Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 21, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BANK OF HAWAII CORP | |
Entity Central Index Key | 46,195 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,501,279 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest Income | ||||
Interest and Fees on Loans and Leases | $ 73,565 | $ 65,818 | $ 144,526 | $ 129,344 |
Income on Investment Securities | ||||
Available-for-Sale | 10,273 | 10,697 | 20,471 | 21,457 |
Held-to-Maturity | 22,832 | 26,938 | 47,239 | 54,827 |
Deposits | 2 | 1 | 5 | 4 |
Funds Sold | 268 | 168 | 527 | 305 |
Other | 310 | 302 | 612 | 604 |
Total Interest Income | 107,250 | 103,924 | 213,380 | 206,541 |
Interest Expense | ||||
Deposits | 2,405 | 2,393 | 4,773 | 4,751 |
Securities Sold Under Agreements to Repurchase | 6,440 | 6,465 | 12,811 | 12,862 |
Funds Purchased | 3 | 4 | 6 | 7 |
Other Debt | 620 | 650 | 1,238 | 1,276 |
Total Interest Expense | 9,468 | 9,512 | 18,828 | 18,896 |
Net Interest Income | 97,782 | 94,412 | 194,552 | 187,645 |
Provision for Credit Losses | 0 | (2,199) | 0 | (2,199) |
Net Interest Income After Provision for Credit Losses | 97,782 | 96,611 | 194,552 | 189,844 |
Noninterest Income | ||||
Trust and Asset Management | 12,355 | 12,005 | 24,535 | 23,857 |
Mortgage Banking | 3,469 | 1,804 | 5,162 | 3,809 |
Service Charges on Deposit Accounts | 8,203 | 8,638 | 16,740 | 17,516 |
Fees, Exchange, and Other Service Charges | 13,352 | 13,370 | 26,249 | 26,309 |
Investment Securities Gains, Net | 86 | 2,079 | 10,317 | 4,239 |
Annuity and Insurance | 1,885 | 1,930 | 3,929 | 4,053 |
Bank-Owned Life Insurance | 2,088 | 1,519 | 3,822 | 3,121 |
Other | 4,487 | 3,136 | 7,478 | 6,345 |
Total Noninterest Income | 45,925 | 44,481 | 98,232 | 89,249 |
Noninterest Expense | ||||
Salaries and Benefits | 47,610 | 45,081 | 97,390 | 91,978 |
Net Occupancy | 8,605 | 9,254 | 17,938 | 18,671 |
Net Equipment | 4,826 | 4,669 | 10,114 | 9,272 |
Data Processing | 3,673 | 3,842 | 7,446 | 7,491 |
Professional Fees | 2,265 | 2,613 | 4,599 | 4,873 |
FDIC Insurance | 2,068 | 2,055 | 4,208 | 4,131 |
Other | 14,527 | 13,568 | 28,794 | 28,213 |
Total Noninterest Expense | 83,574 | 81,082 | 170,489 | 164,629 |
Income Before Provision for Income Taxes | 60,133 | 60,010 | 122,295 | 114,464 |
Provision for Income Taxes | 18,979 | 18,520 | 38,699 | 34,382 |
Net Income | $ 41,154 | $ 41,490 | $ 83,596 | $ 80,082 |
Basic Earnings Per Share (in dollars per share) | $ 0.95 | $ 0.94 | $ 1.93 | $ 1.81 |
Diluted Earnings Per Share (in dollars per share) | 0.95 | 0.94 | 1.92 | 1.81 |
Dividends Declared Per Share (in dollars per share) | $ 0.45 | $ 0.45 | $ 0.90 | $ 0.90 |
Basic Weighted Average Shares (in shares) | 43,305,813 | 44,053,899 | 43,345,667 | 44,123,030 |
Diluted Weighted Average Shares (in shares) | 43,518,349 | 44,246,431 | 43,558,664 | 44,332,838 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 41,154 | $ 41,490 | $ 83,596 | $ 80,082 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Net Unrealized Gains (Losses) on Investment Securities | (7,610) | 8,617 | (2,316) | 14,888 |
Defined Benefit Plans | 220 | 156 | 440 | 312 |
Total Other Comprehensive Income (Loss) | (7,390) | 8,773 | (1,876) | 15,200 |
Comprehensive Income | $ 33,764 | $ 50,263 | $ 81,720 | $ 95,282 |
Consolidated Statements of Cond
Consolidated Statements of Condition (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Interest-Bearing Deposits in Other Banks | $ 3,420 | $ 2,873 |
Funds Sold | 602,598 | 360,577 |
Investment Securities | ||
Available-for-Sale | 2,275,361 | 2,289,190 |
Held-to-Maturity (Fair Value of $4,240,732 and $4,504,495) | 4,199,121 | 4,466,679 |
Loans Held for Sale | 18,483 | 5,136 |
Loans and Leases | 7,428,438 | 6,897,589 |
Allowance for Loan and Lease Losses | (106,006) | (108,688) |
Net Loans and Leases | 7,322,432 | 6,788,901 |
Total Earning Assets | 14,421,415 | 13,913,356 |
Cash and Due From Banks | 150,874 | 172,126 |
Premises and Equipment, Net | 108,439 | 109,854 |
Accrued Interest Receivable | 44,475 | 44,654 |
Foreclosed Real Estate | 1,989 | 2,311 |
Mortgage Servicing Rights | 23,426 | 24,695 |
Goodwill | 31,517 | 31,517 |
Bank-Owned Life Insurance | 265,133 | 262,807 |
Other Assets | 200,775 | 225,888 |
Total Assets | 15,248,043 | 14,787,208 |
Deposits | ||
Noninterest-Bearing Demand | 4,156,847 | 3,832,943 |
Interest-Bearing Demand | 2,699,517 | 2,559,570 |
Savings | 5,044,711 | 4,806,575 |
Time | 1,189,620 | 1,434,001 |
Total Deposits | 13,090,695 | 12,633,089 |
Funds Purchased | 8,459 | 8,459 |
Securities Sold Under Agreements to Repurchase | 672,310 | 688,601 |
Other Debt | 170,816 | 173,912 |
Retirement Benefits Payable | 55,181 | 55,477 |
Accrued Interest Payable | 5,254 | 5,148 |
Taxes Payable and Deferred Taxes | 26,244 | 27,777 |
Other Liabilities | 136,145 | 139,659 |
Total Liabilities | 14,165,104 | 13,732,122 |
Shareholders’ Equity | ||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30 2015 - 57,745,324 / 43,535,020 and December 31, 2014 - 57,634,755 / 43,724,208) | 575 | 574 |
Capital Surplus | 536,782 | 531,932 |
Accumulated Other Comprehensive Loss | (28,562) | (26,686) |
Retained Earnings | 1,278,672 | 1,234,801 |
Treasury Stock, at Cost (Shares: June 30, 2015 - 14,210,304 and December 31, 2014 - 13,910,547) | (704,528) | (685,535) |
Total Shareholders’ Equity | 1,082,939 | 1,055,086 |
Total Liabilities and Shareholders’ Equity | $ 15,248,043 | $ 14,787,208 |
Consolidated Statements of Con5
Consolidated Statements of Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fair Value | $ 4,240,732 | $ 4,504,495 |
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 | 57,745,324 | 57,634,755 |
Common Stock, outstanding shares | 43,535,020 | 43,724,208 |
Treasury Stock, Shares | 14,210,304 | 13,910,547 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Beginning Balance at Dec. 31, 2013 | $ 1,011,976 | $ 572 | $ 522,505 | $ (31,823) | $ 1,151,754 | $ (631,032) |
Beginning Balance (in shares) at Dec. 31, 2013 | 44,490,385 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 80,082 | 80,082 | ||||
Other Comprehensive Income (Loss) | 15,200 | 15,200 | ||||
Share-Based Compensation | 3,820 | 3,820 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 6,755 | $ 1 | 959 | (279) | 6,074 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 274,621 | |||||
Common Stock Repurchased | (26,987) | (26,987) | ||||
Common Stock Repurchased (in shares) | (467,778) | |||||
Cash Dividends Declared ($0.90 per share) | (40,045) | (40,045) | ||||
Ending Balance at Jun. 30, 2014 | 1,050,801 | $ 573 | 527,284 | (16,623) | 1,191,512 | (651,945) |
Ending Balance (in shares) at Jun. 30, 2014 | 44,297,228 | |||||
Beginning Balance at Dec. 31, 2014 | $ 1,055,086 | $ 574 | 531,932 | (26,686) | 1,234,801 | (685,535) |
Beginning Balance (in shares) at Dec. 31, 2014 | 43,724,208 | 43,724,208 | ||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | $ 83,596 | 83,596 | ||||
Other Comprehensive Income (Loss) | (1,876) | (1,876) | ||||
Share-Based Compensation | 3,731 | 3,731 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 6,106 | $ 1 | 1,119 | (408) | 5,394 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 213,289 | |||||
Common Stock Repurchased | (24,387) | (24,387) | ||||
Common Stock Repurchased (in shares) | (402,477) | |||||
Cash Dividends Declared ($0.90 per share) | (39,317) | (39,317) | ||||
Ending Balance at Jun. 30, 2015 | $ 1,082,939 | $ 575 | $ 536,782 | $ (28,562) | $ 1,278,672 | $ (704,528) |
Ending Balance (in shares) at Jun. 30, 2015 | 43,535,020 | 43,535,020 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends Declared Per Share (in dollars per share) | $ 0.45 | $ 0.45 | $ 0.90 | $ 0.90 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities | ||
Net Income | $ 83,596 | $ 80,082 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Credit Losses | 0 | (2,199) |
Depreciation and Amortization | 6,386 | 6,172 |
Amortization of Deferred Loan and Lease Fees | (1,076) | (938) |
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 25,314 | 24,886 |
Share-Based Compensation | 3,731 | 3,820 |
Benefit Plan Contributions | (1,072) | (892) |
Deferred Income Taxes | (4,803) | (222) |
Net Gains on Sales of Loans and Leases | (1,967) | (1,650) |
Net Gains on Sales of Investment Securities | (10,317) | (4,239) |
Proceeds from Sales of Loans Held for Sale | 69,856 | 57,411 |
Originations of Loans Held for Sale | (81,374) | (52,947) |
Tax Benefits from Share-Based Compensation | (356) | (405) |
Net Change in Other Assets and Other Liabilities | 28,133 | (35,031) |
Net Cash Provided by Operating Activities | 116,051 | 73,848 |
Investment Securities Available-for-Sale: | ||
Proceeds from Prepayments and Maturities | 174,152 | 165,023 |
Proceeds from Sales | 10,384 | 12,750 |
Purchases | (177,532) | (126,791) |
Investment Securities Held-to-Maturity: | ||
