | 18 | $ | 1,359 | 16 | $ | 1,601 | ||||||||||||||||||||||||||
1 The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. | ||||||||||||||||||||||||||||||||
2 | Comprised of other revolving credit and installment financing. | |||||||||||||||||||||||||||||||
Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The specific Allowance associated with the loan may be increased, adjustments may be made in the allocation of the Allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. | ||||||||||||||||||||||||||||||||
Related Party Loans | ||||||||||||||||||||||||||||||||
Certain directors and executive officers of the Company, companies in which they are principal owners, and trusts in which they are involved, have loans with the Bank. These loans were made in the ordinary course of business at normal credit terms, including interest rate and collateral requirements. As of December 31, 2014 and 2013, related party loan balances were $17.0 million and $11.7 million, respectively. |
Mortgage_Servicing_Rights
Mortgage Servicing Rights | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Transfers and Servicing of Financial Assets [Abstract] | ||||||||||||
Mortgage Servicing Rights | Mortgage Servicing Rights | |||||||||||
The Company's portfolio of residential mortgage loans serviced for third parties was $2.9 billion as of December 31, 2014 and $3.1 billion as of December 31, 2013 and 2012. Substantially all of these loans were originated by the Company and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 20 to the Consolidated Financial Statements for more information). Changes to the balance of mortgage servicing rights are recorded in mortgage banking income in the Company’s consolidated statements of income. | ||||||||||||
The Company’s mortgage servicing activities include collecting principal, interest, and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Servicing income, including late and ancillary fees, was $7.9 million, $8.0 million, and $8.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. Servicing income is recorded in mortgage banking income in the Company’s consolidated statements of income. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in Hawaii. | ||||||||||||
For the years ended December 31, 2014, 2013, and 2012, the change in the fair value of the Company's mortgage servicing rights accounted for under the fair value measurement method was as follows: | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at Beginning of Year | $ | 3,826 | $ | 4,761 | $ | 7,131 | ||||||
Changes in Fair Value: | ||||||||||||
Due to Change in Valuation Assumptions 1 | (869 | ) | 127 | (863 | ) | |||||||
Due to Payoffs | (353 | ) | (1,062 | ) | (1,507 | ) | ||||||
Total Changes in Fair Value of Mortgage Servicing Rights | (1,222 | ) | (935 | ) | (2,370 | ) | ||||||
Balance at End of Year | $ | 2,604 | $ | 3,826 | $ | 4,761 | ||||||
1 | Principally represents changes in discount rates and loan repayment rate assumptions, mostly due to changes in interest rates. | |||||||||||
For the years ended December 31, 2014, 2013, and 2012, the change in the carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows: | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at Beginning of Year | $ | 24,297 | $ | 20,479 | $ | 17,148 | ||||||
Servicing Rights that Resulted From Asset Transfers | 747 | 6,351 | 6,016 | |||||||||
Amortization | (2,896 | ) | (2,533 | ) | (2,685 | ) | ||||||
Valuation Allowance Provision | (57 | ) | — | — | ||||||||
Balance at End of Year | $ | 22,091 | $ | 24,297 | $ | 20,479 | ||||||
Valuation Allowance: | ||||||||||||
Balance at Beginning of Year | $ | — | $ | — | $ | — | ||||||
Valuation Allowance Provision | (57 | ) | — | — | ||||||||
Balance at End of Year | $ | (57 | ) | $ | — | $ | — | |||||
Fair Value: | ||||||||||||
Balance at Beginning of Year | $ | 30,100 | $ | 23,143 | $ | 17,159 | ||||||
Balance at End of Year | $ | 22,837 | $ | 30,100 | $ | 23,143 | ||||||
The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of December 31, 2014 and 2013 were as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Weighted-Average Constant Prepayment Rate 1 | 11.62 | % | 7.98 | % | ||||||||
Weighted-Average Life (in years) | 6.28 | 8.04 | ||||||||||
Weighted-Average Note Rate | 4.28 | % | 4.31 | % | ||||||||
Weighted-Average Discount Rate 2 | 10.61 | % | 9.7 | % | ||||||||
1 | Represents annualized loan repayment rate assumption. | |||||||||||
2 | Derived from multiple interest rate scenarios that incorporate a spread to the London Interbank Offered Rate swap curve and market volatilities. | |||||||||||
A sensitivity analysis of the Company's fair value of mortgage servicing rights to changes in certain key assumptions as of December 31, 2014 and 2013 is presented in the following table. | ||||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Constant Prepayment Rate | ||||||||||||
Decrease in fair value from 25 basis points ("bps") adverse change | $ | (265 | ) | $ | (357 | ) | ||||||
Decrease in fair value from 50 bps adverse change | (524 | ) | (746 | ) | ||||||||
Discount Rate | ||||||||||||
Decrease in fair value from 25 bps adverse change | (250 | ) | (432 | ) | ||||||||
Decrease in fair value from 50 bps adverse change | (495 | ) | (876 | ) | ||||||||
This analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company's mortgage servicing rights usually is not linear. Also, the effect of changing one key assumption without changing other assumptions is not realistic. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Premises and Equipment | The components of the Company's premises and equipment as of December 31, 2014 and 2013 were as follows: | |||||||||||
(dollars in thousands) | Cost | Accumulated | Net Book Value | |||||||||
Depreciation and | ||||||||||||
Amortization | ||||||||||||
31-Dec-14 | ||||||||||||
Premises | $ | 322,536 | $ | (235,464 | ) | $ | 87,072 | |||||
Equipment | 106,623 | (86,577 | ) | 20,046 | ||||||||
Capital Leases | 6,593 | (3,857 | ) | 2,736 | ||||||||
Total | $ | 435,752 | $ | (325,898 | ) | $ | 109,854 | |||||
31-Dec-13 | ||||||||||||
Premises | $ | 317,659 | $ | (227,907 | ) | $ | 89,752 | |||||
Equipment | 108,778 | (90,608 | ) | 18,170 | ||||||||
Capital Leases | 4,464 | (3,750 | ) | 714 | ||||||||
Total | $ | 430,901 | $ | (322,265 | ) | $ | 108,636 | |||||
Depreciation and amortization (including capital lease amortization) included in noninterest expense was $12.4 million, $12.1 million, and $13.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
For the years ended December 31, 2014 and 2013, there was no impairment of the Company's premises and equipment. For the year ended December 31, 2012, the Company recorded an impairment charge of $1.1 million related to several of the Company's branch premises. This impairment charge was recorded as a component of net occupancy expense in the Company's consolidated statements of income. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Assets | The components of the Company's other assets as of December 31, 2014 and 2013 were as follows: | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | $ | 66,374 | $ | 77,159 | ||||
Derivative Financial Instruments | 16,515 | 21,769 | ||||||
Low-Income Housing and Other Equity Investments | 77,495 | 48,931 | ||||||
Deferred Compensation Plan Assets | 18,794 | 15,535 | ||||||
Prepaid Expenses | 7,787 | 6,098 | ||||||
Accounts Receivable | 13,405 | 13,479 | ||||||
State Tax Deposits | — | 6,069 | ||||||
Other | 25,518 | 18,253 | ||||||
Total | $ | 225,888 | $ | 207,293 | ||||
Deposits
Deposits | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Deposits [Abstract] | ||||
Deposits | Time Deposits | |||
As of December 31, 2014 and 2013, the Company's total time deposits were $1.4 billion and $1.3 billion, respectively. As of December 31, 2014, the contractual maturities of these time deposits were as follows: | ||||
(dollars in thousands) | Amount | |||
2015 | $ | 1,171,632 | ||
2016 | 142,327 | |||
2017 | 73,898 | |||
2018 | 11,692 | |||
2019 | 13,030 | |||
Thereafter | 21,422 | |||
Total | $ | 1,434,001 | ||
The amount of time deposits with balances of $100,000 or more was $1.2 billion and $1.0 billion as of December 31, 2014 and 2013, respectively. As of December 31, 2014, the contractual maturities of these time deposits were as follows: | ||||
(dollars in thousands) | Amount | |||
Three Months or Less | $ | 818,595 | ||
Over Three Months through Six Months | 98,451 | |||
Over Six Months through Twelve Months | 109,575 | |||
Over Twelve Months | 135,420 | |||
Total | $ | 1,162,041 | ||
Public Deposits | ||||
As of December 31, 2014 and 2013, deposits of governmental entities of $1.3 billion and $1.2 billion, respectively, required collateralization by acceptable investment securities of the Company. |
Borrowings
Borrowings | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Borrowings Disclosure Abstract | ||||||||
Borrowings | Borrowings | |||||||
Details of the Company's short-term borrowings (original maturity of one year or less) as of December 31, 2014 and 2013 were as follows: | ||||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Funds Purchased 1 | ||||||||
Amounts Outstanding | $ | 8,459 | $ | 9,982 | ||||
Weighted-Average Interest Rate | 0.14 | % | 0.14 | % | ||||
Securities Sold Under Agreements to Repurchase (short-term) 2 | ||||||||
Amounts Outstanding | $ | 7,700 | $ | 62,233 | ||||
Weighted-Average Interest Rate | 0.1 | % | 0.05 | % | ||||
1 | Federal funds purchased generally mature on the next business day following the date of purchase. | |||||||
2 | Consists entirely of repurchase agreements with government entities. Excludes long-term repurchase agreements with government entities of $80.9 million and $107.8 million as of December 31, 2014, and 2013, respectively, and long-term repurchase agreements with private institutions of $600.0 million as of December 31, 2014 and 2013. | |||||||
The Company's total securities sold under agreements to repurchase were $688.6 million and $770.0 million as of December 31, 2014 and 2013, respectively. As of December 31, 2014, all of our repurchase agreements were at fixed interest rates. | ||||||||
As of December 31, 2014, long-term repurchase agreements placed with government entities were $80.9 million with a weighted-average interest rate of 0.31%. Remaining terms ranged from 2015 to 2016 with a weighted-average maturity of 302 days. | ||||||||
As of December 31, 2014, long-term repurchase agreements placed with private institutions were $600.0 million with a weighted-average interest rate of 4.21%. Remaining terms ranged from 2015 to 2022 with a weighted-average maturity of 4.4 years. Some of our repurchase agreements with private institutions may be terminated at earlier specified dates by the private institution or in some cases by either the private institution or the Company. If all such agreements were to terminate at the earliest possible date, the weighted-average maturity for our repurchase agreements with private institutions would decrease to 1.7 years. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | The Company's long-term debt as of December 31, 2014 and 2013 were as follows: | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Federal Home Loan Bank Advances | $ | 150,000 | $ | 150,000 | ||||
Non-Recourse Debt | 13,005 | 15,877 | ||||||
Capital Lease Obligations | 10,907 | 8,829 | ||||||
Total | $ | 173,912 | $ | 174,706 | ||||
As a member of the FHLB, the Bank may borrow funds from the FHLB in amounts up to 15% of the Bank's total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. The stated interest rate on the FHLB advances is 0.60% with maturity dates in 2015 and 2016. As of December 31, 2014, the Company had a remaining line of credit with the FHLB of $788.9 million. See Note 4 for loans pledged to the FHLB as of December 31, 2014 and 2013. | ||||||||
As of December 31, 2014, the Company's non-recourse debt was bearing interest at a fixed rate of 6.3% with maturity in June 2021. | ||||||||
Capital lease obligations relate to office space at the Company's headquarters. The lease began in 1993 and has a 60 year term. Lease payments are fixed at $0.8 million per year through December 2022 (one-time inflation adjustment on January 1, 2018) and are negotiable thereafter. | ||||||||
As of December 31, 2014, the Company had an undrawn line of credit with the FRB of $629.1 million. See Note 4 for loans pledged to the FRB as of December 31, 2014 and 2013. | ||||||||
As of December 31, 2014, the annual maturities of the Company's long-term debt, exclusive of capital lease obligations, were expected to be as follows: | ||||||||
(dollars in thousands) | Amount | |||||||
2015 | $ | 103,067 | ||||||
2016 | 52,785 | |||||||
2017 | — | |||||||
2018 | — | |||||||
2019 | — | |||||||
Thereafter | 7,153 | |||||||
Total | $ | 163,005 | ||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||
Shareholders' Equity | Shareholders' Equity | ||||||||||||||
Regulatory Capital | |||||||||||||||
The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2014 and 2013: | |||||||||||||||
(dollars in thousands) | Well Capitalized | Company | Bank | ||||||||||||
Minimum Ratio | |||||||||||||||
As of December 31, 2014: | |||||||||||||||
Shareholders' Equity | $ | 1,055,086 | $ | 975,723 | |||||||||||
Tier 1 Capital | 1,039,631 | 974,397 | |||||||||||||
Total Capital | 1,128,416 | 1,063,085 | |||||||||||||
Tier 1 Capital Ratio | 6 | % | 14.69 | % | 13.78 | % | |||||||||
Total Capital Ratio | 10 | % | 15.94 | % | 15.04 | % | |||||||||
Tier 1 Leverage Ratio | 5 | % | 7.13 | % | 6.69 | % | |||||||||
As of December 31, 2013: | |||||||||||||||
Shareholders' Equity | $ | 1,011,976 | $ | 940,730 | |||||||||||
Tier 1 Capital 1 | 1,004,290 | 947,233 | |||||||||||||
Total Capital 1 | 1,083,051 | 1,025,896 | |||||||||||||
Tier 1 Capital Ratio 1 | 6 | % | 16.05 | % | 15.16 | % | |||||||||
Total Capital Ratio 1 | 10 | % | 17.31 | % | 16.41 | % | |||||||||
Tier 1 Leverage Ratio 1 | 5 | % | 7.24 | % | 6.83 | % | |||||||||
1 Tier 1 Capital, Total Capital, and Regulatory Capital Ratios as of December 31, 2013 were revised to conform to the current period calculation. | |||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by regulators about the components of regulatory capital, risk weightings, and other factors. | |||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Tier 1 and Total Capital. Tier 1 Capital is common shareholders' equity, reduced by certain intangible assets, postretirement benefit liability adjustments, and unrealized gains and losses on investment securities. Total Capital is Tier 1 Capital plus an allowable amount of the reserve for credit losses. Three capital ratios are used to measure capital adequacy: Tier 1 Capital divided by risk-weighted assets, as defined; Total Capital divided by risk-weighted assets, as defined; and the Tier 1 Leverage ratio, which is Tier 1 Capital divided by quarterly adjusted average total assets. | |||||||||||||||
As of December 31, 2014, the Company and the Bank were well capitalized as defined in the regulatory framework for prompt corrective action. There were no conditions or events since December 31, 2014 that management believes have changed the Company or the Bank's capital classifications. | |||||||||||||||
Dividends | |||||||||||||||
Dividends paid by the Parent are substantially funded from dividends received from the Bank. The Bank is subject to federal and state regulatory restrictions that limit cash dividends and loans to the Parent. These restrictions generally require advanced approval from the Bank's regulator for payment of dividends in excess of the sum of net income for the current calendar year and the retained net income of the prior two calendar years. | |||||||||||||||
Common Stock Repurchase Program | |||||||||||||||
The Parent has a common stock repurchase program in which shares repurchased are held in treasury stock for reissuance in connection with share-based compensation plans and for general corporate purposes. For the year ended December 31, 2014, the Parent repurchased 1.1 million shares of common stock at an average cost per share of $57.50 and a total cost of $60.7 million. From the beginning of the stock repurchase program in July 2001 through December 31, 2014, the Parent repurchased a total of 52.0 million shares of common stock at an average cost of $36.96 per share and a total cost of $1.9 billion. Remaining buyback authority under the common stock repurchase program was $73.2 million as of December 31, 2014. From January 1, 2015 through February 13, 2015, the Parent repurchased an additional 149,048 shares of common stock at an average cost of $57.16 per share for a total of $8.5 million. Remaining buyback authority under the common stock repurchase program was $64.7 million as of February 13, 2015. The actual amount and timing of future share repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors. | |||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||
The following table presents the components of other comprehensive income (loss), net of tax: | |||||||||||||||
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | ||||||||||||
Year Ended December 31, 2014: | |||||||||||||||
Net Unrealized Gains on Investment Securities: | |||||||||||||||
Net Unrealized Gains Arising During the Period | $ | 28,609 | $ | 11,286 | $ | 17,323 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income that Increase Net Income: | |||||||||||||||
Gain on Sale | (64 | ) | (25 | ) | (39 | ) | |||||||||
Amortization of Unrealized Holding Gains on Held-to-Maturity Securities 1 | (703 | ) | (277 | ) | (426 | ) | |||||||||
Net Unrealized Gains on Investment Securities | 27,842 | 10,984 | 16,858 | ||||||||||||
Defined Benefit Plans: | |||||||||||||||
Net Actuarial Losses Arising During the Period | (20,286 | ) | (8,000 | ) | (12,286 | ) | |||||||||
Amortization of Net Actuarial Losses | 1,256 | 496 | 760 | ||||||||||||
Amortization of Prior Service Credit | (322 | ) | (127 | ) | (195 | ) | |||||||||
Defined Benefit Plans, Net | (19,352 | ) | (7,631 | ) | (11,721 | ) | |||||||||
Other Comprehensive Income | $ | 8,490 | $ | 3,353 | $ | 5,137 | |||||||||
Year Ended December 31, 2013: | |||||||||||||||
Net Unrealized Losses on Investment Securities: | |||||||||||||||
Net Unrealized Losses Arising During the Period | $ | (105,842 | ) | $ | (41,715 | ) | $ | (64,127 | ) | ||||||
Amounts Reclassified from Accumulated Other Comprehensive Income that Increase Net Income: | |||||||||||||||
Amortization of Unrealized Holding Gains on Held-to-Maturity Securities 1 | (8,386 | ) | (3,307 | ) | (5,079 | ) | |||||||||
Net Unrealized Losses on Investment Securities | (114,228 | ) | (45,022 | ) | (69,206 | ) | |||||||||
Defined Benefit Plans: | |||||||||||||||
Net Actuarial Gains Arising During the Period | 12,132 | 4,785 | 7,347 | ||||||||||||
Amortization of Net Actuarial Losses | 1,688 | 665 | 1,023 | ||||||||||||
Amortization of Prior Service Credit | (322 | ) | (127 | ) | (195 | ) | |||||||||
Defined Benefit Plans, Net | 13,498 | 5,323 | 8,175 | ||||||||||||
Other Comprehensive Loss | $ | (100,730 | ) | $ | (39,699 | ) | $ | (61,031 | ) | ||||||
Year Ended December 31, 2012: | |||||||||||||||
Net Unrealized Losses on Investment Securities: | |||||||||||||||
Net Unrealized Gains Arising During the Period | $ | 10,846 | $ | 4,312 | $ | 6,534 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income that (Increase) Decrease Net Income: | |||||||||||||||
Loss on Sale | 77 | 30 | 47 | ||||||||||||
Amortization of Unrealized Holding Gains on Held-to-Maturity Securities 1 | (16,076 | ) | (6,340 | ) | (9,736 | ) | |||||||||
Net Unrealized Losses on Investment Securities | (5,153 | ) | (1,998 | ) | (3,155 | ) | |||||||||
Defined Benefit Plans: | |||||||||||||||
Net Actuarial Losses Arising During the Period | (5,798 | ) | (2,295 | ) | (3,503 | ) | |||||||||
Amortization of Net Actuarial Losses | 1,318 | 520 | 798 | ||||||||||||
Amortization of Prior Service Credit | (322 | ) | (127 | ) | (195 | ) | |||||||||
Defined Benefit Plans, Net | (4,802 | ) | (1,902 | ) | (2,900 | ) | |||||||||
Other Comprehensive Loss | $ | (9,955 | ) | $ | (3,900 | ) | $ | (6,055 | ) | ||||||
1 | The amount relates to the amortization/accretion of unrealized gains and losses related to the Company's reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield. | ||||||||||||||
The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax: | |||||||||||||||
(dollars in thousands) | Investment Securities-Available-For-Sale | Investment Securities-Held-To-Maturities | Defined Benefit Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||||
Year Ended December 31, 2014: | |||||||||||||||
Balance at Beginning of Period | $ | (1,300 | ) | $ | (8,129 | ) | $ | (22,394 | ) | $ | (31,823 | ) | |||
Other Comprehensive Income Before Reclassifications | 17,323 | — | (12,286 | ) | 5,037 | ||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | (39 | ) | (426 | ) | 565 | 100 | |||||||||
Total Other Comprehensive Income (Loss) | 17,284 | (426 | ) | (11,721 | ) | 5,137 | |||||||||
Balance at End of Period | $ | 15,984 | $ | (8,555 | ) | $ | (34,115 | ) | $ | (26,686 | ) | ||||
Year Ended December 31, 2013: | |||||||||||||||
Balance at Beginning Period | $ | 45,996 | $ | 13,781 | $ | (30,569 | ) | $ | 29,208 | ||||||
Other Comprehensive Income Before Reclassifications | (47,296 | ) | (16,831 | ) | 7,347 | (56,780 | ) | ||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | — | (5,079 | ) | 828 | (4,251 | ) | |||||||||
Total Other Comprehensive Income (Loss) | (47,296 | ) | (21,910 | ) | 8,175 | (61,031 | ) | ||||||||
Balance at End of Period | $ | (1,300 | ) | $ | (8,129 | ) | $ | (22,394 | ) | $ | (31,823 | ) | |||
Year Ended December 31, 2012: | |||||||||||||||
Balance at Beginning Period | $ | 39,396 | $ | 23,536 | $ | (27,669 | ) | $ | 35,263 | ||||||
Other Comprehensive Income Before Reclassifications | 6,553 | (19 | ) | (3,503 | ) | 3,031 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | 47 | (9,736 | ) | 603 | (9,086 | ) | |||||||||
Total Other Comprehensive Income (Loss) | 6,600 | (9,755 | ) | (2,900 | ) | (6,055 | ) | ||||||||
Balance at End of Period | $ | 45,996 | $ | 13,781 | $ | (30,569 | ) | $ | 29,208 | ||||||
The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss): | |||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1 | Affected Line Item in the Statement Where Net Income Is Presented | |||||||||||||
(dollars in thousands) | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Amortization of Unrealized Holding Gains (Losses) on | $ | 703 | $ | 8,386 | $ | 16,076 | Interest Income | ||||||||
Investment Securities Held-to-Maturity | |||||||||||||||
(277 | ) | (3,307 | ) | (6,340 | ) | Provision for Income Tax | |||||||||
426 | 5,079 | 9,736 | Net of Tax | ||||||||||||
Sales of Investment Securities Available-for-Sale | 64 | — | (77 | ) | Investment Securities Gains (Losses), Net | ||||||||||
(25 | ) | — | 30 | Provision for Income Tax | |||||||||||
39 | — | (47 | ) | Net of Tax | |||||||||||
Amortization of Defined Benefit Plans Items | |||||||||||||||
Prior Service Credit 2 | 322 | 322 | 322 | ||||||||||||
Net Actuarial Losses 2 | (1,256 | ) | (1,688 | ) | (1,318 | ) | |||||||||
(934 | ) | (1,366 | ) | (996 | ) | Total Before Tax | |||||||||
369 | 538 | 393 | Provision for Income Tax | ||||||||||||
(565 | ) | (828 | ) | (603 | ) | Net of Tax | |||||||||
Total Reclassifications for the Period | $ | (100 | ) | $ | 4,251 | $ | 9,086 | Net of Tax | |||||||
1 | Amounts in parentheses indicate reductions to net income. | ||||||||||||||
2 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in Salaries and Benefits on the consolidated statements of income (see Note 14 for additional details). |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Earnings Per Share | ||||||||
There were no adjustments to net income, the numerator, for purposes of computing basic earnings per share. The following is a reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding for the years ended December 31, 2014, 2013, and 2012: | |||||||||
Weighted Average Shares | |||||||||
2014 | 2013 | 2012 | |||||||
Denominator for Basic Earnings Per Share | 43,899,208 | 44,380,948 | 45,115,441 | ||||||
Dilutive Effect of Equity Based Awards | 226,248 | 191,777 | 133,859 | ||||||
Denominator for Diluted Earnings Per Share | 44,125,456 | 44,572,725 | 45,249,300 | ||||||
Antidilutive Stock Options and Restricted Stock Outstanding | — | 25,101 | 522,383 | ||||||
Business_Segments
Business Segments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Business Segments | Business Segments | |||||||||||||||||||
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury and Other. The Company’s internal management accounting process measures the performance of these business segments. This process, which is not necessarily comparable with similar information for any other financial institution, uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income, expense, the provision for credit losses, and capital. This process is dynamic and requires certain allocations based on judgment and other subjective factors. Unlike financial accounting, there is no comprehensive authoritative guidance for management accounting that is equivalent to GAAP. Previously reported results have been reclassified to conform to the current reporting structure. | ||||||||||||||||||||
The net interest income of the business segments reflects the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics and reflects the allocation of net interest income related to the Company’s overall asset and liability management activities on a proportionate basis. The basis for the allocation of net interest income is a function of the Company’s assumptions that are subject to change based on changes in current interest rates and market conditions. Funds transfer pricing generally serves to transfer interest rate risk to Treasury. | ||||||||||||||||||||
The provision for credit losses reflects the actual net charge-offs with the business segments. The amount of the consolidated provision for loan and lease losses is based on the methodology that we use to estimate our consolidated Allowance. The residual provision for credit losses to arrive at the consolidated provision for credit losses is included in Treasury and Other. | ||||||||||||||||||||
Noninterest income and expense includes allocations from support units to business units. These allocations are based on actual usage where practicably calculated or by management’s estimate of such usage. | ||||||||||||||||||||
The provision for income taxes is allocated to business segments using a 37% effective tax rate. However, the provision for income taxes for our Leasing business unit (included in the Commercial Banking segment) and Auto Leasing portfolio and Pacific Century Life Insurance business unit (both included in the Retail Banking segment) are assigned their actual effective tax rates due to the unique relationship that income taxes have with their products. The residual income tax expense or benefit to arrive at the consolidated effective tax rate is included in Treasury and Other. | ||||||||||||||||||||
Retail Banking | ||||||||||||||||||||
Retail Banking offers a broad range of financial products and services to consumers and small businesses. Loan and lease products include residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards. Deposit products include checking, savings, and time deposit accounts. Retail Banking also offers retail insurance products. Products and services from Retail Banking are delivered to customers through 74 branch locations and 459 ATMs throughout Hawaii and the Pacific Islands, e-Bankoh (on-line banking service), a 24-hour customer service center, and a mobile banking service. | ||||||||||||||||||||
Commercial Banking | ||||||||||||||||||||
Commercial Banking offers products including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. Commercial lending and deposit products are offered to middle-market and large companies in Hawaii and the Pacific Islands. Commercial real estate mortgages focus on customers that include investors, developers, and builders predominantly domiciled in Hawaii. Commercial Banking also includes international banking and provides merchant services to its small business customers. | ||||||||||||||||||||
Investment Services | ||||||||||||||||||||
Investment Services includes private banking, trust services, investment management, and institutional investment advisory services. A significant portion of this segment’s income is derived from fees, which are generally based on the market values of assets under management. The private banking and personal trust group assists individuals and families in building and preserving their wealth by providing investment, credit, and trust services to high-net-worth individuals. The investment management group manages portfolios utilizing a variety of investment products. Institutional client services offer investment advice to corporations, government entities, and foundations. This segment also provides a full service brokerage offering equities, mutual funds, life insurance, and annuity products. | ||||||||||||||||||||
Treasury and Other | ||||||||||||||||||||
Treasury consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business. This segment’s assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, government deposits, and short and long-term borrowings. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, and foreign exchange income related to customer-driven currency requests from merchants and island visitors. The net residual effect of the transfer pricing of assets and liabilities is included in Treasury, along with the elimination of intercompany transactions. | ||||||||||||||||||||
Other organizational units (Technology, Operations, Marketing, Human Resources, Finance, Credit and Risk Management, and Corporate and Regulatory Administration) provide a wide-range of support to the Company’s other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process. | ||||||||||||||||||||
Selected business segment financial information as of and for the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||
(dollars in thousands) | Retail | Commercial | Investment | Treasury | Consolidated | |||||||||||||||
Banking | Banking | Services | and Other | Total | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Net Interest Income | $ | 183,867 | $ | 118,761 | $ | 10,723 | $ | 66,305 | $ | 379,656 | ||||||||||
Provision for Credit Losses | 4,783 | (2,369 | ) | (313 | ) | (6,965 | ) | (4,864 | ) | |||||||||||
Net Interest Income After Provision for Credit Losses | 179,084 | 121,130 | 11,036 | 73,270 | 384,520 | |||||||||||||||
Noninterest Income | 80,110 | 23,120 | 57,586 | 19,201 | 180,017 | |||||||||||||||
Noninterest Expense | (197,786 | ) | (65,952 | ) | (53,846 | ) | (9,315 | ) | (326,899 | ) | ||||||||||
Income Before Provision for Income Taxes | 61,408 | 78,298 | 14,776 | 83,156 | 237,638 | |||||||||||||||
Provision for Income Taxes | (22,221 | ) | (27,228 | ) | (5,467 | ) | (19,680 | ) | (74,596 | ) | ||||||||||
Net Income | $ | 39,187 | $ | 51,070 | $ | 9,309 | $ | 63,476 | $ | 163,042 | ||||||||||
Total Assets as of December 31, 2014 | $ | 4,126,551 | $ | 2,749,228 | $ | 202,645 | $ | 7,708,784 | $ | 14,787,208 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Net Interest Income | $ | 164,597 | $ | 99,623 | $ | 10,552 | $ | 84,135 | $ | 358,907 | ||||||||||
Provision for Credit Losses | 8,565 | 4,918 | (71 | ) | (13,412 | ) | — | |||||||||||||
Net Interest Income After Provision for Credit Losses | 156,032 | 94,705 | 10,623 | 97,547 | 358,907 | |||||||||||||||
Noninterest Income | 88,063 | 26,946 | 59,308 | 11,906 | 186,223 | |||||||||||||||
Noninterest Expense | (200,853 | ) | (64,253 | ) | (54,307 | ) | (11,556 | ) | (330,969 | ) | ||||||||||
Income Before Provision for Income Taxes | 43,242 | 57,398 | 15,624 | 97,897 | 214,161 | |||||||||||||||
Provision for Income Taxes | (16,000 | ) | (19,467 | ) | (5,781 | ) | (22,411 | ) | (63,659 | ) | ||||||||||
Net Income | $ | 27,242 | $ | 37,931 | $ | 9,843 | $ | 75,486 | $ | 150,502 | ||||||||||
Total Assets as of December 31, 2013 | $ | 3,658,495 | $ | 2,426,452 | $ | 189,421 | $ | 7,809,912 | $ | 14,084,280 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Net Interest Income | $ | 177,083 | $ | 103,754 | $ | 12,448 | $ | 83,986 | $ | 377,271 | ||||||||||
Provision for Credit Losses | 11,916 | (1,382 | ) | 196 | (9,751 | ) | 979 | |||||||||||||
Net Interest Income After Provision for Credit Losses | 165,167 | 105,136 | 12,252 | 93,737 | 376,292 | |||||||||||||||
Noninterest Income | 104,654 | 26,408 | 57,454 | 11,770 | 200,286 | |||||||||||||||
Noninterest Expense | (206,740 | ) | (62,165 | ) | (55,543 | ) | (9,840 | ) | (334,288 | ) | ||||||||||
Income Before Provision for Income Taxes | 63,081 | 69,379 | 14,163 | 95,667 | 242,290 | |||||||||||||||
Provision for Income Taxes | (23,340 | ) | (19,864 | ) | (5,240 | ) | (27,770 | ) | (76,214 | ) | ||||||||||
Net Income | $ | 39,741 | $ | 49,515 | $ | 8,923 | $ | 67,897 | $ | 166,076 | ||||||||||
Total Assets as of December 31, 2012 | $ | 3,663,287 | $ | 2,196,682 | $ | 190,383 | $ | 7,678,020 | $ | 13,728,372 | ||||||||||
Employee_Benefits
Employee Benefits | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Employee Benefits | Employee Benefits | |||||||||||||||||||||||
The Company has defined contribution plans, defined benefit plans, and a postretirement benefit plan. | ||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||
The Bank of Hawaii Retirement Savings Plan (the "Savings Plan") has three Company contribution components in addition to employee contributions: 1) 401(k) matching, as described below; 2) a 3% fixed amount based on eligible compensation; and 3) a discretionary value-sharing contribution. | ||||||||||||||||||||||||
Under the 401(k) matching component, participating employees may contribute up to 50% of their eligible compensation (within federal limits) to the Savings Plan. The Company makes matching contributions on behalf of participants equal to $1.25 for each $1.00 contributed by participants, up to 2% of the participants' eligible compensation, and $0.50 for every $1.00 contributed by participants over 2%, up to 5% of the participants' eligible compensation. A 3% fixed contribution and a discretionary value-sharing contribution, that is linked to the Company's financial goals, are made regardless of whether the participating employee contributes to the Savings Plan and are invested in accordance with the participant's selection of investment options available under the Savings Plan. The Company also has a non-qualified savings plan which covers certain employees with compensation exceeding Internal Revenue Service ("IRS") limits on pay amounts in the allocation of the Savings Plan's benefits. Total expense for all components of the Company's defined contribution plans was $12.1 million, $11.2 million, and $11.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||
The Company has two defined benefit plans (the "Pension Plans"). In 1995, the Company froze its non-contributory, qualified defined benefit retirement plan (the "Retirement Plan") and the excess retirement plan (the "Excess Plan"), which covered employees of the Company and participating subsidiaries who met certain eligibility requirements. Beginning January 1, 2001, the Pension Plans no longer provided for compensation increases in the determination of benefits. The projected benefit obligation is equal to the accumulated benefit obligation due to the frozen status of the Pension Plans. | ||||||||||||||||||||||||
The assets of the Retirement Plan primarily consist of equity and fixed income mutual funds. | ||||||||||||||||||||||||
The Excess Plan is a non-qualified excess retirement benefit plan which covers certain employees of the Company and participating subsidiaries with compensation exceeding IRS limits on pay amounts applicable to the Pension Plan's benefit formula. The Excess Plan has no plan assets. The Excess Plan's projected benefit obligation and accumulated benefit obligation were $4.8 million and $4.6 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
Postretirement Benefit Plan | ||||||||||||||||||||||||
The Company's postretirement benefit plan provides retirees hired before January 1, 2012 with medical and dental insurance coverage. For eligible participants that retired before 2008 and met certain age requirements, the Company and retiree share in the cost of providing postretirement benefits where both the employer and retirees pay a portion of the insurance premiums. Eligible participants who retired before 2008 who did not meet certain age requirements continued on the Company's benefit plans, but pay for their full insurance premiums. Participants who retired on or after January 1, 2008, who have medical or dental coverage under the Company's plans immediately before retirement and meet certain age and years of service requirements as of December 31, 2008 are also eligible to participate in the Company's benefit plans, but must pay for their full insurance premiums. Retirees age 65 and older are provided with a Medicare supplemental plan subsidy. Most employees of the Company who have met certain eligibility requirements are covered by this plan. Participants who retired on or after January 1, 2008 who met certain age and/or years of service requirements are eligible for the Health Reimbursement Account ("HRA") program. The HRA program provides retirees with an initial credit based on years of service. Thereafter, an annual credit up to a maximum of $1,200 is provided into the HRA. The retiree may use the HRA for medical, vision, prescription drug and dental premiums, co-payments, and medically necessary health care expenses that are not covered by any medical or dental insurance program or flexible health spending account. As of December 31, 2014 and 2013, the Company had no segregated assets to provide for postretirement benefits. | ||||||||||||||||||||||||
The following table provides a reconciliation of changes in benefit obligation and fair value of plan assets, as well as the funded status recognized in the Company's consolidated statements of condition for the Pension Plans and postretirement benefit plan for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit Obligation at Beginning of Year | $ | 98,085 | $ | 107,833 | $ | 27,296 | $ | 29,130 | ||||||||||||||||
Service Cost | — | — | 586 | 670 | ||||||||||||||||||||
Interest Cost | 4,975 | 4,514 | 1,325 | 1,188 | ||||||||||||||||||||
Actuarial Losses (Gains) | 16,954 | (7,067 | ) | 2,674 | (2,949 | ) | ||||||||||||||||||
Employer Benefits Paid 1 | (5,307 | ) | (7,195 | ) | (1,077 | ) | (743 | ) | ||||||||||||||||
Benefit Obligation at End of Year | $ | 114,707 | $ | 98,085 | $ | 30,804 | $ | 27,296 | ||||||||||||||||
Fair Value of Plan Assets at Beginning of Year | $ | 90,535 | $ | 89,489 | $ | — | $ | — | ||||||||||||||||
Actual Return on Plan Assets | 4,442 | 7,755 | — | — | ||||||||||||||||||||
Employer Contributions | 484 | 486 | 1,077 | 743 | ||||||||||||||||||||
Employer Benefits Paid 1 | (5,307 | ) | (7,195 | ) | (1,077 | ) | (743 | ) | ||||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 90,154 | $ | 90,535 | $ | — | $ | — | ||||||||||||||||
Funded Status at End of Year 2 | $ | (24,553 | ) | $ | (7,550 | ) | $ | (30,804 | ) | $ | (27,296 | ) | ||||||||||||
1 | Participants' contributions relative to the postretirement benefit plan were offset against employer benefits paid in the table above. Participants' contributions for postretirement benefits were $0.7 million for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||
2 | Amounts are recognized in Retirement Benefits Payable in the consolidated statements of condition. | |||||||||||||||||||||||
The following presents the amounts recognized in the Company's accumulated other comprehensive income for the Pension Plans and postretirement benefit plan as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Amounts Recognized in Accumulated Other | ||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||
Net Actuarial Gains (Losses) | $ | (35,254 | ) | $ | (25,440 | ) | $ | 333 | $ | 2,045 | ||||||||||||||
Net Prior Service Credit | — | — | 806 | 1,001 | ||||||||||||||||||||
Total Amounts Recognized in Accumulated Other | $ | (35,254 | ) | $ | (25,440 | ) | $ | 1,139 | $ | 3,046 | ||||||||||||||
Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||
Components of net periodic benefit cost for the Company's Pension Plans and the postretirement benefit plan are presented in the following table for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Service Cost | $ | — | $ | — | $ | — | $ | 586 | $ | 670 | $ | 585 | ||||||||||||
Interest Cost | 4,975 | 4,514 | 4,996 | 1,325 | 1,188 | 1,302 | ||||||||||||||||||