Proceeds from Prepayments and Maturities | 410,311 | 374,734 |
Purchases | (154,681) | (347,876) |
Net Change in Loans and Leases | (535,834) | (336,068) |
Premises and Equipment, Net | (4,971) | (5,651) |
Net Cash Used in Investing Activities | (278,171) | (263,879) |
Financing Activities | ||
Net Change in Deposits | 457,606 | 755,378 |
Net Change in Short-Term Borrowings | (16,291) | (25,938) |
Tax Benefits from Share-Based Compensation | 356 | 405 |
Proceeds from Issuance of Common Stock | 5,469 | 6,249 |
Repurchase of Common Stock | (24,387) | (26,987) |
Cash Dividends Paid | (39,317) | (40,045) |
Net Cash Provided by Financing Activities | 383,436 | 669,062 |
Net Change in Cash and Cash Equivalents | 221,316 | 479,031 |
Cash and Cash Equivalents at End of Period | 756,892 | 942,777 |
Cash and Cash Equivalents at Beginning of Period | 535,576 | 463,746 |
Supplemental Information | ||
Cash Paid for Interest | 18,313 | 18,170 |
Cash Paid for Income Taxes | 34,339 | 27,696 |
Non-Cash Investing Activities: | ||
Transfer from Loans to Foreclosed Real Estate | 83 | 3,311 |
Transfer of Portfolio Loans and Leases to Held-for-sale | $ 61,526 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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 Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. In the opinion of management, the consolidated financial statements reflect normal recurring adjustments necessary for a fair presentation of the results for the interim periods. Certain prior period information has been reclassified to conform to the current period presentation. These statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . Use of Estimates in the Preparation of Financial Statements 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. Accounting Standards Adopted in 2015 In January 2014, the FASB issued ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." 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 (see Note 5 to the Consolidated Financial Statements). The Company adopted ASU No. 2014-01 effective January 1, 2015. 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. Prior to adoption of ASU No. 2014-01, the Company accounted for such investments using the effective yield method and continued to do so for these pre-existing investments after adopting ASU No. 2014-01. The Company expects future investments to meet the criteria required for the proportional amortization method and plans to make such an accounting policy election. There were no new investments being amortized since the adoption of ASU No. 2014-01 on January 1, 2015, and therefore, the adoption of ASU No. 2014-01 has not had 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. The Company adopted ASU No. 2014-04 effective January 1, 2015. The adoption of ASU No. 2014-04 did not have a material impact 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, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 6 to the Consolidated Financial Statements). The Company adopted the amendments in this ASU effective January 1, 2015. As of June 30, 2015 , 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. 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. The Company adopted ASU No. 2014-12 effective January 1, 2015. As of June 30, 2015 , 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 did not 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. The Company adopted ASU No. 2014-14 effective January 1, 2015. The adoption of ASU No. 2014-14 did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Pending Adoption 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. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e., interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e., interim and annual reporting periods beginning after December 15, 2016). 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 February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” This ASU affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of ASU No. 2015-02 is not expected to have a material impact on the Company's Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company’s current method of accounting for fees paid in a cloud computing arrangement is consistent with the accounting guidance provided by ASU No. 2015-05. Therefore, the adoption of ASU No. 2015-05 is not expected to have a material impact on the Company's Consolidated Financial Statements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2015 and December 31, 2014 were as follows: (dollars in thousands) Amortized Cost Gross Gross Fair Value June 30, 2015 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 365,844 $ 5,048 $ (127 ) $ 370,765 Debt Securities Issued by States and Political Subdivisions 731,724 18,911 (1,776 ) 748,859 Debt Securities Issued by Corporations 313,196 421 (3,756 ) 309,861 Mortgage-Backed Securities: Residential - Government Agencies 379,489 9,085 (1,211 ) 387,363 Residential - U.S. Government-Sponsored Enterprises 303,170 2,304 (703 ) 304,771 Commercial - Government Agencies 159,862 — (6,120 ) 153,742 Total Mortgage-Backed Securities 842,521 11,389 (8,034 ) 845,876 Total $ 2,253,285 $ 35,769 $ (13,693 ) $ 2,275,361 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 559,587 $ 3,401 $ (177 ) $ 562,811 Debt Securities Issued by States and Political Subdivisions 247,783 13,173 — 260,956 Debt Securities Issued by Corporations 159,031 1,202 (1,408 ) 158,825 Mortgage-Backed Securities: Residential - Government Agencies 2,517,442 38,545 (15,600 ) 2,540,387 Residential - U.S. Government-Sponsored Enterprises 417,478 2,749 (80 ) 420,147 Commercial - Government Agencies 297,800 1,970 (2,164 ) 297,606 Total Mortgage-Backed Securities 3,232,720 43,264 (17,844 ) 3,258,140 Total $ 4,199,121 $ 61,040 $ (19,429 ) $ 4,240,732 December 31, 2014 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 The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2015 . 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 Cost Fair Value Available-for-Sale: Due in One Year or Less $ 85,358 $ 85,907 Due After One Year Through Five Years 436,379 437,170 Due After Five Years Through Ten Years 490,364 497,559 Due After Ten Years 93,204 99,012 1,105,305 1,119,648 Debt Securities Issued by Government Agencies 305,459 309,837 Mortgage-Backed Securities: Residential - Government Agencies 379,489 387,363 Residential - U.S. Government-Sponsored Enterprises 303,170 304,771 Commercial - Government Agencies 159,862 153,742 Total Mortgage-Backed Securities 842,521 845,876 Total $ 2,253,285 $ 2,275,361 Held-to-Maturity: Due in One Year or Less $ 79,884 $ 80,195 Due After One Year Through Five Years 490,508 493,749 Due After Five Years Through Ten Years 270,234 275,890 Due After Ten Years 125,775 132,758 966,401 982,592 Mortgage-Backed Securities: Residential - Government Agencies 2,517,442 2,540,387 Residential - U.S. Government-Sponsored Enterprises 417,478 420,147 Commercial - Government Agencies 297,800 297,606 Total Mortgage-Backed Securities 3,232,720 3,258,140 Total $ 4,199,121 $ 4,240,732 Investment securities with carrying values of $2.7 billion and $2.8 billion as of June 30, 2015 and December 31, 2014 , 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 three and six months ended June 30, 2015 and 2014 . Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Gross Gains on Sales of Investment Securities $ 86 $ 2,079 $ 10,317 $ 4,239 Gross Losses on Sales of Investment Securities — — — — Net Gains on Sales of Investment Securities $ 86 $ 2,079 $ 10,317 $ 4,239 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 Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2015 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 58,296 $ (102 ) $ 5,178 $ (25 ) $ 63,474 $ (127 ) Debt Securities Issued by States and Political Subdivisions 193,853 (1,776 ) — — 193,853 (1,776 ) Debt Securities Issued by Corporations 126,177 (1,843 ) 143,190 (1,913 ) 269,367 (3,756 ) Mortgage-Backed Securities: Residential - Government Agencies 17,450 (10 ) 10,508 (1,201 ) 27,958 (1,211 ) Residential - U.S. Government-Sponsored Enterprises 141,971 (703 ) — — 141,971 (703 ) Commercial - Government Agencies — — 153,743 (6,120 ) 153,743 (6,120 ) Total Mortgage-Backed Securities 159,421 (713 ) 164,251 (7,321 ) 323,672 (8,034 ) Total $ 537,747 $ (4,434 ) $ 312,619 $ (9,259 ) $ 850,366 $ (13,693 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 60,215 $ (101 ) $ 30,169 $ (76 ) $ 90,384 $ (177 ) Debt Securities Issued by Corporations 4,204 (1 ) 75,540 (1,407 ) 79,744 (1,408 ) Mortgage-Backed Securities: Residential - Government Agencies 482,495 (3,675 ) 469,731 (11,925 ) 952,226 (15,600 ) Residential - U.S. Government-Sponsored Enterprises 86,791 (80 ) — — 86,791 (80 ) Commercial - Government Agencies 110,069 (994 ) 56,238 (1,170 ) 166,307 (2,164 ) Total Mortgage-Backed Securities 679,355 (4,749 ) 525,969 (13,095 ) 1,205,324 (17,844 ) Total $ 743,774 $ (4,851 ) $ 631,678 $ (14,578 ) $ 1,375,452 $ (19,429 ) December 31, 2014 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,729 $ (2 ) $ 5,546 $ (38 ) $ 7,275 $ (40 ) Debt Securities Issued by States and Political Subdivisions 78,068 (305 ) 94,543 (1,140 ) 172,611 (1,445 ) 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 ) 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 ) The Company does not believe that the investment securities that were in an unrealized loss position as of June 30, 2015 , which were 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 June 30, 2015 and December 31, 2014 , the gross unrealized losses reported for mortgage-backed securities were primarily 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 basis, which may be at maturity. Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Taxable $ 27,776 $ 32,316 $ 57,068 $ 65,743 Non-Taxable 5,329 5,319 10,642 10,541 Total Interest Income from Investment Securities $ 33,105 $ 37,635 $ 67,710 $ 76,284 As of June 30, 2015 , included in the Company's investment securities portfolio were debt securities issued by political subdivisions within the State of Hawaii of $590.4 million , representing 58% of the total fair value of the Company's municipal debt securities. Of the entire Hawaii municipal bond portfolio, 91% 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 77% of the Company's Hawaii municipal bond holdings were general obligation issuances. As of June 30, 2015 , 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 June 30, 2015 and December 31, 2014 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines (“FHLB Des Moines”) stock and Federal Reserve Bank stock was as follows: (dollars in thousands) June 30, December 31, Federal Home Loan Bank Stock $ 16,000 $ 47,075 Federal Reserve Bank Stock 19,418 19,299 Total $ 35,418 $ 66,374 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 recognizing temporary declines in value. Effective May 31, 2015, FHLB Des Moines completed its previously announced merger with the Federal Home Loan Bank of Seattle (“FHLB Seattle”). The continuing bank, FHLB Des Moines, remains headquartered in Des Moines with a western regional office in Seattle. Prior to the merger, the Company held stock in FHLB Seattle. Pursuant to the terms of the Merger Agreement, each share of FHLB Seattle stock was converted into one share of FHLB Des Moines stock. In addition, upon the merger, the Company's excess FHLB stock was redeemed and the Company’s membership effectively transferred to FHLB Des Moines. The merger did not have a material impact on the Company's Consolidated Financial Statements or the Company's dealings with the continuing bank. 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, including 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 June 30, 2015 , the conversion ratio was 1.6483 . During the first six months of 2015 , the Company recorded a $10.1 million net gain on the sale of 95,000 Visa Class B 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 outcome of the Visa litigation mentioned above, the remaining 293,214 Class B shares ( 483,305 Class A equivalents) that the Company owns are carried at a zero cost basis. The Company also contributed 9,300 Visa Class B restricted shares to the Bank of Hawaii Foundation during the first six months of 2015 . The contribution had no impact on noninterest expense; however, the contribution favorably impacted our effective tax rate in 2015 . |
Loans and Leases and the Allowa
Loans and Leases and the Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Loans and Leases and the 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 June 30, 2015 and December 31, 2014 : (dollars in thousands) June 30, December 31, Commercial Commercial and Industrial $ 1,173,259 $ 1,055,243 Commercial Mortgage 1,528,685 1,437,513 Construction 118,714 109,183 Lease Financing 222,113 226,189 Total Commercial 3,042,771 2,828,128 Consumer Residential Mortgage 2,787,847 2,571,090 Home Equity 931,191 866,688 Automobile 352,128 323,848 Other 1 314,501 307,835 Total Consumer 4,385,667 4,069,461 Total Loans and Leases $ 7,428,438 $ 6,897,589 1 Comprised of other revolving credit, installment, and lease financing. The majority of the Company's lending activity is with customers located in the State of Hawaii. A substantial portion of the Company's real estate loans are secured by real estate in Hawaii. Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income were $1.8 million and $0.6 million for the three months ended June 30, 2015 and 2014 , respectively, and $2.3 million and $1.3 million for the six months ended June 30, 2015 and 2014 , respectively. Allowance for Loan and Lease Losses (the “Allowance”) The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2015 and 2014 . 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 June 30, 2015 and 2014 . (dollars in thousands) Commercial Consumer Total Three Months Ended June 30, 2015 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,834 $ 41,627 $ 107,461 Loans and Leases Charged-Off (255 ) (3,241 ) (3,496 ) Recoveries on Loans and Leases Previously Charged-Off 486 1,555 2,041 Net Loans and Leases Recovered (Charged-Off) 231 (1,686 ) (1,455 ) Provision for Credit Losses 940 (940 ) — Balance at End of Period $ 67,005 $ 39,001 $ 106,006 Six Months Ended June 30, 2015 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 64,551 $ 44,137 $ 108,688 Loans and Leases Charged-Off (490 ) (7,094 ) (7,584 ) Recoveries on Loans and Leases Previously Charged-Off 1,222 3,680 4,902 Net Loans and Leases Recovered (Charged-Off) 732 (3,414 ) (2,682 ) Provision for Credit Losses 1,722 (1,722 ) — Balance at End of Period $ 67,005 $ 39,001 $ 106,006 As of June 30, 2015 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 2,160 $ 3,405 $ 5,565 Collectively Evaluated for Impairment 64,845 35,596 100,441 Total $ 67,005 $ 39,001 $ 106,006 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 27,512 $ 39,267 $ 66,779 Collectively Evaluated for Impairment 3,015,259 4,346,400 7,361,659 Total $ 3,042,771 $ 4,385,667 $ 7,428,438 Three Months Ended June 30, 2014 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 71,390 $ 42,736 $ 114,126 Loans and Leases Charged-Off (815 ) (3,182 ) (3,997 ) Recoveries on Loans and Leases Previously Charged-Off 2,156 3,752 5,908 Net Loans and Leases Recovered (Charged-Off) 1,341 570 1,911 Provision for Credit Losses (845 ) (1,354 ) (2,199 ) Balance at End of Period $ 71,886 $ 41,952 $ 113,838 Six Months Ended June 30, 2014 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 71,446 $ 44,008 $ 115,454 Loans and Leases Charged-Off (1,634 ) (6,401 ) (8,035 ) Recoveries on Loans and Leases Previously Charged-Off 3,097 5,521 8,618 Net Loans and Leases Recovered (Charged-Off) 1,463 (880 ) 583 Provision for Credit Losses (1,023 ) (1,176 ) (2,199 ) Balance at End of Period $ 71,886 $ 41,952 $ 113,838 As of June 30, 2014 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 8,693 $ 3,332 $ 12,025 Collectively Evaluated for Impairment 63,193 38,620 101,813 Total $ 71,886 $ 41,952 $ 113,838 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 27,089 $ 38,007 $ 65,096 Collectively Evaluated for Impairment 2,666,419 3,694,838 6,361,257 Total $ 2,693,508 $ 3,732,845 $ 6,426,353 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 generally 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 June 30, 2015 and December 31, 2014 . June 30, 2015 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,119,752 $ 1,461,791 $ 116,971 $ 221,647 $ 2,920,161 Special Mention 16,460 24,289 — 83 40,832 Classified 37,047 42,605 1,743 383 81,778 Total $ 1,173,259 $ 1,528,685 $ 118,714 $ 222,113 $ 3,042,771 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 2,772,013 $ 926,305 $ 351,806 $ 313,723 $ 4,363,847 Classified 15,834 4,886 322 778 21,820 Total $ 2,787,847 $ 931,191 $ 352,128 $ 314,501 $ 4,385,667 Total Recorded Investment in Loans and Leases $ 7,428,438 December 31, 2014 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total 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 Mortgage Home Equity Automobile Other 1 Total 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 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 June 30, 2015 and December 31, 2014 . (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Past Due 90 Days or More Non-Accrual Total Past Due and Non-Accrual Current Total Loans and Leases Non-Accrual Loans and Leases that are Current 2 As of June 30, 2015 Commercial Commercial and Industrial $ 482 $ 2,312 $ 750 $ 8,299 $ 11,843 $ 1,161,416 $ 1,173,259 $ 2,813 Commercial Mortgage — 31 — 716 747 1,527,938 1,528,685 492 Construction — — — — — 118,714 118,714 — Lease Financing — — — — — 222,113 222,113 — Total Commercial 482 