Expected Return on Plan Assets | (5,100 | ) | (5,250 | ) | (5,829 | ) | — | — | — | |||||||||||||||
Amortization of: | ||||||||||||||||||||||||
Prior Service Credit 1 | — | — | — | (322 | ) | (322 | ) | (322 | ) | |||||||||||||||
Net Actuarial Losses (Gains) 1 | 1,408 | 1,688 | 1,318 | (152 | ) | — | — | |||||||||||||||||
Net Periodic Benefit Cost | $ | 1,283 | $ | 952 | $ | 485 | $ | 1,437 | $ | 1,536 | $ | 1,565 | ||||||||||||
1 | Represents reclassification adjustments from accumulated other comprehensive income during the period. | |||||||||||||||||||||||
The estimated net actuarial loss related to the Company's Pension Plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost for the year ending December 31, 2015 is approximately $1.8 million. There is no net actuarial gain related to the Company's postretirement benefit plan that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost for the year ending December 31, 2015. The prior service credit related to the Company's postretirement benefit plan that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost for the year ending December 31, 2015 is approximately $0.3 million. | ||||||||||||||||||||||||
Assumptions used to determine the benefit obligations as of December 31, 2014 and 2013 for the Company's Pension Plans and postretirement benefit plan were as follows: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Weighted Average Assumptions as of December 31: | ||||||||||||||||||||||||
Discount Rate | 4.25 | % | 5.22 | % | 4.28 | % | 5.22 | % | ||||||||||||||||
Health Care Cost Trend Rate Assumed For Next Year | — | — | 7 | % | 7.2 | % | ||||||||||||||||||
The health care cost trend rate is assumed to decrease annually, until reaching the ultimate trend rate of 4.5% in 2027. | ||||||||||||||||||||||||
Assumptions used to determine the net periodic benefit cost for the Company's Pension Plans and postretirement benefit plan for the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted Average Assumptions as of December 31: | ||||||||||||||||||||||||
Discount Rate | 5.22 | % | 4.29 | % | 5.04 | % | 5.22 | % | 4.29 | % | 5.04 | % | ||||||||||||
Expected Long-Term Rate of Return on Plan Assets | 6 | % | 6 | % | 6.5 | % | — | — | — | |||||||||||||||
Health Care Cost Trend Rate | — | — | — | 7.2 | % | 7.7 | % | 8 | % | |||||||||||||||
A combination of factors is used by management in determining the expected long-term rate of return on plan assets. Historical return experience for major asset categories are evaluated and current market factors, such as inflation and interest rates, are considered in determining the expected long-term rate of return assumption. | ||||||||||||||||||||||||
A one percent change in the health care cost trend rate assumption (with all other assumptions remaining constant) would have impacted the service and interest cost components of the net periodic postretirement benefit cost and the postretirement benefit obligation as of and for the year ended December 31, 2014 as follows: | ||||||||||||||||||||||||
(dollars in thousands) | One Percent | One Percent | ||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||
Effect on the Total of Service and Interest Cost Component of | $ | 99 | $ | (78 | ) | |||||||||||||||||||
Net Periodic Postretirement Benefit Cost | ||||||||||||||||||||||||
Effect on the Postretirement Benefit Obligation | 1,538 | (1,219 | ) | |||||||||||||||||||||
The Company expects to contribute $0.5 million to the Pension Plans and $1.4 million to the postretirement benefit plan for the year ending December 31, 2015. | ||||||||||||||||||||||||
As of December 31, 2014, expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2015 | $ | 6,073 | $ | 1,378 | ||||||||||||||||||||
2016 | 6,327 | 1,631 | ||||||||||||||||||||||
2017 | 6,605 | 1,692 | ||||||||||||||||||||||
2018 | 6,770 | 1,690 | ||||||||||||||||||||||
2019 | 7,000 | 1,819 | ||||||||||||||||||||||
Years 2020-2024 | 36,446 | 10,247 | ||||||||||||||||||||||
Retirement Plan Assets | ||||||||||||||||||||||||
The Company's overall investment strategy is to maintain the purchasing power of the current assets and all future contributions by producing positive rates of return on plan assets; achieve capital growth towards the attainment of full funding of the Retirement Plan's termination liability; maximize returns within reasonable and prudent levels of risk; and control costs of administering the plan and managing the investments. The long-term investment objective is to achieve an overall annualized total return, gross of fees, above the blended benchmark index comprised of 35% S&P 500 Index, 25% MSCI ACWI ex-US Index, and 40% Barclays Capital Aggregate Bond Index. | ||||||||||||||||||||||||
Subject to liquidity requirements, the asset allocation targets are 60% for equity securities, 40% for fixed income securities with a 10% to 20% range permitted from the strategic targets, and zero to 20% for cash. Within the equity securities portfolio, the range for domestic securities is from 50% to 100% and the range for international securities is from 0% to 50%. All assets selected for the Retirement Plan must have a readily ascertainable market value and must be readily marketable. | ||||||||||||||||||||||||
Due to market fluctuations or cash flows, the allocation for each asset class may be breached by as much as 5% on a temporary basis. However, asset allocations are expected to conform to target ranges within 90 days of such an occurrence. | ||||||||||||||||||||||||
The fair values of the Retirement Plan assets as of December 31, 2014 and 2013 by asset category were as follows: | ||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
Asset Category | Quoted Prices in | Significant Other | Significant Other | Total as of Dec. 31, 2014 | Total as of Dec. 31, 2013 | |||||||||||||||||||
(dollars in thousands) | Active Markets for | Observable | Unobservable Inputs | |||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
Cash | $ | 1,385 | $ | — | $ | — | $ | 1,385 | $ | 1,905 | ||||||||||||||
Equity Securities – Mutual Funds: | ||||||||||||||||||||||||
Mixed-Cap | 33,648 | — | — | 33,648 | 30,155 | |||||||||||||||||||
International | 18,882 | — | — | 18,882 | 18,268 | |||||||||||||||||||
Emerging Market | 2,053 | — | — | 2,053 | 1,982 | |||||||||||||||||||
Fixed Income Securities – Mutual Funds | 34,186 | — | — | 34,186 | 38,225 | |||||||||||||||||||
Total | $ | 90,154 | $ | — | $ | — | $ | 90,154 | $ | 90,535 | ||||||||||||||
Quoted prices for these investments were available in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||||||||
The Company has share-based compensation plans which allow grants of stock options, restricted stock, stock appreciation rights, and restricted stock units to its employees and non-employee directors. The Company's employee stock option plans are shareholder approved and administered by the Human Resources and Compensation Committee of the Board of Directors. Stock options provide grantees the option to purchase shares of the Parent's common stock at a specified exercise price and, generally, expire 10 years from the date of grant. Stock option grants include incentive and non-qualified stock options whose vesting may be based on a service period and/or achievement of Company performance measures. Stock option exercise prices were equal to the quoted market price of the Parent's common stock on the date of grant. Restricted stock provides grantees with rights to shares of common stock upon completion of a service period and/or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. Generally, restricted stock vests over periods ranging from one to five years from the date of grant. Restricted stock and dividends may be forfeited if an employee terminates prior to vesting. | |||||||||||||||
As of December 31, 2014, total shares authorized under the plans were 1.7 million shares, of which 1.3 million shares were available for future grants. | |||||||||||||||
The Company recognizes compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the requisite service period. Share-based compensation is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders' equity. For the years ended December 31, 2014, 2013, and 2012, compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows: | |||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Compensation Expense | $ | 7,870 | $ | 5,546 | $ | 7,537 | |||||||||
Income Tax Benefit | 3,104 | 2,188 | 2,972 | ||||||||||||
Restricted Stock | |||||||||||||||
As of December 31, 2014, unrecognized compensation expense related to unvested restricted stock was $9.3 million. The unrecognized compensation expense is expected to be recognized over a weighted average period of 1.96 years. | |||||||||||||||
The following table presents the activity for restricted stock: | |||||||||||||||
Number of Shares | Weighted Average | Grant Date Fair Value | |||||||||||||
Grant Date Fair Value | of Restricted Stock that | ||||||||||||||
Vested During the Year | |||||||||||||||
(in thousands) | |||||||||||||||
Unvested as of December 31, 2011 | 80,842 | $ | 52.15 | ||||||||||||
Granted | 187,514 | 47.42 | |||||||||||||
Vested | (54,198 | ) | 51.01 | $ | 2,764 | ||||||||||
Forfeited | (2,632 | ) | 48.86 | ||||||||||||
Unvested as of December 31, 2012 | 211,526 | $ | 47.91 | ||||||||||||
Granted | 170,991 | 47.69 | |||||||||||||
Vested | (133,245 | ) | 48.39 | $ | 6,448 | ||||||||||
Forfeited | (9,497 | ) | 47.54 | ||||||||||||
Unvested as of December 31, 2013 | 239,775 | $ | 47.5 | ||||||||||||
Granted | 155,447 | 58.45 | |||||||||||||
Vested | (130,238 | ) | 47.32 | $ | 6,163 | ||||||||||
Forfeited | (1,538 | ) | 51.19 | ||||||||||||
Unvested as of December 31, 2014 | 263,446 | $ | 53.04 | ||||||||||||
Restricted Stock Units | |||||||||||||||
During 2014, the Company granted RSUs payable solely in cash. The RSUs vest over periods ranging from three to four years from the date of grant and are subject to forfeiture until performance and service targets are achieved. Upon vesting, the RSUs are converted to cash based on the closing stock price on the vesting date. For the year ended December 31, 2014, the Company recognized compensation expense related to the RSUs of $1.6 million. | |||||||||||||||
The following table presents the activity for RSU: | |||||||||||||||
Number of Units | Weighted Average | ||||||||||||||
Grant Date Fair Value | |||||||||||||||
Balance as of December 31, 2013 | — | $ | — | ||||||||||||
Granted | 105,405 | 55.17 | |||||||||||||
Balance as of December 31, 2014 | 105,405 | $ | 55.17 | ||||||||||||
Stock Options | |||||||||||||||
There were no stock options granted for the years ended December 31, 2014 and 2013. All stock options granted were fully vested as of December 31, 2013. The Company reissues treasury stock to satisfy stock option exercises. The Company used the Black-Scholes option pricing model to estimate the fair value of stock options granted for the year ended December 31, 2012. The weighted average fair value of stock option grants and the assumptions that were used in calculating such fair values were based on estimates at the date of grant as follows: | |||||||||||||||
2012 | |||||||||||||||
Weighted Average Fair Value of Stock Options | |||||||||||||||
Granted During the Year | $ | 9.81 | |||||||||||||
Stock Options Granted During the Year | 341,665 | ||||||||||||||
Assumptions: | |||||||||||||||
Average Risk-Free Interest Rate | 1.13 | % | |||||||||||||
Average Expected Volatility | 33.14 | % | |||||||||||||
Expected Dividend Yield | 3.77 | % | |||||||||||||
Expected Life | 5.46 years | ||||||||||||||
The following table presents the activity related to stock options under all plans for the year ended December 31, 2014: | |||||||||||||||
Stock | Weighted | Weighted | Aggregate | ||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | |||||||||||||
Price | Contractual | (in thousands) | |||||||||||||
Term (in years) | |||||||||||||||
Stock Options Outstanding as of January 1, 2014 | 845,547 | $ | 46.18 | ||||||||||||
Exercised | (90,204 | ) | 45.27 | ||||||||||||
Stock Options Outstanding as of December 31, 2014 | 755,343 | 46.29 | 5.6 | $ | 9,835 | ||||||||||
Stock Options Vested and Exercisable as of December 31, 2014 | 755,343 | 46.29 | 5.6 | 9,835 | |||||||||||
The following summarizes certain stock option activity of the Company for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Intrinsic Value of Stock Options Exercised | $ | 1,209 | $ | 3,262 | $ | 3,907 | |||||||||
Cash Received from Stock Options Exercised | 4,083 | 8,369 | 7,500 | ||||||||||||
Tax Benefits Realized from Stock Options Exercised | 34 | 690 | 904 | ||||||||||||
Total Fair Value of Stock Options that Vested | — | 3,731 | — | ||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Provision for Income Taxes | |||||||||||
The components of the Company's provision for income taxes for the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 76,789 | $ | 63,731 | $ | 82,892 | ||||||
State | 3,018 | (575 | ) | 10,106 | ||||||||
Total Current | 79,807 | 63,156 | 92,998 | |||||||||
Deferred: | ||||||||||||
Federal | (5,603 | ) | (231 | ) | (13,104 | ) | ||||||
State | 392 | 734 | (3,680 | ) | ||||||||
Total Deferred | (5,211 | ) | 503 | (16,784 | ) | |||||||
Provision for Income Taxes | $ | 74,596 | $ | 63,659 | $ | 76,214 | ||||||
The tax effects of fair value adjustments on available-for-sale investment securities, the amortization of gains related to held-to-maturity investment securities, the minimum pension liability adjustment, and tax benefits related to stock options are recorded directly to consolidated shareholders' equity. The net tax charge recorded directly to consolidated shareholders' equity was $2.7 million for the year ended December 31, 2014. The net tax benefit recorded directly to consolidated shareholders' equity was $40.6 million and $4.7 million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
Deferred Tax Liabilities and Assets | ||||||||||||
As of December 31, 2014 and 2013, significant components of the Company's deferred tax liabilities and assets were as follows: | ||||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Accrued Pension Cost | $ | (14,014 | ) | $ | (14,381 | ) | ||||||
Federal Home Loan Bank Stock | (6,658 | ) | (8,949 | ) | ||||||||
Lease Transactions | (97,864 | ) | (105,761 | ) | ||||||||
Energy Tax Credits | (5,716 | ) | (3,805 | ) | ||||||||
Net Unrealized Gains on Investments Securities | (4,830 | ) | — | |||||||||
Deferred Loan Fees | (5,982 | ) | (6,394 | ) | ||||||||
Originated Mortgage Servicing Rights | (9,777 | ) | (11,218 | ) | ||||||||
Other | (599 | ) | (552 | ) | ||||||||
Gross Deferred Tax Liabilities | (145,440 | ) | (151,060 | ) | ||||||||
Deferred Tax Assets: | ||||||||||||
Accelerated Depreciation | 9,419 | 10,195 | ||||||||||
Allowance for Loan Losses | 44,877 | 46,635 | ||||||||||
Net Unrealized Losses on Investments Securities | — | 6,154 | ||||||||||
Minimum Pension Liability | 22,214 | 14,583 | ||||||||||
Accrued Expenses | 15,622 | 15,449 | ||||||||||
Postretirement Benefit Obligations | 12,884 | 12,741 | ||||||||||
Capital Lease Expenses | 3,222 | 3,200 | ||||||||||
Restricted Stock | 5,288 | 4,187 | ||||||||||
Investment in Unincorporated Entities | 3,084 | 4,218 | ||||||||||
Deductible State and Local Taxes | 5,598 | 7,575 | ||||||||||
Other | 6,898 | 6,778 | ||||||||||
Gross Deferred Tax Assets Before Valuation Allowance | 129,106 | 131,715 | ||||||||||
Valuation Allowance | (4,656 | ) | (4,162 | ) | ||||||||
Gross Deferred Tax Assets After Valuation Allowance | 124,450 | 127,553 | ||||||||||
Net Deferred Tax Liabilities | $ | (20,990 | ) | $ | (23,507 | ) | ||||||
Both positive and negative evidence was considered by management in determining the need for a valuation allowance. Negative evidence included the uncertainty regarding the generation of capital gains in future years and restrictions on the ability to sell low-income housing investments during periods when carrybacks of capital losses are allowed. Positive evidence included capital gains in the current year and carryback years. After considering all available evidence, management determined that a valuation allowance to offset deferred tax assets related to low-income housing investments that can only be used to offset capital gains was appropriate. Management determined that a valuation allowance was not required for the remaining deferred tax assets because it is more likely than not these assets will be realized through future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, and taxable income in prior carryback years. | ||||||||||||
Certain events covered by Internal Revenue Code Section 593(e) will trigger a recapture of base year reserves of acquired thrift institutions. The base year reserves of acquired thrift institutions would be recaptured if an entity ceases to qualify as a bank for federal income tax purposes. The base year reserves of thrift institutions also remain subject to income tax penalty provisions that, in general, require recapture upon certain stock redemptions of, and excess distributions to, shareholders. As of December 31, 2014, retained earnings included approximately $18.2 million of base year reserves for which the deferred federal income tax liability of $7.2 million has not been recognized. | ||||||||||||
Effective Tax Rate | ||||||||||||
The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory Federal Income Tax Rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (Decrease) in Income Tax Rate Resulting From: | ||||||||||||
State Taxes, Net of Federal Income Tax | 0.59 | 0.11 | 1.9 | |||||||||
Tax Reserve Adjustments | 0.88 | (0.44 | ) | 0.44 | ||||||||
Leveraged Leases | 0.01 | 0.02 | (1.44 | ) | ||||||||
Low-Income Housing Investments | (0.10 | ) | (0.51 | ) | 0.16 | |||||||
Bank-Owned Life Insurance | (0.97 | ) | (0.96 | ) | (0.98 | ) | ||||||
Tax-Exempt Income | (2.83 | ) | (2.78 | ) | (2.31 | ) | ||||||
Other | (1.19 | ) | (0.71 | ) | (1.31 | ) | ||||||
Effective Tax Rate | 31.39 | % | 29.73 | % | 31.46 | % | ||||||
Unrecognized Tax Benefits | ||||||||||||
The Company is required to record a liability, referred to as an unrecognized tax benefit ("UTB"), for the entire amount of benefit taken in a prior or future income tax return when the Company determines that a tax position has a less than 50% likelihood of being accepted by the taxing authority. The following presents a reconciliation of the Company's liability for UTBs for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Unrecognized Tax Benefits at Beginning of Year | $ | 11,846 | $ | 15,433 | $ | 13,633 | ||||||
Gross Increases, Related to Tax Positions Taken in a Prior Period | 1,074 | 1,587 | 280 | |||||||||
Gross Decreases, Related to Tax Positions Taken in a Prior Period | (314 | ) | (194 | ) | — | |||||||
Gross Increases, Related to Current Period Tax Positions | 498 | 1,557 | 1,888 | |||||||||
Settlement with Taxing Authority | — | — | (40 | ) | ||||||||
Lapse of Statute of Limitations | (875 | ) | (6,537 | ) | (328 | ) | ||||||
Unrecognized Tax Benefits at End of Year | $ | 12,229 | $ | 11,846 | $ | 15,433 | ||||||
As of December 31, 2014 and 2013, $11.3 million and $10.8 million, respectively, in liabilities for UTBs was related to UTBs that if reversed would have an impact on the Company's effective tax rate. | ||||||||||||
Management believes that it is reasonably possible that the Company's liability for UTBs could significantly decrease as a result of the expiration of statutes of limitations and potential settlements with taxing authorities within the next 12 months. However, management is currently not able to estimate a range of possible change in the amount of the liability for UTBs recorded as of December 31, 2014. | ||||||||||||
The Company classifies interest and penalties, if any, related to the liability for UTBs as a component of the provision for income taxes. For the years ended December 31, 2014, 2013, and 2012, the Company recorded a net tax provision of $0.2 million, net tax benefit of $1.2 million, and a net tax provision of $0.5 million, respectively, for interest and penalties. As of December 31, 2014 and 2013, the Company had accrued $2.2 million and $1.9 million, respectively, for the payment of possible interest and penalties. | ||||||||||||
During the year ended December 31, 2014, the IRS concluded its examination of the federal income tax return filed for 2011. The federal tax returns for 2012 and 2013 remain subject to examination. The Company's State of Hawaii income tax returns for 2011 through 2013 remain subject to examination by the taxing authorities. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||||||||||
The notional amount and fair value of the Company's derivative financial instruments as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
(dollars in thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||
Interest Rate Lock Commitments | $ | 2,354 | $ | 152 | $ | 30,226 | $ | 536 | ||||||||||
Forward Commitments | 5,404 | (13 | ) | 30,798 | 211 | |||||||||||||
Interest Rate Swap Agreements | ||||||||||||||||||
Receive Fixed/Pay Variable Swaps | 183,283 | 16,206 | 202,838 | 20,542 | ||||||||||||||
Pay Fixed/Receive Variable Swaps | 183,283 | (16,240 | ) | 202,838 | (20,699 | ) | ||||||||||||
Foreign Exchange Contracts | 44,240 | (345 | ) | 33,899 | (772 | ) | ||||||||||||
The following table presents the Company's derivative financial instruments, their fair values, and the location in the consolidated statements of condition as of December 31, 2014 and 2013: | ||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Derivative Financial Instruments Not Designated | Asset | Liability | Asset | Liability | ||||||||||||||
as Hedging Instruments 1 (dollars in thousands) | Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||
Interest Rate Lock Commitments | $ | 152 | $ | — | $ | 574 | $ | 38 | ||||||||||
Forward Commitments | — | 13 | 215 | 4 | ||||||||||||||
Interest Rate Swap Agreements | 16,262 | 16,296 | 20,852 | 21,009 | ||||||||||||||
Foreign Exchange Contracts | 101 | 446 | 128 | 900 | ||||||||||||||
Total | $ | 16,515 | $ | 16,755 | $ | 21,769 | $ | 21,951 | ||||||||||
1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. | ||||||||||||||||||
The following table presents the Company's derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||||||
Location of Net Gains (Losses)Recognized in the | Year Ended December 31, | |||||||||||||||||
Derivative Financial Instruments Not Designated | Statements of Income | 2014 | 2013 | 2012 | ||||||||||||||
as Hedging Instruments (dollars in thousands) | ||||||||||||||||||
Interest Rate Lock Commitments | Mortgage Banking | $ | 3,072 | $ | 6,092 | $ | 37,490 | |||||||||||
Forward Commitments | Mortgage Banking | (527 | ) | 8,085 | (1,959 | ) | ||||||||||||
Interest Rate Swap Agreements | Other Noninterest Income | 130 | 292 | 33 | ||||||||||||||
Foreign Exchange Contracts | Other Noninterest Income | 3,107 | 3,182 | 3,237 | ||||||||||||||
Total | $ | 5,782 | $ | 17,651 | $ | 38,801 | ||||||||||||
Management has received authorization from the Bank’s Board of Directors to use derivative financial instruments as an end-user in connection with the Bank's risk management activities and to accommodate the needs of the Bank's customers. As with any financial instrument, derivative financial instruments have inherent risks. Market risk is defined as the risk of adverse financial impact due to fluctuations in interest rates, foreign exchange rates, and equity prices. Market risks associated with derivative financial instruments are balanced with the expected returns to enhance earnings performance and shareholder value, while limiting the volatility of each. The Company uses various processes to monitor its overall market risk exposure, including sensitivity analysis, value-at-risk calculations, and other methodologies. | ||||||||||||||||||
Derivative financial instruments are also subject to credit and counterparty risk, which is defined as the risk of financial loss if a borrower or counterparty is either unable or unwilling to repay borrowings or settle transactions in accordance with the underlying contractual terms. Credit and counterparty risks associated with derivative financial instruments are similar to those relating to traditional financial instruments. The Company manages derivative credit and counterparty risk by evaluating the creditworthiness of each borrower or counterparty, adhering to the same credit approval process used for commercial lending activities. | ||||||||||||||||||
As of December 31, 2014 and 2013, the Company did not designate any derivative financial instruments as formal hedging relationships. The Company's free-standing derivative financial instruments are required to be carried at their fair value on the Company's consolidated statements of condition. These financial instruments have been limited to interest rate lock commitments ("IRLCs"), forward commitments, interest rate swap agreements, foreign exchange contracts, and conversion rate swap agreements. | ||||||||||||||||||
The Company enters into IRLCs for residential mortgage loans which commit us to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. To mitigate this risk, the Company utilizes forward commitments as economic hedges against the potential decreases in the values of the loans held for sale. IRLCs and forward commitments are free-standing derivatives which are carried at fair value with changes recorded in the mortgage banking component of noninterest income in the Company’s consolidated statements of income. | ||||||||||||||||||
The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting interest rate swap agreements with highly rated third party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value in the Company's consolidated statements of condition. Fair value changes are recorded in other noninterest income in the Company’s consolidated statements of income. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. Collateral, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. See Note 18 to the Consolidated Financial Statements for more information. | ||||||||||||||||||
The Company’s interest rate swap agreements with institutional counterparties contain credit-risk-related contingent features tied to the Company’s debt ratings or capitalization levels. Under these provisions, if the Company’s debt rating falls below investment grade or if the Company’s capitalization levels fall below stipulated thresholds, certain counterparties may require immediate and ongoing collateralization on interest rate swaps in net liability positions, or may require immediate settlement of the contracts. As of December 31, 2014, the Company's debt ratings and capital levels were in excess of these minimum requirements. | ||||||||||||||||||
The Company utilizes foreign exchange contracts to offset risks related to transactions executed on behalf of customers. The foreign exchange contracts are free-standing derivatives which are carried at fair value with changes included in other noninterest income in the Company's consolidated statements of income. | ||||||||||||||||||
In connection with sales of a portion of our Visa Class B restricted shares in 2014, the Company entered into a conversion rate swap agreement with the buyer that requires payment to the buyer in the event Visa further reduces the conversion ratio of Class B into Class A unrestricted common shares. In the event of Visa increasing the conversion ratio, the buyer would be required to make payment to the Company. At the time of the sales in 2014, this conversion rate swap agreement was valued at zero (i.e., no contingent liability recorded) as a decrease in the conversion ratio was deemed by the Company to be neither probable nor reasonably estimable. However, in September 2014, Visa announced a reduction of the conversion ratio from 0.4206 to 0.4121 effective September 24, 2014. As a result, the Company recorded a $0.1 million liability in September 2014 which represented the amount paid to the buyer in October 2014. As of December 31, 2014, the conversion rate swap agreement was valued at zero as further reductions to the conversion ratio were neither probable nor reasonably estimable by management. See Note 3 to the Consolidated Financial Statements for more information. |
Balance_Sheet_Offsetting
Balance Sheet Offsetting | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||
Balance Sheet Offsetting | Balance Sheet Offsetting | ||||||||||||||||||||||||
Interest Rate Swap Agreements (“Swap Agreements”) | |||||||||||||||||||||||||
The Company enters into swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly-rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company's consolidated statements of condition (asset positions are included in other assets and liability positions are included in other liabilities). The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. The Company had net liability positions with its financial institution counterparties totaling $16.2 million and $20.7 million as of December 31, 2014 and December 31, 2013, respectively. The fair value of collateral posted by the Company for these net liability positions is shown in the table below. See Note 17 to the Consolidated Financial Statements for more information. | |||||||||||||||||||||||||
Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) | |||||||||||||||||||||||||
The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. As a result, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. | |||||||||||||||||||||||||
The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. | |||||||||||||||||||||||||
The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of December 31, 2014 and 2013. The swap agreements we have with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i)-(ii) | (iv) | (v) =iii)-(iv) | |||||||||||||||||||||
Gross Amounts | Gross Amounts | Net Amounts | Gross Amounts Not Offset in the Statements of Condition | ||||||||||||||||||||||
Recognized in the | Offset in the | Presented in the | |||||||||||||||||||||||
Statements | Statements | Statements | |||||||||||||||||||||||
(dollars in thousands) | of Condition | of Condition | of Condition | Netting | Fair Value of Collateral | Net Amount | |||||||||||||||||||
Adjustments | Pledged 1 | ||||||||||||||||||||||||
per Master | |||||||||||||||||||||||||
Netting | |||||||||||||||||||||||||
Arrangements | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | $ | 28 | $ | — | $ | 28 | $ | 28 | $ | — | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | 16,268 | — | 16,268 | 28 | — | 16,240 | |||||||||||||||||||
Repurchase Agreements: | |||||||||||||||||||||||||
Private Institutions | 600,000 | — | 600,000 | — | 600,000 | — | |||||||||||||||||||
Government Entities | 88,601 | — | 88,601 | — | 88,601 | — | |||||||||||||||||||
$ | 688,601 | $ | — | $ | 688,601 | $ | — | $ | 688,601 | $ | — | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | $ | 155 | $ | — | $ | 155 | $ | 155 | $ | — | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | 20,853 | — | 20,853 | 155 | 2,288 | 18,410 | |||||||||||||||||||
Repurchase Agreements: | |||||||||||||||||||||||||
Private Institutions | 600,000 | — | 600,000 | — | 600,000 | — | |||||||||||||||||||
Government Entities | 170,049 | — | 170,049 | — | 170,049 | — | |||||||||||||||||||
$ | 770,049 | $ | — | $ | 770,049 | $ | — | $ | 770,049 | $ | — | ||||||||||||||
1 | The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For repurchase agreements with private institutions, the fair value of securities pledged was $0.7 billion and $0.7 billion as of December 31, 2014 and 2013, respectively. For repurchase agreements with government entities, the investment securities pledged to each government entity collectively secure both deposits as well as repurchase agreements. The Company had government entity deposits totaling $1.3 billion and $1.2 billion as of December 31, 2014 and 2013, respectively. The investment securities pledged as of December 31, 2014 and 2013 had a fair value of $2.1 billion and $1.8 billion, respectively. |
Commitments_Contingencies_and_
Commitments, Contingencies, and Guarantees | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments and Contingencies | Commitments, Contingencies, and Guarantees | |||||||||||
The Company's credit commitments as of December 31, 2014 were as follows: | ||||||||||||
(dollars in thousands) | December 31, 2014 | |||||||||||
Unfunded Commitments to Extend Credit | $ | 2,388,432 | ||||||||||
Standby Letters of Credit | 48,157 | |||||||||||
Commercial Letters of Credit | 14,130 | |||||||||||
Total | $ | 2,450,719 | ||||||||||
Unfunded Commitments to Extend Credit | ||||||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. | ||||||||||||
Standby and Commercial Letters of Credit | ||||||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. The Company has recourse against the customer for any amount it is required to pay to a third party under a standby letter of credit, and generally holds cash or deposits as collateral on those standby letters of credit for which collateral is deemed necessary. Assets valued at $30.5 million secured certain specifically identified standby letters of credit as of December 31, 2014. As of December 31, 2014, the standby and commercial letters of credit had remaining terms ranging from 1 to 13 months. | ||||||||||||
Lease Commitments | ||||||||||||
A portion of the Company's headquarters' building is leased with a lease term through 2052. The Company leases certain other branch premises and equipment with lease terms extending through 2048. Most of the leases for premises provide for a base rent over a specified period with renewal options thereafter. Portions of certain properties are subleased for periods expiring in various years through 2024. Lease terms generally specify that the Company is to pay for taxes, maintenance, and other operating costs. Rental expense for all operating leases for the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Minimum Rentals | $ | 18,411 | $ | 19,258 | $ | 20,429 | ||||||
Sublease Rental Income | (6,647 | ) | (6,806 | ) | (5,540 | ) | ||||||
Total | $ | 11,764 | $ | 12,452 | $ | 14,889 | ||||||
Future minimum payments for capital leases and non-cancelable operating leases with initial or remaining terms of one year or more consisted of the following as of December 31, 2014: | ||||||||||||
(dollars in thousands) | Capital Leases | Operating Leases | ||||||||||
2015 | $ | 825 | $ | 12,062 | ||||||||
2016 | 825 | 10,806 | ||||||||||
2017 | 825 | 9,062 | ||||||||||
2018 | 825 | 7,839 | ||||||||||
2019 | 825 | 6,834 | ||||||||||
Thereafter | 27,230 | 97,660 | ||||||||||
Total Future Minimum Lease Payments | 31,355 | $ | 144,263 | |||||||||
Amounts Representing Interest | (20,448 | ) | ||||||||||
Present Value of Net Future Minimum Lease Payments | $ | 10,907 | ||||||||||
Minimum future rental income receivable under non-cancelable subleases was $13.8 million as of December 31, 2014. | ||||||||||||
Contingencies | ||||||||||||
The Company, along with other members of Visa are parties to Loss and Judgment Sharing Agreements (the "Agreements"), which provide that the Company along with other member banks of Visa, will share, based on its proportionate interest in Visa, in any losses from certain litigation specified in the Agreements. In March 2008, Visa funded an escrow account from its initial public offering to settle claims covered under the Agreements. In connection with the initial public offering, the Company received restricted Class B common stock in Visa. Should the escrow account established by Visa not be sufficient to cover litigation claims specified in the Agreements, Visa is entitled to fund additional amounts to the escrow account by reducing each member bank's Class B conversion ratio to unrestricted Class A shares. As of December 31, 2014, management believes that the Company's indemnification of Visa, related to the costs of these lawsuits, will be sufficiently funded from the escrow account or through future reductions in the conversion ratio. See Note 3 and Note 17 to the Consolidated Financial Statements for more information. | ||||||||||||
In addition to the litigation noted above, the Company is subject to various other pending and threatened legal proceedings arising out of the normal course of business or operations. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the most recent information available. On a case-by-case basis, reserves are established for those legal claims for which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. Based on information currently available, management believes that the eventual outcome of these other actions against the Company will not be materially in excess of such amounts accrued by the Company. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters may be material to the Company's consolidated statement of income. | ||||||||||||
Risks Related to Representation and Warranty Provisions | ||||||||||||
The Company sells residential mortgage loans in the secondary market primarily to Fannie Mae. The Company also pools Federal Housing Administration (“FHA”) insured and U.S. Department of Veterans Affairs (“VA”) guaranteed residential mortgage loans for sale to Ginnie Mae. These pools of FHA-insured and VA-guaranteed residential mortgage loans are securitized by Ginnie Mae. The agreements under which the Company sells residential mortgage loans to Fannie Mae or Ginnie Mae and the insurance or guaranty agreements with FHA and VA contain provisions that include various representations and warranties regarding the origination and characteristics of the residential mortgage loans. Although the specific representations and warranties vary among investors, insurance or guarantee agreements, they typically cover ownership of the loan, validity of the lien securing the loan, the absence of delinquent taxes or liens against the property securing the loan, compliance with loan criteria set forth in the applicable agreement, compliance with applicable federal, state, and local laws, and other matters. As of December 31, 2014, the unpaid principal balance of the Company's portfolio of residential mortgage loans sold was $2.7 billion. The agreements under which the Company sells residential mortgage loans require delivery of various documents to the investor or its document custodian. Although these loans are primarily sold on a non-recourse basis, the Company may be obligated to repurchase residential mortgage loans or reimburse investors for losses incurred if a loan review reveals that underwriting and documentation standards were potentially not met. Upon receipt of a repurchase request, the Company works with investors or insurers to arrive at a mutually agreeable resolution. Repurchase demands are typically reviewed on an individual loan by loan basis to validate the claims made by the investor or insurer and to determine if a contractually required repurchase event has occurred. The Company manages the risk associated with potential repurchases or other forms of settlement through its underwriting and quality assurance practices and by servicing mortgage loans to meet investor and secondary market standards. For the year ended December 31, 2014, the Company repurchased eight residential mortgage loans with an aggregate unpaid principal balance totaling $2.1 million as a result of the representation and warranty provisions contained in these contracts. Six of these loans were delinquent as to principal and interest at the time of repurchase, however, no losses were incurred related to these repurchases. As of December 31, 2014, there were no pending repurchase requests related to representation and warranty provisions. | ||||||||||||
Risks Relating to Residential Mortgage Loan Servicing Activities | ||||||||||||
In addition to servicing loans in the Company's portfolio, substantially all of the loans the Company sells to investors are sold with servicing rights retained. The Company also services loans originated by other mortgage loan originators. As servicer, the Company's primary duties are to: (1) collect payments due from borrowers; (2) advance certain delinquent payments of principal and interest; (3) maintain and administer any hazard, title, or primary mortgage insurance policies relating to the mortgage loans; (4) maintain any required escrow accounts for payment of taxes and insurance and administer escrow payments; and (5) foreclose on defaulted mortgage loans or, to the extent consistent with the documents governing a securitization, consider alternatives to foreclosure, such as loan modifications or short sales. Each agreement under which the Company acts as servicer generally specifies a standard of responsibility for actions taken by the Company in such capacity and provides protection against expenses and liabilities incurred by the Company when acting in compliance with the respective servicing agreements. However, if the Company commits a material breach of obligations as servicer, the Company may be subject to termination if the breach is not cured within a specified period following notice. The standards governing servicing and the possible remedies for violations of such standards vary by investor. These standards and remedies are determined by servicing guides issued by the investors as well as the contract provisions established between the investors and the Company. Remedies could include repurchase of an affected loan. For the year ended December 31, 2014, the Company had no repurchase requests related to loan servicing activities, nor were there any pending repurchase requests as of December 31, 2014. | ||||||||||||