2,343 750 9,015 12,590 3,030,181 3,042,771 3,305 Consumer Residential Mortgage 7,678 2,335 4,789 14,918 29,720 2,758,127 2,787,847 3,439 Home Equity 2,226 1,271 2,395 3,528 9,420 921,771 931,191 1,361 Automobile 7,135 1,206 323 — 8,664 343,464 352,128 — Other 1 2,446 1,789 1,395 — 5,630 308,871 314,501 — Total Consumer 19,485 6,601 8,902 18,446 53,434 4,332,233 4,385,667 4,800 Total $ 19,967 $ 8,944 $ 9,652 $ 27,461 $ 66,024 $ 7,362,414 $ 7,428,438 $ 8,105 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 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 June 30, 2015 and December 31, 2014 . (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses June 30, 2015 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 12,604 $ 17,915 $ — Commercial Mortgage 6,973 6,973 — Construction 1,647 1,647 — Total Commercial 21,224 26,535 — Total Impaired Loans with No Related Allowance Recorded $ 21,224 $ 26,535 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 6,288 $ 12,888 $ 2,160 Total Commercial 6,288 12,888 2,160 Consumer Residential Mortgage 31,185 37,268 3,265 Home Equity 1,191 1,191 14 Automobile 5,787 5,787 94 Other 1 1,104 1,104 32 Total Consumer 39,267 45,350 3,405 Total Impaired Loans with an Allowance Recorded $ 45,555 $ 58,238 $ 5,565 Impaired Loans: Commercial $ 27,512 $ 39,423 $ 2,160 Consumer 39,267 45,350 3,405 Total Impaired Loans $ 66,779 $ 84,773 $ 5,565 December 31, 2014 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 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 three and six months ended June 30, 2015 and 2014 . Three Months Ended Three Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 12,201 $ 110 $ 11,275 $ 66 Commercial Mortgage 6,690 66 7,135 56 Construction 1,658 27 1,696 22 Total Commercial 20,549 203 20,106 144 Consumer Other 1 — — 15 — Total Consumer — — 15 — Total Impaired Loans with No Related Allowance Recorded $ 20,549 $ 203 $ 20,121 $ 144 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 6,250 $ 28 $ 8,347 $ 27 Total Commercial 6,250 28 8,347 27 Consumer Residential Mortgage 31,455 264 31,368 244 Home Equity 1,197 11 995 9 Automobile 5,667 111 5,080 106 Other 1 1,042 27 437 10 Total Consumer 39,361 413 37,880 369 Total Impaired Loans with an Allowance Recorded $ 45,611 $ 441 $ 46,227 $ 396 Impaired Loans: Commercial $ 26,799 $ 231 $ 28,453 $ 171 Consumer 39,361 413 37,895 369 Total Impaired Loans $ 66,160 $ 644 $ 66,348 $ 540 Six Months Ended Six Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 11,388 $ 208 $ 11,753 $ 158 Commercial Mortgage 6,620 131 9,722 111 Construction 1,668 54 1,483 38 Total Commercial 19,676 393 22,958 307 Consumer Other 1 — — 10 — Total Consumer — — 10 — Total Impaired Loans with No Related Allowance Recorded $ 19,676 $ 393 $ 22,968 $ 307 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 6,561 $ 54 $ 8,832 $ 55 Total Commercial 6,561 54 8,832 55 Consumer Residential Mortgage 31,747 531 31,691 480 Home Equity 1,135 19 928 14 Automobile 5,569 215 5,114 213 Other 1 999 49 401 18 Total Consumer 39,450 814 38,134 725 Total Impaired Loans with an Allowance Recorded $ 46,011 $ 868 $ 46,966 $ 780 Impaired Loans: Commercial $ 26,237 $ 447 $ 31,790 $ 362 Consumer 39,450 814 38,144 725 Total Impaired Loans $ 65,687 $ 1,261 $ 69,934 $ 1,087 1 Comprised of other revolving credit and installment financing. For the three and six months ended June 30, 2015 and 2014 , the amounts of interest income recognized by the Company within the periods that the loans were impaired were primarily related to loans modified in a troubled debt restructuring that remained on accrual status. For the three and six months ended June 30, 2015 and 2014 , the amount of interest income recognized using a cash-basis method of accounting during the periods 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 $63.2 million and $60.2 million as of June 30, 2015 and December 31, 2014 , respectively. There were no commitments to lend additional funds on loans modified in a TDR as of June 30, 2015 and December 31, 2014 . 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 involved extending the interest-only monthly 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 consumer and commercial 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 three and six months ended June 30, 2015 and 2014 . Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 22 $ 4,535 $ 2 7 $ 1,429 $ 2 Commercial Mortgage 1 624 62 — — — Total Commercial 23 5,159 64 7 1,429 2 Consumer Residential Mortgage 5 1,414 92 4 1,033 25 Home Equity — — — 1 90 1 Automobile 40 888 14 35 603 8 Other 2 33 254 7 12 106 4 Total Consumer 78 2,556 113 52 1,832 38 Total 101 $ 7,715 $ 177 59 $ 3,261 $ 40 Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 27 $ 4,611 $ 3 12 $ 4,177 $ 2 Commercial Mortgage 2 1,115 62 1 349 — Total Commercial 29 5,726 65 13 4,526 2 Consumer Residential Mortgage 10 3,488 136 9 3,330 57 Home Equity 2 203 2 2 161 3 Automobile 75 1,645 27 70 1,185 16 Other 2 53 383 11 21 187 6 Total Consumer 140 5,719 176 102 4,863 82 Total 169 $ 11,445 $ 241 115 $ 9,389 $ 84 1 The period end balances reflect all 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, all loans modified in a TDR that defaulted during the three and six months ended June 30, 2015 and 2014 , 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. Three Months Ended Three Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Commercial Commercial and Industrial 1 $ 4,471 2 $ 768 Total Commercial 1 4,471 2 768 Consumer Automobile 5 86 3 55 Other 2 12 70 3 23 Total Consumer 17 156 6 78 Total 18 $ 4,627 8 $ 846 Six Months Ended Six Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Commercial Commercial and Industrial 1 $ 4,471 2 $ 768 Total Commercial 1 4,471 2 768 Consumer Residential Mortgage 1 305 2 514 Automobile 7 120 5 75 Other 2 16 99 4 31 Total Consumer 24 524 11 620 Total 25 $ 4,995 13 $ 1,388 1 The period end balances reflect all 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. Commercial and consumer 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. Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $8.0 million as of June 30, 2015 . |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2015 | |
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 $2.8 billion as of June 30, 2015 and $2.9 billion as of December 31, 2014 . 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 13 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 $1.8 million and $2.0 million for the three months ended June 30, 2015 and 2014 , and $3.7 million and $4.0 million for the six months ended June 30, 2015 and 2014 . 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 three and six months ended June 30, 2015 and 2014 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Balance at Beginning of Period $ 2,277 $ 3,381 $ 2,604 $ 3,826 Change in Fair Value: Due to Change in Valuation Assumptions 1 — (322 ) (251 ) (671 ) Due to Payoffs (89 ) (99 ) (165 ) (195 ) Total Changes in Fair Value of Mortgage Servicing Rights (89 ) (421 ) (416 ) (866 ) Balance at End of Period $ 2,188 $ 2,960 $ 2,188 $ 2,960 1 Primarily represents changes in discount rates and loan repayment rate assumptions, mostly due to changes in interest rates. For the three and six months ended June 30, 2015 and 2014 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method, net of valuation allowance, was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Balance at Beginning of Period $ 21,366 $ 23,997 $ 22,091 $ 24,297 Servicing Rights that Resulted From Asset Transfers 551 210 685 564 Amortization (756 ) (698 ) (1,595 ) (1,352 ) Valuation Allowance Provision 77 (72 ) 57 (72 ) Balance at End of Period $ 21,238 $ 23,437 $ 21,238 $ 23,437 Valuation Allowance: Balance at Beginning of Period $ (77 ) $ — $ (57 ) $ — Valuation Allowance Provision 77 (72 ) 57 (72 ) Balance at End of Period $ — $ (72 ) $ — $ (72 ) Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method Beginning of Period $ 21,431 $ 28,303 $ 22,837 $ 30,100 End of Period $ 26,205 $ 25,848 $ 26,205 $ 25,848 The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of June 30, 2015 and December 31, 2014 were as follows: June 30, December 31, 2014 Weighted-Average Constant Prepayment Rate 1 8.50 % 11.62 % Weighted-Average Life (in years) 7.67 6.28 Weighted-Average Note Rate 4.25 % 4.28 % Weighted-Average Discount Rate 2 9.56 % 10.61 % 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 June 30, 2015 and December 31, 2014 is presented in the following table. (dollars in thousands) June 30, December 31, Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (315 ) $ (265 ) Decrease in fair value from 50 bps adverse change (625 ) (524 ) Discount Rate Decrease in fair value from 25 bps adverse change (315 ) (250 ) Decrease in fair value from 50 bps adverse change (623 ) (495 ) 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. |