Although to date repurchase requests related to representation and warranty provisions, and servicing activities have been limited, it is possible that requests to repurchase mortgage loans may increase in frequency as investors more aggressively pursue all means of recovering losses on their purchased loans. However, as of December 31, 2014, management believes that this exposure is not material due to the historical level of repurchase requests and loss trends and thus has not established a liability for losses related to mortgage loan repurchases. As of December 31, 2014, 99% of the Company's residential mortgage loans serviced for investors were current. The Company maintains ongoing communications with investors and continues to evaluate this exposure by monitoring the level and number of repurchase requests as well as the delinquency rates in the loans sold to investors. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities | |||||||||||||||||||
The following is a description of the valuation methodologies and key inputs used to measure assets and liabilities recorded at fair value on a recurring basis. | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
Investment Securities Available-for-Sale | ||||||||||||||||||||
Fair values of investment securities available-for-sale were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury. As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements. Level 2 investment securities were primarily comprised of debt securities issued by the Small Business Administration, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. | ||||||||||||||||||||
On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Investment securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs to determine fair value. As of December 31, 2014 and 2013, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The Company’s third-party pricing service has also established processes for us to submit inquiries regarding quoted prices. Periodically, we will challenge the quoted prices provided by our third-party pricing service. The Company’s third-party pricing service will review the inputs to the evaluation in light of the new market data presented by us. The Company’s third-party pricing service may then affirm the original quoted price or may update the evaluation on a going forward basis. | ||||||||||||||||||||
Loans Held for Sale | ||||||||||||||||||||
The fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets, and therefore, is classified as a Level 2 measurement. | ||||||||||||||||||||
Mortgage Servicing Rights | ||||||||||||||||||||
Mortgage servicing rights do not trade in an active market with readily observable market data. As a result, the Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that we believe market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. | ||||||||||||||||||||
Other Assets | ||||||||||||||||||||
Other assets recorded at fair value on a recurring basis are primarily comprised of investments related to deferred compensation arrangements. Quoted prices for these investments, primarily in mutual funds, are available in active markets. Thus, the Company’s investments related to deferred compensation arrangements are classified as Level 1 measurements in the fair value hierarchy. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
Derivative financial instruments recorded at fair value on a recurring basis are comprised of interest rate lock commitments (“IRLCs”), forward commitments, interest rate swap agreements, foreign exchange contracts, and Visa Class B to Class A shares conversion rate swap agreement. The fair values of IRLCs are calculated based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a locked position will ultimately close. This factor, the closing ratio, is derived from the Bank’s internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward commitments are classified as Level 2 measurements as they are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period. The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize Level 2 observable inputs such as the LIBOR swap curve, effective date, maturity date, notional amount, and stated interest rate. In addition, the Company includes in its fair value calculation a credit factor adjustment which is based primarily on management judgment. Thus, interest rate swap agreements are classified as a Level 3 measurement. The fair values of foreign exchange contracts are calculated using the Bank’s multi-currency accounting system which utilizes contract specific information such as currency, maturity date, contractual amount, and strike price, along with market data information such as the spot rates of specific currency and yield curves. Foreign exchange contracts are classified as Level 2 measurements because while they are valued using the Bank’s multi-currency accounting system, significant management judgment or estimation is not required. The fair value of the Visa Class B restricted shares to Class A unrestricted common shares conversion rate swap agreement represents the amount owed by the Company to the buyer of the Visa Class B shares as a result of a reduction of the conversion ratio subsequent to the sales dates. As of December 31, 2014 and 2013, the conversion rate swap agreement was valued at zero as reductions to the conversion ratio were neither probable nor reasonably estimable by management. This conversion rate swap agreement is classified as a Level 2 measurement. See Note 17 to the Consolidated Financial Statements for more information. | ||||||||||||||||||||
The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers and counterparties that carry high quality credit ratings. Credit risk associated with borrowers or counterparties as well as the Company’s non-performance risk is factored into the determination of the fair value of derivative financial instruments. | ||||||||||||||||||||
The table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013: | ||||||||||||||||||||
(dollars in thousands) | Quoted Prices | Significant | Significant | Total | ||||||||||||||||
In Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||
or Liabilities | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment Securities Available-for-Sale | ||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 61,271 | $ | 269,987 | $ | — | $ | 331,258 | ||||||||||||
and Government Agencies | ||||||||||||||||||||
Debt Securities Issued by States and Political Subdivisions | — | 743,970 | — | 743,970 | ||||||||||||||||
Debt Securities Issued by Corporations | — | 294,833 | — | 294,833 | ||||||||||||||||
Mortgage-Backed Securities Issued by | ||||||||||||||||||||
Residential - Government Agencies | — | 462,436 | — | 462,436 | ||||||||||||||||
Residential - U.S. Government Sponsored Enterprises | — | 278,461 | — | 278,461 | ||||||||||||||||
Commercial - Government Agencies | — | 178,232 | — | 178,232 | ||||||||||||||||
Total Mortgage-Backed Securities | — | 919,129 | — | 919,129 | ||||||||||||||||
Total Investment Securities Available-for-Sale | 61,271 | 2,227,919 | — | 2,289,190 | ||||||||||||||||
Loans Held for Sale | — | 5,136 | — | 5,136 | ||||||||||||||||
Mortgage Servicing Rights | — | — | 2,604 | 2,604 | ||||||||||||||||
Other Assets | 18,794 | — | — | 18,794 | ||||||||||||||||
Derivatives 1 | — | 101 | 16,414 | 16,515 | ||||||||||||||||
Total Assets Measured at Fair Value on a | $ | 80,065 | $ | 2,233,156 | $ | 19,018 | $ | 2,332,239 | ||||||||||||
Recurring Basis as of December 31, 2014 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives 1 | $ | — | $ | 459 | $ | 16,296 | $ | 16,755 | ||||||||||||
Total Liabilities Measured at Fair Value on a | $ | — | $ | 459 | $ | 16,296 | $ | 16,755 | ||||||||||||
Recurring Basis as of December 31, 2014 | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment Securities Available-for-Sale | ||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 70,693 | $ | 326,586 | $ | — | $ | 397,279 | ||||||||||||
and Government Agencies | ||||||||||||||||||||
Debt Securities Issued by States and Political Subdivisions | — | 686,802 | — | 686,802 | ||||||||||||||||
Debt Securities Issued by Corporations | — | 273,501 | — | 273,501 | ||||||||||||||||
Mortgage-Backed Securities Issued by | ||||||||||||||||||||
Residential - Government Agencies | — | 653,194 | — | 653,194 | ||||||||||||||||
Residential - U.S. Government Sponsored Enterprises | — | 23,268 | — | 23,268 | ||||||||||||||||
Commercial - Government Agencies | — | 209,653 | — | 209,653 | ||||||||||||||||
Total Mortgage-Backed Securities | — | 886,115 | — | 886,115 | ||||||||||||||||
Total Investment Securities Available-for-Sale | 70,693 | 2,173,004 | — | 2,243,697 | ||||||||||||||||
Loans Held for Sale | — | 6,435 | — | 6,435 | ||||||||||||||||
Mortgage Servicing Rights | — | — | 3,826 | 3,826 | ||||||||||||||||
Other Assets | 15,535 | — | — | 15,535 | ||||||||||||||||
Derivatives 1 | — | 343 | 21,426 | 21,769 | ||||||||||||||||
Total Assets Measured at Fair Value on a | $ | 86,228 | $ | 2,179,782 | $ | 25,252 | $ | 2,291,262 | ||||||||||||
Recurring Basis as of December 31, 2013 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives 1 | $ | — | $ | 904 | $ | 21,047 | $ | 21,951 | ||||||||||||
Total Liabilities Measured at Fair Value on a | $ | — | $ | 904 | $ | 21,047 | $ | 21,951 | ||||||||||||
Recurring Basis as of December 31, 2013 | ||||||||||||||||||||
1 The fair value of each class of derivatives is shown in Note 17 to the Consolidated Financial Statements. | ||||||||||||||||||||
For the years ended December 31, 2014 and 2013, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: | ||||||||||||||||||||
(dollars in thousands) | Mortgage | Net Derivative | ||||||||||||||||||
Servicing Rights 1 | Assets and | |||||||||||||||||||
Liabilities 2 | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Balance as of January 1, 2014 | $ | 3,826 | $ | 379 | ||||||||||||||||
Realized and Unrealized Net Gains (Losses): | ||||||||||||||||||||
Included in Net Income | (1,222 | ) | 3,195 | |||||||||||||||||
Transfers to Loans Held for Sale | — | (3,456 | ) | |||||||||||||||||
Balance as of December 31, 2014 | $ | 2,604 | $ | 118 | ||||||||||||||||
Total Unrealized Net Gains (Losses) Included in Net Income | $ | (868 | ) | $ | 118 | |||||||||||||||
Related to Assets Still Held as of December 31, 2014 | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Balance as of January 1, 2013 | $ | 4,761 | $ | 9,940 | ||||||||||||||||
Realized and Unrealized Net Gains (Losses): | ||||||||||||||||||||
Included in Net Income | (935 | ) | 6,184 | |||||||||||||||||
Transfers to Loans Held for Sale | — | (15,745 | ) | |||||||||||||||||
Balance as of December 31, 2013 | $ | 3,826 | $ | 379 | ||||||||||||||||
Total Unrealized Net Gains Included in Net Income | $ | 127 | $ | 379 | ||||||||||||||||
Related to Assets Still Held as of December 31, 2013 | ||||||||||||||||||||
1 | Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company's consolidated statements of income. | |||||||||||||||||||
2 | Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company's consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company's consolidated statements of income. | |||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2014 and 2013, the significant unobservable inputs used in the fair value measurements were as follows: | ||||||||||||||||||||
Significant Unobservable Inputs | Fair Value | |||||||||||||||||||
(weighted-average) | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
(dollars in thousands) | Valuation Technique | Description | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Mortgage Servicing Rights | Discounted Cash Flow | Constant Prepayment Rate 1 | 11.62 | % | 7.98 | % | $ | 25,441 | $ | 33,926 | ||||||||||
Discount Rate 2 | 10.61 | % | 9.7 | % | ||||||||||||||||
Net Derivative Assets and Liabilities: | ||||||||||||||||||||
Interest Rate Lock Commitments | Pricing Model | Closing Ratio | 93.85 | % | 93.76 | % | $ | 152 | $ | 536 | ||||||||||
Interest Rate Swap Agreements | Discounted Cash Flow | Credit Factor | 0.21 | % | 0.74 | % | $ | (34 | ) | $ | (157 | ) | ||||||||
1 Represents annualized loan repayment rate assumption. | ||||||||||||||||||||
2 Derived from multiple interest rate scenarios that incorporate a spread to the London Interbank Offered Rate swap curve and market volatilities. | ||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average constant prepayment rate and weighted-average discount rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the constant prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other. | ||||||||||||||||||||
The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s Treasury Division enters observable and unobservable inputs into the model to arrive at an estimated fair value. To assess the reasonableness of the fair value measurement, the Treasury Division performs a back-test by applying the model to historical prepayment data. The fair value and constant prepayment rate are also compared to forward-looking estimates to assess reasonableness. The Treasury Division also compares the fair value of the Company’s mortgage servicing rights to a value calculated by an independent third-party. Discussions are held with members from the Treasury, Mortgage Banking, and Controllers Divisions, along with the independent third-party to discuss and reconcile the fair value estimates and key assumptions used by the respective parties in arriving at those estimates. A subcommittee of the Company’s Asset/Liability Management Committee is responsible for providing oversight over the valuation methodology and key assumptions. | ||||||||||||||||||||
The significant unobservable input used in the fair value measurement of the Company’s IRLCs is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. Generally, the fair value of an IRLC is positive (negative) if the prevailing interest rate is lower (higher) than the IRLC rate. Therefore, an increase in the closing ratio (i.e., higher percentage of loans are estimated to close) will increase the gain or loss. The closing ratio is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. The closing ratio is computed by our secondary marketing system using historical data and the ratio is periodically reviewed by the Company’s Secondary Marketing Department of the Mortgage Banking Division for reasonableness. | ||||||||||||||||||||
The unobservable input used in the fair value measurement of the Company’s interest rate swap agreements is the credit factor. This factor represents the risk that a counterparty is either unable or unwilling to settle a transaction in accordance with the underlying contractual terms. A significant increase (decrease) in the credit factor could result in a significantly lower (higher) fair value measurement. The credit factor is determined by the Treasury Division based on the risk rating assigned to each counterparty in which the Company holds a net asset position. The Company’s Credit Policy Committee periodically reviews and approves the Expected Default Frequency of the Economic Capital Model for Credit Risk. The Expected Default Frequency is used as the credit factor for interest rate swap agreements. | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||
The Company may be required periodically to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. For the year ended December 31, 2014, the Company's mortgage servicing rights accounted for under the amortization method were reduced by a valuation allowance of $0.1 million to a reported carrying value of $22.1 million. This reduction was primarily due to changes in certain key assumptions used to estimate fair value. As previously mentioned, all of the Company's mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. In addition, the Company's foreclosed real estate was reduced by an impairment charge of $0.1 million to a reported carrying value of $2.3 million during the year ended December 31, 2014. This impairment charge was related to the Company's revised fair value estimate, deemed a Level 3 measurement, of one commercial property based on a recent appraisal and management judgment. For the year ended December 31, 2013, there were no material adjustments to fair value for the Company’s assets and liabilities measured at fair value on a nonrecurring basis in accordance with GAAP. | ||||||||||||||||||||
Fair Value Option | ||||||||||||||||||||
The Company elected the fair value option for all residential mortgage loans held for sale originated on or after October 1, 2011. This election allows for a more effective offset of the changes in fair values of the loans held for sale and the derivative financial instruments used to economically hedge them without having to apply complex hedge accounting requirements. As noted above, the fair value of the Company's residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets. | ||||||||||||||||||||
The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company's residential mortgage loans held for sale as of December 31, 2014 and 2013. | ||||||||||||||||||||
(dollars in thousands) | Aggregate | Aggregate | Aggregate Fair Value | |||||||||||||||||
Fair Value | Unpaid Principal | Less Aggregate | ||||||||||||||||||
Unpaid Principal | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Loans Held for Sale | $ | 5,136 | $ | 4,740 | $ | 396 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Loans Held for Sale | $ | 6,435 | $ | 6,284 | $ | 151 | ||||||||||||||
Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of mortgage banking income in the Company's consolidated statements of income. For the years ended December 31, 2014 and 2013, the net gains or losses from the change in fair value of the Company's residential mortgage loans held for sale were not material. | ||||||||||||||||||||
Financial Instruments Not Recorded at Fair Value on a Recurring Basis | ||||||||||||||||||||
The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments. | ||||||||||||||||||||
Investment Securities Held-to-Maturity | ||||||||||||||||||||
The fair value of the Company’s investment securities held-to-maturity was primarily measured using information from a third-party pricing service. Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury as quoted prices were available, unadjusted, for identical securities in active markets. If quoted prices were not available, fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. | ||||||||||||||||||||
Loans | ||||||||||||||||||||
The fair value of the Company’s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans were first segregated by type such as commercial, real estate, and consumer, and were then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. | ||||||||||||||||||||
Time Deposits | ||||||||||||||||||||
The fair values of the Company’s time deposits were estimated using discounted cash flow analyses. The discount rates used were based on rates currently offered for deposits with similar remaining maturities. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value. | ||||||||||||||||||||
Securities Sold Under Agreements to Repurchase | ||||||||||||||||||||
The fair value of the Company’s securities sold under agreements to repurchase was calculated using discounted cash flow analyses, applying discount rates currently offered for new agreements with similar remaining maturities and considering the Company’s non-performance risk. | ||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||
The fair value of the Company’s long-term debt was calculated using a discounted cash flow approach and applying discount rates currently offered for new notes with similar remaining maturities and considering the Company’s non-performance risk. | ||||||||||||||||||||
The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company's financial instruments as of December 31, 2014 and 2013. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Fair Value | Quoted Prices in Active Markets for | Significant | Significant | |||||||||||||||
Identical Assets or | Other | Unobservable | ||||||||||||||||||
Liabilities(Level 1) | Observable | Inputs | ||||||||||||||||||
Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Financial Instruments – Assets | ||||||||||||||||||||
Investment Securities Held-to-Maturity | $ | 4,466,679 | $ | 4,504,495 | $ | 499,616 | $ | 4,004,879 | $ | — | ||||||||||
Loans 1 | 6,542,719 | 7,048,757 | — | — | 7,048,757 | |||||||||||||||
Financial Instruments – Liabilities | ||||||||||||||||||||
Time Deposits | 1,434,001 | 1,437,064 | — | 1,437,064 | — | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 688,601 | 758,781 | — | 758,781 | — | |||||||||||||||
Long-Term Debt 2 | 163,005 | 163,911 | — | 163,911 | — | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Financial Instruments – Assets | ||||||||||||||||||||
Investment Securities Held-to-Maturity | $ | 4,744,519 | $ | 4,697,587 | $ | 433,365 | $ | 4,264,222 | $ | — | ||||||||||
Loans 1 | 5,707,133 | 6,062,147 | — | — | 6,062,147 | |||||||||||||||
Financial Instruments – Liabilities | ||||||||||||||||||||
Time Deposits | 1,317,770 | 1,322,967 | — | 1,322,967 | — | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 770,049 | 846,193 | — | 846,193 | — | |||||||||||||||
Long-Term Debt 2 | 165,877 | 167,049 | — | 167,049 | — | |||||||||||||||
1 | Net of unearned income and the Allowance. | |||||||||||||||||||
2 | Excludes capitalized lease obligations. |
Bank_of_Hawaii_Corporation_Fin
Bank of Hawaii Corporation Financial Statements | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Bank of Hawaii Corporation Financial Statements | Bank of Hawaii Corporation Financial Statements | |||||||||||
Condensed financial statements of the Parent were as follows: | ||||||||||||
Condensed Statements of Comprehensive Income | ||||||||||||
Year Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Income | ||||||||||||
Dividends and Interest from Bank of Hawaii | $ | 136,000 | $ | 133,000 | $ | 117,050 | ||||||
Net Gains on Sales of Investment Securities | 7,810 | — | — | |||||||||
Other Income | 690 | 727 | 570 | |||||||||
Total Income | 144,500 | 133,727 | 117,620 | |||||||||
Noninterest Expense | ||||||||||||
Intercompany Salaries and Services | 839 | 852 | 858 | |||||||||
Other Expenses | 2,067 | 2,942 | 1,795 | |||||||||
Total Noninterest Expense | 2,906 | 3,794 | 2,653 | |||||||||
Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries | 141,594 | 129,933 | 114,967 | |||||||||
Income Tax Benefit | 225 | 2,211 | 1,848 | |||||||||
Equity in Undistributed Income of Subsidiaries | 21,223 | 18,358 | 49,261 | |||||||||
Net Income | $ | 163,042 | $ | 150,502 | $ | 166,076 | ||||||
Comprehensive Income | $ | 168,179 | $ | 89,471 | $ | 160,021 | ||||||
Condensed Statements of Condition | ||||||||||||
(dollars in thousands) | December 31, 2014 | December 31, 2013 | ||||||||||
Assets | ||||||||||||
Cash with Bank of Hawaii | $ | 68,563 | $ | 64,657 | ||||||||
Investment Securities Held-to-Maturity | 4,947 | — | ||||||||||
Goodwill | 14,129 | 14,129 | ||||||||||
Income Taxes Receivable and Deferred Tax Assets | 2,868 | 2,200 | ||||||||||
Other Assets | 7,825 | 7,938 | ||||||||||
Equity in Net Assets of Subsidiaries | 976,354 | 942,157 | ||||||||||
Total Assets | $ | 1,074,686 | $ | 1,031,081 | ||||||||
Liabilities | ||||||||||||
Income Taxes Payable | $ | 6,269 | $ | 6,359 | ||||||||
Other Liabilities | 13,331 | 12,746 | ||||||||||
Total Liabilities | 19,600 | 19,105 | ||||||||||
Shareholders' Equity | 1,055,086 | 1,011,976 | ||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,074,686 | $ | 1,031,081 | ||||||||
Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Operating Activities | ||||||||||||
Net Income | $ | 163,042 | $ | 150,502 | $ | 166,076 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||||||
Share-Based Compensation | 656 | 616 | 576 | |||||||||
Net Gains on Sales of Investment Securities | (7,810 | ) | — | — | ||||||||
Equity in Undistributed Income of Subsidiaries | (21,223 | ) | (18,358 | ) | (49,261 | ) | ||||||
Net Change in Other Assets and Other Liabilities | 78 | 1,980 | (493 | ) | ||||||||
Net Cash Provided by Operating Activities | 134,743 | 134,740 | 116,898 | |||||||||
Investing Activities | ||||||||||||
Proceeds from Sales of Investment Securities | 7,810 | — | — | |||||||||
Purchase of Investment Securities Held-to-Maturity | (4,936 | ) | — | — | ||||||||
Net Cash Provided by Investing Activities | 2,874 | — | — | |||||||||
Financing Activities | ||||||||||||
Proceeds from Issuance of Common Stock | 9,995 | 14,495 | 13,730 | |||||||||
Repurchase of Common Stock | (64,046 | ) | (39,655 | ) | (81,444 | ) | ||||||
Cash Dividends Paid | (79,660 | ) | (80,534 | ) | (81,645 | ) | ||||||
Net Cash Used in Financing Activities | (133,711 | ) | (105,694 | ) | (149,359 | ) | ||||||
Net Change in Cash and Cash Equivalents | 3,906 | 29,046 | (32,461 | ) | ||||||||
Cash and Cash Equivalents at Beginning of Period | 64,657 | 35,611 | 68,072 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 68,563 | $ | 64,657 | $ | 35,611 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation | The accounting and reporting principles of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices within the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. | |
Certain prior period information has been reclassified to conform to the current year presentation. | ||
Consolidation | Consolidation | |
The Consolidated Financial Statements include the accounts of the Parent and its subsidiaries. The Parent's principal operating subsidiary is Bank of Hawaii (the "Bank"). All significant intercompany accounts and transactions have been eliminated in consolidation. | ||
Variable Interest Entities | Variable Interest Entities | |
Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity's net asset value. The primary beneficiary consolidates the variable interest entity ("VIE"). The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. | ||
The Company has a limited partnership interest in several low-income housing partnerships. These partnerships provide funds for the construction and operation of apartment complexes that provide affordable housing to that segment of the population with lower family income. If these developments successfully attract a specified percentage of residents falling in that lower income range, state and/or federal income tax credits are made available to the partners. The tax credits are generally recognized over 10 years. In order to continue receiving the tax credits each year over the life of the partnership, the low-income residency targets must be maintained. | ||
Prior to January 1, 2015, the Company utilized the effective tax method whereby the Company recognized tax credits generally over 10 years and amortized the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the Company. On January 1, 2015, the Company adopted ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects" prospectively for new investments. ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The Company may also continue to utilize the effective yield method for investments made prior to January 1, 2015. See Accounting Standards Pending Adoption below for more information. | ||
Unfunded commitments to fund these low-income housing partnerships were $31.4 million and $18.1 million as of December 31, 2014 and 2013, respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. | ||
The Company also has limited partnership interest in three solar energy partnerships. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of the investment, the Company will receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. The tax credits are generally recognized over 6 years. | ||
These entities meet the definition of a VIE; however, the Company is not the primary beneficiary of the entities, as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. While the partnership agreements allow the limited partners, through a majority vote, to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. | ||
The investment in these entities is initially recorded at cost, which approximates the maximum exposure to loss as a result of the Company's involvement with these unconsolidated entities. The balance of the Company's investments in these entities was $77.5 million and $48.2 million as of December 31, 2014 and 2013, respectively, and is included in other assets in the consolidated statements of condition. | ||
Investment Securities | Investment Securities | |
Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities as of December 31, 2014 and 2013. Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities, comprised of debt and mortgage-backed securities, are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. | ||
Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. | ||
Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield using the interest method over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. | ||
Other-Than-Temporary Impairments of Investment Securities | Other-Than-Temporary-Impairments of Investment Securities | |
The Company conducts an other-than-temporary-impairment ("OTTI") analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. As of December 31, 2014, management determined that the Company did not own any investment securities that were other-than-temporarily-impaired. | ||
Loans Held for Sale | Loans Held for Sale | |
Residential mortgage loans with the intent to be sold in the secondary market are accounted for on an aggregate basis under the fair value option. Fair value is primarily determined based on quoted prices for similar loans in active markets. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized as part of the cost basis of the loan at the time of sale. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in the mortgage banking component of noninterest income. | ||
Commercial loans that management has an active plan to sell are valued on an individual basis at the lower-of-cost-or fair value. Fair value is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Any reduction in the loan's value, prior to being transferred to the held for sale category, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. Further decreases in the fair value of the loan are recognized in noninterest expense. | ||
Loans and Leases | Loans and Leases | |
Loans are reported at the principal amount outstanding, net of unearned income including unamortized deferred loan fees and costs, and cumulative net charge-offs. Interest income is recognized on an accrual basis. Loan origination fees, certain direct costs, and unearned discounts and premiums, if any, are deferred and are generally amortized into interest income as yield adjustments using the interest method over the contractual life of the loan. Loan commitment fees are generally recognized into noninterest income. Other credit-related fees are recognized as fee income, a component of noninterest income, when earned. | ||
Direct financing leases are carried at the aggregate of lease payments receivable plus the estimated residual value of leased property, less unearned income. Leveraged leases, which are a form of direct financing leases, are carried net of non-recourse debt. Unearned income on direct financing and leveraged leases is amortized over the lease term by methods that approximate the interest method. Residual values on leased assets are periodically reviewed for impairment. | ||
Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan and lease losses (the "Allowance"). Management has determined that the Company has two portfolio segments of loans and leases (commercial and consumer) in determining the Allowance. Both quantitative and qualitative factors are used by management at the portfolio segment level in determining the adequacy of the Allowance for the Company. Classes of loans and leases are a disaggregation of a Company's portfolio segments. Classes are defined as a group of loans and leases which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has eight classes of loans and leases (commercial and industrial, commercial mortgage, construction, lease financing, residential mortgage, home equity, automobile, and other). The "other" class of loans and leases is comprised of revolving credit, credit cards, installment, and lease financing arrangements. | ||
Non-Performing Loans and Leases | Non-Performing Loans and Leases | |
Generally, all classes of commercial loans and leases are placed on non-accrual status upon becoming contractually past due 90 days as to principal or interest (unless loans and leases are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), when terms are renegotiated below market levels, or where substantial doubt about full repayment of principal or interest is evident. For residential mortgage and home equity loan classes, loans past due 120 days as to principal or interest may be placed on non-accrual status, and a partial charge-off may be recorded, depending on the collateral value and/or the collectability of the loan. For automobile and other consumer loan classes, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due (180 days past due for credit cards) as to principal or interest. | ||
When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. A loan or lease may be returned to accrual status when all delinquent interest and principal become current in accordance with the terms of the loan or lease agreement and when doubt about repayment is resolved. | ||
Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor's prospects for repayment and the fair value of collateral. For the pooled segment of the Company's commercial and industrial loan class, which consists of small business loans, the entire outstanding balance of the loan remains on accrual status until it is charged off during the month that the loan becomes 120 days past due as to principal or interest. As previously mentioned, for residential mortgage and home equity loan classes, a partial charge-off may be recorded at 120 days past due as to principal or interest depending on the collateral value and/or the collectability of the loan. In the event that loans or lines in the home equity loan class is behind another financial institution's first mortgage, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest, unless the combined loan-to-value ratio is 60% or less. As noted above, loans in the automobile and other consumer loan classes are charged off in its entirety upon the loan becoming 120 days past due (180 days past due for credit cards) as to principal or interest. | ||
Impaired Loans | Impaired Loans | |
A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans (except lease financing and small business loans), and all loans modified in a troubled debt restructuring. Impaired loans exclude lease financing and smaller balance homogeneous loans (consumer and small business non-accruing loans) that are collectively evaluated for impairment. | ||
For all classes of commercial loans, a quarterly evaluation of individual commercial borrowers is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk. | ||
When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), an impairment is recognized by establishing or adjusting an existing allocation of the Allowance, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis. | ||
Loans Modified in a Troubled Debt Restructuring | Loans Modified in a Troubled Debt Restructuring | |
Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower's financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. | ||
Reserve for Credit Losses | Reserve for Credit Losses | |
The Company's reserve for credit losses is comprised of two components, the Allowance and the reserve for unfunded commitments (the "Unfunded Reserve"). | ||
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses | |
The Company maintains an Allowance adequate to cover management's estimate of probable credit losses as of the balance sheet date. Loans and leases that are charged off reduce the Allowance while recoveries of loans and leases previously charged off increase the Allowance. Other changes to the level of the Allowance are recognized through charges or credits to the provision for credit losses (the "Provision"). The Allowance considers both unimpaired and impaired loans and is developed and documented at the portfolio segment level (commercial and consumer). | ||
The level of the Allowance related to the Company's commercial portfolio segment is generally based on the credit risk ratings and historical loss experience of individual borrowers. This is supplemented as necessary by credit judgment to address observed changes in trends and conditions, and other relevant environmental and economic factors that may affect the collectability of loans and leases. Excluding those loans and leases evaluated individually for impairment, the Company's remaining commercial loans and leases are pooled and collectively evaluated for impairment based on business unit and internal risk rating segmentation. | ||
The level of the Allowance related to the Company's consumer portfolio segment is generally based on analyses of homogeneous pools of loans and leases. Loans and leases are pooled based on similar loan and lease risk characteristics for collective evaluation of impairment. Loss estimates are calculated based on historical rolling average loss rates and average delinquency flows to loss. Consumer loans that have been individually evaluated for impairment or modified in a troubled debt restructuring are excluded from the homogeneous pools. Impairment related to such loans is generally determined based on the present value of expected future cash flows discounted at the loan's original effective interest rate. | ||
The Allowance also includes an estimate for inherent losses not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), economic trends and conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of net charge-offs. In addition, the Company uses a variety of other tools to estimate probable credit losses including, but not limited to, a rolling quarterly forecast of asset quality metrics; stress testing; and performance indicators based on the Company's own experience, peers, or other industry sources. | ||
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments | |
The Unfunded Reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker's acceptances, and standby and commercial letters of credit. The process used to determine the Unfunded Reserve is consistent with the process for determining the Allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the Unfunded Reserve is adjusted by recording an expense or recovery in other noninterest expense. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash and noninterest-bearing deposits, interest-bearing deposits, and funds sold. All amounts are readily convertible to cash and have maturities of less than 90 days. | ||
Premises and Equipment | Premises and Equipment | |
Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. | ||
Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives range up to 30 years for buildings and up to 10 years for equipment. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Capitalized leased assets are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. Repairs and maintenance are charged to expense as incurred, while improvements which extend the estimated useful life of the asset are capitalized and depreciated over the estimated remaining life of the asset. | ||
Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than its carrying amount. In that event, the Company records a loss for the difference between the carrying amount and the fair value of the asset based on quoted market prices, if applicable, or a discounted cash flow analysis | ||
Foreclosed Real Estate | Foreclosed Real Estate | |