Low Income Housing Tax Credit P
Low Income Housing Tax Credit Partnerships | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Low Income Housing Tax Credit Partnerships | Affordable Housing Projects Tax Credit Partnerships The Company makes certain equity investments in various limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity. The Company is a limited partner in each LIHTC Partnership. Each limited partnership is managed by an unrelated third party general partner who exercises full control over the affairs of the limited partnership. The general partner has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership. Duties entrusted to the general partner of each limited partnership include, but are not limited to: investment in operating companies, company expenditures, investment of excess funds, borrowing funds, employment of agents, disposition of fund property, prepayment and refinancing of liabilities, votes and consents, contract authority, disbursement of funds, accounting methods, tax elections, bank accounts, insurance, litigation, cash reserve, and use of working capital reserve funds. Except for limited rights granted to consent to certain transactions, the limited partner(s) may not participate in the operation, management, or control of the limited partnership’s business, transact any business in the limited partnership’s name or have any power to sign documents for or otherwise bind the limited partnership. In addition, the general partner may only be removed by the limited partner(s) in the event the general partner fails to comply with the terms of the agreement or is negligent in performing its duties. The general partner of each limited partnership has both the power to direct the activities which most significantly affect the performance of each partnership and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Therefore, the Company has determined that it is not the primary beneficiary of any LIHTC partnership. The Company uses the effective yield method to account for its pre-2015 investments in these entities. Beginning January 1, 2015, any new investments that meet the requirements of the proportional amortization method will be recognized using the proportional amortization method. As of June 30, 2015 , there are no investments accounted for under the proportional amortization method. The Company's net affordable housing tax credit investments and related unfunded commitments were $72.6 million and $68.5 million as of June 30, 2015 and December 31, 2014 , respectively, and are included in other assets in the consolidated statements of condition. Unfunded Commitments As of June 30, 2015 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2015 $ 12,668 2016 20,668 2017 1,148 2018 15 2019 75 Thereafter 67 Total Unfunded Commitments $ 34,641 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2015 and 2014 . Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Effective Yield Method Tax credits and other tax benefits recognized $ 3,353 $ 2,599 $ 6,742 $ 5,310 Amortization Expense in Provision for Income Taxes 1,998 1,358 3,891 2,760 There were no sales or impairment losses of LIHTC investments for the six months ended June 30, 2015 and 2014 . |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2015 | |
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 $15.0 million and $16.2 million as of June 30, 2015 and December 31, 2014 , respectively. See Note 11 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 pledged by the Company 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 Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential risk of over-collateralization in the event of counterparty default. The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of June 30, 2015 , disaggregated by the class of collateral pledged. Remaining Contractual Maturity of Repurchase Agreements (dollars in thousands) Up to 91-365 days 1-3 Years After Total June 30, 2015 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 76,802 $ 235,067 $ 311,869 Debt Securities Issued by States and Political Subdivisions 17,701 47,891 4,102 — 69,694 Mortgage-Backed Securities: Residential - Government Agencies 18,857 2,957 50,834 109,654 182,302 Residential - U.S. Government-Sponsored Enterprises 5,802 — 22,364 80,279 108,445 Total $ 42,360 $ 50,848 $ 154,102 $ 425,000 $ 672,310 The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of June 30, 2015 and December 31, 2014 . 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 Recognized in the Statements of Condition Gross Amounts Offset in the Statements of Condition Net Amounts Presented in the Statements of Condition Gross Amounts Not Offset in the Statements of Condition (dollars in thousands) Netting Adjustments per Master Netting Arrangements Fair Value of Collateral Pledged 1 Net Amount June 30, 2015 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ — $ — $ — $ — $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 15,039 — 15,039 — — 15,039 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 72,310 — 72,310 — 72,310 — $ 672,310 $ — $ 672,310 $ — $ 672,310 $ — 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 $ — 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 investment securities pledged was $0.7 billion as of June 30, 2015 and December 31, 2014 . 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 as of June 30, 2015 and December 31, 2014 . The investment securities pledged as of June 30, 2015 and December 31, 2014 had a fair value of $2.0 billion and $2.1 billion , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 : (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2015 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (13,018 ) $ (5,132 ) $ (7,886 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 455 179 276 Net Unrealized Gains (Losses) on Investment Securities (12,563 ) (4,953 ) (7,610 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 444 175 269 Amortization of Prior Service Credit (80 ) (31 ) (49 ) Defined Benefit Plans, Net 364 144 220 Other Comprehensive Income (Loss) $ (12,199 ) $ (4,809 ) $ (7,390 ) Three Months Ended June 30, 2014 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 14,621 $ 5,764 $ 8,857 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (64 ) (25 ) $ (39 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 (332 ) (131 ) (201 ) Net Unrealized Gains (Losses) on Investment Securities 14,225 5,608 8,617 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 338 133 205 Amortization of Prior Service Credit (80 ) (31 ) (49 ) Defined Benefit Plans, Net 258 102 156 Other Comprehensive Income (Loss) $ 14,483 $ 5,710 $ 8,773 Six Months Ended June 30, 2015 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (4,307 ) $ (1,697 ) $ (2,610 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 485 191 294 Net Unrealized Gains (Losses) on Investment Securities (3,822 ) (1,506 ) (2,316 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 887 349 538 Amortization of Prior Service Credit (161 ) (63 ) (98 ) Defined Benefit Plans, Net 726 286 440 Other Comprehensive Income (Loss) $ (3,096 ) $ (1,220 ) $ (1,876 ) Six Months Ended June 30, 2014 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 25,318 $ 9,988 $ 15,330 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (64 ) (25 ) $ (39 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 (665 ) (262 ) (403 ) Net Unrealized Gains (Losses) on Investment Securities 24,589 9,701 14,888 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 677 267 410 Amortization of Prior Service Credit (161 ) (63 ) (98 ) Defined Benefit Plans, Net 516 204 312 Other Comprehensive Income (Loss) $ 25,105 $ 9,905 $ 15,200 1 The amount relates to the amortization/accretion of unrealized net 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, for the three and six months ended June 30, 2015 and 2014 : (dollars in thousands) Investment Securities-Available-for-Sale Investment Securities-Held-to-Maturity Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, 2015 Balance at Beginning of Period $ 21,260 $ (8,537 ) $ (33,895 ) $ (21,172 ) Other Comprehensive Income (Loss) Before Reclassifications (7,886 ) — — (7,886 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 276 220 496 Total Other Comprehensive Income (Loss) (7,886 ) 276 220 (7,390 ) Balance at End of Period $ 13,374 $ (8,261 ) $ (33,675 ) $ (28,562 ) Three Months Ended June 30, 2014 Balance at Beginning of Period $ 5,173 $ (8,331 ) $ (22,238 ) $ (25,396 ) Other Comprehensive Income (Loss) Before Reclassifications 8,857 — — 8,857 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (39 ) (201 ) 156 (84 ) Total Other Comprehensive Income (Loss) 8,818 (201 ) 156 8,773 Balance at End of Period $ 13,991 $ (8,532 ) $ (22,082 ) $ (16,623 ) Six Months Ended June 30, 2015 Balance at Beginning