Foreclosed real estate consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property's fair value at the time of acquisition, a charge-off is recorded against the Allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the Allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other noninterest income. Subsequent decreases in the property's fair value and operating expenses of the property are recognized through charges to other noninterest expense. The fair value of the property acquired is based on third party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. | ||
Mortgage Servicing Rights | Mortgage Servicing Rights | |
Mortgage servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. Mortgage servicing rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. | ||
The Company's mortgage servicing rights accounted for under the fair value method are carried on the statements of condition at fair value with changes in fair value recorded in mortgage banking income in the period in which the change occurs. Changes in the fair value of mortgage servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. | ||
The Company's mortgage servicing rights accounted for under the amortization method are initially recorded at fair value. However, these mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the mortgage servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these mortgage servicing rights exceeds fair value. | ||
Goodwill | Goodwill | |
Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Company has two reporting units that were assigned goodwill: Investment Services and Retail Banking. | ||
The Company performs its annual evaluation of goodwill impairment in the fourth quarter of each year and on an interim basis if events or changes in circumstances indicate that there may be an impairment. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and the first step of the impairment test should be performed. The qualitative factors considered include, but are not limited to, macroeconomic and State of Hawaii economic conditions, industry and market conditions and trends, the Company's financial performance, market capitalization, stock price, and any Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise an impairment test is performed. The goodwill impairment test is a two-step test. The first step of the goodwill impairment test compares the estimated fair value of identified reporting units with their carrying amount, including goodwill. If the estimated fair value of a reporting unit is less than the carrying value, the second step must be performed to determine the implied fair value of the reporting unit's goodwill and the amount of goodwill impairment, if any. The implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the implied fair value of goodwill is less than the carrying amount, a loss would be recognized in other noninterest expense to reduce the carrying amount to the implied fair value of goodwill. Subsequent reversals of goodwill impairment are prohibited. For the year ended December 31, 2014, the Company's goodwill impairment evaluation indicated that there was no impairment. | ||
Non-Marketable Equity Securities | Non-Marketable Equity Securities | |
The Company is required to hold non-marketable equity securities, comprised of Federal Home Loan Bank ("FHLB") of Seattle and Federal Reserve Bank ("FRB") stock, as a condition of membership. These securities are accounted for at cost which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. These securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets which are periodically evaluated for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than by recognizing temporary declines in value. | ||
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase | |
The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the securities sold under agreements to repurchase remain in the respective asset accounts. See Note 18 to the Consolidated Financial Statements for more information. | ||
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans | |
The Company incurs certain employment-related expenses associated with its two frozen pension plans and a postretirement benefit plan (the "Plans"). In order to measure the expense associated with the Plans, various assumptions are made including the discount rate, expected return on plan assets, anticipated mortality rates, and expected future healthcare costs. The assumptions are based on historical experience as well as current facts and circumstances. The Company uses a December 31 measurement date for its Plans. As of the measurement date, plan assets are determined based on fair value, generally representing observable market prices. The projected benefit obligation is primarily determined based on the present value of projected benefit distributions at an assumed discount rate. | ||
Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial gains or losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains or losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining expected lives of the pension plan participants. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. | ||
The Company recognizes in its statement of condition an asset for a plan's overfunded status or a liability for a plan's underfunded status. The Company also measures the Plans' assets and obligations that determine its funded status as of the end of the year and recognizes those changes in other comprehensive income, net of tax. | ||
Income Taxes | Income Taxes | |
The Parent files a consolidated federal income tax return with the Bank and its subsidiaries. Calculation of the Company's provision for income taxes requires the interpretation of income tax laws and regulations and the use of estimates and judgments in its determination. The Company is subject to examination by governmental authorities that may give rise to income tax issues due to differing interpretations. Changes to the liability for income taxes also occur due to changes in income tax rates, implementation of new business strategies, resolution of issues with taxing authorities, and newly enacted statutory, judicial, and regulatory guidance. | ||
Deferred income taxes are provided to reflect the tax effect of temporary differences between financial statement carrying amounts and the corresponding tax basis of assets and liabilities. Deferred income taxes are calculated by applying enacted statutory tax rates and tax laws to future years in which temporary differences are expected to reverse. The impact on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that the tax rate change is enacted. A deferred tax valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. | ||
The Company's tax sharing policy provides for the settlement of income taxes between each relevant subsidiary as if the subsidiary had filed a separate return. Payments are made to the Parent by subsidiaries with tax liabilities and subsidiaries that generate tax benefits receive payments for those benefits as used. | ||
The Company maintains reserves for certain tax positions that arise in the normal course of business. As of December 31, 2014, these positions were evaluated based on an assessment of probabilities as to the likelihood of whether a liability had been incurred. Such assessments are reviewed as events occur and adjustments to the reserves are made as appropriate. In evaluating a tax position for recognition, the Company judgmentally evaluates whether it is more likely than not that a tax position will be sustained upon examination, including resolution of related appeals or litigation processes, based on the technical merits of the position. If the tax position meets the more likely than not recognition threshold, the tax position is measured and recognized in the Company's Consolidated Financial Statements as the largest amount of tax benefit that, in management's judgment, is greater than 50% likely of being realized upon ultimate settlement. | ||
Treasury Stock | Treasury Stock | |
Shares of the Parent's common stock that are repurchased are recorded in treasury stock at cost. On the date of subsequent re-issuance, the treasury stock account is reduced by the cost of such stock on a first-in, first-out basis. | ||
Earnings Per Share | Earnings Per Share | |
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, assuming conversion of all potentially dilutive common stock equivalents. | ||
Derivative Financial Instruments | Derivative Financial Instruments | |
In the ordinary course of business, the Company enters into derivative financial instruments as an end-user in connection with its risk management activities and to accommodate the needs of its customers. The Company has elected not to qualify for hedge accounting methods addressed under current provisions of GAAP. Derivative financial instruments are stated at fair value on the consolidated statements of condition with changes in fair value reported in current period earnings. | ||
Share-Based Compensation | Share-Based Compensation | |
The Company may grant share-based compensation to employees and non-employee directors in the form of restricted stock, restricted stock units and stock options. Share-based compensation expense is measured based on the fair value of the award at the date of grant and is recognized in the statement of income on a straight-line basis over the requisite service period for service-based awards. The fair value of restricted stock is determined based on the closing price of the Parent's common stock on the date of grant. The Company recognizes compensation expense related to restricted stock on a straight-line basis over the vesting period for service-based awards, plus additional recognition of costs associated with accelerated vesting based on the projected attainment of Company performance measures. Beginning in 2014, the Company issued restricted stock units ("RSUs") payable solely in cash which are accounted for as other liabilities in the statement of condition. The fair value of RSUs is initially valued based on the closing price of the Parent's common stock on the date of grant and is amortized in the statement of income over the vesting period. The RSUs are subsequently remeasured in the same manner described above at the end of each reporting period until settlement. The fair value of stock options is estimated at the date of grant using a Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Parent's common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Parent's common stock at the time of grant. The amortization of the expense related to stock options reflects estimated forfeitures, adjusted for actual forfeiture experience. Amortization expense related to stock options is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders' equity. As the expense related to stock options is recognized, a deferred tax asset is established that represents an estimate of future income tax deductions from the release of restrictions or the exercise of stock options. | ||
Advertising Costs | Advertising Costs | |
Advertising costs are expensed as incurred | ||
International Operations | International Operations | |
The Bank has operations that are conducted in certain Pacific Islands that are denominated in U.S. dollars. These operations are classified as domestic. | ||
Fair Value Measurements | Fair Value Measurements | |
Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. Fair value is based on the assumptions that management believes market participants would use when pricing an asset or liability. Fair value measurement and disclosure guidance established a three-level fair value hierarchy that prioritizes the use of inputs used in valuation methodologies. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company's assets and liabilities on a quarterly basis. The three-level fair value hierarchy is as follows: | ||
Level 1: | Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. | |
Level 2: | Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. | |
Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed. | |
In determining fair value measurements, management assesses whether the volume and level of activity for an asset or liability have significantly decreased. In such instances, management determines whether recent quoted prices are associated with illiquid or inactive markets. If management concludes that quoted prices are associated with illiquid or inactive markets, adjustments to quoted prices may be necessary or management may conclude that a change in valuation technique or the use of multiple valuation techniques may be appropriate to estimate an asset or liability's fair value | ||
Accounting Standards Adopted in the Current Year or Pending Adoption | Accounting Standards Adopted in 2014 | |
In July 2013, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." The provisions of ASU No. 2013-11 require an entity to present an unrecognized tax benefit, or portion thereof, in the statement of financial position as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward, with certain exceptions related to availability. The Company adopted the provisions of ASU No. 2013-11 effective January 1, 2014. The adoption of ASU No. 2013-11 had no impact on the Company's Consolidated Financial Statements. | ||
Accounting Standards Pending Adoption | ||
In January 2014, the FASB issued ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." As noted above, ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. This new guidance also requires new disclosures for all investors in these projects. ASU No. 2014-01 is effective for interim and annual reporting periods beginning after December 15, 2014. Upon adoption, the guidance must be applied retrospectively to all periods presented. However, entities that used the effective yield method to account for investments in these projects before adoption may continue to do so for these pre-existing investments. The Company currently accounts for such investments using the effective yield method and plans to continue to do so for these pre-existing investments after adopting ASU No. 2014-01 on January 1, 2015. The Company expects investments made after January 1, 2015 to meet the criteria required for the proportional amortization method and plans to make such an accounting policy election. The adoption of ASU No. 2014-01 did not have a material impact on the Company's Consolidated Financial Statements. | ||
In January 2014, the FASB issued ASU No. 2014-04, "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) The creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) The borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both: (1) The amount of foreclosed residential real estate property held by the creditor; and (2) The recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 did not have a material impact on the Company's Consolidated Financial Statements. | ||
In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions of ASU No. 2014-09 and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. | ||
In June 2014, the FASB issued ASU No. 2014-11, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for public companies for the first interim or annual period beginning after December 15, 2014. In addition, for public companies, the disclosure for certain transactions accounted for as a sale is effective for the first interim or annual reporting periods beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required to be presented for annual reporting periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. As of December 31, 2014, all of the Company's repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on the Company's Consolidated Financial Statements. | ||
In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation - Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. However, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for interim or annual reporting periods beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments in this ASU either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. As of December 31, 2014, the Company did not have any share-based payment awards that included performance targets that could be achieved after the requisite service period. As such, the adoption of ASU No. 2014-12 is not expected to have a material impact on the Company's Consolidated Financial Statements. | ||
In August 2014, the FASB issued ASU No. 2014-14, “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” The objective of this guidance is to reduce diversity in practice related to how creditors classify government-guaranteed mortgage loans, including FHA or VA guaranteed loans, upon foreclosure. Some creditors reclassify those loans to real estate consistent with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments in this guidance require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure; (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU No. 2014-14 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-14 did not have a material impact on the Company's Consolidated Financial Statements. |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Schedule of amortized cost, gross unrealized gains and losses, and fair value of investment securities | The amortized cost, gross unrealized gains and losses, and fair value of the Company's investment securities as of December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 325,365 | $ | 5,933 | $ | (40 | ) | $ | 331,258 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 723,474 | 21,941 | (1,445 | ) | 743,970 | |||||||||||||||||||
Debt Securities Issued by Corporations | 298,272 | 546 | (3,985 | ) | 294,833 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 452,493 | 10,986 | (1,043 | ) | 462,436 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 276,390 | 2,262 | (191 | ) | 278,461 | |||||||||||||||||||
Commercial - Government Agencies | 186,813 | — | (8,581 | ) | 178,232 | |||||||||||||||||||
Total Mortgage-Backed Securities | 915,696 | 13,248 | (9,815 | ) | 919,129 | |||||||||||||||||||
Total | $ | 2,262,807 | $ | 41,668 | $ | (15,285 | ) | $ | 2,289,190 | |||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 498,767 | $ | 2,008 | $ | (1,159 | ) | $ | 499,616 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 249,559 | 15,459 | — | 265,018 | ||||||||||||||||||||
Debt Securities Issued by Corporations | 166,686 | 109 | (3,442 | ) | 163,353 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 2,862,369 | 45,407 | (20,636 | ) | 2,887,140 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 379,365 | 3,635 | (15 | ) | 382,985 | |||||||||||||||||||
Commercial - Government Agencies | 309,933 | 241 | (3,791 | ) | 306,383 | |||||||||||||||||||
Total Mortgage-Backed Securities | 3,551,667 | 49,283 | (24,442 | ) | 3,576,508 | |||||||||||||||||||
Total | $ | 4,466,679 | $ | 66,859 | $ | (29,043 | ) | $ | 4,504,495 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 390,873 | $ | 6,640 | $ | (234 | ) | $ | 397,279 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 691,861 | 8,396 | (13,455 | ) | 686,802 | |||||||||||||||||||
Debt Securities Issued by Corporations | 280,172 | 1,165 | (7,836 | ) | 273,501 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 641,227 | 13,816 | (1,849 | ) | 653,194 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 21,865 | 1,403 | — | 23,268 | ||||||||||||||||||||
Commercial - Government Agencies | 219,859 | — | (10,206 | ) | 209,653 | |||||||||||||||||||
Total Mortgage-Backed Securities | 882,951 | 15,219 | (12,055 | ) | 886,115 | |||||||||||||||||||
Total | $ | 2,245,857 | $ | 31,420 | $ | (33,580 | ) | $ | 2,243,697 | |||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 433,987 | $ | 3,045 | $ | (3,667 | ) | $ | 433,365 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 253,039 | 817 | (133 | ) | 253,723 | |||||||||||||||||||
Debt Securities Issued by Corporations | 190,181 | — | (5,708 | ) | 184,473 | |||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 3,523,343 | 31,786 | (66,572 | ) | 3,488,557 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 21,602 | 1,423 | — | 23,025 | ||||||||||||||||||||
Commercial - Government Agencies | 322,367 | — | (7,923 | ) | 314,444 | |||||||||||||||||||
Total Mortgage-Backed Securities | 3,867,312 | 33,209 | (74,495 | ) | 3,826,026 | |||||||||||||||||||
Total | $ | 4,744,519 | $ | 37,071 | $ | (84,003 | ) | $ | 4,697,587 | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 855,070 | $ | 14,936 | $ | (17 | ) | $ | 869,989 | |||||||||||||||
Debt Securities Issued by States and Political Subdivisions | 753,207 | 30,159 | (955 | ) | 782,411 | |||||||||||||||||||
Debt Securities Issued by Corporations | 82,450 | 1,984 | — | 84,434 | ||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 1,041,669 | 27,283 | (292 | ) | 1,068,660 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 35,234 | 2,064 | — | 37,298 | ||||||||||||||||||||
Commercial - Government Agencies | 524,055 | 1,907 | (1,197 | ) | 524,765 | |||||||||||||||||||
Total Mortgage-Backed Securities | 1,600,958 | 31,254 | (1,489 | ) | 1,630,723 | |||||||||||||||||||
Total | $ | 3,291,685 | $ | 78,333 | $ | (2,461 | ) | $ | 3,367,557 | |||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 190,168 | $ | 5,198 | $ | — | $ | 195,366 | ||||||||||||||||
Debt Securities Issued by Corporations | 24,000 | 4 | — | 24,004 | ||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 3,349,403 | 86,673 | (1,366 | ) | 3,434,710 | |||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 31,494 | 2,102 | — | 33,596 | ||||||||||||||||||||
Total Mortgage-Backed Securities | 3,380,897 | 88,775 | (1,366 | ) | 3,468,306 | |||||||||||||||||||
Total | $ | 3,595,065 | $ | 93,977 | $ | (1,366 | ) | $ | 3,687,676 | |||||||||||||||
Analysis of the contractual maturities of investment securities | The table below presents an analysis of the contractual maturities of the Company's investment securities as of December 31, 2014. Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates. | |||||||||||||||||||||||
(dollars in thousands) | Amortized | Fair Value | ||||||||||||||||||||||
Cost | ||||||||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Due in One Year or Less | $ | 91,768 | $ | 92,943 | ||||||||||||||||||||
Due After One Year Through Five Years | 244,200 | 247,459 | ||||||||||||||||||||||
Due After Five Years Through Ten Years | 644,960 | 651,880 | ||||||||||||||||||||||
Due After Ten Years | 100,999 | 107,792 | ||||||||||||||||||||||
1,081,927 | 1,100,074 | |||||||||||||||||||||||
Debt Securities Issued by Government Agencies | 265,184 | 269,987 | ||||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 452,493 | 462,436 | ||||||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 276,390 | 278,461 | ||||||||||||||||||||||
Commercial - Government Agencies | 186,813 | 178,232 | ||||||||||||||||||||||
Total Mortgage-Backed Securities | 915,696 | 919,129 | ||||||||||||||||||||||
Total | $ | 2,262,807 | $ | 2,289,190 | ||||||||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Due in One Year or Less | $ | 99,658 | $ | 100,751 | ||||||||||||||||||||
Due After One Year Through Five Years | 410,000 | 410,083 | ||||||||||||||||||||||
Due After Five Years Through Ten Years | 220,502 | 225,179 | ||||||||||||||||||||||
Due After Ten Years | 184,852 | 191,974 | ||||||||||||||||||||||
915,012 | 927,987 | |||||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 2,862,369 | 2,887,140 | ||||||||||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 379,365 | 382,985 | ||||||||||||||||||||||
Commercial - Government Agencies | 309,933 | 306,383 | ||||||||||||||||||||||
Total Mortgage-Backed Securities | 3,551,667 | 3,576,508 | ||||||||||||||||||||||
Total | $ | 4,466,679 | $ | 4,504,495 | ||||||||||||||||||||
Gross gains and losses from sale of investment securities | gains and losses from the sales of investment securities for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Gross Gains on Sales of Investment Securities | $ | 8,063 | $ | — | $ | 255 | ||||||||||||||||||
Gross Losses on Sales of Investment Securities | — | — | (332 | ) | ||||||||||||||||||||
Net Gains (Losses) on Sales of Investment Securities | $ | 8,063 | $ | — | $ | (77 | ) | |||||||||||||||||
Schedule of investment securities in an unrealized loss position | The Company's investment securities in an unrealized loss position, segregated by continuous length of impairment, were as follows: | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
(dollars in thousands) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Available-for-Sales: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 1,729 | $ | (2 | ) | $ | 5,546 | $ | (38 | ) | $ | 7,275 | $ | (40 | ) | |||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by States | 78,068 | (305 | ) | 94,543 | (1,140 | ) | 172,611 | (1,445 | ) | |||||||||||||||
and Political Subdivisions | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 73,829 | (1,171 | ) | 180,335 | (2,814 | ) | 254,164 | (3,985 | ) | |||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 3,025 | (8 | ) | 12,215 | (1,035 | ) | 15,240 | (1,043 | ) | |||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 103,824 | (191 | ) | — | — | 103,824 | (191 | ) | ||||||||||||||||
Commercial - Government Agencies | — | — | 178,232 | (8,581 | ) | 178,232 | (8,581 | ) | ||||||||||||||||
Total Mortgage-Backed Securities | 106,849 | (199 | ) | 190,447 | (9,616 | ) | 297,296 | (9,815 | ) | |||||||||||||||
Total | $ | 260,475 | $ | (1,677 | ) | $ | 470,871 | $ | (13,608 | ) | $ | 731,346 | $ | (15,285 | ) | |||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 70,016 | $ | (134 | ) | $ | 144,222 | $ | (1,025 | ) | $ | 214,238 | $ | (1,159 | ) | |||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 46,196 | (349 | ) | 82,109 | (3,093 | ) | 128,305 | (3,442 | ) | |||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 280,967 | (1,207 | ) | 845,911 | (19,429 | ) | 1,126,878 | (20,636 | ) | |||||||||||||||
Residential - U.S. Government-Sponsored Enterprises | 45,754 | (15 | ) | — | — | 45,754 | (15 | ) | ||||||||||||||||
Commercial - Government Agencies | 124,594 | (179 | ) | 171,091 | (3,612 | ) | 295,685 | (3,791 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 451,315 | (1,401 | ) | 1,017,002 | (23,041 | ) | 1,468,317 | (24,442 | ) | |||||||||||||||
Total | $ | 567,527 | $ | (1,884 | ) | $ | 1,243,333 | $ | (27,159 | ) | $ | 1,810,860 | $ | (29,043 | ) | |||||||||
31-Dec-13 | ||||||||||||||||||||||||
Available-for-Sales: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 26,181 | $ | (225 | ) | $ | 2,117 | $ | (9 | ) | $ | 28,298 | $ | (234 | ) | |||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by States | 415,718 | (10,934 | ) | 42,607 | (2,521 | ) | 458,325 | (13,455 | ) | |||||||||||||||
and Political Subdivisions | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 200,364 | (7,836 | ) | — | — | 200,364 | (7,836 | ) | ||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 76,744 | (781 | ) | 10,027 | (1,068 | ) | 86,771 | (1,849 | ) | |||||||||||||||
Commercial - Government Agencies | 164,478 | (7,935 | ) | 45,175 | (2,271 | ) | 209,653 | (10,206 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 241,222 | (8,716 | ) | 55,202 | (3,339 | ) | 296,424 | (12,055 | ) | |||||||||||||||
Total | $ | 883,485 | $ | (27,711 | ) | $ | 99,926 | $ | (5,869 | ) | $ | 983,411 | $ | (33,580 | ) | |||||||||
Held-to-Maturity: | ||||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 271,469 | $ | (3,667 | ) | $ | — | $ | — | $ | 271,469 | $ | (3,667 | ) | ||||||||||
and Government Agencies | ||||||||||||||||||||||||
Debt Securities Issued by States | 52,026 | (133 | ) | — | — | 52,026 | (133 | ) | ||||||||||||||||
and Political Subdivisions | ||||||||||||||||||||||||
Debt Securities Issued by Corporations | 163,736 | (4,278 | ) | 20,736 | (1,430 | ) | 184,472 | (5,708 | ) | |||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||
Residential - Government Agencies | 1,767,086 | (54,067 | ) | 190,939 | (12,505 | ) | 1,958,025 | (66,572 | ) | |||||||||||||||
Commercial - Government Agencies | 224,277 | (4,753 | ) | 90,167 | (3,170 | ) | 314,444 | (7,923 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 1,991,363 | (58,820 | ) | 281,106 | (15,675 | ) | 2,272,469 | (74,495 | ) | |||||||||||||||
Total | $ | 2,478,594 | $ | (66,898 | ) | $ | 301,842 | $ | (17,105 | ) | $ | 2,780,436 | $ | (84,003 | ) | |||||||||
Interest income from taxable and non-taxable investment securities. | Interest income from taxable and non-taxable investment securities for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Taxable | $ | 127,128 | $ | 125,379 | $ | 144,111 | ||||||||||||||||||
Non-Taxable | 21,207 | 18,253 | 16,813 | |||||||||||||||||||||
Total Interest Income from Investment Securities | $ | 148,335 | $ | 143,632 | $ | 160,924 | ||||||||||||||||||
Schedule of carrying value of company's federal home loan bank and federal reserve bank | As of December 31, 2014, the carrying value of the Company’s Federal Home Loan Bank and Federal Reserve Bank stock was as follows: | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Federal Home Loan Bank Stock | $ | 47,075 | $ | 58,021 | ||||||||||||||||||||
Federal Reserve Bank Stock | 19,299 | 19,138 | ||||||||||||||||||||||
Total | $ | 66,374 | $ | 77,159 | ||||||||||||||||||||
Loans_and_Leases_and_the_Allow1
Loans and Leases and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases and Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||
Schedule of loan and lease portfolio | The Company's loan and lease portfolio was comprised of the following as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,055,243 | $ | 911,367 | ||||||||||||||||||||||||||||
Commercial Mortgage | 1,437,513 | 1,247,510 | ||||||||||||||||||||||||||||||
Construction | 109,183 | 107,349 | ||||||||||||||||||||||||||||||
Lease Financing | 226,189 | 262,207 | ||||||||||||||||||||||||||||||
Total Commercial | 2,828,128 | 2,528,433 | ||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 2,571,090 | 2,282,894 | ||||||||||||||||||||||||||||||
Home Equity | 866,688 | 773,385 | ||||||||||||||||||||||||||||||
Automobile | 323,848 | 255,986 | ||||||||||||||||||||||||||||||
Other 1 | 307,835 | 254,689 | ||||||||||||||||||||||||||||||
Total Consumer | 4,069,461 | 3,566,954 | ||||||||||||||||||||||||||||||
Total Loans and Leases | $ | 6,897,589 | $ | 6,095,387 | ||||||||||||||||||||||||||||
1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||||||||||||||||||
Schedule of portfolio segment and balance in Allowance disaggregated on the basis of impairment measurement method | The following presents by portfolio segment, the activity in the Allowance for the years ended December 31, 2014 and 2013. The following also presents by portfolio segment, the balance in the Allowance disaggregated on the basis of the Company's impairment measurement method and the related recorded investment in loans and leases as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Consumer | Total | |||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | 71,446 | $ | 44,008 | $ | 115,454 | ||||||||||||||||||||||||||
Loans and Leases Charged-Off | (2,068 | ) | (13,371 | ) | (15,439 | ) | ||||||||||||||||||||||||||
Recoveries on Loans and Leases Previously Charged-Off | 4,721 | 8,816 | 13,537 | |||||||||||||||||||||||||||||
Net Loans and Leases Recovered (Charged-Off) | 2,653 | (4,555 | ) | (1,902 | ) | |||||||||||||||||||||||||||
Provision for Credit Losses | (9,548 | ) | 4,684 | (4,864 | ) | |||||||||||||||||||||||||||
Balance at End of Period | $ | 64,551 | $ | 44,137 | $ | 108,688 | ||||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 2,387 | $ | 3,561 | $ | 5,948 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 62,164 | 40,576 | 102,740 | |||||||||||||||||||||||||||||
Total | $ | 64,551 | $ | 44,137 | $ | 108,688 | ||||||||||||||||||||||||||
Recorded Investment in Loans and Leases: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 25,116 | $ | 39,631 | $ | 64,747 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 2,803,012 | 4,029,830 | 6,832,842 | |||||||||||||||||||||||||||||
Total | $ | 2,828,128 | $ | 4,069,461 | $ | 6,897,589 | ||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | 72,704 | $ | 56,153 | $ | 128,857 | ||||||||||||||||||||||||||
Loans and Leases Charged-Off | (8,099 | ) | (17,021 | ) | (25,120 | ) | ||||||||||||||||||||||||||
Recoveries on Loans and Leases Previously Charged-Off | 2,644 | 9,073 | 11,717 | |||||||||||||||||||||||||||||
Net Loans and Leases Charged-Off | (5,455 | ) | (7,948 | ) | (13,403 | ) | ||||||||||||||||||||||||||
Provision for Credit Losses | 4,197 | (4,197 | ) | — | ||||||||||||||||||||||||||||
Balance at End of Period | $ | 71,446 | $ | 44,008 | $ | 115,454 | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 9,054 | $ | 3,722 | $ | 12,776 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 62,392 | 40,286 | 102,678 | |||||||||||||||||||||||||||||
Total | $ | 71,446 | $ | 44,008 | $ | 115,454 | ||||||||||||||||||||||||||
Recorded Investment in Loans and Leases: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 38,469 | $ | 38,646 | $ | 77,115 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 2,489,964 | 3,528,308 | 6,018,272 | |||||||||||||||||||||||||||||
Total | $ | 2,528,433 | $ | 3,566,954 | $ | 6,095,387 | ||||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | 80,562 | $ | 58,044 | $ | 138,606 | ||||||||||||||||||||||||||
Loans and Leases Charged-Off | (3,947 | ) | (20,212 | ) | (24,159 | ) | ||||||||||||||||||||||||||
Recoveries on Loans and Leases Previously Charged-Off | 4,191 | 9,240 | 13,431 | |||||||||||||||||||||||||||||
Net Loans and Leases Recovered (Charged-Off) | 244 | (10,972 | ) | (10,728 | ) | |||||||||||||||||||||||||||
Provision for Credit Losses | (8,102 | ) | 9,081 | 979 | ||||||||||||||||||||||||||||
Balance at End of Period | $ | 72,704 | $ | 56,153 | $ | 128,857 | ||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 161 | $ | 3,564 | $ | 3,725 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 72,543 | 52,589 | 125,132 | |||||||||||||||||||||||||||||
Total | $ | 72,704 | $ | 56,153 | $ | 128,857 | ||||||||||||||||||||||||||
Recorded Investment in Loans and Leases: | ||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 13,098 | $ | 37,500 | $ | 50,598 | ||||||||||||||||||||||||||
Collectively Evaluated for Impairment | 2,302,795 | 3,501,128 | 5,803,923 | |||||||||||||||||||||||||||||
Total | $ | 2,315,893 | $ | 3,538,628 | $ | 5,854,521 | ||||||||||||||||||||||||||
Schedule of recorded investment in loans and leases by class and by credit quality indicator | The following presents by class and by credit quality indicator, the recorded investment in the Company's loans and leases as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Commercial | Construction | Lease | Total | |||||||||||||||||||||||||||
and Industrial | Mortgage | Financing | Commercial | |||||||||||||||||||||||||||||
Pass | $ | 1,001,474 | $ | 1,358,812 | $ | 107,381 | $ | 225,783 | $ | 2,693,450 | ||||||||||||||||||||||
Special Mention | 17,364 | 45,082 | — | 17 | 62,463 | |||||||||||||||||||||||||||
Classified | 36,405 | 33,619 | 1,802 | 389 | 72,215 | |||||||||||||||||||||||||||
Total | $ | 1,055,243 | $ | 1,437,513 | $ | 109,183 | $ | 226,189 | $ | 2,828,128 | ||||||||||||||||||||||
(dollars in thousands) | Residential | Home | Automobile | Other 1 | Total | |||||||||||||||||||||||||||
Mortgage | Equity | Consumer | ||||||||||||||||||||||||||||||
Pass | $ | 2,556,140 | $ | 862,258 | $ | 323,232 | $ | 307,123 | $ | 4,048,753 | ||||||||||||||||||||||
Classified | 14,950 | 4,430 | 616 | 712 | 20,708 | |||||||||||||||||||||||||||
Total | $ | 2,571,090 | $ | 866,688 | $ | 323,848 | $ | 307,835 | $ | 4,069,461 | ||||||||||||||||||||||
Total Recorded Investment in Loans and Leases | $ | 6,897,589 | ||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Commercial | Construction | Lease | Total | |||||||||||||||||||||||||||
and Industrial | Mortgage | Financing | Commercial | |||||||||||||||||||||||||||||
Pass | $ | 867,813 | $ | 1,176,941 | $ | 104,377 | $ | 261,486 | $ | 2,410,617 | ||||||||||||||||||||||
Special Mention | 5,854 | 24,587 | — | 31 | 30,472 | |||||||||||||||||||||||||||
Classified | 37,700 | 45,982 | 2,972 | 690 | 87,344 | |||||||||||||||||||||||||||
Total | $ | 911,367 | $ | 1,247,510 | $ | 107,349 | $ | 262,207 | $ | 2,528,433 | ||||||||||||||||||||||
(dollars in thousands) | Residential | Home | Automobile | Other 1 | Total | |||||||||||||||||||||||||||
Mortgage | Equity | Consumer | ||||||||||||||||||||||||||||||
Pass | $ | 2,261,891 | $ | 769,051 | $ | 255,664 | $ | 253,910 | $ | 3,540,516 | ||||||||||||||||||||||
Classified | 21,003 | 4,334 | 322 | 779 | 26,438 | |||||||||||||||||||||||||||
Total | $ | 2,282,894 | $ | 773,385 | $ | 255,986 | $ | 254,689 | $ | 3,566,954 | ||||||||||||||||||||||
Total Recorded Investment in Loans and Leases | $ | 6,095,387 | ||||||||||||||||||||||||||||||
1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||||||||||||||||||
Schedule of aging analysis by class of loan and lease portfolio | The following presents by class, an aging analysis of the Company's loan and lease portfolio as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
(dollars in thousands) | 30 - 59 | 60 - 89 | Past Due | Non- | Total | Current | Total Loans | Non-Accrual | ||||||||||||||||||||||||
Days | Days | 90 Days | Accrual | Past Due and | and Leases | Loans and | ||||||||||||||||||||||||||
Past Due | Past Due | or More | Non-Accrual | Leases that | ||||||||||||||||||||||||||||
are Current 2 | ||||||||||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 992 | $ | 356 | $ | 2 | $ | 9,088 | $ | 10,438 | $ | 1,044,805 | $ | 1,055,243 | $ | 7,819 | ||||||||||||||||
Commercial Mortgage | 458 | — | — | 745 | 1,203 | 1,436,310 | 1,437,513 | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | 109,183 | 109,183 | — | ||||||||||||||||||||||||
Lease Financing | — | — | — | — | — | 226,189 | 226,189 | — | ||||||||||||||||||||||||
Total Commercial | 1,450 | 356 | 2 | 9,833 | 11,641 | 2,816,487 | 2,828,128 | 7,819 | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 4,907 | 2,107 | 4,506 | 14,841 | 26,361 | 2,544,729 | 2,571,090 | 632 | ||||||||||||||||||||||||
Home Equity | 3,461 | 2,661 | 2,596 | 3,097 | 11,815 | 854,873 | 866,688 | 375 | ||||||||||||||||||||||||
Automobile | 7,862 | 1,483 | 616 | — | 9,961 | 313,887 | 323,848 | — | ||||||||||||||||||||||||
Other 1 | 2,416 | 1,049 | 941 | — | 4,406 | 303,429 | 307,835 | — | ||||||||||||||||||||||||
Total Consumer | 18,646 | 7,300 | 8,659 | 17,938 | 52,543 | 4,016,918 | 4,069,461 | 1,007 | ||||||||||||||||||||||||
Total | $ | 20,096 | $ | 7,656 | $ | 8,661 | $ | 27,771 | $ | 64,184 | $ | 6,833,405 | $ | 6,897,589 | $ | 8,826 | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 1,701 | $ | 1,962 | $ | 1,173 | $ | 11,929 | $ | 16,765 | $ | 894,602 | $ | 911,367 | $ | 3,603 | ||||||||||||||||
Commercial Mortgage | 932 | — | — | 2,512 | 3,444 | 1,244,066 | 1,247,510 | 778 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | 107,349 | 107,349 | — | ||||||||||||||||||||||||
Lease Financing | — | — | — | — | — | 262,207 | 262,207 | — | ||||||||||||||||||||||||
Total Commercial | 2,633 | 1,962 | 1,173 | 14,441 | 20,209 | 2,508,224 | 2,528,433 | 4,381 | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 6,984 | 4,746 | 4,564 | 20,264 | 36,558 | 2,246,336 | 2,282,894 | 5,883 | ||||||||||||||||||||||||
Home Equity | 3,926 | 2,867 | 3,009 | 1,740 | 11,542 | 761,843 | 773,385 | 265 | ||||||||||||||||||||||||
Automobile | 4,688 | 971 | 322 | — | 5,981 | 250,005 | 255,986 | — | ||||||||||||||||||||||||
Other 1 | 2,426 | 5,295 | 790 | — | 8,511 | 246,178 | 254,689 | — | ||||||||||||||||||||||||
Total Consumer | 18,024 | 13,879 | 8,685 | 22,004 | 62,592 | 3,504,362 | 3,566,954 | 6,148 | ||||||||||||||||||||||||
Total | $ | 20,657 | $ | 15,841 | $ | 9,858 | $ | 36,445 | $ | 82,801 | $ | 6,012,586 | $ | 6,095,387 | $ | 10,529 | ||||||||||||||||
1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||||||||||||||||||
2 Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected. | ||||||||||||||||||||||||||||||||
Schedule of information related to impaired loans as of the balance sheet date | The following presents by class, information related to impaired loans as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Unpaid | Related | |||||||||||||||||||||||||||||
Investment | Principal | Allowance for | ||||||||||||||||||||||||||||||
Balance | Loan Losses | |||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Impaired Loans with No Related Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 9,763 | $ | 15,013 | $ | — | ||||||||||||||||||||||||||
Commercial Mortgage | 6,480 | 6,480 | — | |||||||||||||||||||||||||||||
Construction | 1,689 | 1,689 | — | |||||||||||||||||||||||||||||
Total Commercial | 17,932 | 23,182 | — | |||||||||||||||||||||||||||||
Total Impaired Loans with No Related Allowance Recorded | $ | 17,932 | $ | 23,182 | $ | — | ||||||||||||||||||||||||||
Impaired Loans with an Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 7,184 | $ | 13,784 | $ | 2,387 | ||||||||||||||||||||||||||
Total Commercial | 7,184 | 13,784 | 2,387 | |||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 32,331 | 37,989 | 3,445 | |||||||||||||||||||||||||||||
Home Equity | 1,012 | 1,012 | 16 | |||||||||||||||||||||||||||||
Automobile | 5,375 | 5,375 | 66 | |||||||||||||||||||||||||||||
Other 1 | 913 | 913 | 34 | |||||||||||||||||||||||||||||
Total Consumer | 39,631 | 45,289 | 3,561 | |||||||||||||||||||||||||||||
Total Impaired Loans with an Allowance Recorded | $ | 46,815 | $ | 59,073 | $ | 5,948 | ||||||||||||||||||||||||||
Impaired Loans: | ||||||||||||||||||||||||||||||||
Commercial | $ | 25,116 | $ | 36,966 | $ | 2,387 | ||||||||||||||||||||||||||
Consumer | 39,631 | 45,289 | 3,561 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 64,747 | $ | 82,255 | $ | 5,948 | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Impaired Loans with No Related Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 12,709 | $ | 17,967 | $ | — | ||||||||||||||||||||||||||
Commercial Mortgage | 14,898 | 14,898 | — | |||||||||||||||||||||||||||||
Construction | 1,059 | 1,064 | — | |||||||||||||||||||||||||||||
Total Commercial | 28,666 | 33,929 | — | |||||||||||||||||||||||||||||
Total Impaired Loans with No Related Allowance Recorded | $ | 28,666 | $ | 33,929 | $ | — | ||||||||||||||||||||||||||
Impaired Loans with an Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 9,803 | $ | 16,403 | $ | 9,054 | ||||||||||||||||||||||||||
Total Commercial | 9,803 | 16,403 | 9,054 | |||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 32,338 | 38,420 | 3,619 | |||||||||||||||||||||||||||||
Home Equity | 796 | 796 | 13 | |||||||||||||||||||||||||||||
Automobile | 5,183 | 5,183 | 77 | |||||||||||||||||||||||||||||
Other 1 | 329 | 329 | 13 | |||||||||||||||||||||||||||||
Total Consumer | 38,646 | 44,728 | 3,722 | |||||||||||||||||||||||||||||
Total Impaired Loans with an Allowance Recorded | $ | 48,449 | $ | 61,131 | $ | 12,776 | ||||||||||||||||||||||||||
Impaired Loans: | ||||||||||||||||||||||||||||||||
Commercial | $ | 38,469 | $ | 50,332 | $ | 9,054 | ||||||||||||||||||||||||||
Consumer | 38,646 | 44,728 | 3,722 | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 77,115 | $ | 95,060 | $ | 12,776 | ||||||||||||||||||||||||||
1 Comprised of other revolving credit and installment financing. | ||||||||||||||||||||||||||||||||
Schedule of the average recorded investment and interest income recognized on impaired loans | The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||
Impaired Loans with No Related Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 11,167 | $ | 318 | $ | 9,346 | $ | 115 | ||||||||||||||||||||||||
Commercial Mortgage | 8,529 | 225 | 7,574 | 150 | ||||||||||||||||||||||||||||
Construction | 1,570 | 93 | 591 | 27 | ||||||||||||||||||||||||||||
Total Commercial | 21,266 | 636 | 17,511 | 292 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Other 1 | 6 | — | — | — | ||||||||||||||||||||||||||||
Total Consumer | 6 | — | — | — | ||||||||||||||||||||||||||||
Total Impaired Loans with No Related Allowance Recorded | $ | 21,272 | $ | 636 | $ | 17,511 | $ | 292 | ||||||||||||||||||||||||
Impaired Loans with an Allowance Recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 8,045 | $ | 118 | $ | 6,435 | $ | 190 | ||||||||||||||||||||||||
Commercial Mortgage | — | — | 32 | 51 | ||||||||||||||||||||||||||||
Total Commercial | 8,045 | 118 | 6,467 | 241 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 31,998 | 1,028 | 31,518 | 800 | ||||||||||||||||||||||||||||
Home Equity | 964 | 34 | 159 | 4 | ||||||||||||||||||||||||||||
Automobile | 5,263 | 433 | 5,230 | 490 | ||||||||||||||||||||||||||||
Other 1 | 560 | 49 | 279 | 15 | ||||||||||||||||||||||||||||
Total Consumer | 38,785 | 1,544 | 37,186 | 1,309 | ||||||||||||||||||||||||||||
Total Impaired Loans with an Allowance Recorded | $ | 46,830 | $ | 1,662 | $ | 43,653 | $ | 1,550 | ||||||||||||||||||||||||
Impaired Loans: | ||||||||||||||||||||||||||||||||
Commercial | $ | 29,311 | $ | 754 | $ | 23,978 | $ | 533 | ||||||||||||||||||||||||
Consumer | 38,791 | 1,544 | 37,186 | 1,309 | ||||||||||||||||||||||||||||
Total Impaired Loans | $ | 68,102 | $ | 2,298 | $ | 61,164 | $ | 1,842 | ||||||||||||||||||||||||
1 Comprised of other revolving credit and installment financing. | ||||||||||||||||||||||||||||||||
Schedule of loans modified as a TDR | The following presents by class, information related to loans modified in a TDR during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
Loans Modified as a TDR for the | Loans Modified as a TDR for the | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number of | Recorded | Increase in | Number of | Recorded | Increase in | ||||||||||||||||||||||||||
(dollars in thousands) | Contracts | Investment | Allowance | Contracts | Investment | Allowance | ||||||||||||||||||||||||||
(as of period end) 1 | (as of period end) | (as of period end) 1 | (as of period end) | |||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | 19 | $ | 10,263 | $ | 2,360 | 36 | $ | 9,279 | $ | 1,056 | ||||||||||||||||||||||
Commercial Mortgage | 1 | 315 | — | 5 | 12,386 | — | ||||||||||||||||||||||||||
Construction | — | — | — | 1 | 1,059 | — | ||||||||||||||||||||||||||
Total Commercial | 20 | 10,578 | 2,360 | 42 | 22,724 | 1,056 | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 17 | 6,329 | 278 | 22 | 7,855 | 1,113 | ||||||||||||||||||||||||||
Home Equity | 2 | 156 | 2 | 3 | 649 | 67 | ||||||||||||||||||||||||||
Automobile | 131 | 2,576 | 32 | 153 | 2,106 | 31 | ||||||||||||||||||||||||||
Other 2 | 84 | 666 | 25 | 17 | 180 | 7 | ||||||||||||||||||||||||||
Total Consumer | 234 | 9,727 | 337 | 195 | 10,790 | 1,218 | ||||||||||||||||||||||||||
Total | 254 | $ | 20,305 | $ | 2,697 | 237 | $ | 33,514 | $ | 2,274 | ||||||||||||||||||||||
1 | The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. | |||||||||||||||||||||||||||||||
2 | Comprised of other revolving credit and installment financing. | |||||||||||||||||||||||||||||||
Schedule of loans modified in a TDR that defaulted during the year, and within twelve months of their modification date by class | The following presents by class, loans modified in a TDR that defaulted during the year ended December 31, 2014 and 2013, and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification. | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||
TDRs that Defaulted During the Period, | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||
Within Twelve Months of their Modification Date | Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||
(dollars in thousands) | (as of period end) 1 | (as of period end) 1 | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Commercial and Industrial | 4 | $ | 728 | 2 | $ | 985 | ||||||||||||||||||||||||||
Total Commercial | 4 | 728 | 2 | 985 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Residential Mortgage | 2 | 506 | 1 | 438 | ||||||||||||||||||||||||||||
Automobile | 6 | 77 | 13 | 178 | ||||||||||||||||||||||||||||
Other 2 | 6 | 48 | — | — | ||||||||||||||||||||||||||||
Total Consumer | 14 | 631 | 14 | 616 | ||||||||||||||||||||||||||||
Total | 18 | $ | 1,359 | 16 | $ | 1,601 | ||||||||||||||||||||||||||
1 The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. |
Mortgage_Servicing_Rights_Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Transfers and Servicing of Financial Assets [Abstract] | ||||||||||||
Analysis of mortgage servicing rights accounted for under the fair value measurement method | For the years ended December 31, 2014, 2013, and 2012, the change in the fair value of the Company's mortgage servicing rights accounted for under the fair value measurement method was as follows: | |||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at Beginning of Year | $ | 3,826 | $ | 4,761 | $ | 7,131 | ||||||
Changes in Fair Value: | ||||||||||||
Due to Change in Valuation Assumptions 1 | (869 | ) | 127 | (863 | ) | |||||||
Due to Payoffs | (353 | ) | (1,062 | ) | (1,507 | ) | ||||||
Total Changes in Fair Value of Mortgage Servicing Rights | (1,222 | ) | (935 | ) | (2,370 | ) | ||||||
Balance at End of Year | $ | 2,604 | $ | 3,826 | $ | 4,761 | ||||||
1 | Principally represents changes in discount rates and loan repayment rate assumptions, mostly due to changes in interest rates. | |||||||||||
Analysis of mortgage servicing rights accounted for under the amortization method | For the years ended December 31, 2014, 2013, and 2012, the change in the carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows: | |||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Balance at Beginning of Year | $ | 24,297 | $ | 20,479 | $ | 17,148 | ||||||
Servicing Rights that Resulted From Asset Transfers | 747 | 6,351 | 6,016 | |||||||||
Amortization | (2,896 | ) | (2,533 | ) | (2,685 | ) | ||||||
Valuation Allowance Provision | (57 | ) | — | — | ||||||||
Balance at End of Year | $ | 22,091 | $ | 24,297 | $ | 20,479 | ||||||
Valuation Allowance: | ||||||||||||
Balance at Beginning of Year | $ | — | $ | — | $ | — | ||||||
Valuation Allowance Provision | (57 | ) | — | — | ||||||||
Balance at End of Year | $ | (57 | ) | $ | — | $ | — | |||||
Fair Value: | ||||||||||||
Balance at Beginning of Year | $ | 30,100 | $ | 23,143 | $ | 17,159 | ||||||
Balance at End of Year | $ | 22,837 | $ | 30,100 | $ | 23,143 | ||||||
Schedule of key data and assumptions used in estimating the fair value of mortgage servicing rights | The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of December 31, 2014 and 2013 were as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Weighted-Average Constant Prepayment Rate 1 | 11.62 | % | 7.98 | % | ||||||||
Weighted-Average Life (in years) | 6.28 | 8.04 | ||||||||||
Weighted-Average Note Rate | 4.28 | % | 4.31 | % | ||||||||
Weighted-Average Discount Rate 2 | 10.61 | % | 9.7 | % | ||||||||
1 | Represents annualized loan repayment rate assumption. | |||||||||||
2 | Derived from multiple interest rate scenarios that incorporate a spread to the London Interbank Offered Rate swap curve and market volatilities. | |||||||||||
Schedule of sensitivity analysis of the fair value of mortgage servicing rights | A sensitivity analysis of the Company's fair value of mortgage servicing rights to changes in certain key assumptions as of December 31, 2014 and 2013 is presented in the following table. | |||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Constant Prepayment Rate | ||||||||||||
Decrease in fair value from 25 basis points ("bps") adverse change | $ | (265 | ) | $ | (357 | ) | ||||||
Decrease in fair value from 50 bps adverse change | (524 | ) | (746 | ) | ||||||||
Discount Rate | ||||||||||||
Decrease in fair value from 25 bps adverse change | (250 | ) | (432 | ) | ||||||||
Decrease in fair value from 50 bps adverse change | (495 | ) | (876 | ) |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Schedule of premises and equipment | The components of the Company's premises and equipment as of December 31, 2014 and 2013 were as follows: | |||||||||||
(dollars in thousands) | Cost | Accumulated | Net Book Value | |||||||||
Depreciation and | ||||||||||||
Amortization | ||||||||||||
31-Dec-14 | ||||||||||||
Premises | $ | 322,536 | $ | (235,464 | ) | $ | 87,072 | |||||
Equipment | 106,623 | (86,577 | ) | 20,046 | ||||||||
Capital Leases | 6,593 | (3,857 | ) | 2,736 | ||||||||
Total | $ | 435,752 | $ | (325,898 | ) | $ | 109,854 | |||||
31-Dec-13 | ||||||||||||
Premises | $ | 317,659 | $ | (227,907 | ) | $ | 89,752 | |||||
Equipment | 108,778 | (90,608 | ) | 18,170 | ||||||||
Capital Leases | 4,464 | (3,750 | ) | 714 | ||||||||
Total | $ | 430,901 | $ | (322,265 | ) | $ | 108,636 | |||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Schedule of other assets | The components of the Company's other assets as of December 31, 2014 and 2013 were as follows: | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | $ | 66,374 | $ | 77,159 | ||||
Derivative Financial Instruments | 16,515 | 21,769 | ||||||
Low-Income Housing and Other Equity Investments | 77,495 | 48,931 | ||||||
Deferred Compensation Plan Assets | 18,794 | 15,535 | ||||||
Prepaid Expenses | 7,787 | 6,098 | ||||||
Accounts Receivable | 13,405 | 13,479 | ||||||
State Tax Deposits | — | 6,069 | ||||||
Other | 25,518 | 18,253 | ||||||
Total | $ | 225,888 | $ | 207,293 | ||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Deposits [Abstract] | ||||
Schedule of time deposits with contractual maturities | Time Deposits | |||
As of December 31, 2014 and 2013, the Company's total time deposits were $1.4 billion and $1.3 billion, respectively. As of December 31, 2014, the contractual maturities of these time deposits were as follows: | ||||
(dollars in thousands) | Amount | |||
2015 | $ | 1,171,632 | ||
2016 | 142,327 | |||
2017 | 73,898 | |||
2018 | 11,692 | |||
2019 | 13,030 | |||
Thereafter | 21,422 | |||
Total | $ | 1,434,001 | ||
Schedule of time deposits with balances of $100,000 or more with contractual maturities | The amount of time deposits with balances of $100,000 or more was $1.2 billion and $1.0 billion as of December 31, 2014 and 2013, respectively. As of December 31, 2014, the contractual maturities of these time deposits were as follows: | |||
(dollars in thousands) | Amount | |||
Three Months or Less | $ | 818,595 | ||
Over Three Months through Six Months | 98,451 | |||
Over Six Months through Twelve Months | 109,575 | |||
Over Twelve Months | 135,420 | |||
Total | $ | 1,162,041 | ||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Borrowings Disclosure Abstract | ||||||||
Schedule of details of short-term borrowings | Details of the Company's short-term borrowings (original maturity of one year or less) as of December 31, 2014 and 2013 were as follows: | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Funds Purchased 1 | ||||||||
Amounts Outstanding | $ | 8,459 | $ | 9,982 | ||||
Weighted-Average Interest Rate | 0.14 | % | 0.14 | % | ||||
Securities Sold Under Agreements to Repurchase (short-term) 2 | ||||||||
Amounts Outstanding | $ | 7,700 | $ | 62,233 | ||||
Weighted-Average Interest Rate | 0.1 | % | 0.05 | % | ||||
1 | Federal funds purchased generally mature on the next business day following the date of purchase. | |||||||
2 | Consists entirely of repurchase agreements with government entities. Excludes long-term repurchase agreements with government entities of $80.9 million and $107.8 million as of December 31, 2014, and 2013, respectively, and long-term repurchase agreements with private institutions of $600.0 million as of December 31, 2014 and 2013. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of long-term debt | The Company's long-term debt as of December 31, 2014 and 2013 were as follows: | |||||||
December 31, | ||||||||
(dollars in thousands) | 2014 | 2013 | ||||||
Federal Home Loan Bank Advances | $ | 150,000 | $ | 150,000 | ||||
Non-Recourse Debt | 13,005 | 15,877 | ||||||
Capital Lease Obligations | 10,907 | 8,829 | ||||||
Total | $ | 173,912 | $ | 174,706 | ||||
Schedule of annual maturities of long-term debt, exclusive of capital lease obligations | As of December 31, 2014, the annual maturities of the Company's long-term debt, exclusive of capital lease obligations, were expected to be as follows: | |||||||
(dollars in thousands) | Amount | |||||||
2015 | $ | 103,067 | ||||||
2016 | 52,785 | |||||||
2017 | — | |||||||
2018 | — | |||||||
2019 | — | |||||||
Thereafter | 7,153 | |||||||
Total | $ | 163,005 | ||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||
Schedule of minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank | The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2014 and 2013: | ||||||||||||||
(dollars in thousands) | Well Capitalized | Company | Bank | ||||||||||||
Minimum Ratio | |||||||||||||||
As of December 31, 2014: | |||||||||||||||
Shareholders' Equity | $ | 1,055,086 | $ | 975,723 | |||||||||||
Tier 1 Capital | 1,039,631 | 974,397 | |||||||||||||
Total Capital | 1,128,416 | 1,063,085 | |||||||||||||
Tier 1 Capital Ratio | 6 | % | 14.69 | % | 13.78 | % | |||||||||
Total Capital Ratio | 10 | % | 15.94 | % | 15.04 | % | |||||||||
Tier 1 Leverage Ratio | 5 | % | 7.13 | % | 6.69 | % | |||||||||
As of December 31, 2013: | |||||||||||||||
Shareholders' Equity | $ | 1,011,976 | $ | 940,730 | |||||||||||
Tier 1 Capital 1 | 1,004,290 | 947,233 | |||||||||||||
Total Capital 1 | 1,083,051 | 1,025,896 | |||||||||||||
Tier 1 Capital Ratio 1 | 6 | % | 16.05 | % | 15.16 | % | |||||||||
Total Capital Ratio 1 | 10 | % | 17.31 | % | 16.41 | % | |||||||||
Tier 1 Leverage Ratio 1 | 5 | % | 7.24 | % | 6.83 | % | |||||||||
Components of other comprehensive income | The following table presents the components of other comprehensive income (loss), net of tax: | ||||||||||||||
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | ||||||||||||
Year Ended December 31, 2014: | |||||||||||||||
Net Unrealized Gains on Investment Securities: | |||||||||||||||
Net Unrealized Gains Arising During the Period | $ | 28,609 | $ | 11,286 | $ | 17,323 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income that Increase Net Income: | |||||||||||||||
Gain on Sale | (64 | ) | (25 | ) | (39 | ) | |||||||||
Amortization of Unrealized Holding Gains on Held-to-Maturity Securities 1 | (703 | ) | (277 | ) | (426 | ) | |||||||||
Net Unrealized Gains on Investment Securities | 27,842 | 10,984 | 16,858 | ||||||||||||
Defined Benefit Plans: | |||||||||||||||
Net Actuarial Losses Arising During the Period | (20,286 | ) | (8,000 | ) | (12,286 | ) | |||||||||
Amortization of Net Actuarial Losses | 1,256 | 496 | 760 | ||||||||||||
Amortization of Prior Service Credit | (322 | ) | (127 | ) | (195 | ) | |||||||||
Defined Benefit Plans, Net | (19,352 | ) | (7,631 | ) | (11,721 | ) | |||||||||
Other Comprehensive Income | $ | 8,490 | $ | 3,353 | $ | 5,137 | |||||||||
Year Ended December 31, 2013: | |||||||||||||||
Net Unrealized Losses on Investment Securities: | |||||||||||||||
Net Unrealized Losses Arising During the Period | $ | (105,842 | ) | $ | (41,715 | ) | $ | (64,127 | ) | ||||||
Amounts Reclassified from Accumulated Other Comprehensive Income that Increase Net Income: | |||||||||||||||
Amortization of Unrealized Holding Gains on Held-to-Maturity Securities 1 | (8,386 | ) | (3,307 | ) | (5,079 | ) | |||||||||
Net Unrealized Losses on Investment Securities | (114,228 | ) | (45,022 | ) | (69,206 | ) | |||||||||
Defined Benefit Plans: | |||||||||||||||
Net Actuarial Gains Arising During the Period | 12,132 | 4,785 | 7,347 | ||||||||||||
Amortization of Net Actuarial Losses | 1,688 | 665 | 1,023 | ||||||||||||
Amortization of Prior Service Credit | (322 | ) | (127 | ) | (195 | ) | |||||||||
Defined Benefit Plans, Net | 13,498 | 5,323 | 8,175 | ||||||||||||
Other Comprehensive Loss | $ | (100,730 | ) | $ | (39,699 | ) | $ | (61,031 | ) | ||||||
Year Ended December 31, 2012: | |||||||||||||||
Net Unrealized Losses on Investment Securities: | |||||||||||||||
Net Unrealized Gains Arising During the Period | $ | 10,846 | $ | 4,312 | $ | 6,534 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income that (Increase) Decrease Net Income: | |||||||||||||||
Loss on Sale | 77 | 30 | 47 | ||||||||||||
Amortization of Unrealized Holding Gains on Held-to-Maturity Securities 1 | (16,076 | ) | (6,340 | ) | (9,736 | ) | |||||||||
Net Unrealized Losses on Investment Securities | (5,153 | ) | (1,998 | ) | (3,155 | ) | |||||||||
Defined Benefit Plans: | |||||||||||||||
Net Actuarial Losses Arising During the Period | (5,798 | ) | (2,295 | ) | (3,503 | ) | |||||||||
Amortization of Net Actuarial Losses | 1,318 | 520 | 798 | ||||||||||||
Amortization of Prior Service Credit | (322 | ) | (127 | ) | (195 | ) | |||||||||
Defined Benefit Plans, Net | (4,802 | ) | (1,902 | ) | (2,900 | ) | |||||||||
Other Comprehensive Loss | $ | (9,955 | ) | $ | (3,900 | ) | $ | (6,055 | ) | ||||||
1 | The amount relates to the amortization/accretion of unrealized gains and losses related to the Company's reclassification of available-for-sale investment securities to the held-to-maturity category. | ||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax: | ||||||||||||||
(dollars in thousands) | Investment Securities-Available-For-Sale | Investment Securities-Held-To-Maturities | Defined Benefit Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||||
Year Ended December 31, 2014: | |||||||||||||||
Balance at Beginning of Period | $ | (1,300 | ) | $ | (8,129 | ) | $ | (22,394 | ) | $ | (31,823 | ) | |||
Other Comprehensive Income Before Reclassifications | 17,323 | — | (12,286 | ) | 5,037 | ||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | (39 | ) | (426 | ) | 565 | 100 | |||||||||
Total Other Comprehensive Income (Loss) | 17,284 | (426 | ) | (11,721 | ) | 5,137 | |||||||||
Balance at End of Period | $ | 15,984 | $ | (8,555 | ) | $ | (34,115 | ) | $ | (26,686 | ) | ||||
Year Ended December 31, 2013: | |||||||||||||||
Balance at Beginning Period | $ | 45,996 | $ | 13,781 | $ | (30,569 | ) | $ | 29,208 | ||||||
Other Comprehensive Income Before Reclassifications | (47,296 | ) | (16,831 | ) | 7,347 | (56,780 | ) | ||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | — | (5,079 | ) | 828 | (4,251 | ) | |||||||||
Total Other Comprehensive Income (Loss) | (47,296 | ) | (21,910 | ) | 8,175 | (61,031 | ) | ||||||||
Balance at End of Period | $ | (1,300 | ) | $ | (8,129 | ) | $ | (22,394 | ) | $ | (31,823 | ) | |||
Year Ended December 31, 2012: | |||||||||||||||
Balance at Beginning Period | $ | 39,396 | $ | 23,536 | $ | (27,669 | ) | $ | 35,263 | ||||||
Other Comprehensive Income Before Reclassifications | 6,553 | (19 | ) | (3,503 | ) | 3,031 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | 47 | (9,736 | ) | 603 | (9,086 | ) | |||||||||
Total Other Comprehensive Income (Loss) | 6,600 | (9,755 | ) | (2,900 | ) | (6,055 | ) | ||||||||
Balance at End of Period | $ | 45,996 | $ | 13,781 | $ | (30,569 | ) | $ | 29,208 | ||||||
Reclassification out of accumulated other comprehensive income | |||||||||||||||
The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss): | |||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1 | Affected Line Item in the Statement Where Net Income Is Presented | |||||||||||||
(dollars in thousands) | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Amortization of Unrealized Holding Gains (Losses) on | $ | 703 | $ | 8,386 | $ | 16,076 | Interest Income | ||||||||
Investment Securities Held-to-Maturity | |||||||||||||||
(277 | ) | (3,307 | ) | (6,340 | ) | Provision for Income Tax | |||||||||
426 | 5,079 | 9,736 | Net of Tax | ||||||||||||
Sales of Investment Securities Available-for-Sale | 64 | — | (77 | ) | Investment Securities Gains (Losses), Net | ||||||||||
(25 | ) | — | 30 | Provision for Income Tax | |||||||||||
39 | — | (47 | ) | Net of Tax | |||||||||||
Amortization of Defined Benefit Plans Items | |||||||||||||||
Prior Service Credit 2 | 322 | 322 | 322 | ||||||||||||
Net Actuarial Losses 2 | (1,256 | ) | (1,688 | ) | (1,318 | ) | |||||||||
(934 | ) | (1,366 | ) | (996 | ) | Total Before Tax | |||||||||
369 | 538 | 393 | Provision for Income Tax | ||||||||||||
(565 | ) | (828 | ) | (603 | ) | Net of Tax | |||||||||
Total Reclassifications for the Period | $ | (100 | ) | $ | 4,251 | $ | 9,086 | Net of Tax | |||||||
1 | Amounts in parentheses indicate reductions to net income. | ||||||||||||||
2 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in Salaries and Benefits on the consolidated statements of income (see Note 14 for additional details). |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding | The following is a reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding for the years ended December 31, 2014, 2013, and 2012: | ||||||||
Weighted Average Shares | |||||||||
2014 | 2013 | 2012 | |||||||
Denominator for Basic Earnings Per Share | 43,899,208 | 44,380,948 | 45,115,441 | ||||||
Dilutive Effect of Equity Based Awards | 226,248 | 191,777 | 133,859 | ||||||
Denominator for Diluted Earnings Per Share | 44,125,456 | 44,572,725 | 45,249,300 | ||||||
Antidilutive Stock Options and Restricted Stock Outstanding | — | 25,101 | 522,383 | ||||||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Selected business segment financial information | Selected business segment financial information as of and for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||
(dollars in thousands) | Retail | Commercial | Investment | Treasury | Consolidated | |||||||||||||||
Banking | Banking | Services | and Other | Total | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Net Interest Income | $ | 183,867 | $ | 118,761 | $ | 10,723 | $ | 66,305 | $ | 379,656 | ||||||||||
Provision for Credit Losses | 4,783 | (2,369 | ) | (313 | ) | (6,965 | ) | (4,864 | ) | |||||||||||
Net Interest Income After Provision for Credit Losses | 179,084 | 121,130 | 11,036 | 73,270 | 384,520 | |||||||||||||||
Noninterest Income | 80,110 | 23,120 | 57,586 | 19,201 | 180,017 | |||||||||||||||
Noninterest Expense | (197,786 | ) | (65,952 | ) | (53,846 | ) | (9,315 | ) | (326,899 | ) | ||||||||||
Income Before Provision for Income Taxes | 61,408 | 78,298 | 14,776 | 83,156 | 237,638 | |||||||||||||||
Provision for Income Taxes | (22,221 | ) | (27,228 | ) | (5,467 | ) | (19,680 | ) | (74,596 | ) | ||||||||||
Net Income | $ | 39,187 | $ | 51,070 | $ | 9,309 | $ | 63,476 | $ | 163,042 | ||||||||||
Total Assets as of December 31, 2014 | $ | 4,126,551 | $ | 2,749,228 | $ | 202,645 | $ | 7,708,784 | $ | 14,787,208 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Net Interest Income | $ | 164,597 | $ | 99,623 | $ | 10,552 | $ | 84,135 | $ | 358,907 | ||||||||||
Provision for Credit Losses | 8,565 | 4,918 | (71 | ) | (13,412 | ) | — | |||||||||||||
Net Interest Income After Provision for Credit Losses | 156,032 | 94,705 | 10,623 | 97,547 | 358,907 | |||||||||||||||
Noninterest Income | 88,063 | 26,946 | 59,308 | 11,906 | 186,223 | |||||||||||||||
Noninterest Expense | (200,853 | ) | (64,253 | ) | (54,307 | ) | (11,556 | ) | (330,969 | ) | ||||||||||
Income Before Provision for Income Taxes | 43,242 | 57,398 | 15,624 | 97,897 | 214,161 | |||||||||||||||
Provision for Income Taxes | (16,000 | ) | (19,467 | ) | (5,781 | ) | (22,411 | ) | (63,659 | ) | ||||||||||
Net Income | $ | 27,242 | $ | 37,931 | $ | 9,843 | $ | 75,486 | $ | 150,502 | ||||||||||
Total Assets as of December 31, 2013 | $ | 3,658,495 | $ | 2,426,452 | $ | 189,421 | $ | 7,809,912 | $ | 14,084,280 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Net Interest Income | $ | 177,083 | $ | 103,754 | $ | 12,448 | $ | 83,986 | $ | 377,271 | ||||||||||
Provision for Credit Losses | 11,916 | (1,382 | ) | 196 | (9,751 | ) | 979 | |||||||||||||
Net Interest Income After Provision for Credit Losses | 165,167 | 105,136 | 12,252 | 93,737 | 376,292 | |||||||||||||||
Noninterest Income | 104,654 | 26,408 | 57,454 | 11,770 | 200,286 | |||||||||||||||
Noninterest Expense | (206,740 | ) | (62,165 | ) | (55,543 | ) | (9,840 | ) | (334,288 | ) | ||||||||||
Income Before Provision for Income Taxes | 63,081 | 69,379 | 14,163 | 95,667 | 242,290 | |||||||||||||||
Provision for Income Taxes | (23,340 | ) | (19,864 | ) | (5,240 | ) | (27,770 | ) | (76,214 | ) | ||||||||||
Net Income | $ | 39,741 | $ | 49,515 | $ | 8,923 | $ | 67,897 | $ | 166,076 | ||||||||||
Total Assets as of December 31, 2012 | $ | 3,663,287 | $ | 2,196,682 | $ | 190,383 | $ | 7,678,020 | $ | 13,728,372 | ||||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of reconciliation of changes in the benefit obligation and the fair value of plan assets, as well as the funded status recognized in the consolidated statements of condition for the pension plans and postretirement benefit plan | The following table provides a reconciliation of changes in benefit obligation and fair value of plan assets, as well as the funded status recognized in the Company's consolidated statements of condition for the Pension Plans and postretirement benefit plan for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit Obligation at Beginning of Year | $ | 98,085 | $ | 107,833 | $ | 27,296 | $ | 29,130 | ||||||||||||||||
Service Cost | — | — | 586 | 670 | ||||||||||||||||||||
Interest Cost | 4,975 | 4,514 | 1,325 | 1,188 | ||||||||||||||||||||
Actuarial Losses (Gains) | 16,954 | (7,067 | ) | 2,674 | (2,949 | ) | ||||||||||||||||||
Employer Benefits Paid 1 | (5,307 | ) | (7,195 | ) | (1,077 | ) | (743 | ) | ||||||||||||||||
Benefit Obligation at End of Year | $ | 114,707 | $ | 98,085 | $ | 30,804 | $ | 27,296 | ||||||||||||||||
Fair Value of Plan Assets at Beginning of Year | $ | 90,535 | $ | 89,489 | $ | — | $ | — | ||||||||||||||||
Actual Return on Plan Assets | 4,442 | 7,755 | — | — | ||||||||||||||||||||
Employer Contributions | 484 | 486 | 1,077 | 743 | ||||||||||||||||||||
Employer Benefits Paid 1 | (5,307 | ) | (7,195 | ) | (1,077 | ) | (743 | ) | ||||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 90,154 | $ | 90,535 | $ | — | $ | — | ||||||||||||||||
Funded Status at End of Year 2 | $ | (24,553 | ) | $ | (7,550 | ) | $ | (30,804 | ) | $ | (27,296 | ) | ||||||||||||
1 | Participants' contributions relative to the postretirement benefit plan were offset against employer benefits paid in the table above. Participants' contributions for postretirement benefits were $0.7 million for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||
2 | Amounts are recognized in Retirement Benefits Payable in the consolidated statements of condition. | |||||||||||||||||||||||
Schedule of amounts recognized in accumulated other comprehensive income (loss) | The following presents the amounts recognized in the Company's accumulated other comprehensive income for the Pension Plans and postretirement benefit plan as of December 31, 2014 and 2013. | |||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Amounts Recognized in Accumulated Other | ||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||
Net Actuarial Gains (Losses) | $ | (35,254 | ) | $ | (25,440 | ) | $ | 333 | $ | 2,045 | ||||||||||||||
Net Prior Service Credit | — | — | 806 | 1,001 | ||||||||||||||||||||
Total Amounts Recognized in Accumulated Other | $ | (35,254 | ) | $ | (25,440 | ) | $ | 1,139 | $ | 3,046 | ||||||||||||||
Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||
Schedule of components of net periodic benefit cost | Components of net periodic benefit cost for the Company's Pension Plans and the postretirement benefit plan are presented in the following table for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Service Cost | $ | — | $ | — | $ | — | $ | 586 | $ | 670 | $ | 585 | ||||||||||||
Interest Cost | 4,975 | 4,514 | 4,996 | 1,325 | 1,188 | 1,302 | ||||||||||||||||||
Expected Return on Plan Assets | (5,100 | ) | (5,250 | ) | (5,829 | ) | — | — | — | |||||||||||||||
Amortization of: | ||||||||||||||||||||||||
Prior Service Credit 1 | — | — | — | (322 | ) | (322 | ) | (322 | ) | |||||||||||||||
Net Actuarial Losses (Gains) 1 | 1,408 | 1,688 | 1,318 | (152 | ) | — | — | |||||||||||||||||
Net Periodic Benefit Cost | $ | 1,283 | $ | 952 | $ | 485 | $ | 1,437 | $ | 1,536 | $ | 1,565 | ||||||||||||
1 | Represents reclassification adjustments from accumulated other comprehensive income during the period. | |||||||||||||||||||||||
Schedule of assumptions used to determine the benefit obligations | Assumptions used to determine the benefit obligations as of December 31, 2014 and 2013 for the Company's Pension Plans and postretirement benefit plan were as follows: | |||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Weighted Average Assumptions as of December 31: | ||||||||||||||||||||||||
Discount Rate | 4.25 | % | 5.22 | % | 4.28 | % | 5.22 | % | ||||||||||||||||
Health Care Cost Trend Rate Assumed For Next Year | — | — | 7 | % | 7.2 | % | ||||||||||||||||||
Schedule of assumptions used to determine the net periodic benefit cost | Assumptions used to determine the net periodic benefit cost for the Company's Pension Plans and postretirement benefit plan for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted Average Assumptions as of December 31: | ||||||||||||||||||||||||
Discount Rate | 5.22 | % | 4.29 | % | 5.04 | % | 5.22 | % | 4.29 | % | 5.04 | % | ||||||||||||
Expected Long-Term Rate of Return on Plan Assets | 6 | % | 6 | % | 6.5 | % | — | — | — | |||||||||||||||
Health Care Cost Trend Rate | — | — | — | 7.2 | % | 7.7 | % | 8 | % | |||||||||||||||
Schedule of impact of one percent change in the health care cost trend rate assumption | A one percent change in the health care cost trend rate assumption (with all other assumptions remaining constant) would have impacted the service and interest cost components of the net periodic postretirement benefit cost and the postretirement benefit obligation as of and for the year ended December 31, 2014 as follows: | |||||||||||||||||||||||
(dollars in thousands) | One Percent | One Percent | ||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||
Effect on the Total of Service and Interest Cost Component of | $ | 99 | $ | (78 | ) | |||||||||||||||||||
Net Periodic Postretirement Benefit Cost | ||||||||||||||||||||||||
Effect on the Postretirement Benefit Obligation | 1,538 | (1,219 | ) | |||||||||||||||||||||
Schedule of expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | As of December 31, 2014, expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter were as follows: | |||||||||||||||||||||||
(dollars in thousands) | Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2015 | $ | 6,073 | $ | 1,378 | ||||||||||||||||||||
2016 | 6,327 | 1,631 | ||||||||||||||||||||||
2017 | 6,605 | 1,692 | ||||||||||||||||||||||
2018 | 6,770 | 1,690 | ||||||||||||||||||||||
2019 | 7,000 | 1,819 | ||||||||||||||||||||||
Years 2020-2024 | 36,446 | 10,247 | ||||||||||||||||||||||
Schedule of the fair values of the retirement plan assets by asset category | ||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
Asset Category | Quoted Prices in | Significant Other | Significant Other | Total as of Dec. 31, 2014 | Total as of Dec. 31, 2013 | |||||||||||||||||||
(dollars in thousands) | Active Markets for | Observable | Unobservable Inputs | |||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||
Cash | $ | 1,385 | $ | — | $ | — | $ | 1,385 | $ | 1,905 | ||||||||||||||
Equity Securities – Mutual Funds: | ||||||||||||||||||||||||
Mixed-Cap | 33,648 | — | — | 33,648 | 30,155 | |||||||||||||||||||
International | 18,882 | — | — | 18,882 | 18,268 | |||||||||||||||||||
Emerging Market | 2,053 | — | — | 2,053 | 1,982 | |||||||||||||||||||
Fixed Income Securities – Mutual Funds | 34,186 | — | — | 34,186 | 38,225 | |||||||||||||||||||
Total | $ | 90,154 | $ | — | $ | — | $ | 90,154 | $ | 90,535 | ||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Schedule of compensation expense and the related income tax benefit recognized for all share-based awards | For the years ended December 31, 2014, 2013, and 2012, compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows: | ||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Compensation Expense | $ | 7,870 | $ | 5,546 | $ | 7,537 | |||||||||
Income Tax Benefit | 3,104 | 2,188 | 2,972 | ||||||||||||
Schedule of activity for restricted stock | The following table presents the activity for restricted stock: | ||||||||||||||
Number of Shares | Weighted Average | Grant Date Fair Value | |||||||||||||
Grant Date Fair Value | of Restricted Stock that | ||||||||||||||
Vested During the Year | |||||||||||||||
(in thousands) | |||||||||||||||
Unvested as of December 31, 2011 | 80,842 | $ | 52.15 | ||||||||||||
Granted | 187,514 | 47.42 | |||||||||||||
Vested | (54,198 | ) | 51.01 | $ | 2,764 | ||||||||||
Forfeited | (2,632 | ) | 48.86 | ||||||||||||
Unvested as of December 31, 2012 | 211,526 | $ | 47.91 | ||||||||||||
Granted | 170,991 | 47.69 | |||||||||||||
Vested | (133,245 | ) | 48.39 | $ | 6,448 | ||||||||||
Forfeited | (9,497 | ) | 47.54 | ||||||||||||
Unvested as of December 31, 2013 | 239,775 | $ | 47.5 | ||||||||||||
Granted | 155,447 | 58.45 | |||||||||||||
Vested | (130,238 | ) | 47.32 | $ | 6,163 | ||||||||||
Forfeited | (1,538 | ) | 51.19 | ||||||||||||
Unvested as of December 31, 2014 | 263,446 | $ | 53.04 | ||||||||||||
Schedule of activity for restricted stock units | The following table presents the activity for RSU: | ||||||||||||||
Number of Units | Weighted Average | ||||||||||||||
Grant Date Fair Value | |||||||||||||||
Balance as of December 31, 2013 | — | $ | — | ||||||||||||
Granted | 105,405 | 55.17 | |||||||||||||
Balance as of December 31, 2014 | 105,405 | $ | 55.17 | ||||||||||||
Schedule of weighted average fair value of stock option grants and assumptions that were used in calculating such fair values were based on estimates at the date of grant | The weighted average fair value of stock option grants and the assumptions that were used in calculating such fair values were based on estimates at the date of grant as follows: | ||||||||||||||
2012 | |||||||||||||||
Weighted Average Fair Value of Stock Options | |||||||||||||||
Granted During the Year | $ | 9.81 | |||||||||||||
Stock Options Granted During the Year | 341,665 | ||||||||||||||
Assumptions: | |||||||||||||||
Average Risk-Free Interest Rate | 1.13 | % | |||||||||||||
Average Expected Volatility | 33.14 | % | |||||||||||||
Expected Dividend Yield | 3.77 | % | |||||||||||||
Expected Life | 5.46 years | ||||||||||||||
Schedule of activity related to stock options | The following table presents the activity related to stock options under all plans for the year ended December 31, 2014: | ||||||||||||||
Stock | Weighted | Weighted | Aggregate | ||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | |||||||||||||
Price | Contractual | (in thousands) | |||||||||||||
Term (in years) | |||||||||||||||
Stock Options Outstanding as of January 1, 2014 | 845,547 | $ | 46.18 | ||||||||||||
Exercised | (90,204 | ) | 45.27 | ||||||||||||
Stock Options Outstanding as of December 31, 2014 | 755,343 | 46.29 | 5.6 | $ | 9,835 | ||||||||||
Stock Options Vested and Exercisable as of December 31, 2014 | 755,343 | 46.29 | 5.6 | 9,835 | |||||||||||
Summary of certain stock option activity of the Company | The following summarizes certain stock option activity of the Company for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Intrinsic Value of Stock Options Exercised | $ | 1,209 | $ | 3,262 | $ | 3,907 | |||||||||
Cash Received from Stock Options Exercised | 4,083 | 8,369 | 7,500 | ||||||||||||
Tax Benefits Realized from Stock Options Exercised | 34 | 690 | 904 | ||||||||||||
Total Fair Value of Stock Options that Vested | — | 3,731 | — | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of the Company's Provision for Income Taxes | The components of the Company's provision for income taxes for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 76,789 | $ | 63,731 | $ | 82,892 | ||||||
State | 3,018 | (575 | ) | 10,106 | ||||||||
Total Current | 79,807 | 63,156 | 92,998 | |||||||||
Deferred: | ||||||||||||
Federal | (5,603 | ) | (231 | ) | (13,104 | ) | ||||||
State | 392 | 734 | (3,680 | ) | ||||||||
Total Deferred | (5,211 | ) | 503 | (16,784 | ) | |||||||
Provision for Income Taxes | $ | 74,596 | $ | 63,659 | $ | 76,214 | ||||||
Schedule of significant components of the Company's Deferred Tax Liabilities and Assets | As of December 31, 2014 and 2013, significant components of the Company's deferred tax liabilities and assets were as follows: | |||||||||||
December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Accrued Pension Cost | $ | (14,014 | ) | $ | (14,381 | ) | ||||||
Federal Home Loan Bank Stock | (6,658 | ) | (8,949 | ) | ||||||||
Lease Transactions | (97,864 | ) | (105,761 | ) | ||||||||
Energy Tax Credits | (5,716 | ) | (3,805 | ) | ||||||||
Net Unrealized Gains on Investments Securities | (4,830 | ) | — | |||||||||
Deferred Loan Fees | (5,982 | ) | (6,394 | ) | ||||||||
Originated Mortgage Servicing Rights | (9,777 | ) | (11,218 | ) | ||||||||
Other | (599 | ) | (552 | ) | ||||||||
Gross Deferred Tax Liabilities | (145,440 | ) | (151,060 | ) | ||||||||
Deferred Tax Assets: | ||||||||||||
Accelerated Depreciation | 9,419 | 10,195 | ||||||||||
Allowance for Loan Losses | 44,877 | 46,635 | ||||||||||
Net Unrealized Losses on Investments Securities | — | 6,154 | ||||||||||
Minimum Pension Liability | 22,214 | 14,583 | ||||||||||
Accrued Expenses | 15,622 | 15,449 | ||||||||||
Postretirement Benefit Obligations | 12,884 | 12,741 | ||||||||||
Capital Lease Expenses | 3,222 | 3,200 | ||||||||||
Restricted Stock | 5,288 | 4,187 | ||||||||||
Investment in Unincorporated Entities | 3,084 | 4,218 | ||||||||||
Deductible State and Local Taxes | 5,598 | 7,575 | ||||||||||
Other | 6,898 | 6,778 | ||||||||||
Gross Deferred Tax Assets Before Valuation Allowance | 129,106 | 131,715 | ||||||||||
Valuation Allowance | (4,656 | ) | (4,162 | ) | ||||||||
Gross Deferred Tax Assets After Valuation Allowance | 124,450 | 127,553 | ||||||||||