of Period $ 15,984 $ (8,555 ) $ (34,115 ) $ (26,686 ) Other Comprehensive Income (Loss) Before Reclassifications (2,610 ) — — (2,610 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 294 440 734 Total Other Comprehensive Income (Loss) (2,610 ) 294 440 (1,876 ) Balance at End of Period $ 13,374 $ (8,261 ) $ (33,675 ) $ (28,562 ) Six Months Ended June 30, 2014 Balance at Beginning of Period $ (1,300 ) $ (8,129 ) $ (22,394 ) $ (31,823 ) Other Comprehensive Income (Loss) Before Reclassifications 15,330 — — 15,330 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (39 ) (403 ) 312 (130 ) Total Other Comprehensive Income (Loss) 15,291 (403 ) 312 15,200 Balance at End of Period $ 13,991 $ (8,532 ) $ (22,082 ) $ (16,623 ) The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 : 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 Three Months Ended June 30, (dollars in thousands) 2015 2014 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (455 ) $ 332 Interest Income 179 (131 ) Provision for Income Tax (276 ) 201 Net of Tax Sale of Investment Securities Available-for-Sale — 64 Investment Securities Gains, Net — (25 ) Provision for Income Tax — 39 Net of tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 80 80 Net Actuarial Losses 2 (444 ) (338 ) (364 ) (258 ) Total Before Tax 144 102 Provision for Income Tax (220 ) (156 ) Net of Tax Total Reclassifications for the Period $ (496 ) $ 84 Net of Tax 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 Six Months Ended June 30, (dollars in thousands) 2015 2014 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (485 ) $ 666 Interest Income 191 (263 ) Provision for Income Tax (294 ) 403 Net of Tax Sale of Investment Securities Available-for-Sale — 64 Investment Securities Gains, Net — (25 ) Provision for Income Tax — 39 Net of tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 161 161 Net Actuarial Losses 2 (887 ) (677 ) (726 ) (516 ) Total Before Tax 286 204 Provision for Income Tax (440 ) (312 ) Net of Tax Total Reclassifications for the Period $ (734 ) $ 130 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 10 for additional details). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share There were no adjustments to net income, the numerator, for purposes of computing 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 three and six months ended June 30, 2015 and 2014 : Three Months Ended Six Months Ended 2015 2014 2015 2014 Denominator for Basic Earnings Per Share 43,305,813 44,053,899 43,345,667 44,123,030 Dilutive Effect of Equity Based Awards 212,536 192,532 212,997 209,808 Denominator for Diluted Earnings Per Share 43,518,349 44,246,431 43,558,664 44,332,838 Antidilutive Stock Options and Restricted Stock Outstanding — 862 — 862 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2015 | |
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 also serves to transfer interest rate risk to Treasury. However, the other business segments have some latitude to retain certain interest rate exposures related to customer pricing decisions within guidelines. The provision for credit losses reflects the actual net charge-offs of 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 71 branch locations and 455 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 and international client 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 three and six months ended June 30, 2015 and 2014 were as follows: (dollars in thousands) Retail Banking Commercial Banking Investment Services Treasury and Other Consolidated Total Three Months Ended June 30, 2015 Net Interest Income $ 50,550 $ 35,880 $ 4,335 $ 7,017 $ 97,782 Provision for Credit Losses 1,727 (266 ) (8 ) (1,453 ) — Net Interest Income After Provision for Credit Losses 48,823 36,146 4,343 8,470 97,782 Noninterest Income 20,809 5,793 15,680 3,643 45,925 Noninterest Expense (49,158 ) (16,569 ) (14,572 ) (3,275 ) (83,574 ) Income Before Provision for Income Taxes 20,474 25,370 5,451 8,838 60,133 Provision for Income Taxes (7,219 ) (8,975 ) (2,017 ) (768 ) (18,979 ) Net Income $ 13,255 $ 16,395 $ 3,434 $ 8,070 $ 41,154 Total Assets as of June 30, 2015 $ 4,404,619 $ 2,984,756 $ 204,253 $ 7,654,415 $ 15,248,043 Three Months Ended June 30, 2014 Net Interest Income $ 44,094 $ 28,222 $ 3,679 $ 18,417 $ 94,412 Provision for Credit Losses (414 ) (1,269 ) (226 ) (290 ) (2,199 ) Net Interest Income After Provision for Credit Losses 44,508 29,491 3,905 18,707 96,611 Noninterest Income 19,988 5,581 14,411 4,501 44,481 Noninterest Expense (48,647 ) (16,462 ) (13,342 ) (2,631 ) (81,082 ) Income Before Provision for Income Taxes 15,849 18,610 4,974 20,577 60,010 Provision for Income Taxes (5,936 ) (6,320 ) (1,844 ) (4,420 ) (18,520 ) Net Income $ 9,913 $ 12,290 $ 3,130 $ 16,157 $ 41,490 Total Assets as of June 30, 2014 $ 3,761,140 $ 2,633,218 $ 194,220 $ 8,255,927 $ 14,844,505 Six Months Ended June 30, 2015 Net Interest Income $ 98,900 $ 70,148 $ 8,636 $ 16,868 $ 194,552 Provision for Credit Losses 3,450 (730 ) (16 ) (2,704 ) — Net Interest Income After Provision for Credit Losses 95,450 70,878 8,652 19,572 194,552 Noninterest Income 39,915 11,349 30,407 16,561 98,232 Noninterest Expense (99,498 ) (34,304 ) (29,162 ) (7,525 ) (170,489 ) Income Before Provision for Income Taxes 35,867 47,923 9,897 28,608 122,295 Provision for Income Taxes (12,744 ) (16,859 ) (3,662 ) (5,434 ) (38,699 ) Net Income $ 23,123 $ 31,064 $ 6,235 $ 23,174 $ 83,596 Total Assets as of June 30, 2015 $ 4,404,619 $ 2,984,756 $ 204,253 $ 7,654,415 $ 15,248,043 Six Months Ended June 30, 2014 Net Interest Income $ 85,538 $ 55,144 $ 7,234 $ 39,729 $ 187,645 Provision for Credit Losses 1,041 (1,329 ) (294 ) (1,617 ) (2,199 ) Net Interest Income After Provision for Credit Losses 84,497 56,473 7,528 41,346 189,844 Noninterest Income 39,343 11,799 28,761 9,346 89,249 Noninterest Expense (98,013 ) (33,424 ) (27,763 ) (5,429 ) (164,629 ) Income Before Provision for Income Taxes 25,827 34,848 8,526 45,263 114,464 Provision for Income Taxes (9,750 ) (11,740 ) (3,161 ) (9,731 ) (34,382 ) Net Income $ 16,077 $ 23,108 $ 5,365 $ 35,532 $ 80,082 Total Assets as of June 30, 2014 $ 3,761,140 $ 2,633,218 $ 194,220 $ 8,255,927 $ 14,844,505 |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefit Plan | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Postretirement Benefit Plan | Pension Plans and Postretirement Benefit Plan 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 three and six months ended June 30, 2015 and 2014 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2015 2014 Three Months Ended June 30, Service Cost $ — $ — $ 182 $ 157 Interest Cost 1,187 1,243 324 347 Expected Return on Plan Assets (1,305 ) (1,275 ) — — Amortization of: Prior Service Credit — — (80 ) (80 ) Net Actuarial Losses (Gains) 444 351 — (13 ) Net Periodic Benefit Cost $ 326 $ 319 $ 426 $ 411 Six Months Ended June 30, Service Cost $ — $ — $ 364 $ 314 Interest Cost 2,373 2,485 648 695 Expected Return on Plan Assets (2,609 ) (2,550 ) — — Amortization of: Prior Service Credit — — (161 ) (161 ) Net Actuarial Losses (Gains) 887 703 — (26 ) Net Periodic Benefit Cost $ 651 $ 638 $ 851 $ 822 The net periodic benefit cost for the Company’s pension plans and postretirement benefit plan are recorded as a component of salaries and benefits in the consolidated statements of income. For the three and six months ended June 30, 2015 , the Company contributed $0.1 million and $0.2 million , respectively, to the pension plans and $0.3 million and $0.8 million , respectively, to the postretirement benefit plan. 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 7,442 $ 402 $ 2,354 $ 152 Forward Commitments 20,086 (35 ) 5,404 (13 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 197,814 15,007 183,283 16,206 Pay Fixed/Receive Variable Swaps 197,814 (15,039 ) 183,283 (16,240 ) Foreign Exchange Contracts 24,019 117 44,240 (345 ) The following table presents the Company’s derivative financial instruments, their fair values, and balance sheet location as of June 30, 2015 and December 31, 2014 : Derivative Financial Instruments June 30, 2015 December 31, 2014 Not Designated as Hedging Instruments 1 Asset Liability Asset Liability (dollars in thousands) Derivatives Derivatives Derivatives Derivatives Interest Rate Lock Commitments $ 403 $ 1 $ 152 $ — Forward Commitments 1 36 — 13 Interest Rate Swap Agreements 15,007 15,039 16,262 16,296 Foreign Exchange Contracts 120 3 101 446 Total $ 15,531 $ 15,079 $ 16,515 $ 16,755 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 and losses recognized in the consolidated statements of income for the three and six months ended June 30, 2015 and 2014 : Location of Derivative Financial Instruments Net Gains (Losses) Three Months Ended Six Months Ended Not Designated as Hedging Instruments Recognized in the June 30, June 30, (dollars in thousands) Statements of Income 2015 2014 2015 2014 Interest Rate Lock Commitments Mortgage Banking $ 824 $ 781 $ 1,410 $ 1,882 Forward Commitments Mortgage Banking 125 (132 ) 147 (486 ) Interest Rate Swap Agreements Other Noninterest Income 407 110 407 114 Foreign Exchange Contracts Other Noninterest Income 696 644 1,345 1,443 Total $ 2,052 $ 1,403 $ 3,309 $ 2,953 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 June 30, 2015 and December 31, 2014 , 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 6 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 June 30, 2015 , 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. As each sale of Visa Class B restricted shares was completed, 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. This conversion rate swap agreement is usually valued at zero (i.e., no contingent liability recorded) as a drop in the conversion ratio is deemed by the Company to be neither probable nor reasonably estimable. However, in September 2014, Visa announced a reduction of the conversion ratio. 