Net Deferred Tax Liabilities | $ | (20,990 | ) | $ | (23,507 | ) | ||||||
Schedule of reconciliation of the statutory federal income tax rate to the Company's Effective Tax Rate | The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate for the years ended December 31, 2014, 2013, and 2012: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory Federal Income Tax Rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (Decrease) in Income Tax Rate Resulting From: | ||||||||||||
State Taxes, Net of Federal Income Tax | 0.59 | 0.11 | 1.9 | |||||||||
Tax Reserve Adjustments | 0.88 | (0.44 | ) | 0.44 | ||||||||
Leveraged Leases | 0.01 | 0.02 | (1.44 | ) | ||||||||
Low-Income Housing Investments | (0.10 | ) | (0.51 | ) | 0.16 | |||||||
Bank-Owned Life Insurance | (0.97 | ) | (0.96 | ) | (0.98 | ) | ||||||
Tax-Exempt Income | (2.83 | ) | (2.78 | ) | (2.31 | ) | ||||||
Other | (1.19 | ) | (0.71 | ) | (1.31 | ) | ||||||
Effective Tax Rate | 31.39 | % | 29.73 | % | 31.46 | % | ||||||
Schedule of reconciliation of the Company's Liability for Unrecognized Tax Benefits | December 31, 2014, 2013, and 2012: | |||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Unrecognized Tax Benefits at Beginning of Year | $ | 11,846 | $ | 15,433 | $ | 13,633 | ||||||
Gross Increases, Related to Tax Positions Taken in a Prior Period | 1,074 | 1,587 | 280 | |||||||||
Gross Decreases, Related to Tax Positions Taken in a Prior Period | (314 | ) | (194 | ) | — | |||||||
Gross Increases, Related to Current Period Tax Positions | 498 | 1,557 | 1,888 | |||||||||
Settlement with Taxing Authority | — | — | (40 | ) | ||||||||
Lapse of Statute of Limitations | (875 | ) | (6,537 | ) | (328 | ) | ||||||
Unrecognized Tax Benefits at End of Year | $ | 12,229 | $ | 11,846 | $ | 15,433 | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Schedule of the notional amount and fair value of the derivative financial instruments | The notional amount and fair value of the Company's derivative financial instruments as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
(dollars in thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||
Interest Rate Lock Commitments | $ | 2,354 | $ | 152 | $ | 30,226 | $ | 536 | ||||||||||
Forward Commitments | 5,404 | (13 | ) | 30,798 | 211 | |||||||||||||
Interest Rate Swap Agreements | ||||||||||||||||||
Receive Fixed/Pay Variable Swaps | 183,283 | 16,206 | 202,838 | 20,542 | ||||||||||||||
Pay Fixed/Receive Variable Swaps | 183,283 | (16,240 | ) | 202,838 | (20,699 | ) | ||||||||||||
Foreign Exchange Contracts | 44,240 | (345 | ) | 33,899 | (772 | ) | ||||||||||||
Derivative financial instruments, their fair values, and balance sheet location | The following table presents the Company's derivative financial instruments, their fair values, and the location in the consolidated statements of condition as of December 31, 2014 and 2013: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Derivative Financial Instruments Not Designated | Asset | Liability | Asset | Liability | ||||||||||||||
as Hedging Instruments 1 (dollars in thousands) | Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||
Interest Rate Lock Commitments | $ | 152 | $ | — | $ | 574 | $ | 38 | ||||||||||
Forward Commitments | — | 13 | 215 | 4 | ||||||||||||||
Interest Rate Swap Agreements | 16,262 | 16,296 | 20,852 | 21,009 | ||||||||||||||
Foreign Exchange Contracts | 101 | 446 | 128 | 900 | ||||||||||||||
Total | $ | 16,515 | $ | 16,755 | $ | 21,769 | $ | 21,951 | ||||||||||
1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition | ||||||||||||||||||
Derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income | The following table presents the Company's derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||||
Location of Net Gains (Losses)Recognized in the | Year Ended December 31, | |||||||||||||||||
Derivative Financial Instruments Not Designated | Statements of Income | 2014 | 2013 | 2012 | ||||||||||||||
as Hedging Instruments (dollars in thousands) | ||||||||||||||||||
Interest Rate Lock Commitments | Mortgage Banking | $ | 3,072 | $ | 6,092 | $ | 37,490 | |||||||||||
Forward Commitments | Mortgage Banking | (527 | ) | 8,085 | (1,959 | ) | ||||||||||||
Interest Rate Swap Agreements | Other Noninterest Income | 130 | 292 | 33 | ||||||||||||||
Foreign Exchange Contracts | Other Noninterest Income | 3,107 | 3,182 | 3,237 | ||||||||||||||
Total | $ | 5,782 | $ | 17,651 | $ | 38,801 | ||||||||||||
Balance_Sheet_Offsetting_Table
Balance Sheet Offsetting (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||
Schedule of assets and liabilities subject to an enforceable master netting arrangement | The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of December 31, 2014 and 2013. The swap agreements we have with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. | ||||||||||||||||||||||||
(i) | (ii) | (iii) =i)-(ii) | (iv) | (v) =iii)-(iv) | |||||||||||||||||||||
Gross Amounts | Gross Amounts | Net Amounts | Gross Amounts Not Offset in the Statements of Condition | ||||||||||||||||||||||
Recognized in the | Offset in the | Presented in the | |||||||||||||||||||||||
Statements | Statements | Statements | |||||||||||||||||||||||
(dollars in thousands) | of Condition | of Condition | of Condition | Netting | Fair Value of Collateral | Net Amount | |||||||||||||||||||
Adjustments | Pledged 1 | ||||||||||||||||||||||||
per Master | |||||||||||||||||||||||||
Netting | |||||||||||||||||||||||||
Arrangements | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | $ | 28 | $ | — | $ | 28 | $ | 28 | $ | — | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | 16,268 | — | 16,268 | 28 | — | 16,240 | |||||||||||||||||||
Repurchase Agreements: | |||||||||||||||||||||||||
Private Institutions | 600,000 | — | 600,000 | — | 600,000 | — | |||||||||||||||||||
Government Entities | 88,601 | — | 88,601 | — | 88,601 | — | |||||||||||||||||||
$ | 688,601 | $ | — | $ | 688,601 | $ | — | $ | 688,601 | $ | — | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | $ | 155 | $ | — | $ | 155 | $ | 155 | $ | — | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Interest Rate Swap Agreements: | |||||||||||||||||||||||||
Institutional Counterparties | 20,853 | — | 20,853 | 155 | 2,288 | 18,410 | |||||||||||||||||||
Repurchase Agreements: | |||||||||||||||||||||||||
Private Institutions | 600,000 | — | 600,000 | — | 600,000 | — | |||||||||||||||||||
Government Entities | 170,049 | — | 170,049 | — | 170,049 | — | |||||||||||||||||||
$ | 770,049 | $ | — | $ | 770,049 | $ | — | $ | 770,049 | $ | — | ||||||||||||||
1 | The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For repurchase agreements with private institutions, the fair value of securities pledged was $0.7 billion and $0.7 billion as of December 31, 2014 and 2013, respectively. For repurchase agreements with government entities, the investment securities pledged to each government entity collectively secure both deposits as well as repurchase agreements. The Company had government entity deposits totaling $1.3 billion and $1.2 billion as of December 31, 2014 and 2013, respectively. The investment securities pledged as of December 31, 2014 and 2013 had a fair value of $2.1 billion and $1.8 billion, respectively |
Commitments_Contingencies_and_1
Commitments, Contingencies, and Guarantees (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Credit commitments | The Company's credit commitments as of December 31, 2014 were as follows: | |||||||||||
(dollars in thousands) | December 31, 2014 | |||||||||||
Unfunded Commitments to Extend Credit | $ | 2,388,432 | ||||||||||
Standby Letters of Credit | 48,157 | |||||||||||
Commercial Letters of Credit | 14,130 | |||||||||||
Total | $ | 2,450,719 | ||||||||||
Schedule of rental expense | Rental expense for all operating leases for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Minimum Rentals | $ | 18,411 | $ | 19,258 | $ | 20,429 | ||||||
Sublease Rental Income | (6,647 | ) | (6,806 | ) | (5,540 | ) | ||||||
Total | $ | 11,764 | $ | 12,452 | $ | 14,889 | ||||||
Schedule of future minimum payments for capital leases and non-cancelable operating leases | Future minimum payments for capital leases and non-cancelable operating leases with initial or remaining terms of one year or more consisted of the following as of December 31, 2014: | |||||||||||
(dollars in thousands) | Capital Leases | Operating Leases | ||||||||||
2015 | $ | 825 | $ | 12,062 | ||||||||
2016 | 825 | 10,806 | ||||||||||
2017 | 825 | 9,062 | ||||||||||
2018 | 825 | 7,839 | ||||||||||
2019 | 825 | 6,834 | ||||||||||
Thereafter | 27,230 | 97,660 | ||||||||||
Total Future Minimum Lease Payments | 31,355 | $ | 144,263 | |||||||||
Amounts Representing Interest | (20,448 | ) | ||||||||||
Present Value of Net Future Minimum Lease Payments | $ | 10,907 | ||||||||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Balances of assets and liabilities measured at fair value on a recurring basis | The table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||
(dollars in thousands) | Quoted Prices | Significant | Significant | Total | ||||||||||||||||
In Active | Other | Unobservable | ||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||
or Liabilities | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment Securities Available-for-Sale | ||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 61,271 | $ | 269,987 | $ | — | $ | 331,258 | ||||||||||||
and Government Agencies | ||||||||||||||||||||
Debt Securities Issued by States and Political Subdivisions | — | 743,970 | — | 743,970 | ||||||||||||||||
Debt Securities Issued by Corporations | — | 294,833 | — | 294,833 | ||||||||||||||||
Mortgage-Backed Securities Issued by | ||||||||||||||||||||
Residential - Government Agencies | — | 462,436 | — | 462,436 | ||||||||||||||||
Residential - U.S. Government Sponsored Enterprises | — | 278,461 | — | 278,461 | ||||||||||||||||
Commercial - Government Agencies | — | 178,232 | — | 178,232 | ||||||||||||||||
Total Mortgage-Backed Securities | — | 919,129 | — | 919,129 | ||||||||||||||||
Total Investment Securities Available-for-Sale | 61,271 | 2,227,919 | — | 2,289,190 | ||||||||||||||||
Loans Held for Sale | — | 5,136 | — | 5,136 | ||||||||||||||||
Mortgage Servicing Rights | — | — | 2,604 | 2,604 | ||||||||||||||||
Other Assets | 18,794 | — | — | 18,794 | ||||||||||||||||
Derivatives 1 | — | 101 | 16,414 | 16,515 | ||||||||||||||||
Total Assets Measured at Fair Value on a | $ | 80,065 | $ | 2,233,156 | $ | 19,018 | $ | 2,332,239 | ||||||||||||
Recurring Basis as of December 31, 2014 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives 1 | $ | — | $ | 459 | $ | 16,296 | $ | 16,755 | ||||||||||||
Total Liabilities Measured at Fair Value on a | $ | — | $ | 459 | $ | 16,296 | $ | 16,755 | ||||||||||||
Recurring Basis as of December 31, 2014 | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment Securities Available-for-Sale | ||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury | $ | 70,693 | $ | 326,586 | $ | — | $ | 397,279 | ||||||||||||
and Government Agencies | ||||||||||||||||||||
Debt Securities Issued by States and Political Subdivisions | — | 686,802 | — | 686,802 | ||||||||||||||||
Debt Securities Issued by Corporations | — | 273,501 | — | 273,501 | ||||||||||||||||
Mortgage-Backed Securities Issued by | ||||||||||||||||||||
Residential - Government Agencies | — | 653,194 | — | 653,194 | ||||||||||||||||
Residential - U.S. Government Sponsored Enterprises | — | 23,268 | — | 23,268 | ||||||||||||||||
Commercial - Government Agencies | — | 209,653 | — | 209,653 | ||||||||||||||||
Total Mortgage-Backed Securities | — | 886,115 | — | 886,115 | ||||||||||||||||
Total Investment Securities Available-for-Sale | 70,693 | 2,173,004 | — | 2,243,697 | ||||||||||||||||
Loans Held for Sale | — | 6,435 | — | 6,435 | ||||||||||||||||
Mortgage Servicing Rights | — | — | 3,826 | 3,826 | ||||||||||||||||
Other Assets | 15,535 | — | — | 15,535 | ||||||||||||||||
Derivatives 1 | — | 343 | 21,426 | 21,769 | ||||||||||||||||
Total Assets Measured at Fair Value on a | $ | 86,228 | $ | 2,179,782 | $ | 25,252 | $ | 2,291,262 | ||||||||||||
Recurring Basis as of December 31, 2013 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives 1 | $ | — | $ | 904 | $ | 21,047 | $ | 21,951 | ||||||||||||
Total Liabilities Measured at Fair Value on a | $ | — | $ | 904 | $ | 21,047 | $ | 21,951 | ||||||||||||
Recurring Basis as of December 31, 2013 | ||||||||||||||||||||
1 The fair value of each class of derivatives is shown in Note 17 to the Consolidated Financial Statements. | ||||||||||||||||||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the years ended December 31, 2014 and 2013, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: | |||||||||||||||||||
(dollars in thousands) | Mortgage | Net Derivative | ||||||||||||||||||
Servicing Rights 1 | Assets and | |||||||||||||||||||
Liabilities 2 | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Balance as of January 1, 2014 | $ | 3,826 | $ | 379 | ||||||||||||||||
Realized and Unrealized Net Gains (Losses): | ||||||||||||||||||||
Included in Net Income | (1,222 | ) | 3,195 | |||||||||||||||||
Transfers to Loans Held for Sale | — | (3,456 | ) | |||||||||||||||||
Balance as of December 31, 2014 | $ | 2,604 | $ | 118 | ||||||||||||||||
Total Unrealized Net Gains (Losses) Included in Net Income | $ | (868 | ) | $ | 118 | |||||||||||||||
Related to Assets Still Held as of December 31, 2014 | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Balance as of January 1, 2013 | $ | 4,761 | $ | 9,940 | ||||||||||||||||
Realized and Unrealized Net Gains (Losses): | ||||||||||||||||||||
Included in Net Income | (935 | ) | 6,184 | |||||||||||||||||
Transfers to Loans Held for Sale | — | (15,745 | ) | |||||||||||||||||
Balance as of December 31, 2013 | $ | 3,826 | $ | 379 | ||||||||||||||||
Total Unrealized Net Gains Included in Net Income | $ | 127 | $ | 379 | ||||||||||||||||
Related to Assets Still Held as of December 31, 2013 | ||||||||||||||||||||
1 | Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company's consolidated statements of income. | |||||||||||||||||||
2 | Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company's consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company's consolidated statements of income. | |||||||||||||||||||
Summary of the significant unobservable inputs | For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2014 and 2013, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||||
Significant Unobservable Inputs | Fair Value | |||||||||||||||||||
(weighted-average) | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
(dollars in thousands) | Valuation Technique | Description | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Mortgage Servicing Rights | Discounted Cash Flow | Constant Prepayment Rate 1 | 11.62 | % | 7.98 | % | $ | 25,441 | $ | 33,926 | ||||||||||
Discount Rate 2 | 10.61 | % | 9.7 | % | ||||||||||||||||
Net Derivative Assets and Liabilities: | ||||||||||||||||||||
Interest Rate Lock Commitments | Pricing Model | Closing Ratio | 93.85 | % | 93.76 | % | $ | 152 | $ | 536 | ||||||||||
Interest Rate Swap Agreements | Discounted Cash Flow | Credit Factor | 0.21 | % | 0.74 | % | $ | (34 | ) | $ | (157 | ) | ||||||||
1 Represents annualized loan repayment rate assumption. | ||||||||||||||||||||
2 Derived from multiple interest rate scenarios that incorporate a spread to the London Interbank Offered Rate swap curve and market volatilities. | ||||||||||||||||||||
Schedule of difference between the aggregate fair value and the aggregate unpaid principal balance of the Company's residential mortgage loans held for sale | The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company's residential mortgage loans held for sale as of December 31, 2014 and 2013. | |||||||||||||||||||
(dollars in thousands) | Aggregate | Aggregate | Aggregate Fair Value | |||||||||||||||||
Fair Value | Unpaid Principal | Less Aggregate | ||||||||||||||||||
Unpaid Principal | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Loans Held for Sale | $ | 5,136 | $ | 4,740 | $ | 396 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Loans Held for Sale | $ | 6,435 | $ | 6,284 | $ | 151 | ||||||||||||||
Tabular disclosure of the carrying value and fair value measurement of financial instruments - assets and liabilities of the entity | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company's financial instruments as of December 31, 2014 and 2013. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Fair Value | Quoted Prices in Active Markets for | Significant | Significant | |||||||||||||||
Identical Assets or | Other | Unobservable | ||||||||||||||||||
Liabilities(Level 1) | Observable | Inputs | ||||||||||||||||||
Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Financial Instruments – Assets | ||||||||||||||||||||
Investment Securities Held-to-Maturity | $ | 4,466,679 | $ | 4,504,495 | $ | 499,616 | $ | 4,004,879 | $ | — | ||||||||||
Loans 1 | 6,542,719 | 7,048,757 | — | — | 7,048,757 | |||||||||||||||
Financial Instruments – Liabilities | ||||||||||||||||||||
Time Deposits | 1,434,001 | 1,437,064 | — | 1,437,064 | — | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 688,601 | 758,781 | — | 758,781 | — | |||||||||||||||
Long-Term Debt 2 | 163,005 | 163,911 | — | 163,911 | — | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Financial Instruments – Assets | ||||||||||||||||||||
Investment Securities Held-to-Maturity | $ | 4,744,519 | $ | 4,697,587 | $ | 433,365 | $ | 4,264,222 | $ | — | ||||||||||
Loans 1 | 5,707,133 | 6,062,147 | — | — | 6,062,147 | |||||||||||||||
Financial Instruments – Liabilities | ||||||||||||||||||||
Time Deposits | 1,317,770 | 1,322,967 | — | 1,322,967 | — | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 770,049 | 846,193 | — | 846,193 | — | |||||||||||||||
Long-Term Debt 2 | 165,877 | 167,049 | — | 167,049 | — | |||||||||||||||
1 | Net of unearned income and the Allowance. | |||||||||||||||||||
2 | Excludes capitalized lease obligations. |
Bank_of_Hawaii_Corporation_Fin1
Bank of Hawaii Corporation Financial Statements (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Schedule of condensed statements of income | Condensed Statements of Comprehensive Income | |||||||||||
Year Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Income | ||||||||||||
Dividends and Interest from Bank of Hawaii | $ | 136,000 | $ | 133,000 | $ | 117,050 | ||||||
Net Gains on Sales of Investment Securities | 7,810 | — | — | |||||||||
Other Income | 690 | 727 | 570 | |||||||||
Total Income | 144,500 | 133,727 | 117,620 | |||||||||
Noninterest Expense | ||||||||||||
Intercompany Salaries and Services | 839 | 852 | 858 | |||||||||
Other Expenses | 2,067 | 2,942 | 1,795 | |||||||||
Total Noninterest Expense | 2,906 | 3,794 | 2,653 | |||||||||
Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries | 141,594 | 129,933 | 114,967 | |||||||||
Income Tax Benefit | 225 | 2,211 | 1,848 | |||||||||
Equity in Undistributed Income of Subsidiaries | 21,223 | 18,358 | 49,261 | |||||||||
Net Income | $ | 163,042 | $ | 150,502 | $ | 166,076 | ||||||
Comprehensive Income | $ | 168,179 | $ | 89,471 | $ | 160,021 | ||||||
Schedule of condensed statements of condition | Condensed Statements of Condition | |||||||||||
(dollars in thousands) | December 31, 2014 | December 31, 2013 | ||||||||||
Assets | ||||||||||||
Cash with Bank of Hawaii | $ | 68,563 | $ | 64,657 | ||||||||
Investment Securities Held-to-Maturity | 4,947 | — | ||||||||||
Goodwill | 14,129 | 14,129 | ||||||||||
Income Taxes Receivable and Deferred Tax Assets | 2,868 | 2,200 | ||||||||||
Other Assets | 7,825 | 7,938 | ||||||||||
Equity in Net Assets of Subsidiaries | 976,354 | 942,157 | ||||||||||
Total Assets | $ | 1,074,686 | $ | 1,031,081 | ||||||||
Liabilities | ||||||||||||
Income Taxes Payable | $ | 6,269 | $ | 6,359 | ||||||||
Other Liabilities | 13,331 | 12,746 | ||||||||||
Total Liabilities | 19,600 | 19,105 | ||||||||||
Shareholders' Equity | 1,055,086 | 1,011,976 | ||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,074,686 | $ | 1,031,081 | ||||||||
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows | |||||||||||
Year Ended December 31, | ||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Operating Activities | ||||||||||||
Net Income | $ | 163,042 | $ | 150,502 | $ | 166,076 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||||||
Share-Based Compensation | 656 | 616 | 576 | |||||||||
Net Gains on Sales of Investment Securities | (7,810 | ) | — | — | ||||||||
Equity in Undistributed Income of Subsidiaries | (21,223 | ) | (18,358 | ) | (49,261 | ) | ||||||
Net Change in Other Assets and Other Liabilities | 78 | 1,980 | (493 | ) | ||||||||
Net Cash Provided by Operating Activities | 134,743 | 134,740 | 116,898 | |||||||||
Investing Activities | ||||||||||||
Proceeds from Sales of Investment Securities | 7,810 | — | — | |||||||||
Purchase of Investment Securities Held-to-Maturity | (4,936 | ) | — | — | ||||||||
Net Cash Provided by Investing Activities | 2,874 | — | — | |||||||||
Financing Activities | ||||||||||||
Proceeds from Issuance of Common Stock | 9,995 | 14,495 | 13,730 | |||||||||
Repurchase of Common Stock | (64,046 | ) | (39,655 | ) | (81,444 | ) | ||||||
Cash Dividends Paid | (79,660 | ) | (80,534 | ) | (81,645 | ) | ||||||
Net Cash Used in Financing Activities | (133,711 | ) | (105,694 | ) | (149,359 | ) | ||||||
Net Change in Cash and Cash Equivalents | 3,906 | 29,046 | (32,461 | ) | ||||||||
Cash and Cash Equivalents at Beginning of Period | 64,657 | 35,611 | 68,072 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 68,563 | $ | 64,657 | $ | 35,611 | ||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Receivables and loans) (Details 1) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
segment | ||
component | ||
class | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $77.50 | $48.20 |
Loans and Leases | ||
Number of portfolio segments of loans and leases (commercial and consumer) | 2 | |
Number of classes of loans and leases determined by management | 8 | |
Loans modified in a troubled debt restructuring | ||
Period during which non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status (in months) | 6 months | |
Number of components of company's reserve for credit losses | 2 | |
Cash and Cash Equivalents | ||
Maximum original maturity period of cash and cash equivalents (in days) | 90 days | |
Commercial | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered to place loans and leases on non-accrual status (in days) | 90 days | |
Residential mortgage and home equity loan | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered to place loans and leases on non-accrual status (in days) | 120 days | |
Home Equity | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days | |
Home Equity | Maximum | ||
Non-Performing Loans and Leases | ||
Combined loan-to-value ratio, considered in determining whether the entire outstanding balance on the loan is to be charged-off or not (as a percent) | 60.00% | |
Automobile and Other consumer | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days | |
Commercial and Industrial | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days | |
Low-income housing partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits are generally recognized (in years) | 10 years | |
Unfunded commitments to fund low-income housing partnerships | $31.40 | $18.10 |
Solar energy partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits are generally recognized (in years) | 6 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Property and equipment and other) (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
plan | |||
Pension and Postretirement Benefit Plans | |||
Number of company's pension plans | 2 | ||
Minimum percentage of net acturial gain (loss) will be amortized in net periodic benefit cost | 10.00% | ||
Income Taxes | |||
Minimum percentage of likelihood of tax position being realized upon ultimate settlement according to management's judgment | 50.00% | ||
Advertising Costs | |||
Advertising costs | $5.30 | $5 | $4.70 |
Maximum | Building | |||
Premises and Equipment | |||
Estimated useful lives (in years) | 30 years | ||
Maximum | Equipment | |||
Premises and Equipment | |||
Estimated useful lives (in years) | 10 years |
Restrictions_on_Cash_Details_1
Restrictions on Cash (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ||
Required minimum average reserve balance based on the amount of deposits held with the Federal Reserve Bank | $92.30 | $94.20 |
Investment_Securities_Amort_co
Investment Securities (Amort cost, unrealized gains and losses, and fair value) (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Available-for-Sale: | |||
Amortized Cost | $2,262,807 | $2,245,857 | $3,291,685 |
Gross Unrealized Gains | 41,668 | 31,420 | 78,333 |
Gross Unrealized Losses | -15,285 | -33,580 | -2,461 |
Available-for-Sale | 2,289,190 | 2,243,697 | 3,367,557 |
Held-to-Maturity Securities: | |||
Amortized Cost | 4,466,679 | 4,744,519 | 3,595,065 |
Gross Unrealized Gains | 66,859 | 37,071 | 93,977 |
Gross Unrealized Losses | -29,043 | -84,003 | -1,366 |
Held-to-Maturity, Fair Value | 4,504,495 | 4,697,587 | 3,687,676 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | |||
Available-for-Sale: | |||
Amortized Cost | 325,365 | 390,873 | 855,070 |
Gross Unrealized Gains | 5,933 | 6,640 | 14,936 |
Gross Unrealized Losses | -40 | -234 | -17 |
Available-for-Sale | 331,258 | 397,279 | 869,989 |
Held-to-Maturity Securities: | |||
Amortized Cost | 498,767 | 433,987 | 190,168 |
Gross Unrealized Gains | 2,008 | 3,045 | 5,198 |
Gross Unrealized Losses | -1,159 | -3,667 | 0 |
Held-to-Maturity, Fair Value | 499,616 | 433,365 | 195,366 |
Debt Securities Issued by States and Political Subdivisions | |||
Available-for-Sale: | |||
Amortized Cost | 723,474 | 691,861 | 753,207 |
Gross Unrealized Gains | 21,941 | 8,396 | 30,159 |
Gross Unrealized Losses | -1,445 | -13,455 | -955 |
Available-for-Sale | 743,970 | 686,802 | 782,411 |
Held-to-Maturity Securities: | |||
Amortized Cost | 249,559 | 253,039 | |
Gross Unrealized Gains | 15,459 | 817 | |
Gross Unrealized Losses | 0 | -133 | |
Held-to-Maturity, Fair Value | 265,018 | 253,723 | |
Debt Securities Issued by Corporations | |||
Available-for-Sale: | |||
Amortized Cost | 298,272 | 280,172 | 82,450 |
Gross Unrealized Gains | 546 | 1,165 | 1,984 |
Gross Unrealized Losses | -3,985 | -7,836 | 0 |
Available-for-Sale | 294,833 | 273,501 | 84,434 |
Held-to-Maturity Securities: | |||
Amortized Cost | 166,686 | 190,181 | 24,000 |
Gross Unrealized Gains | 109 | 0 | 4 |
Gross Unrealized Losses | -3,442 | -5,708 | 0 |
Held-to-Maturity, Fair Value | 163,353 | 184,473 | 24,004 |
Mortgage-Backed Securities | |||
Available-for-Sale: | |||
Amortized Cost | 915,696 | 882,951 | 1,600,958 |
Gross Unrealized Gains | 13,248 | 15,219 | 31,254 |
Gross Unrealized Losses | -9,815 | -12,055 | -1,489 |
Available-for-Sale | 919,129 | 886,115 | 1,630,723 |
Held-to-Maturity Securities: | |||
Amortized Cost | 3,551,667 | 3,867,312 | 3,380,897 |
Gross Unrealized Gains | 49,283 | 33,209 | 88,775 |
Gross Unrealized Losses | -24,442 | -74,495 | -1,366 |
Held-to-Maturity, Fair Value | 3,576,508 | 3,826,026 | 3,468,306 |
Residential - Government Agencies | |||
Available-for-Sale: | |||
Amortized Cost | 452,493 | 641,227 | 1,041,669 |
Gross Unrealized Gains | 10,986 | 13,816 | 27,283 |
Gross Unrealized Losses | -1,043 | -1,849 | -292 |
Available-for-Sale | 462,436 | 653,194 | 1,068,660 |
Held-to-Maturity Securities: | |||
Amortized Cost | 2,862,369 | 3,523,343 | 3,349,403 |
Gross Unrealized Gains | 45,407 | 31,786 | 86,673 |
Gross Unrealized Losses | -20,636 | -66,572 | -1,366 |
Held-to-Maturity, Fair Value | 2,887,140 | 3,488,557 | 3,434,710 |
Residential - U.S. Government Sponsored Enterprises | |||
Available-for-Sale: | |||
Amortized Cost | 276,390 | 21,865 | 35,234 |
Gross Unrealized Gains | 2,262 | 1,403 | 2,064 |
Gross Unrealized Losses | -191 | 0 | 0 |
Available-for-Sale | 278,461 | 23,268 | 37,298 |
Held-to-Maturity Securities: | |||
Amortized Cost | 379,365 | 21,602 | 31,494 |
Gross Unrealized Gains | 3,635 | 1,423 | 2,102 |
Gross Unrealized Losses | -15 | 0 | 0 |
Held-to-Maturity, Fair Value | 382,985 | 23,025 | 33,596 |
Commercial - Government Agencies | |||
Available-for-Sale: | |||
Amortized Cost | 186,813 | 219,859 | 524,055 |
Gross Unrealized Gains | 0 | 0 | 1,907 |
Gross Unrealized Losses | -8,581 | -10,206 | -1,197 |
Available-for-Sale | 178,232 | 209,653 | 524,765 |
Held-to-Maturity Securities: | |||
Amortized Cost | 309,933 | 322,367 | |
Gross Unrealized Gains | 241 | 0 | |
Gross Unrealized Losses | -3,791 | -7,923 | |
Held-to-Maturity, Fair Value | $306,383 | $314,444 |
Investment_Securities_By_matur
Investment Securities (By maturity buckets; gross gains and losses) (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | |||
Due in One Year or Less | $91,768,000 | ||
Due After One Year Through Five Years | 244,200,000 | ||
Due After Five Years Through Ten Years | 644,960,000 | ||
Due After Ten Years | 100,999,000 | ||
Available-for-Sale, Total | 1,081,927,000 | ||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Due in One Year or Less | 92,943,000 | ||
Due After One Year Through Five Years | 247,459,000 | ||
Due After Five Years Through Ten Years | 651,880,000 | ||
Due After Ten Years | 107,792,000 | ||
Available-for-Sale, Total | 1,100,074,000 | ||
Amortized Cost | 2,262,807,000 | ||
Available-for-Sale | 2,289,190,000 | 2,243,697,000 | 3,367,557,000 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | |||
Due in One Year or Less | 99,658,000 | ||
Due After One Year Through Five Years | 410,000,000 | ||
Due After Five Years Through Ten Years | 220,502,000 | ||
Due After Ten Years | 184,852,000 | ||
Total | 915,012,000 | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Due in One Year or Less | 100,751,000 | ||
Due After One Year Through Five Years | 410,083,000 | ||
Due After Five Years Through Ten Years | 225,179,000 | ||
Due After Ten Years | 191,974,000 | ||
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value | 927,987,000 | ||
Amortized Cost | 4,466,679,000 | 4,744,519,000 | 3,595,065,000 |
Held-to-Maturity, Fair Value | 4,504,495,000 | 4,697,587,000 | 3,687,676,000 |
Carrying value of investment securities which are pledged | 2,800,000,000 | 2,600,000,000 | 2,900,000,000 |
Gain (Loss) on Sale of Securities, Net [Abstract] | |||
Gross Gains on Sales of Investment Securities | 8,063,000 | 0 | 255,000 |
Gross Losses on Sales of Investment Securities | 0 | 0 | -332,000 |
Net Gains (Losses) on Sales of Investment Securities | 8,063,000 | 0 | -77,000 |
Income tax expense related to net realized gains on sale of investment securities | 3,200,000 | ||
Debt Securities Issued by Government Agencies | |||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 265,184,000 | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 269,987,000 | ||
Residential - Government Agencies | |||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 452,493,000 | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 462,436,000 | ||
Available-for-Sale | 462,436,000 | 653,194,000 | 1,068,660,000 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 2,862,369,000 | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | 2,887,140,000 | ||
Amortized Cost | 2,862,369,000 | 3,523,343,000 | 3,349,403,000 |
Held-to-Maturity, Fair Value | 2,887,140,000 | 3,488,557,000 | 3,434,710,000 |
Residential - U.S. Government Sponsored Enterprises | |||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 276,390,000 | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 278,461,000 | ||
Available-for-Sale | 278,461,000 | 23,268,000 | 37,298,000 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 379,365,000 | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | 382,985,000 | ||
Amortized Cost | 379,365,000 | 21,602,000 | 31,494,000 |
Held-to-Maturity, Fair Value | 382,985,000 | 23,025,000 | 33,596,000 |
Commercial - Government Agencies | |||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 186,813,000 | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 178,232,000 | ||
Available-for-Sale | 178,232,000 | 209,653,000 | 524,765,000 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 309,933,000 | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | 306,383,000 | ||
Amortized Cost | 309,933,000 | 322,367,000 | |
Held-to-Maturity, Fair Value | 306,383,000 | 314,444,000 | |
Mortgage-Backed Securities | |||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 915,696,000 | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 919,129,000 | ||
Available-for-Sale | 919,129,000 | 886,115,000 | 1,630,723,000 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | |||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | 3,551,667,000 | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | 3,576,508,000 | ||
Amortized Cost | 3,551,667,000 | 3,867,312,000 | 3,380,897,000 |
Held-to-Maturity, Fair Value | $3,576,508,000 | $3,826,026,000 | $3,468,306,000 |
Investment_Securities_Fair_val
Investment Securities (Fair value and gross unrealized losses) (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | security | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | $260,475 | $883,485 |
Less Than 12 Months, Gross Unrealized Losses | -1,677 | -27,711 |
12 Months or Longer, Fair Value | 470,871 | 99,926 |
12 Months or Longer, Gross Unrealized Losses | -13,608 | -5,869 |
Total Fair Value | 731,346 | 983,411 |
Total Gross Unrealized Losses | -15,285 | -33,580 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 567,527 | 2,478,594 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -1,884 | -66,898 |
12 Months or Longer, Fair Value | 1,243,333 | 301,842 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -27,159 | -17,105 |
Total, Fair Value | 1,810,860 | 2,780,436 |
Total Gross Unrealized Losses | -29,043 | -84,003 |
Number of Investment Securities in Unrealized Loss Position | 175 | |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 1,729 | 26,181 |
Less Than 12 Months, Gross Unrealized Losses | -2 | -225 |
12 Months or Longer, Fair Value | 5,546 | 2,117 |
12 Months or Longer, Gross Unrealized Losses | -38 | -9 |
Total Fair Value | 7,275 | 28,298 |
Total Gross Unrealized Losses | -40 | -234 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 70,016 | 271,469 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -134 | -3,667 |
12 Months or Longer, Fair Value | 144,222 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -1,025 | 0 |
Total, Fair Value | 214,238 | 271,469 |
Total Gross Unrealized Losses | -1,159 | -3,667 |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 78,068 | 415,718 |
Less Than 12 Months, Gross Unrealized Losses | -305 | -10,934 |
12 Months or Longer, Fair Value | 94,543 | 42,607 |
12 Months or Longer, Gross Unrealized Losses | -1,140 | -2,521 |
Total Fair Value | 172,611 | 458,325 |
Total Gross Unrealized Losses | -1,445 | -13,455 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 52,026 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -133 | |
12 Months or Longer, Fair Value | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Total, Fair Value | 52,026 | |
Total Gross Unrealized Losses | -133 | |
Debt Securities Issued by Corporations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 73,829 | 200,364 |
Less Than 12 Months, Gross Unrealized Losses | -1,171 | -7,836 |
12 Months or Longer, Fair Value | 180,335 | 0 |
12 Months or Longer, Gross Unrealized Losses | -2,814 | 0 |
Total Fair Value | 254,164 | 200,364 |
Total Gross Unrealized Losses | -3,985 | -7,836 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 46,196 | 163,736 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -349 | -4,278 |
12 Months or Longer, Fair Value | 82,109 | 20,736 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -3,093 | -1,430 |
Total, Fair Value | 128,305 | 184,472 |
Total Gross Unrealized Losses | -3,442 | -5,708 |
Mortgage-Backed Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 106,849 | 241,222 |
Less Than 12 Months, Gross Unrealized Losses | -199 | -8,716 |
12 Months or Longer, Fair Value | 190,447 | 55,202 |
12 Months or Longer, Gross Unrealized Losses | -9,616 | -3,339 |
Total Fair Value | 297,296 | 296,424 |
Total Gross Unrealized Losses | -9,815 | -12,055 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 451,315 | 1,991,363 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -1,401 | -58,820 |
12 Months or Longer, Fair Value | 1,017,002 | 281,106 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -23,041 | -15,675 |
Total, Fair Value | 1,468,317 | 2,272,469 |
Total Gross Unrealized Losses | -24,442 | -74,495 |
Residential - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 3,025 | 76,744 |
Less Than 12 Months, Gross Unrealized Losses | -8 | -781 |
12 Months or Longer, Fair Value | 12,215 | 10,027 |
12 Months or Longer, Gross Unrealized Losses | -1,035 | -1,068 |
Total Fair Value | 15,240 | 86,771 |
Total Gross Unrealized Losses | -1,043 | -1,849 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 280,967 | 1,767,086 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -1,207 | -54,067 |
12 Months or Longer, Fair Value | 845,911 | 190,939 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -19,429 | -12,505 |
Total, Fair Value | 1,126,878 | 1,958,025 |
Total Gross Unrealized Losses | -20,636 | -66,572 |
Residential - U.S. Government Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 103,824 | |
Less Than 12 Months, Gross Unrealized Losses | -191 | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Losses | 0 | |
Total Fair Value | 103,824 | |
Total Gross Unrealized Losses | -191 | |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 45,754 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -15 | |
12 Months or Longer, Fair Value | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Total, Fair Value | 45,754 | |
Total Gross Unrealized Losses | -15 | |
Commercial - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 0 | 164,478 |
Less Than 12 Months, Gross Unrealized Losses | 0 | -7,935 |
12 Months or Longer, Fair Value | 178,232 | 45,175 |
12 Months or Longer, Gross Unrealized Losses | -8,581 | -2,271 |
Total Fair Value | 178,232 | 209,653 |
Total Gross Unrealized Losses | -8,581 | -10,206 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 124,594 | 224,277 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -179 | -4,753 |
12 Months or Longer, Fair Value | 171,091 | 90,167 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | -3,612 | -3,170 |
Total, Fair Value | 295,685 | 314,444 |
Total Gross Unrealized Losses | ($3,791) | ($7,923) |
Investment_Securities_By_taxab
Investment Securities (Municipal bond narrative) (Details 5) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |
Municipal Debt Securities Issued by One Single State or Political Subdivision as Percentage of Total Fair Value of Entire Municipal Debt Securities Threshold | 10.00% |
HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments, Fair Value Disclosure | 596.2 |
Municipal Debt Securities | Geographic Concentration Risk | HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration Risk, Percentage | 59.00% |
Hawaiian Municipal Debt Securities | Investment Concentration Risk | HAWAII | General Obligation Bond | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration Risk, Percentage | 76.00% |
Moody's, Aa2 or Better Rating | Hawaiian Municipal Debt Securities | Investment Concentration Risk | HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration Risk, Percentage | 92.00% |
Investment_Securities_Municipa
Investment Securities (Municipal bond narrative) (Details 5) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |
Municipal Debt Securities Issued by One Single State or Political Subdivision as Percentage of Total Fair Value of Entire Municipal Debt Securities Threshold | 10.00% |
HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments, Fair Value Disclosure | 596.2 |
Municipal Debt Securities | Geographic Concentration Risk | HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration Risk, Percentage | 59.00% |
Hawaiian Municipal Debt Securities | Investment Concentration Risk | HAWAII | General Obligation Bond | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration Risk, Percentage | 76.00% |
Moody's, Aa2 or Better Rating | Hawaiian Municipal Debt Securities | Investment Concentration Risk | HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration Risk, Percentage | 92.00% |
Investment_Securities_Nonmarke
Investment Securities (Non-marketable equity securities) (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $47,075 | $58,021 |
Federal Reserve Bank Stock | 19,299 | 19,138 |
Total | $66,374 | $77,159 |
Investment_Securities_Visa_cla
Investment Securities (Visa class B restricted shares) (Details 7) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Jun. 30, 2014 |