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 June 30, 2015 , the conversion rate swap agreement was valued at zero as further reductions to the conversion ratio were deemed neither probable nor reasonably estimable by management. See Note 2 to the Consolidated Financial Statements for more information. |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | Commitments, Contingencies, and Guarantees The Company’s credit commitments as of June 30, 2015 and December 31, 2014 were as follows: (dollars in thousands) June 30, December 31, Unfunded Commitments to Extend Credit $ 2,467,709 $ 2,388,432 Standby Letters of Credit 45,417 48,157 Commercial Letters of Credit 16,411 14,130 Total Credit Commitments $ 2,529,537 $ 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. Contingencies The Company is subject to various 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 reserved by the Company. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters may result in a loss that materially exceeds the reserves established by the Company. Risks Related to Representation and Warranty Provisions The Company sells residential mortgage loans in the secondary market primarily to the Federal National Mortgage Association ("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 the Government National Mortgage Corporation ("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 June 30, 2015 , the unpaid principal balance of residential mortgage loans sold by the Company was $2.6 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. Some agreements may require the Company to repurchase delinquent loans. 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 six months ended June 30, 2015 , there were three residential mortgage loans repurchased with an aggregate unpaid principal balance of $0.9 million as a result of the representation and warranty provisions contained in these contracts. Two 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 June 30, 2015 , 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 six months ended June 30, 2015 , there were no loans repurchased related to loan servicing activities. As of June 30, 2015 , there were no pending repurchase requests related to loan servicing activities. 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 June 30, 2015 , 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 June 30, 2015 , 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 Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair Value Hierarchy 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. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: 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 is 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 require significant management judgment or estimation, some of which may be internally developed. 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. 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. 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 June 30, 2015 and December 31, 2014 , 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 agreements. 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 June 30, 2015 and December 31, 2014 , 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 11 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 June 30, 2015 and December 31, 2014 : Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) (Level 1) (Level 2) (Level 3) Total June 30, 2015 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 60,928 $ 309,837 $ — $ 370,765 Debt Securities Issued by States and Political Subdivisions — 748,859 — 748,859 Debt Securities Issued by Corporations — 309,861 — 309,861 Mortgage-Backed Securities: Residential - Government Agencies — 387,363 — 387,363 Residential - U.S. Government-Sponsored Enterprises — 304,771 — 304,771 Commercial - Government Agencies — 153,742 — 153,742 Total Mortgage-Backed Securities — 845,876 — 845,876 Total Investment Securities Available-for-Sale 60,928 2,214,433 — 2,275,361 Loans Held for Sale — 18,483 — 18,483 Mortgage Servicing Rights — — 2,188 2,188 Other Assets 20,349 — — 20,349 Derivatives 1 — 121 15,410 15,531 Total Assets Measured at Fair Value on a $ 81,277 $ 2,233,037 $ 17,598 $ 2,331,912 Liabilities: Derivatives 1 $ — $ 39 $ 15,040 $ 15,079 Total Liabilities Measured at Fair Value on a $ — $ 39 $ 15,040 $ 15,079 December 31, 2014 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 61,271 $ 269,987 $ — $ 331,258 Debt Securities Issued by States and Political Subdivisions — 743,970 — 743,970 Debt Securities Issued by Corporations — 294,833 — 294,833 Mortgage-Backed Securities: 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 Liabilities: Derivatives 1 $ — $ 459 $ 16,296 $ 16,755 Total Liabilities Measured at Fair Value on a $ — $ 459 $ 16,296 $ 16,755 1 The fair value of each class of derivatives is shown in Note 11 to the Consolidated Financial Statements. For the three and six months ended June 30, 2015 and 2014 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage Servicing Rights 1 Net Derivative Assets and Liabilities 2 Three Months Ended June 30, 2015 Balance as of April 1, 2015 $ 2,277 $ 270 Realized and Unrealized Net Gains (Losses): Included in Net Income (89 ) 826 Transfers to Loans Held for Sale — (726 ) Balance as of June 30, 2015 $ 2,188 $ 370 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 370 Three Months Ended June 30, 2014 Balance as of April 1, 2014 $ 3,381 $ 289 Realized and Unrealized Net Gains (Losses): Included in Net Income (421 ) 891 Transfers to Loans Held for Sale — (1,073 ) Balance as of June 30, 2014 $ 2,960 $ 107 Total Unrealized Net Gains (Losses) Included in Net Income $ (322 ) $ 107 Six Months Ended June 30, 2015 Balance as of January 1, 2015 $ 2,604 $ 118 Realized and Unrealized Net Gains (Losses): Included in Net Income (416 ) 1,412 Transfers to Loans Held for Sale — (1,160 ) Balance as of June 30, 2015 $ 2,188 $ 370 Total Unrealized Net Gains (Losses) Included in Net Income $ (251 ) $ 370 Six Months Ended June 30, 2014 Balance as of January 1, 2014 $ 3,826 $ 379 Realized and Unrealized Net Gains (Losses): Included in Net Income (866 ) 1,994 Transfers to Loans Held for Sale — (2,266 ) Balance as of June 30, 2014 $ 2,960 $ 107 Total Unrealized Net Gains (Losses) Included in Net Income $ (671 ) $ 107 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 June 30, 2015 and December 31, 2014 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value (dollars in thousands) Valuation Technique Description Jun. 30, Dec. 31, Jun. 30, Dec. 31, Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 8.50 % 11.62 % $ 28,393 $ 25,441 Discount Rate 2 9.56 % 10.61 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 92.65 % 93.85 % $ 402 $ 152 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.22 % 0.21 % $ (32 ) $ (34 ) 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. The following table represents the assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 . (dollars in thousands) Fair Value Hierarchy Net Carrying Amount Valuation Allowance June 30, 2015 Mortgage Servicing Rights - amortization method Level 3 $ 21,238 $ — Foreclosed Real Estate Level 3 1,989 354 December 31, 2014 Mortgage Servicing Rights - amortization method Level 3 $ 22,091 $ 57 Foreclosed Real Estate Level 3 2,311 89 The write-down previously recorded for mortgage servicing rights accounted for under the amortization method was reversed in the second quarter of 2015 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 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. As appraisals on foreclosed real estate are not necessarily completed on the period end dates presented in the table above, the fair value information presented may not reflect the actual fair value as of June 30, 2015 and December 31, 2014 . 