Net Investment Income [Line Items] | |||||
Investment Securities Gains (Losses), Net | $8,063 | $0 | ($77) | ||
Visa Class B Restricted Securities | |||||
Net Investment Income [Line Items] | |||||
Conversion ratio to Class A shares | 0.4121 | 0.4121 | 0.4206 | ||
Investment Securities Gains (Losses), Net | $7,900 | ||||
Sale of investment securities, shares | 90,500 | ||||
Equity securities remaining, shares | 397,514 | ||||
Donation of Investment Securities, Shares | 21,600 | ||||
Visa Class A Unrestricted Securities | |||||
Net Investment Income [Line Items] | |||||
Equity securities remaining, shares | 163,816 |
Loans_and_Leases_and_the_Allow2
Loans and Leases and the Allowance for Loan and Lease Losses (Loans and leases portolio) (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loan and lease portfolio | |||
Loans and Leases | $6,897,589,000 | $6,095,387,000 | $5,854,521,000 |
Unearned income on loans and leases | 57,000,000 | 63,100,000 | |
Commercial loans and residential mortgage loans pledged to secure an undrawn FRB line of credit | 1,000,000,000 | 900,000,000 | |
Residential mortgage loans pledged under a blanket pledge arrangement to secure FHLB advance | 1,100,000,000 | 1,500,000,000 | |
Net gains related to sales of residential mortgage loans | 2,400,000 | 8,700,000 | 22,800,000 |
Commercial | |||
Loan and lease portfolio | |||
Loans and Leases | 2,828,128,000 | 2,528,433,000 | 2,315,893,000 |
Commercial and Industrial | |||
Loan and lease portfolio | |||
Loans and Leases | 1,055,243,000 | 911,367,000 | |
Commercial Mortgage | |||
Loan and lease portfolio | |||
Loans and Leases | 1,437,513,000 | 1,247,510,000 | |
Construction | |||
Loan and lease portfolio | |||
Loans and Leases | 109,183,000 | 107,349,000 | |
Lease Financing | |||
Loan and lease portfolio | |||
Loans and Leases | 226,189,000 | 262,207,000 | |
Consumer | |||
Loan and lease portfolio | |||
Loans and Leases | 4,069,461,000 | 3,566,954,000 | 3,538,628,000 |
Residential Mortgage | |||
Loan and lease portfolio | |||
Loans and Leases | 2,571,090,000 | 2,282,894,000 | |
Home Equity | |||
Loan and lease portfolio | |||
Loans and Leases | 866,688,000 | 773,385,000 | |
Automobile | |||
Loan and lease portfolio | |||
Loans and Leases | 323,848,000 | 255,986,000 | |
Other | |||
Loan and lease portfolio | |||
Loans and Leases | $307,835,000 | $254,689,000 |
Loans_and_Leases_and_the_Allow3
Loans and Leases and the Allowance for Loan and Lease Losses (Allowance for loan and lease losses) (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan and Lease Losses: | |||
Balance at the Beginning of Period | $115,454 | $128,857 | $138,606 |
Loans and Leases Charged-Off | -15,439 | -25,120 | -24,159 |
Recoveries on Loans and Leases Previously Charged-Off | 13,537 | 11,717 | 13,431 |
Net Loans and Leases Recovered (Charged-Off) | -1,902 | -13,403 | -10,728 |
Provision for Credit Losses | -4,864 | 0 | 979 |
Balance at End of Period | 108,688 | 115,454 | 128,857 |
Allowance for Loan and Lease Losses: | |||
Individually Evaluated for Impairment | 5,948 | 12,776 | 3,725 |
Collectively Evaluated for Impairment | 102,740 | 102,678 | 125,132 |
Total | 108,688 | 115,454 | 128,857 |
Recorded Investment in Loans and Leases: | |||
Individually Evaluated for Impairment | 64,747 | 77,115 | 50,598 |
Collectively Evaluated for Impairment | 6,832,842 | 6,018,272 | 5,803,923 |
Total Loans and Leases | 6,897,589 | 6,095,387 | 5,854,521 |
Commercial | |||
Allowance for Loan and Lease Losses: | |||
Balance at the Beginning of Period | 71,446 | 72,704 | 80,562 |
Loans and Leases Charged-Off | -2,068 | -8,099 | -3,947 |
Recoveries on Loans and Leases Previously Charged-Off | 4,721 | 2,644 | 4,191 |
Net Loans and Leases Recovered (Charged-Off) | 2,653 | -5,455 | 244 |
Provision for Credit Losses | -9,548 | 4,197 | -8,102 |
Balance at End of Period | 64,551 | 71,446 | 72,704 |
Allowance for Loan and Lease Losses: | |||
Individually Evaluated for Impairment | 2,387 | 9,054 | 161 |
Collectively Evaluated for Impairment | 62,164 | 62,392 | 72,543 |
Total | 64,551 | 71,446 | 72,704 |
Recorded Investment in Loans and Leases: | |||
Individually Evaluated for Impairment | 25,116 | 38,469 | 13,098 |
Collectively Evaluated for Impairment | 2,803,012 | 2,489,964 | 2,302,795 |
Total Loans and Leases | 2,828,128 | 2,528,433 | 2,315,893 |
Consumer | |||
Allowance for Loan and Lease Losses: | |||
Balance at the Beginning of Period | 44,008 | 56,153 | 58,044 |
Loans and Leases Charged-Off | -13,371 | -17,021 | -20,212 |
Recoveries on Loans and Leases Previously Charged-Off | 8,816 | 9,073 | 9,240 |
Net Loans and Leases Recovered (Charged-Off) | -4,555 | -7,948 | -10,972 |
Provision for Credit Losses | 4,684 | -4,197 | 9,081 |
Balance at End of Period | 44,137 | 44,008 | 56,153 |
Allowance for Loan and Lease Losses: | |||
Individually Evaluated for Impairment | 3,561 | 3,722 | 3,564 |
Collectively Evaluated for Impairment | 40,576 | 40,286 | 52,589 |
Total | 44,137 | 44,008 | 56,153 |
Recorded Investment in Loans and Leases: | |||
Individually Evaluated for Impairment | 39,631 | 38,646 | 37,500 |
Collectively Evaluated for Impairment | 4,029,830 | 3,528,308 | 3,501,128 |
Total Loans and Leases | $4,069,461 | $3,566,954 | $3,538,628 |
Loans_and_Leases_and_the_Allow4
Loans and Leases and the Allowance for Loan and Lease Losses (Credit quality indicators) (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 6,897,589 | $6,095,387 | $5,854,521 |
Commercial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 2,828,128 | 2,528,433 | 2,315,893 |
Commercial and Industrial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,055,243 | 911,367 | |
Commercial Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,437,513 | 1,247,510 | |
Construction | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 109,183 | 107,349 | |
Lease Financing | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 226,189 | 262,207 | |
Consumer | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 4,069,461 | 3,566,954 | 3,538,628 |
Residential Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 2,571,090 | 2,282,894 | |
Home Equity | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 866,688 | 773,385 | |
Automobile | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 323,848 | 255,986 | |
Other | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 307,835 | 254,689 | |
Pass | Commercial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 2,693,450 | 2,410,617 | |
Pass | Commercial and Industrial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,001,474 | 867,813 | |
Pass | Commercial Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,358,812 | 1,176,941 | |
Pass | Construction | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 107,381 | 104,377 | |
Pass | Lease Financing | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 225,783 | 261,486 | |
Pass | Consumer | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 4,048,753 | 3,540,516 | |
Pass | Residential Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 2,556,140 | 2,261,891 | |
Pass | Home Equity | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 862,258 | 769,051 | |
Pass | Automobile | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 323,232 | 255,664 | |
Pass | Other | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 307,123 | 253,910 | |
Special Mention | Commercial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 62,463 | 30,472 | |
Special Mention | Commercial and Industrial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 17,364 | 5,854 | |
Special Mention | Commercial Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 45,082 | 24,587 | |
Special Mention | Construction | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 0 | 0 | |
Special Mention | Lease Financing | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 17 | 31 | |
Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Number of months up to which residential and home equity loans may be considered classified, even if they are current as to principal and interest (in months) | 6 months | ||
Classified | Commercial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 72,215 | 87,344 | |
Classified | Commercial and Industrial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 36,405 | 37,700 | |
Classified | Commercial Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 33,619 | 45,982 | |
Classified | Construction | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,802 | 2,972 | |
Classified | Lease Financing | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 389 | 690 | |
Classified | Consumer | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | ||
Total Recorded Investment in Loans and Leases | 20,708 | 26,438 | |
Classified | Residential Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | ||
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | ||
Total Recorded Investment in Loans and Leases | 14,950 | 21,003 | |
Classified | Home Equity | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | ||
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | ||
Total Recorded Investment in Loans and Leases | 4,430 | 4,334 | |
Classified | Automobile | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 616 | 322 | |
Classified | Other | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 712 | $779 |
Loans_and_Leases_and_the_Allow5
Loans and Leases and the Allowance for Loan and Lease Losses (Aging analysis) (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | $20,096 | $20,657 | |
60 - 89 Days Past Due | 7,656 | 15,841 | |
Past Due 90 Days or More | 8,661 | 9,858 | |
Non-Accrual | 27,771 | 36,445 | |
Total Past Due and Non-Accrual | 64,184 | 82,801 | |
Current | 6,833,405 | 6,012,586 | |
Total Loans and Leases | 6,897,589 | 6,095,387 | 5,854,521 |
Non-Accrual Loans and Leases that are Current | 8,826 | 10,529 | |
Number of days non-accrual loans and leases are not past due | 30 days | ||
Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 1,450 | 2,633 | |
60 - 89 Days Past Due | 356 | 1,962 | |
Past Due 90 Days or More | 2 | 1,173 | |
Non-Accrual | 9,833 | 14,441 | |
Total Past Due and Non-Accrual | 11,641 | 20,209 | |
Current | 2,816,487 | 2,508,224 | |
Total Loans and Leases | 2,828,128 | 2,528,433 | 2,315,893 |
Non-Accrual Loans and Leases that are Current | 7,819 | 4,381 | |
Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 992 | 1,701 | |
60 - 89 Days Past Due | 356 | 1,962 | |
Past Due 90 Days or More | 2 | 1,173 | |
Non-Accrual | 9,088 | 11,929 | |
Total Past Due and Non-Accrual | 10,438 | 16,765 | |
Current | 1,044,805 | 894,602 | |
Total Loans and Leases | 1,055,243 | 911,367 | |
Non-Accrual Loans and Leases that are Current | 7,819 | 3,603 | |
Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 458 | 932 | |
60 - 89 Days Past Due | 0 | 0 | |
Past Due 90 Days or More | 0 | 0 | |
Non-Accrual | 745 | 2,512 | |
Total Past Due and Non-Accrual | 1,203 | 3,444 | |
Current | 1,436,310 | 1,244,066 | |
Total Loans and Leases | 1,437,513 | 1,247,510 | |
Non-Accrual Loans and Leases that are Current | 0 | 778 | |
Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 0 | 0 | |
60 - 89 Days Past Due | 0 | 0 | |
Past Due 90 Days or More | 0 | 0 | |
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 0 | 0 | |
Current | 109,183 | 107,349 | |
Total Loans and Leases | 109,183 | 107,349 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Lease Financing | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 0 | 0 | |
60 - 89 Days Past Due | 0 | 0 | |
Past Due 90 Days or More | 0 | 0 | |
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 0 | 0 | |
Current | 226,189 | 262,207 | |
Total Loans and Leases | 226,189 | 262,207 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 18,646 | 18,024 | |
60 - 89 Days Past Due | 7,300 | 13,879 | |
Past Due 90 Days or More | 8,659 | 8,685 | |
Non-Accrual | 17,938 | 22,004 | |
Total Past Due and Non-Accrual | 52,543 | 62,592 | |
Current | 4,016,918 | 3,504,362 | |
Total Loans and Leases | 4,069,461 | 3,566,954 | 3,538,628 |
Non-Accrual Loans and Leases that are Current | 1,007 | 6,148 | |
Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 4,907 | 6,984 | |
60 - 89 Days Past Due | 2,107 | 4,746 | |
Past Due 90 Days or More | 4,506 | 4,564 | |
Non-Accrual | 14,841 | 20,264 | |
Total Past Due and Non-Accrual | 26,361 | 36,558 | |
Current | 2,544,729 | 2,246,336 | |
Total Loans and Leases | 2,571,090 | 2,282,894 | |
Non-Accrual Loans and Leases that are Current | 632 | 5,883 | |
Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 3,461 | 3,926 | |
60 - 89 Days Past Due | 2,661 | 2,867 | |
Past Due 90 Days or More | 2,596 | 3,009 | |
Non-Accrual | 3,097 | 1,740 | |
Total Past Due and Non-Accrual | 11,815 | 11,542 | |
Current | 854,873 | 761,843 | |
Total Loans and Leases | 866,688 | 773,385 | |
Non-Accrual Loans and Leases that are Current | 375 | 265 | |
Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 7,862 | 4,688 | |
60 - 89 Days Past Due | 1,483 | 971 | |
Past Due 90 Days or More | 616 | 322 | |
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 9,961 | 5,981 | |
Current | 313,887 | 250,005 | |
Total Loans and Leases | 323,848 | 255,986 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
30 - 59 Days Past Due | 2,416 | 2,426 | |
60 - 89 Days Past Due | 1,049 | 5,295 | |
Past Due 90 Days or More | 941 | 790 | |
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 4,406 | 8,511 | |
Current | 303,429 | 246,178 | |
Total Loans and Leases | 307,835 | 254,689 | |
Non-Accrual Loans and Leases that are Current | $0 | $0 |
Loans_and_Leases_and_the_Allow6
Loans and Leases and the Allowance for Loan and Lease Losses (Impaired loans) (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | $46,815 | $48,449 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 59,073 | 61,131 | |
Related Allowance for Loan Losses | 5,948 | 12,776 | |
Recorded Investment | 64,747 | 77,115 | |
Unpaid Principal Balance | 82,255 | 95,060 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 21,272 | 17,511 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 636 | 292 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 46,830 | 43,653 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 1,662 | 1,550 | |
Average Recorded Investment | 68,102 | 61,164 | 47,400 |
Interest Income Recognized | 2,298 | 1,842 | 1,200 |
Commercial | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 17,932 | 28,666 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 23,182 | 33,929 | |
Impaired Loans with Related Allowance, Recorded Investment | 7,184 | 9,803 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 13,784 | 16,403 | |
Related Allowance for Loan Losses | 2,387 | 9,054 | |
Recorded Investment | 25,116 | 38,469 | |
Unpaid Principal Balance | 36,966 | 50,332 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 21,266 | 17,511 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 636 | 292 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 8,045 | 6,467 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 118 | 241 | |
Average Recorded Investment | 29,311 | 23,978 | |
Interest Income Recognized | 754 | 533 | |
Commercial and Industrial | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 9,763 | 12,709 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 15,013 | 17,967 | |
Impaired Loans with Related Allowance, Recorded Investment | 7,184 | 9,803 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 13,784 | 16,403 | |
Related Allowance for Loan Losses | 2,387 | 9,054 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 11,167 | 9,346 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 318 | 115 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 8,045 | 6,435 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 118 | 190 | |
Commercial Mortgage | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 6,480 | 14,898 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 6,480 | 14,898 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 8,529 | 7,574 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 225 | 150 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 0 | 32 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 0 | 51 | |
Construction | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 1,689 | 1,059 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 1,689 | 1,064 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 1,570 | 591 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 93 | 27 | |
Consumer | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 39,631 | 38,646 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 45,289 | 44,728 | |
Related Allowance for Loan Losses | 3,561 | 3,722 | |
Recorded Investment | 39,631 | 38,646 | |
Unpaid Principal Balance | 45,289 | 44,728 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 6 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 38,785 | 37,186 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 1,544 | 1,309 | |
Average Recorded Investment | 38,791 | 37,186 | |
Interest Income Recognized | 1,544 | 1,309 | |
Residential Mortgage | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 32,331 | 32,338 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 37,989 | 38,420 | |
Related Allowance for Loan Losses | 3,445 | 3,619 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 31,998 | 31,518 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 1,028 | 800 | |
Home Equity | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 1,012 | 796 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 1,012 | 796 | |
Related Allowance for Loan Losses | 16 | 13 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 964 | 159 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 34 | 4 | |
Automobile | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 5,375 | 5,183 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 5,375 | 5,183 | |
Related Allowance for Loan Losses | 66 | 77 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 5,263 | 5,230 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 433 | 490 | |
Other | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 913 | 329 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 913 | 329 | |
Related Allowance for Loan Losses | 34 | 13 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 6 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 560 | 279 | |
Impaired Loans with Related Allowance, Interest Income Recognized | $49 | $15 |
Loans_and_Leases_and_the_Allow7
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled debt restrucuring) (Details 6) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
contract | contract | |
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Loans modified in a TDR | $60,200,000 | $63,700,000 |
Available commitments under Revolving Credit Lines, Modified as TDR | 0 | 1,900,000 |
Loans Modified as a TDR | ||
Number of Contracts | 254 | 237 |
Recorded Investment (as of period end) | 20,305,000 | 33,514,000 |
Increase in Allowance (as of period end) | 2,697,000 | 2,274,000 |
Commercial | ||
Loans Modified as a TDR | ||
Number of Contracts | 20 | 42 |
Recorded Investment (as of period end) | 10,578,000 | 22,724,000 |
Increase in Allowance (as of period end) | 2,360,000 | 1,056,000 |
Commercial and Industrial | ||
Loans Modified as a TDR | ||
Number of Contracts | 19 | 36 |
Recorded Investment (as of period end) | 10,263,000 | 9,279,000 |
Increase in Allowance (as of period end) | 2,360,000 | 1,056,000 |
Commercial Mortgage | ||
Loans Modified as a TDR | ||
Number of Contracts | 1 | 5 |
Recorded Investment (as of period end) | 315,000 | 12,386,000 |
Increase in Allowance (as of period end) | 0 | 0 |
Construction | ||
Loans Modified as a TDR | ||
Number of Contracts | 0 | 1 |
Recorded Investment (as of period end) | 0 | 1,059,000 |
Increase in Allowance (as of period end) | 0 | 0 |
Consumer | ||
Loans Modified as a TDR | ||
Number of Contracts | 234 | 195 |
Recorded Investment (as of period end) | 9,727,000 | 10,790,000 |
Increase in Allowance (as of period end) | 337,000 | 1,218,000 |
Residential Mortgage | ||
Loans Modified as a TDR | ||
Number of Contracts | 17 | 22 |
Recorded Investment (as of period end) | 6,329,000 | 7,855,000 |
Increase in Allowance (as of period end) | 278,000 | 1,113,000 |
Residential Mortgage | Maximum | ||
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Period of time loan being fully amortized | 40 years | |
Home Equity | ||
Loans Modified as a TDR | ||
Number of Contracts | 2 | 3 |
Recorded Investment (as of period end) | 156,000 | 649,000 |
Increase in Allowance (as of period end) | 2,000 | 67,000 |
Automobile | ||
Loans Modified as a TDR | ||
Number of Contracts | 131 | 153 |
Recorded Investment (as of period end) | 2,576,000 | 2,106,000 |
Increase in Allowance (as of period end) | 32,000 | 31,000 |
Other | ||
Loans Modified as a TDR | ||
Number of Contracts | 84 | 17 |
Recorded Investment (as of period end) | 666,000 | 180,000 |
Increase in Allowance (as of period end) | $25,000 | $7,000 |
Land Loans | Maximum | ||
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Period of time loan being fully amortized | 360 months | |
Extending balloon payments | 5 years |
Loans_and_Leases_and_the_Allow8
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled debt restructuring's that defaulted during the period) (Details 7) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
contract | contract | |
Information related to loans modified as a TDR | ||
Number of Contracts | 18 | 16 |
Recorded Investment (as of period end) | $1,359 | $1,601 |
Commercial | ||
Information related to loans modified as a TDR | ||
Number of Contracts | 4 | 2 |
Recorded Investment (as of period end) | 728 | 985 |
Commercial and Industrial | ||
Information related to loans modified as a TDR | ||
Number of Contracts | 4 | 2 |
Recorded Investment (as of period end) | 728 | 985 |
Consumer | ||
Information related to loans modified as a TDR | ||
Number of Contracts | 14 | 14 |
Recorded Investment (as of period end) | 631 | 616 |
Residential Mortgage | ||
Information related to loans modified as a TDR | ||
Number of Contracts | 2 | 1 |
Recorded Investment (as of period end) | 506 | 438 |
Automobile | ||
Information related to loans modified as a TDR | ||
Number of Contracts | 6 | 13 |
Recorded Investment (as of period end) | 77 | 178 |
Other | ||
Information related to loans modified as a TDR | ||
Number of Contracts | 6 | 0 |
Recorded Investment (as of period end) | $48 | $0 |
Minimum | ||
Information related to loans modified as a TDR | ||
Default period past due following modification of loans in TDR (in days) | 60 days |
Loans_and_Leases_and_the_Allow9
Loans and Leases and the Allowance for Loan and Lease Losses (Related Party Loans) (Details 8) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | ||
Due from Related Parties | $17 | $11.70 |
Mortgage_Servicing_Rights_Narr
Mortgage Servicing Rights (Narrative) (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Residential Mortgage Loans Serviced for Third Parties | $2,900,000,000 | $3,100,000,000 | $3,100,000,000 |
Servicing income, including late and ancillary fees | $7,900,000 | $8,000,000 | $8,200,000 |
Mortgage_Servicing_Rights_Fair
Mortgage Servicing Rights (Fair value method rollforward) (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in Fair Value: | |||
Balance at End of Year | $2,604 | $3,826 | |
Mortgage Servicing Rights | |||
Change in fair value of the mortgage servicing rights accounted for under the fair value measurement method | |||
Balance at Beginning of Year | 3,826 | 4,761 | 7,131 |
Changes in Fair Value: | |||
Due to Change in Valuation Assumptions | -869 | 127 | -863 |
Due to Payoffs | -353 | -1,062 | -1,507 |
Total Changes in Fair Value of Mortgage Servicing Rights | -1,222 | -935 | -2,370 |
Balance at End of Year | $2,604 | $3,826 | $4,761 |
Mortgage_Servicing_Rights_Amor
Mortgage Servicing Rights (Amortization method rollforward) (Details 3) (Mortgage Servicing Rights, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Servicing Rights | |||
Change in Carrying Value of Mortgage Servicing Rights Accounted for Under the Amortization Method, Net of a Valuation Allowance | |||
Balance at beginning of Year | $24,297 | $20,479 | $17,148 |
Servicing Rights that Resulted From Asset Transfers | 747 | 6,351 | 6,016 |
Amortization | -2,896 | -2,533 | -2,685 |
Valuation Allowance Provision | -57 | 0 | 0 |
Balance at end of Year | 22,091 | 24,297 | 20,479 |
Valuation Allowance [Roll Forward] | |||
Balance at Beginning of Year | 0 | 0 | 0 |
Valuation Allowance Provision | -57 | 0 | 0 |
Balance at End of Year | -57 | 0 | 0 |
Fair Value: | |||
Balance at Beginning of Year | 30,100 | 23,143 | 17,159 |
Balance at End of Year | $22,837 | $30,100 | $23,143 |
Mortgage_Servicing_Rights_Key_
Mortgage Servicing Rights (Key assumptions) (Details 4) (Mortgage Servicing Rights) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage Servicing Rights | ||
Key assumptions used in estimating the fair value of mortgage servicing rights | ||
Weighted-Average Constant Prepayment Rate (as a percent) | 11.62% | 7.98% |
Weighted-Average Life (in years) | 6 years 3 months 12 days | 8 years 0 months 15 days |
Weighted-Average Note Rate (as a percent) | 4.28% | 4.31% |
Weighted-Average Discount Rate (as a percent) | 10.61% | 9.70% |
Mortgage_Servicing_Rights_Sens
Mortgage Servicing Rights (Sensitivity analysis) (Details 5) (Mortgage Servicing Rights, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Servicing Rights | ||
Constant Prepayment Rate | ||
Decrease in fair value from 25 basis points ("bps") adverse change | ($265) | ($357) |
Decrease in fair value from 50 bps adverse change | -524 | -746 |
Discount Rate | ||
Decrease in fair value from 25 bps adverse change | -250 | -432 |
Decrease in fair value from 50 bps adverse change | ($495) | ($876) |
Premises_and_Equipment_Details
Premises and Equipment (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Premises and Equipment | |||
Cost | $435,752,000 | $430,901,000 | |
Accumulated Depreciation and Amortization | -325,898,000 | -322,265,000 | |
Net Book Value | 109,854,000 | 108,636,000 | |
Depreciation and amortization (including capital lease amortization) included in noninterest expense | 12,400,000 | 12,100,000 | 13,800,000 |
Premises | |||
Premises and Equipment | |||
Cost | 322,536,000 | 317,659,000 | |
Accumulated Depreciation and Amortization | -235,464,000 | -227,907,000 | |
Net Book Value | 87,072,000 | 89,752,000 | |
Impairment charge | 0 | 0 | 1,100,000 |
Equipment | |||
Premises and Equipment | |||
Cost | 106,623,000 | 108,778,000 | |
Accumulated Depreciation and Amortization | -86,577,000 | -90,608,000 | |
Net Book Value | 20,046,000 | 18,170,000 | |
Capital leases | |||
Premises and Equipment | |||
Cost | 6,593,000 | 4,464,000 | |
Accumulated Depreciation and Amortization | -3,857,000 | -3,750,000 | |
Net Book Value | $2,736,000 | $714,000 |
Other_Assets_Details_1
Other Assets (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Other Assets | ||
Federal Home Loan Bank and Federal Reserve Bank Stock | $66,374 | $77,159 |
Derivative Financial Instruments | 16,515 | 21,769 |
Low-Income Housing and Other Equity Investments | 77,495 | 48,931 |
Deferred Compensation Plan Assets | 18,794 | 15,535 |
Prepaid Expenses | 7,787 | 6,098 |
Accounts Receivable | 13,405 | 13,479 |
State Tax Deposits | 0 | 6,069 |
Other | 25,518 | 18,253 |
Total | $225,888 | $207,293 |
Time_Deposits_Details_1
Time Deposits (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Time deposits classified according to the contractual maturities | ||
2015 | $1,171,632,000 | |
2016 | 142,327,000 | |
2017 | 73,898,000 | |
2018 | 11,692,000 | |
2019 | 13,030,000 | |
Thereafter | 21,422,000 | |
Total | 1,434,001,000 | 1,317,770,000 |
Time deposits with balances of $100,000 or more, classified according to the contractual maturities | ||
Three Months or Less | 818,595,000 | |
Over Three Months through Six Months | 98,451,000 | |
Over Six Months through Twelve Months | 109,575,000 | |
Over Twelve Months | 135,420,000 | |
Total | 1,162,041,000 | 1,000,000,000 |
Government entity deposits | $1,300,000,000 | $1,200,000,000 |
Borrowings_Shortterm_borrowing
Borrowings (Short-term borrowings) (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $688,601 | $770,049 |
Funds Purchased | ||
Short-term Borrowings | ||
Amounts Outstanding | 8,459 | 9,982 |
Weighted Average Interest Rate (as a percent) | 0.14% | 0.14% |
Securities Sold Under Agreements to Repurchase | ||
Short-term Borrowings | ||
Amounts Outstanding | 7,700 | 62,233 |
Weighted Average Interest Rate (as a percent) | 0.10% | 0.05% |
Long-term Repurchase Agreements with Government Entities | ||
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | 80,900 | 107,800 |
Long-term Repurchase Agreements with Private Institutions | ||
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $600,000 | $600,000 |
Borrowings_Narrative_Details_2
Borrowings (Narrative) (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | $688,601 | $770,049 |
Long-term Repurchase Agreements with Government Entities | ||
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | 80,900 | 107,800 |
Repurchase agreements, Weighted average interest rate (as a percent) | 0.31% | |
Repurchase agreements, Weighted average maturity period (in days or years) | 302 | |
Long-term Repurchase Agreements with Private Institutions | ||
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | $600,000 | $600,000 |
Repurchase agreements, Weighted average interest rate (as a percent) | 4.21% | |
Repurchase agreements, Weighted average maturity period (in days or years) | 4.4 | |
Repurchase agreements, Decreased weighted average maturity period if agreements terminated at earlier specified dates (in years) | 1.7 |
LongTerm_Debt_Details_1
Long-Term Debt (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Long-Term Debt | ||
Total | $173,912,000 | $174,706,000 |
Federal Home Loan Bank Advance | ||
Long-Term Debt | ||
Long-Term Debt | 150,000,000 | 150,000,000 |
Maximum percentage of the total assets that can be borrowed from the FHLB by the entity | 15.00% | |
Stated fixed interest rate (as a percent) | 0.60% | |
Undrawn line of credit with the FHLB or FRB | 788,900,000 | |
Non-Recourse Debt | ||
Long-Term Debt | ||
Long-Term Debt | 13,005,000 | 15,877,000 |
Stated fixed interest rate (as a percent) | 6.30% | |
Capital Lease Obligations | ||
Long-Term Debt | ||
Capital Lease Obligations | 10,907,000 | 8,829,000 |
Lease term (in years) | 60 years | |
Fixed lease payments through December 2022 | 800,000 | |
Federal Reserve Bank Advance | ||
Long-Term Debt | ||
Undrawn line of credit with the FHLB or FRB | $629,100,000 |
LongTerm_Debt_Excluding_capita
Long-Term Debt (Excluding capital lease obligation, annual maturities) (Details 2) (Non-Recourse Debt and Federal Home Loan Bank Advance, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Non-Recourse Debt and Federal Home Loan Bank Advance | |
Annual maturities of long term debt exclusive of capital lease obligations | |
2015 | $103,067 |
2016 | 52,785 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | 7,153 |
Total | $163,005 |
Shareholders_Equity_Capital_De
Shareholders' Equity (Capital) (Details 1) (USD $) | 12 Months Ended | 162 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2014 | Feb. 13, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Y | ||||||
Minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts | ||||||
Shareholders' Equity | $1,055,086,000 | $1,055,086,000 | $1,011,976,000 | $1,021,665,000 | $1,002,667,000 | |
Tier 1 Capital | 1,039,631,000 | 1,039,631,000 | 1,004,290,000 | |||
Total Capital | 1,128,416,000 | 1,128,416,000 | 1,083,051,000 | |||
Well Capitalized Minimum Tier 1 Capital Ratio (as a percent) | 6.00% | 6.00% | 6.00% | |||
Tier 1 Capital Ratio (as a percent) | 14.69% | 14.69% | 16.05% | |||
Well Capitalized Minimum Total Capital Ratio (as a percent) | 10.00% | 10.00% | 10.00% | |||
Total Capital Ratio (as a percent) | 15.94% | 15.94% | 17.31% | |||
Well Capitalized Minimum Tier 1 Leverage Ratio (as a percent) | 5.00% | 5.00% | 5.00% | |||
Tier 1 Leverage Ratio (as a percent) | 7.13% | 7.13% | 7.24% | |||
Dividends | ||||||
Number of prior calendar years considered for payment of dividends in excess of the sum of net income | 2 | |||||
Common Stock Repurchase Program | ||||||
Number of shares of common stock repurchased | 1,100,000 | 52,000,000 | ||||
Amount returned to shareholders on stock repurchase | 60,700,000 | 1,900,000,000 | ||||
Average cost of shares repurchased (in dollars per share) | $57.50 | $36.96 | ||||
Stock Repurchase Program Authorized Repurchase Amount | 73,200,000 | 73,200,000 | ||||
Bank | ||||||
Minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts | ||||||
Shareholders' Equity | 975,723,000 | 975,723,000 | 940,730,000 | |||
Tier 1 Capital | 974,397,000 | 974,397,000 | 947,233,000 | |||
Total Capital | 1,063,085,000 | 1,063,085,000 | 1,025,896,000 | |||
Tier 1 Capital Ratio (as a percent) | 13.78% | 13.78% | 15.16% | |||
Total Capital Ratio (as a percent) | 15.04% | 15.04% | 16.41% | |||
Tier 1 Leverage Ratio (as a percent) | 6.69% | 6.69% | 6.83% | |||
Subsequent Event | ||||||
Common Stock Repurchase Program | ||||||
Number of shares of common stock repurchased | 149,048 | |||||
Amount returned to shareholders on stock repurchase | 8,500,000 | |||||
Average cost of shares repurchased (in dollars per share) | $57.16 | |||||
Stock Repurchase Program Authorized Repurchase Amount | $64,700,000 |
Shareholders_Equity_AOCI_tax_e
Shareholders' Equity (AOCI tax effect) (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income, Before Tax: | |||
Net Unrealized Gains Arising During the Period | $28,609 | ($105,842) | $10,846 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | -64 | 77 | |
Other Comprehensive Income Reclassification Adjustment for Amortization of Held To Maturity holding Gainsbefore Tax | -703 | -8,386 | -16,076 |
Net Unrealized Losses on Investment Securities | 27,842 | -114,228 | -5,153 |
Net Actuarial Gains (Losses) Arising During the Period | -20,286 | 12,132 | -5,798 |
Amortization of Net Actuarial Losses | 1,256 | 1,688 | 1,318 |
Amortization of Defined Benefit Plan Items, Prior Service Credit, before tax | -322 | -322 | -322 |
Defined Benefit Plans, Net | -19,352 | 13,498 | -4,802 |
Other Comprehensive Income (Loss) | 8,490 | -100,730 | -9,955 |
Other Comprehensive Income, Tax Effect: | |||
Net Unrealized Gains Arising During the Period | 11,286 | -41,715 | 4,312 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | -25 | 30 | |
The tax effect of other comprehensive income reclassification for amortization of holding gains/losses on HTM Securities, tax effect. | -277 | -3,307 | -6,340 |
Tax effect on Unrealized gain/loss on Investment Securities | 10,984 | -45,022 | -1,998 |
Net Actuarial Gains (Losses) Arising During the Period | -8,000 | 4,785 | -2,295 |
Amortization of Accumulated Benefit Plan Losses | 496 | 665 | 520 |
Amortization of Prior Service Credit Included in Net Periodic Benefit Cost | -127 | -127 | -127 |
Defined Benefit Plans, Net | -7,631 | 5,323 | -1,902 |
Other Comprehensive Income (Loss) | 3,353 | -39,699 | -3,900 |
Other Comprehensive Income, Net of Tax: | |||
Net Unrealized Gains Arising During the Period | 17,323 | -64,127 | 6,534 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -39 | 47 | |
Other Comprehensive Income Reclassification Adjustment for Amortization of Gains on Held To Maturity Securities after Tax | -426 | -5,079 | -9,736 |
Net Unrealized Gains (Losses) on Investment Securities | 16,858 | -69,206 | -3,155 |
Net Actuarial Losses Arising During the Period | -12,286 | 7,347 | -3,503 |
Amortization of Accumulated Benefit Plan Losses | 760 | 1,023 | 798 |
Amortization of Prior Service Credit Included in Net Periodic Benefit Cost | -195 | -195 | -195 |
Defined Benefit Plans | -11,721 | 8,175 | -2,900 |
Other Comprehensive Income (Loss) | $5,137 | ($61,031) | ($6,055) |
Shareholders_Equity_AOCI_rollf
Shareholders' Equity (AOCI rollforward) (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | ($31,823) | $29,208 | $35,263 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 5,037 | -56,780 | 3,031 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 100 | -4,251 | -9,086 |
Net change | 5,137 | -61,031 | -6,055 |
Balance at the end of the period | -26,686 | -31,823 | 29,208 |
Defined Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | -22,394 | -30,569 | -27,669 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -12,286 | 7,347 | -3,503 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 565 | 828 | 603 |
Net change | -11,721 | 8,175 | -2,900 |
Balance at the end of the period | -34,115 | -22,394 | -30,569 |
Available-for-sale Securities | Unrealized Gains and Losses on Net Investment Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | -1,300 | 45,996 | 39,396 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 17,323 | -47,296 | 6,553 |
Amounts Reclassified from Accumulated Other Comprehensive Income | -39 | 0 | 47 |
Net change | 17,284 | -47,296 | 6,600 |
Balance at the end of the period | 15,984 | -1,300 | 45,996 |
Held-to-maturity Securities | Unrealized Gains and Losses on Net Investment Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | -8,129 | 13,781 | 23,536 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | -16,831 | -19 |
Amounts Reclassified from Accumulated Other Comprehensive Income | -426 | -5,079 | -9,736 |
Net change | -426 | -21,910 | -9,755 |
Balance at the end of the period | ($8,555) | ($8,129) | $13,781 |
Shareholders_Equity_Income_sta
Shareholders' Equity (Income statement reclass) (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | ($74,596) | ($63,659) | ($76,214) |
Net Income | 163,042 | 150,502 | 166,076 |
Salaries and Benefits | -183,028 | -184,211 | -184,408 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income | -100 | 4,251 | 9,086 |
Amortization of Unrealized Gains(Losses) of Investment Securities Transferred from AFS to HTM [Member] | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment Income, Interest | 703 | 8,386 | 16,076 |
Provision for Income Taxes | -277 | -3,307 | -6,340 |
Net Income | 426 | 5,079 | 9,736 |
Sale of Investment Securities Available-for-Sale | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | -25 | 0 | 30 |
Net Income | 39 | 0 | -47 |
Available-for-sale Securities, Gross Realized Gain (Loss) | 64 | 0 | -77 |
Amortization of Defined Benefit Pension Items | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | 369 | 538 | 393 |
Net Income | -565 | -828 | -603 |
Income Before Provision for Income Taxes | -934 | -1,366 | -996 |
Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and Benefits | 322 | 322 | 322 |
Net Actuarial Losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and Benefits | ($1,256) | ($1,688) | ($1,318) |
Earnings_Per_Share_Details_1
Earnings Per Share (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Denominator for Basic Earnings Per Share (in shares) | 43,899,208 | 44,380,948 | 45,115,441 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 226,248 | 191,777 | 133,859 |
Denominator for Diluted Earnings Per Share (in shares) | 44,125,456 | 44,572,725 | 45,249,300 |
Antidilutive Stock Options and Restricted Stock Outstanding (in shares) | 0 | 25,101 | 522,383 |
Business_Segments_Details_1
Business Segments (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business segment financial information | |||
Effective tax rate, business segments allocation | 37.00% | ||
Net Interest Income | $379,656 | $358,907 | $377,271 |
Provision for Credit Losses | -4,864 | 0 | 979 |
Net Interest Income After Provision for Credit Losses | 384,520 | 358,907 | 376,292 |
Noninterest Income | 180,017 | 186,223 | 200,286 |
Noninterest Expense | -326,899 | -330,969 | -334,288 |
Income Before Provision for Income Taxes | 237,638 | 214,161 | 242,290 |
Provision for Income Taxes | -74,596 | -63,659 | -76,214 |
Net Income | 163,042 | 150,502 | 166,076 |
Total Assets | 14,787,208 | 14,084,280 | 13,728,372 |
Retail Banking | |||
Business segment financial information | |||
Number of branch locations through which products and services are delivered to customers | 74 | ||
Number of ATM's through which products and services are delivered to customers | 459 | ||
Net Interest Income | 183,867 | 164,597 | 177,083 |
Provision for Credit Losses | 4,783 | 8,565 | 11,916 |
Net Interest Income After Provision for Credit Losses | 179,084 | 156,032 | 165,167 |
Noninterest Income | 80,110 | 88,063 | 104,654 |
Noninterest Expense | -197,786 | -200,853 | -206,740 |
Income Before Provision for Income Taxes | 61,408 | 43,242 | 63,081 |
Provision for Income Taxes | -22,221 | -16,000 | -23,340 |
Net Income | 39,187 | 27,242 | 39,741 |
Total Assets | 4,126,551 | 3,658,495 | 3,663,287 |
Commercial Banking | |||
Business segment financial information | |||
Net Interest Income | 118,761 | 99,623 | 103,754 |
Provision for Credit Losses | -2,369 | 4,918 | -1,382 |
Net Interest Income After Provision for Credit Losses | 121,130 | 94,705 | 105,136 |
Noninterest Income | 23,120 | 26,946 | 26,408 |
Noninterest Expense | -65,952 | -64,253 | -62,165 |
Income Before Provision for Income Taxes | 78,298 | 57,398 | 69,379 |
Provision for Income Taxes | -27,228 | -19,467 | -19,864 |
Net Income | 51,070 | 37,931 | 49,515 |
Total Assets | 2,749,228 | 2,426,452 | 2,196,682 |
Investment Services | |||
Business segment financial information | |||
Net Interest Income | 10,723 | 10,552 | 12,448 |
Provision for Credit Losses | -313 | -71 | 196 |
Net Interest Income After Provision for Credit Losses | 11,036 | 10,623 | 12,252 |
Noninterest Income | 57,586 | 59,308 | 57,454 |
Noninterest Expense | -53,846 | -54,307 | -55,543 |
Income Before Provision for Income Taxes | 14,776 | 15,624 | 14,163 |
Provision for Income Taxes | -5,467 | -5,781 | -5,240 |
Net Income | 9,309 | 9,843 | 8,923 |
Total Assets | 202,645 | 189,421 | 190,383 |
Treasury and Other | |||
Business segment financial information | |||
Net Interest Income | 66,305 | 84,135 | 83,986 |
Provision for Credit Losses | -6,965 | -13,412 | -9,751 |
Net Interest Income After Provision for Credit Losses | 73,270 | 97,547 | 93,737 |
Noninterest Income | 19,201 | 11,906 | 11,770 |
Noninterest Expense | -9,315 | -11,556 | -9,840 |
Income Before Provision for Income Taxes | 83,156 | 97,897 | 95,667 |
Provision for Income Taxes | -19,680 | -22,411 | -27,770 |
Net Income | 63,476 | 75,486 | 67,897 |
Total Assets | $7,708,784 | $7,809,912 | $7,678,020 |
Employee_Benefits_Defined_cont
Employee Benefits (Defined contribution plans) (Details1 ) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
components | |||
Defined Contribution Plans | |||
Number of company contribution components, Retirement Savings Plan | 3 | ||
Fixed percentage of employer's contribution based on eligible compensation | 3.00% | ||
Employee contribution limit per calendar year (as a percent of compensation) | 50.00% | ||
Employee's contribution matched by employer (in dollars) | $1 | ||
Employer match of employee contributions upto 2% of eligible compensation | 1.25 | ||
Percentage of eligible compensation, matched $1.25 for by employer for each dollar amount contributed by participants | 2.00% | ||
Employer match of employee contributions over 2% upto 5% of eligible compensation | 0.5 | ||
Percentage of eligible compensation, matched $0.50 for by employer for each dollar amount contributed by participants, low end of range | 2.00% | ||
Percentage of eligible compensation, matched $0.50 for by employer for each dollar amount contributed by participants, high end of range | 5.00% | ||
Total expense for all components of the company's defined contribution plans | $12,100,000 | $11,200,000 | $11,800,000 |
Employee_Benefits_Defined_bene
Employee Benefits (Defined benefit and postretirement benefit plans) (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
plan | |||
Pension Benefits | |||
Employee benefits | |||
Number of defined benefit plans | 2 | ||
Reconciliation of changes in benefit obligations | |||
Benefit Obligation at Beginning of Year | $98,085,000 | $107,833,000 | |
Service Cost | 0 | 0 | 0 |
Interest Cost | 4,975,000 | 4,514,000 | 4,996,000 |
Actuarial Losses (Gains) | 16,954,000 | -7,067,000 | |
Employer Benefits Paid | -5,307,000 | -7,195,000 | |
Benefit Obligation at End of Year | 114,707,000 | 98,085,000 | 107,833,000 |
Reconciliation of changes in fair value of plan assets | |||
Fair Value of Plan Assets at Beginning of Year | 90,535,000 | 89,489,000 | |
Actual Return on Plan Assets | 4,442,000 | 7,755,000 | |
Employer Contributions | 484,000 | 486,000 | |
Employer Benefits Paid | -5,307,000 | -7,195,000 | |
Fair Value of Plan Assets at End of Year | 90,154,000 | 90,535,000 | 89,489,000 |
Funded Status at End of Year | -24,553,000 | -7,550,000 | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Net Actuarial Gains (Losses) | -35,254,000 | -25,440,000 | |
Prior Service Credit | 0 | 0 | |
Total Amounts Recognized in Accumulated Other Comprehensive Income, Net of Tax | -35,254,000 | -25,440,000 | |
Postretirement Benefits | |||
Employee benefits | |||
Retirees' age and above which Medicare supplemental plan subsidy is provided (in years) | 65 | ||
Limit on annual credit provided in HRA to eligible employees | 1,200 | ||
Reconciliation of changes in benefit obligations | |||
Benefit Obligation at Beginning of Year | 27,296,000 | 29,130,000 | |
Service Cost | 586,000 | 670,000 | 585,000 |
Interest Cost | 1,325,000 | 1,188,000 | 1,302,000 |
Actuarial Losses (Gains) | 2,674,000 | -2,949,000 | |
Employer Benefits Paid | -1,077,000 | -743,000 | |
Benefit Obligation at End of Year | 30,804,000 | 27,296,000 | 29,130,000 |
Reconciliation of changes in fair value of plan assets | |||
Fair Value of Plan Assets at Beginning of Year | 0 | 0 | |
Actual Return on Plan Assets | 0 | 0 | |
Employer Contributions | 1,077,000 | 743,000 | |
Employer Benefits Paid | -1,077,000 | -743,000 | |
Fair Value of Plan Assets at End of Year | 0 | 0 | 0 |
Funded Status at End of Year | -30,804,000 | -27,296,000 | |
Participants contributions | 700,000 | 700,000 | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Net Actuarial Gains (Losses) | 333,000 | 2,045,000 | |
Prior Service Credit | 806,000 | 1,001,000 | |
Total Amounts Recognized in Accumulated Other Comprehensive Income, Net of Tax | 1,139,000 | 3,046,000 | |
Excess retirement Plan | Pension Benefits | |||
Employee benefits | |||
Accumulated benefit obligation | $4,800,000 | $4,600,000 |
Employee_Benefits_Components_f
Employee Benefits (Components fo net Periodic benefit cost) (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits | |||
Net periodic benefit cost for pension plans and the postretirement benefit plan | |||
Service Cost | $0 | $0 | $0 |
Interest Cost | 4,975,000 | 4,514,000 | 4,996,000 |
Expected Return on Plan Assets | -5,100,000 | -5,250,000 | -5,829,000 |
Amortization of Prior Service Credit | 0 | 0 | 0 |
Amortization of Net Actuarial Losses (Gains) | 1,408,000 | 1,688,000 | 1,318,000 |
Net Periodic Benefit Cost | 1,283,000 | 952,000 | 485,000 |
Estimated amount expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year | |||
Net actuarial loss | 1,800,000 | ||
Weighted average assumptions used to determine the benefit obligations | |||
Discount Rate (as a percent) | 4.25% | 5.22% | |
Weighted average assumptions used to determine the net periodic benefit cost | |||
Discount rate (as a percent) | 5.22% | 4.29% | 5.04% |
Expected Long-Term Rate of Return on Plan Assets (as a percent) | 6.00% | 6.00% | 6.50% |
Health Care Cost Trend Rate (as a percent) | 0.00% | 0.00% | 0.00% |
A one percent change in the health care cost trend rate assumption impact on cost | |||
Defined Benefit Plan Contributions Expected in Next Fiscal Year | 500,000 | ||
Expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | |||
2015 | 6,073,000 | ||
2016 | 6,327,000 | ||
2017 | 6,605,000 | ||
2018 | 6,770,000 | ||
2019 | 7,000,000 | ||
Years 2020-2024 | 36,446,000 | ||
Postretirement Benefits | |||
Net periodic benefit cost for pension plans and the postretirement benefit plan | |||
Service Cost | 586,000 | 670,000 | 585,000 |
Interest Cost | 1,325,000 | 1,188,000 | 1,302,000 |
Expected Return on Plan Assets | 0 | 0 | 0 |
Amortization of Prior Service Credit | -322,000 | -322,000 | -322,000 |
Amortization of Net Actuarial Losses (Gains) | -152,000 | 0 | 0 |
Net Periodic Benefit Cost | 1,437,000 | 1,536,000 | 1,565,000 |
Estimated amount expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year | |||
Net gain and prior service credit | 300,000 | ||
Weighted average assumptions used to determine the benefit obligations | |||
Discount Rate (as a percent) | 4.28% | 5.22% | |
Health Care Cost Trend Rate Assumed For Next Year (as a percent) | 7.00% | 7.20% | |
Ultimate health care cost trend rate (as a percent) | 4.50% | ||
Year that reaches the ultimate health care cost trend rate | 2027 | ||
Weighted average assumptions used to determine the net periodic benefit cost | |||
Discount rate (as a percent) | 5.22% | 4.29% | 5.04% |
Expected Long-Term Rate of Return on Plan Assets (as a percent) | 0.00% | 0.00% | 0.00% |
Health Care Cost Trend Rate (as a percent) | 7.20% | 7.70% | 8.00% |
A one percent change in the health care cost trend rate assumption impact on cost | |||
Effect of one percentage increase on the total of service and interest cost components of net periodic postretirement benefit cost | 99,000 | ||
Effect of one percentage increase on the postretirement benefit obligation | 1,538,000 | ||
Effect of one percentage decrease on the total of service and interest cost components of net periodic postretirement benefit cost | -78,000 | ||
Effect of one percentage decrease on the postretirement benefit obligation | -1,219,000 | ||
Defined Benefit Plan Contributions Expected in Next Fiscal Year | 1,400,000 | ||
Expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | |||
2015 | 1,378,000 | ||
2016 | 1,631,000 | ||
2017 | 1,692,000 | ||
2018 | 1,690,000 | ||
2019 | 1,819,000 | ||
Years 2020-2024 | $10,247,000 |
Employee_Benefits_Retirement_p
Employee Benefits (Retirement plan assets) (Details 4) | 12 Months Ended |
Dec. 31, 2014 | |
D | |
Asset allocation guidelines | |
Fixed income securities, percentage of variable component in strategic targets (as a percent) | 20.00% |
Effect of market fluctuations in cash flow on target allocation limits (as a percent) | 5.00% |
Period during which asset allocation is expected to conform to range limits (in days) | 90 |
S&P 500 Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 35.00% |
MSCI EAFE Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 25.00% |
Barclays Capital Aggregate Bond Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 40.00% |
Equity Securities | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 60.00% |
Equity Securities, Domestic | Maximum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 100.00% |
Equity Securities, Domestic | Minimum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 50.00% |
Equity Securities, International | Maximum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 50.00% |
Equity Securities, International | Minimum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 0.00% |
Fixed Income Securities | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 40.00% |
Cash | Maximum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 20.00% |
Cash | Minimum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 0.00% |
Employee_Benefits_Fair_values_
Employee Benefits (Fair values of retirement plan assets) (Details 5) (Pension Benefits, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | $90,154 | $90,535 | $89,489 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 90,154 | ||
Cash | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,385 | 1,905 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,385 | ||
Equity Security - Mutual Funds: Mixed-Cap | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 33,648 | 30,155 | |
Equity Security - Mutual Funds: Mixed-Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 33,648 | ||
Equity Security - Mutual Funds: International | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 18,882 | 18,268 | |
Equity Security - Mutual Funds: International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 18,882 | ||
Equity Security - Mutual Funds: Emerging Market | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 2,053 | 1,982 | |
Equity Security - Mutual Funds: Emerging Market | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 2,053 | ||
Fixed Income - Mutual Funds | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 34,186 | 38,225 | |
Fixed Income - Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | $34,186 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based compensation | |||
Total shares authorized | 1,700,000 | ||
Shares available for future grants of stock options or restricted stock | 1,300,000 | ||
Compensation Expense | $7,870,000 | $5,546,000 | $7,537,000 |
Income Tax Benefit | 3,104,000 | 2,188,000 | 2,972,000 |
Assumptions: | |||
Weighted Average Fair Value of Stock Options Granted During the Year (in dollars per share) | $9.81 | ||
Granted (in shares) | 341,665 | ||
Average Risk Free Interest Rate (as a percent) | 1.13% | ||
Average Expected Volatility (as a percent) | 33.14% | ||
Expected Dividend Yield (as a percent) | 3.77% | ||
Expected Life (in years) | 5 years 5 months 16 days | ||
Stock Options | |||
Outstanding at the beginning of the period (in shares) | 845,547 | ||
Exercised (in shares) | 90,204 | ||
Outstanding at the end of the period (in shares) | 755,343 | 845,547 | |
Vested and Exercisable at the end of the period (in shares) | 755,343 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $46.18 | ||
Exercised (in dollars per share) | $45.27 | ||
Outstanding at the end of the period (in dollars per share) | $46.29 | $46.18 | |
Vested and Exercisable at the end of period (in dollars per share) | $46.29 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at the end of the period (in years) | 5 years 7 months | ||
Vested and Exercisable at the end of period (in years) | 5 years 7 months | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | 9,835,000 | ||
Vested and Exercisable at the end of the period | 9,835,000 | ||
Stock options activity | |||
Intrinsic Value of Stock Options Exercised | 1,209,000 | 3,262,000 | 3,907,000 |
Cash Received from Stock Options Exercised | 4,083,000 | 8,369,000 | 7,500,000 |
Tax Benefits Realized from Stock Options Exercised | 34,000 | 690,000 | 904,000 |
Total Fair Value of Stock Options that Vested | 0 | 3,731,000 | 0 |
Stock Options | |||
Share-based compensation | |||
Expiration period | 10 years | ||
Restricted Stock | |||
Restricted Stock | |||
Unrecognized compensation cost related to unvested restricted stock | 9,300,000 | ||
Weighted average period during which unrecognized compensation cost is expected to be recognized (in years) | 1 year 11 months 15 days | ||
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 239,775 | 211,526 | 80,842 |
Granted (in shares) | 155,447 | 170,991 | 187,514 |
Vested (in shares) | -130,238 | -133,245 | -54,198 |
Forfeited (in shares) | -1,538 | -9,497 | -2,632 |
Unvested at the end of the period (in shares) | 263,446 | 239,775 | 211,526 |
Weighted Average Grant Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $47.50 | $47.91 | $52.15 |
Granted (in dollars per share) | $58.45 | $47.69 | $47.42 |
Vested (in dollars per share) | $47.32 | $48.39 | $51.01 |
Forfeited (in dollars per share) | $51.19 | $47.54 | $48.86 |
Unvested at the end of the period (in dollars per share) | $53.04 | $47.50 | $47.91 |
Grant Date Fair Value of Restricted Stock that Vested During the Year | |||
Vested (in dollars) | $6,163,000 | $6,448,000 | $2,764,000 |
Restricted Stock Units (RSUs) [Member] | |||
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 0 | ||
Granted (in shares) | 105,405 | ||
Unvested at the end of the period (in shares) | 105,405 | ||
Weighted Average Grant Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $0 | ||
Granted (in dollars per share) | $55.17 | ||
Unvested at the end of the period (in dollars per share) | $55.17 | ||
Minimum | Restricted Stock | |||
Share-based compensation | |||
Vesting period, low end of range (in years) | 1 year | ||
Maximum | Restricted Stock | |||
Share-based compensation | |||
Vesting period, low end of range (in years) | 5 years |
Income_Taxes_Deferred_tax_liab
Income Taxes (Deferred tax liabilities & assets and reconciliation of statutory federal income taxes to the company's effective tax rate) (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | |||
Federal | $76,789,000 | $63,731,000 | $82,892,000 |
State | 3,018,000 | -575,000 | 10,106,000 |
Total Current | 79,807,000 | 63,156,000 | 92,998,000 |
Deferred: | |||
Federal | -5,603,000 | -231,000 | -13,104,000 |
State | 392,000 | 734,000 | -3,680,000 |
Total Deferred | -5,211,000 | 503,000 | -16,784,000 |
Provision for Income Taxes | 74,596,000 | 63,659,000 | 76,214,000 |
Net tax charge/(benefit) recorded directly to consolidated shareholders' equity | 2,700,000 | -40,600,000 | -4,700,000 |
Deferred Tax Liabilities: | |||
Accrued Pension Cost | -14,014,000 | -14,381,000 | |
Federal Home Loan Bank Stock | -6,658,000 | -8,949,000 | |
Lease Transactions | -97,864,000 | -105,761,000 | |
Energy Tax Credits | -5,716,000 | -3,805,000 | |
Net Unrealized Gains on Investments Securities | -4,830,000 | 0 | |
Deferred Loan Fees | -5,982,000 | -6,394,000 | |
Originated Mortgage Servicing Rights | -9,777,000 | -11,218,000 | |
Other | -599,000 | -552,000 | |
Gross Deferred Tax Liabilities | -145,440,000 | -151,060,000 | |
Deferred Tax Assets: | |||
Accelerated Depreciation | 9,419,000 | 10,195,000 | |
Allowance for Loan Losses | 44,877,000 | 46,635,000 | |
Net Unrealized Losses on Investment Securities | 0 | 6,154,000 | |
Minimum Pension Liability | 22,214,000 | 14,583,000 | |
Accrued Expenses | 15,622,000 | 15,449,000 | |
Postretirement Benefit Obligations | 12,884,000 | 12,741,000 | |
Capital Lease Expenses | 3,222,000 | 3,200,000 | |
Restricted Stock | 5,288,000 | 4,187,000 | |
Investment in Unincorporated Entities | 3,084,000 | 4,218,000 | |
Deductible State and Local Taxes | 5,598,000 | 7,575,000 | |
Other | 6,898,000 | 6,778,000 | |
Gross Deferred Tax Assets Before Valuation Allowance | 129,106,000 | 131,715,000 | |
Valuation Allowance | -4,656,000 | -4,162,000 | |
Gross Deferred Tax Assets After Valuation Allowance | 124,450,000 | 127,553,000 | |
Net Deferred Tax Liabilities | -20,990,000 | -23,507,000 | |
Base year reserves included in retained earnings | 18,200,000 | ||
Unrecognized deferred federal income tax liability | $7,200,000 | ||
Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate | |||
Statutory Federal Income Tax Rate (as a percent) | 35.00% | 35.00% | 35.00% |
Increase (Decrease) in Income Tax Rate Resulting From: | |||
State Taxes, Net of Federal Income Tax (as a percent) | 0.59% | 0.11% | 1.90% |
Tax Reserve Adjustments (as a percent) | 0.88% | -0.44% | 0.44% |
Leveraged Leases (as a percent) | 0.01% | 0.02% | -1.44% |
Low-Income Housing Investments (as a percent) | -0.10% | -0.51% | 0.16% |
Bank-Owned Life Insurance (as a percent) | -0.97% | -0.96% | -0.98% |
Tax Exempt Income (as a percent) | -2.83% | -2.78% | -2.31% |
Other (as a percent) | -1.19% | -0.71% | -1.31% |
Effective Tax Rate (as a percent) | 31.39% | 29.73% | 31.46% |
Income_Taxes_Unrecognized_tax_
Income Taxes (Unrecognized tax benefits) (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of liability for Unrecognized Tax Benefits | |||
Unrecognized Tax Benefits at the Beginning of the Period | $11,846,000 | $15,433,000 | $13,633,000 |
Gross Increases, Related to Tax Positions Taken in a Prior Period | 1,074,000 | 1,587,000 | 280,000 |
Gross Decreases, Related to Tax Positions Taken in a Prior Period | -314,000 | -194,000 | 0 |
Gross Increases, Related to Current Period Tax Positions | 498,000 | 1,557,000 | 1,888,000 |
Settlement with Taxing Authority | 0 | 0 | -40,000 |
Lapse of Statute of Limitations | -875,000 | -6,537,000 | -328,000 |
Unrecognized Tax Benefits at the End of the Period | 12,229,000 | 11,846,000 | 15,433,000 |
Amount related to unrecognized tax benefits that if reversed would impact effective tax rate | 11,300,000 | 10,800,000 | |
Interest and penalties expense/(benefit) related to the liability for unrecognized tax benefits | 200,000 | -1,200,000 | 500,000 |
Accrued interest and penalties related to the liability for unrecognized tax benefits | $2,200,000 | $1,900,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Notional and fair value amounts) (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Lock Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | $2,354 | $30,226 |
Fair Value | 152 | 536 |
Forward Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 5,404 | 30,798 |
Fair Value | -13 | 211 |
Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 183,283 | 202,838 |
Fair Value | 16,206 | 20,542 |
Interest Rate Swap Agreements Pay Fixed/Receive Variable Swaps | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 183,283 | 202,838 |
Fair Value | -16,240 | -20,699 |
Foreign Exchange Contracts | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 44,240 | 33,899 |
Fair Value | ($345) | ($772) |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Assets and liabilities) (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | $16,515 | $21,769 |
Liability Derivatives | 16,755 | 21,951 |
Interest Rate Lock Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 152 | 574 |
Liability Derivatives | 0 | 38 |
Forward Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 0 | 215 |
Liability Derivatives | 13 | 4 |
Interest Rate Swap Agreements | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 16,262 | 20,852 |
Liability Derivatives | 16,296 | 21,009 |
Foreign Exchange Contracts | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 101 | 128 |
Liability Derivatives | $446 | $900 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Net gains or losses) (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | $5,782 | $17,651 | $38,801 |
Interest Rate Lock Commitments | Mortgage Banking Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 3,072 | 6,092 | 37,490 |
Forward Commitments | Mortgage Banking Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | -527 | 8,085 | -1,959 |
Interest Rate Swap Agreements | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 130 | 292 | 33 |
Foreign Exchange Contracts | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | $3,107 | $3,182 | $3,237 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Conversion rate swap agreement narrative) (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Liability Derivatives | $16,755 | $21,951 | ||
Visa Class B Restricted Securities | ||||
Derivative [Line Items] | ||||
Conversion ratio to Class A shares | 0.4121 | 0.4121 | 0.4206 | |
Visa Conversion Rate Swap Agreement | ||||
Derivative [Line Items] | ||||
Liability Derivatives | 100 |
Balance_Sheet_Offsetting_Detai
Balance Sheet Offsetting (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | $688,601,000 | $770,049,000 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 688,601,000 | 770,049,000 |
Repurchase Agreements,Collateral, Right to Reclaim Securities | 688,601,000 | 770,049,000 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | 0 |
Deposits | 12,633,089,000 | 11,914,656,000 |
Interest Rate Swap Agreements | ||
Offsetting Assets and Liabilities [Line items] | ||
Net liability positions, aggregate fair value | 16,200,000 | 20,700,000 |
Institutional Counterparties | Interest Rate Swap Agreements | ||
Assets: | ||
Gross Amounts of Recognized Assets | 28,000 | 155,000 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 28,000 | 155,000 |
Derivative Asset, Not Offset, Policy Election Deduction | 28,000 | 155,000 |
Gross Amounts Not Offset in the Statements of Condition - FV of collateral pledged | 0 | 0 |
Derivative Assets, Net Amount | 0 | 0 |
Liabilities: | ||
Gross Amounts of Recognized Liabilities | 16,268,000 | 20,853,000 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 16,268,000 | 20,853,000 |
Derivative Liability, Not Offset, Policy Election Deduction | 28,000 | 155,000 |
Derivative, Collateral, Right to Reclaim Securities | 0 | 2,288,000 |
Derivative Liabilities, Net Amount | 16,240,000 | 18,410,000 |
Private Institutions | ||
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 600,000,000 | 600,000,000 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 600,000,000 | 600,000,000 |
Repurchase Agreements,Collateral, Right to Reclaim Securities | 600,000,000 | 600,000,000 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | 0 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 700,000,000 | 700,000,000 |
Government Entities | ||
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 88,601,000 | 170,049,000 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 88,601,000 | 170,049,000 |
Repurchase Agreements,Collateral, Right to Reclaim Securities | 88,601,000 | 170,049,000 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | 0 |
Deposits | 1,300,000,000 | 1,200,000,000 |
Fair value of investment securities pledged, not separately reported | $2,100,000,000 | $1,800,000,000 |
Commitments_Contingencies_and_2
Commitments, Contingencies, and Guarantees (Credit commitments) (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Credit Commitments | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 2,450,719,000 |
Unfunded Commitments to Extend Credit | |
Credit Commitments | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 2,388,432,000 |
Standby Letters of Credit | |
Credit Commitments | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 48,157,000 |
Assets secured for standby letters of credit | 30,500,000 |
Commercial Letters of Credit | |
Credit Commitments | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 14,130,000 |
Standby and Commercial Letters of Credit | Minimum | |
Credit Commitments | |
Standby and commercial letters of credit, remaining term (in months) | 1 month |
Standby and Commercial Letters of Credit | Maximum | |
Credit Commitments | |
Standby and commercial letters of credit, remaining term (in months) | 13 months |
Commitments_Contingencies_and_3
Commitments, Contingencies, and Guarantees (Rental expense and future minimum payments) (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Rental expense | |||
Minimum Rentals | $18,411,000 | $19,258,000 | $20,429,000 |
Sublease Rental Income | -6,647,000 | -6,806,000 | -5,540,000 |
Total | 11,764,000 | 12,452,000 | 14,889,000 |
Future minimum payments for capital leases | |||
2015 | 825,000 | ||
2016 | 825,000 | ||
2017 | 825,000 | ||
2018 | 825,000 | ||
2019 | 825,000 | ||
Thereafter | 27,230,000 | ||
Total Future Minimum Lease Payments | 31,355,000 | ||
Amounts Representing Interest | -20,448,000 | ||
Present Value of Net Future Minimum Lease Payments | 10,907,000 | ||
Future minimum payments for operating leases | |||
2015 | 12,062,000 | ||
2016 | 10,806,000 | ||
2017 | 9,062,000 | ||
2018 | 7,839,000 | ||
2019 | 6,834,000 | ||
Thereafter | 97,660,000 | ||
Total Future Minimum Lease Payments | 144,263,000 | ||
Minimum future rental income receivable under subleases from non-cancelable operating leases | $13,800,000 |
Commitments_Contingencies_and_4
Commitments, Contingencies, and Guarantees (Representations and warranties) (Details 3) (Residential Mortgage, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Loan | |
Residential Mortgage | |
Representations and Warranties [Line Items] | |
Unpaid principal balance of mortgage loans sold | $2,700,000,000 |
Number of mortgage loans repurchased | 8 |
Unpaid principal balance of repurchased mortgage loan | $2,100,000 |
Number of mortgage loans repurchased, delinquent | 6 |
Number of Mortgage Loans Repurchased, Pending | 0 |
Current residential mortgage loans serviced for investors as percentage of total | 99.00% |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Fair value on recurring basis) (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets: | |||
Investment Securities Available-for-Sale | $2,289,190 | $2,243,697 | $3,367,557 |
Loans Held for Sale | 5,136 | 6,435 | |
Mortgage Servicing Rights | 2,604 | 3,826 | |
Other Assets | 18,794 | 15,535 | |
Derivative Assets | 16,515 | 21,769 | |
Total Assets Measured at Fair Value on a Recurring Basis | 2,332,239 | 2,291,262 | |
Liabilities: | |||
Derivative Liabilities | 16,755 | 21,951 | |
Total Liabilities Measured at Fair Value on a Recurring Basis | 16,755 | 21,951 | |
US Treasury and Government Agencies | |||
Assets: | |||
Investment Securities Available-for-Sale | 331,258 | 397,279 | |
Debt Securities Issued by States and Political Subdivisions | |||
Assets: | |||
Investment Securities Available-for-Sale | 743,970 | 686,802 | 782,411 |
Debt Securities Issued by Corporations | |||
Assets: | |||
Investment Securities Available-for-Sale | 294,833 | 273,501 | 84,434 |
Mortgage-Backed Securities | |||
Assets: | |||
Investment Securities Available-for-Sale | 919,129 | 886,115 | 1,630,723 |
Residential - Government Agencies | |||
Assets: | |||
Investment Securities Available-for-Sale | 462,436 | 653,194 | 1,068,660 |
Residential - U.S. Government Sponsored Enterprises | |||
Assets: | |||
Investment Securities Available-for-Sale | 278,461 | 23,268 | 37,298 |
Commercial - Government Agencies | |||
Assets: | |||
Investment Securities Available-for-Sale | 178,232 | 209,653 | 524,765 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Investment Securities Available-for-Sale | 61,271 | 70,693 | |
Other Assets | 18,794 | 15,535 | |
Total Assets Measured at Fair Value on a Recurring Basis | 80,065 | 86,228 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury and Government Agencies | |||
Assets: | |||
Investment Securities Available-for-Sale | 61,271 | 70,693 | |
Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Investment Securities Available-for-Sale | 2,227,919 | 2,173,004 | |
Loans Held for Sale | 5,136 | 6,435 | |
Derivative Assets | 101 | 343 | |
Total Assets Measured at Fair Value on a Recurring Basis | 2,233,156 | 2,179,782 | |
Liabilities: | |||
Derivative Liabilities | 459 | 904 | |
Total Liabilities Measured at Fair Value on a Recurring Basis | 459 | 904 | |
Significant Other Observable Inputs (Level 2) | US Treasury and Government Agencies | |||
Assets: | |||
Investment Securities Available-for-Sale | 269,987 | 326,586 | |
Significant Other Observable Inputs (Level 2) | Debt Securities Issued by States and Political Subdivisions | |||
Assets: | |||
Investment Securities Available-for-Sale | 743,970 | 686,802 | |
Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Corporations | |||
Assets: | |||
Investment Securities Available-for-Sale | 294,833 | 273,501 | |
Significant Other Observable Inputs (Level 2) | Mortgage-Backed Securities | |||
Assets: | |||
Investment Securities Available-for-Sale | 919,129 | 886,115 | |
Significant Other Observable Inputs (Level 2) | Residential - Government Agencies | |||
Assets: | |||
Investment Securities Available-for-Sale | 462,436 | 653,194 | |
Significant Other Observable Inputs (Level 2) | Residential - U.S. Government Sponsored Enterprises | |||
Assets: | |||
Investment Securities Available-for-Sale | 278,461 | 23,268 | |
Significant Other Observable Inputs (Level 2) | Commercial - Government Agencies | |||
Assets: | |||
Investment Securities Available-for-Sale | 178,232 | 209,653 | |
Significant Other Unobservable Inputs (Level 3) | |||
Assets: | |||
Mortgage Servicing Rights | 2,604 | 3,826 | |
Derivative Assets | 16,414 | 21,426 | |
Total Assets Measured at Fair Value on a Recurring Basis | 19,018 | 25,252 | |
Liabilities: | |||
Derivative Liabilities | 16,296 | 21,047 | |
Total Liabilities Measured at Fair Value on a Recurring Basis | $16,296 | $21,047 |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (FV on recurring basis-Level 3 rollforward) (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Mortgage Servicing Rights Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Mortgage Servicing Rights, Beginning Balance | $3,826 | $4,761 |
Fair Value, Mortgage Servicing Rights, Realized and Unrealized Net Gains (Losses) Included in Net Income | -1,222 | -935 |
Fair Value, Mortgage Servicing Rights, Ending Balance | 2,604 | 3,826 |
Fair Value, Mortgage Service Rights, Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | -868 | 127 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Net Derivative Assets and Liabilities, Beginning Balance | 379 | 9,940 |
Fair Value, Net Derivative Assets and Liabilities, Realized and Unrealized Net Gains (Losses) Included in Net Income | 3,195 | 6,184 |
Fair Value, Net Derivative Assets and Liabilities, Transfers to Loans Held for Sale | -3,456 | -15,745 |
Fair Value, Net Derivative Assets and Liabilities, Ending Balance | 118 | 379 |
Fair Value, Net Derivative Assets and Liabilities,Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | $118 | $379 |
Fair_Value_of_Assets_and_Liabi4
Fair Value of Assets and Liabilities (FV on recurring or nonrecurring basis-level 3 inputs) (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Rate Lock Commitments | Pricing Model | ||
Summary of the significant unobservable inputs | ||
Weighted Average Closing Ratio (as a percent) | 93.85% | 93.76% |
Net Derivative Financial Instruments Not Designated as Hedging Instruments, at Fair Value | $152 | $536 |
Interest Rate Swap Agreements | Discounted Cash Flow | ||
Summary of the significant unobservable inputs | ||
Weighted Average Credit Factor (as a percent) | 0.21% | 0.74% |
Net Derivative Financial Instruments Not Designated as Hedging Instruments, at Fair Value | -34 | -157 |
Mortgage Servicing Rights | Discounted Cash Flow | ||
Summary of the significant unobservable inputs | ||
Weighted Average Constant Prepayment Rate (as a percent) | 11.62% | 7.98% |
Weighted Average Discount Rate (as a percent) | 10.61% | 9.70% |
Mortgage Servicing Rights, at Fair Value | $25,441 | $33,926 |
Fair_Value_of_Assets_and_Liabi5
Fair Value of Assets and Liabilities (FV on nonrecurring basis) (Details 4) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Impairment of Real Estate | $100,000 | |||
Foreclosed Real Estate | 2,311,000 | 3,205,000 | ||
Significant Other Unobservable Inputs (Level 3) | ||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Foreclosed Real Estate | 2,300,000 | |||
Mortgage Servicing Rights | ||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Valuation Allowance for Impairment of Mortgage Servicing Rights, Provisions | 57,000 | 0 | 0 | |
Servicing Asset at Amortized Cost | 22,091,000 | 24,297,000 | 20,479,000 | 17,148,000 |
Mortgage Servicing Rights | Significant Other Unobservable Inputs (Level 3) | ||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Servicing Asset at Amortized Cost | $22,100,000 |
Fair_Value_of_Assets_and_Liabi6
Fair Value of Assets and Liabilities (FV option) (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Option | ||
Aggregate Fair Value | $5,136 | $6,435 |
Residential Mortgage Loans Held For Sale | ||
Fair Value Option | ||
Aggregate Fair Value | 5,136 | 6,435 |
Aggregate Unpaid Principal | 4,740 | 6,284 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | $396 | $151 |
Fair_Value_of_Assets_and_Liabi7
Fair Value of Assets and Liabilities (Financial instruments not recorded at FV on recurring basis) (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | $4,504,495 | $4,697,587 | $3,687,676 |
Carrying Amount | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 4,466,679 | 4,744,519 | |
Loans | 6,542,719 | 5,707,133 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,434,001 | 1,317,770 | |
Securities Sold Under Agreements to Repurchase | 688,601 | 770,049 | |
Long-Term Debt | 163,005 | 165,877 | |
Fair value | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 4,504,495 | 4,697,587 | |
Loans | 7,048,757 | 6,062,147 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,437,064 | 1,322,967 | |
Securities Sold Under Agreements to Repurchase | 758,781 | 846,193 | |
Long-Term Debt | 163,911 | 167,049 | |
Fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 499,616 | 433,365 | |
Loans | 0 | 0 | |
Financial Instruments - Liabilities | |||
Time Deposits | 0 | 0 | |
Securities Sold Under Agreements to Repurchase | 0 | 0 | |
Long-Term Debt | 0 | 0 | |
Fair value | Significant Other Observable Inputs (Level 2) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 4,004,879 | 4,264,222 | |
Loans | 0 | 0 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,437,064 | 1,322,967 | |
Securities Sold Under Agreements to Repurchase | 758,781 | 846,193 | |
Long-Term Debt | 163,911 | 167,049 | |
Fair value | Significant Other Unobservable Inputs (Level 3) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 0 | 0 | |
Loans | 7,048,757 | 6,062,147 | |
Financial Instruments - Liabilities | |||
Time Deposits | 0 | 0 | |
Securities Sold Under Agreements to Repurchase | 0 | 0 | |
Long-Term Debt | $0 | $0 |
Bank_of_Hawaii_Corporation_Fin2
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Comprehensive Income) (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income | |||
Investment Securities Gains (Losses), Net | $8,063 | $0 | ($77) |
Noninterest Expense | |||
Total Noninterest Expense | 326,899 | 330,969 | 334,288 |
Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries | 237,638 | 214,161 | 242,290 |
Income Tax Benefit | -74,596 | -63,659 | -76,214 |
Comprehensive Income | 168,179 | 89,471 | 160,021 |
Parent | |||
Income | |||
Dividends and Interest from Bank of Hawaii | 136,000 | 133,000 | 117,050 |
Investment Securities Gains (Losses), Net | 7,810 | 0 | 0 |
Other Income | 690 | 727 | 570 |
Total Income | 144,500 | 133,727 | 117,620 |
Noninterest Expense | |||
Intercompany Salaries and Services | 839 | 852 | 858 |
Other Expenses | 2,067 | 2,942 | 1,795 |
Total Noninterest Expense | 2,906 | 3,794 | 2,653 |
Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries | 141,594 | 129,933 | 114,967 |
Income Tax Benefit | 225 | 2,211 | 1,848 |
Equity in Undistributed Income of Subsidiaries | 21,223 | 18,358 | 49,261 |
Net Income | 163,042 | 150,502 | 166,076 |
Comprehensive Income | $168,179 | $89,471 | $160,021 |
Bank_of_Hawaii_Corporation_Fin3
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Condition) (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Investment Securities Held-to-Maturity | $4,466,679 | $4,744,519 | ||
Goodwill | 31,517 | 31,517 | ||
Other Assets | 225,888 | 207,293 | ||
Total Assets | 14,787,208 | 14,084,280 | 13,728,372 | |
Liabilities | ||||
Other Liabilities | 139,659 | 128,168 | ||
Total Liabilities | 13,732,122 | 13,072,304 | ||
Shareholders' Equity | 1,055,086 | 1,011,976 | 1,021,665 | 1,002,667 |
Total Liabilities and Shareholders' Equity | 14,787,208 | 14,084,280 | ||
Parent | ||||
Assets | ||||
Cash with Bank of Hawaii | 68,563 | 64,657 | ||
Investment Securities Held-to-Maturity | 4,947 | 0 | ||
Goodwill | 14,129 | 14,129 | ||
Taxes Receivable and Deferred Taxes | 2,868 | 2,200 | ||
Other Assets | 7,825 | 7,938 | ||
Equity in Net Assets of Subsidiaries | 976,354 | 942,157 | ||
Total Assets | 1,074,686 | 1,031,081 | ||
Liabilities | ||||
Income Taxes Payable | 6,269 | 6,359 | ||
Other Liabilities | 13,331 | 12,746 | ||
Total Liabilities | 19,600 | 19,105 | ||
Shareholders' Equity | 1,055,086 | 1,011,976 | ||
Total Liabilities and Shareholders' Equity | $1,074,686 | $1,031,081 |
Bank_of_Hawaii_Corporation_Fin4
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Cash Flows) (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Share-Based Compensation | $7,870 | $5,546 | $7,537 |
Gain on Investments | -8,063 | 0 | 77 |
Net Change in Other Assets and Other Liabilities | -2,915 | 9,162 | 8,559 |
Net Cash Provided by Operating Activities | 209,480 | 241,963 | 222,488 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Proceeds from Sales | 16,574 | 0 | 44,844 |
Payments to Acquire Held-to-maturity Securities | -525,070 | -1,661,874 | -942,602 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | -640,071 | -471,294 | -261,394 |
Financing Activities | |||
Proceeds from Issuance of Common Stock | 9,995 | 14,495 | 13,730 |
Repurchase of Common Stock | -64,046 | -39,655 | -81,444 |
Cash Dividends Paid | -79,660 | -80,534 | -81,645 |
Net Cash Provided by (Used in) Financing Activities | 502,421 | 340,216 | -278,142 |
Cash and Cash Equivalents at Beginning of Period | 463,746 | 352,861 | 669,909 |
Cash and Cash Equivalents at End of Period | 535,576 | 463,746 | 352,861 |
Parent | |||
Operating Activities | |||
Net Income | 163,042 | 150,502 | 166,076 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Share-Based Compensation | 656 | 616 | 576 |
Gain on Investments | -7,810 | 0 | 0 |
Equity in Undistributed Income of Subsidiaries | -21,223 | -18,358 | -49,261 |
Net Change in Other Assets and Other Liabilities | 78 | 1,980 | -493 |
Net Cash Provided by Operating Activities | 134,743 | 134,740 | 116,898 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Proceeds from Sales | 7,810 | 0 | 0 |
Payments to Acquire Held-to-maturity Securities | -4,936 | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 2,874 | 0 | 0 |
Financing Activities | |||
Proceeds from Issuance of Common Stock | 9,995 | 14,495 | 13,730 |
Repurchase of Common Stock | -64,046 | -39,655 | -81,444 |
Cash Dividends Paid | -79,660 | -80,534 | -81,645 |
Net Cash Provided by (Used in) Financing Activities | -133,711 | -105,694 | -149,359 |
Net Change in Cash and Cash Equivalents | 3,906 | 29,046 | -32,461 |
Cash and Cash Equivalents at Beginning of Period | 64,657 | 35,611 | 68,072 |
Cash and Cash Equivalents at End of Period | $68,563 | $64,657 | $35,611 |