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 financially 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 June 30, 2015 and December 31, 2014 . (dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Unpaid Principal June 30, 2015 Loans Held for Sale $ 18,483 $ 18,073 $ 410 December 31, 2014 Loans Held for Sale $ 5,136 $ 4,740 $ 396 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 three and six months ended June 30, 2015 and 2014 , 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. Other Debt The fair value of the Company’s other 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 not recorded at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 . 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 Carrying Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 4,199,121 $ 4,240,732 $ 562,811 $ 3,677,921 $ — Loans 1 7,074,536 7,562,369 — — 7,562,369 Financial Instruments - Liabilities Time Deposits 1,189,620 1,192,354 — 1,192,354 — Securities Sold Under Agreements to Repurchase 672,310 735,823 — 735,823 — Other Debt 2 159,938 160,913 — 160,913 — December 31, 2014 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 — Other Debt 2 163,005 163,911 — 163,911 — 1 Net of unearned income and the Allowance. 2 Excludes capitalized lease obligations. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. In the opinion of management, the consolidated financial statements reflect normal recurring adjustments necessary for a fair presentation of the results for the interim periods. Certain prior period information has been reclassified to conform to the current period presentation. These statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements 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. |
Accounting Standards Adopted in the Current Year or Pending Adoption | Accounting Standards Adopted in 2015 In January 2014, the FASB issued ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." 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 (see Note 5 to the Consolidated Financial Statements). The Company adopted ASU No. 2014-01 effective January 1, 2015. 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. Prior to adoption of ASU No. 2014-01, the Company accounted for such investments using the effective yield method and continued to do so for these pre-existing investments after adopting ASU No. 2014-01. The Company expects future investments to meet the criteria required for the proportional amortization method and plans to make such an accounting policy election. There were no new investments being amortized since the adoption of ASU No. 2014-01 on January 1, 2015, and therefore, the adoption of ASU No. 2014-01 has not had 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. The Company adopted ASU No. 2014-04 effective January 1, 2015. The adoption of ASU No. 2014-04 did not have a material impact 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, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 6 to the Consolidated Financial Statements). The Company adopted the amendments in this ASU effective January 1, 2015. As of June 30, 2015 , 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. 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. The Company adopted ASU No. 2014-12 effective January 1, 2015. As of June 30, 2015 , 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 did not 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. The Company adopted ASU No. 2014-14 effective January 1, 2015. The adoption of ASU No. 2014-14 did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Pending Adoption 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. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e., interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e., interim and annual reporting periods beginning after December 15, 2016). 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 February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” This ASU affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of ASU No. 2015-02 is not expected to have a material impact on the Company's Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company’s current method of accounting for fees paid in a cloud computing arrangement is consistent with the accounting guidance provided by ASU No. 2015-05. Therefore, the adoption of ASU No. 2015-05 is not expected to have a material impact on the Company's Consolidated Financial Statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 were as follows: (dollars in thousands) Amortized Cost Gross Gross Fair Value June 30, 2015 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 365,844 $ 5,048 $ (127 ) $ 370,765 Debt Securities Issued by States and Political Subdivisions 731,724 18,911 (1,776 ) 748,859 Debt Securities Issued by Corporations 313,196 421 (3,756 ) 309,861 Mortgage-Backed Securities: Residential - Government Agencies 379,489 9,085 (1,211 ) 387,363 Residential - U.S. Government-Sponsored Enterprises 303,170 2,304 (703 ) 304,771 Commercial - Government Agencies 159,862 — (6,120 ) 153,742 Total Mortgage-Backed Securities 842,521 11,389 (8,034 ) 845,876 Total $ 2,253,285 $ 35,769 $ (13,693 ) $ 2,275,361 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 559,587 $ 3,401 $ (177 ) $ 562,811 Debt Securities Issued by States and Political Subdivisions 247,783 13,173 — 260,956 Debt Securities Issued by Corporations 159,031 1,202 (1,408 ) 158,825 Mortgage-Backed Securities: Residential - Government Agencies 2,517,442 38,545 (15,600 ) 2,540,387 Residential - U.S. Government-Sponsored Enterprises 417,478 2,749 (80 ) 420,147 Commercial - Government Agencies 297,800 1,970 (2,164 ) 297,606 Total Mortgage-Backed Securities 3,232,720 43,264 (17,844 ) 3,258,140 Total $ 4,199,121 $ 61,040 $ (19,429 ) $ 4,240,732 December 31, 2014 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 |
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 June 30, 2015 . 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 Cost Fair Value Available-for-Sale: Due in One Year or Less $ 85,358 $ 85,907 Due After One Year Through Five Years 436,379 437,170 Due After Five Years Through Ten Years 490,364 497,559 Due After Ten Years 93,204 99,012 1,105,305 1,119,648 Debt Securities Issued by Government Agencies 305,459 309,837 Mortgage-Backed Securities: Residential - Government Agencies 379,489 387,363 Residential - U.S. Government-Sponsored Enterprises 303,170 304,771 Commercial - Government Agencies 159,862 153,742 Total Mortgage-Backed Securities 842,521 845,876 Total $ 2,253,285 $ 2,275,361 Held-to-Maturity: Due in One Year or Less $ 79,884 $ 80,195 Due After One Year Through Five Years 490,508 493,749 Due After Five Years Through Ten Years 270,234 275,890 Due After Ten Years 125,775 132,758 966,401 982,592 Mortgage-Backed Securities: Residential - Government Agencies 2,517,442 2,540,387 Residential - U.S. Government-Sponsored Enterprises 417,478 420,147 Commercial - Government Agencies 297,800 297,606 Total Mortgage-Backed Securities 3,232,720 3,258,140 Total $ 4,199,121 $ 4,240,732 |
Schedule of gains (losses) on sale of investment securities | The table below presents the gains and losses from the sales of investment securities for the three and six months ended June 30, 2015 and 2014 . Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Gross Gains on Sales of Investment Securities $ 86 $ 2,079 $ 10,317 $ 4,239 Gross Losses on Sales of Investment Securities — — — — Net Gains on Sales of Investment Securities $ 86 $ 2,079 $ 10,317 $ 4,239 |
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 Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2015 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 58,296 $ (102 ) $ 5,178 $ (25 ) $ 63,474 $ (127 ) Debt Securities Issued by States and Political Subdivisions 193,853 (1,776 ) — — 193,853 (1,776 ) Debt Securities Issued by Corporations 126,177 (1,843 ) 143,190 (1,913 ) 269,367 (3,756 ) Mortgage-Backed Securities: Residential - Government Agencies 17,450 (10 ) 10,508 (1,201 ) 27,958 (1,211 ) Residential - U.S. Government-Sponsored Enterprises 141,971 (703 ) — — 141,971 (703 ) Commercial - Government Agencies — — 153,743 (6,120 ) 153,743 (6,120 ) Total Mortgage-Backed Securities 159,421 (713 ) 164,251 (7,321 ) 323,672 (8,034 ) Total $ 537,747 $ (4,434 ) $ 312,619 $ (9,259 ) $ 850,366 $ (13,693 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 60,215 $ (101 ) $ 30,169 $ (76 ) $ 90,384 $ (177 ) Debt Securities Issued by Corporations 4,204 (1 ) 75,540 (1,407 ) 79,744 (1,408 ) Mortgage-Backed Securities: Residential - Government Agencies 482,495 (3,675 ) 469,731 (11,925 ) 952,226 (15,600 ) Residential - U.S. Government-Sponsored Enterprises 86,791 (80 ) — — 86,791 (80 ) Commercial - Government Agencies 110,069 (994 ) 56,238 (1,170 ) 166,307 (2,164 ) Total Mortgage-Backed Securities 679,355 (4,749 ) 525,969 (13,095 ) 1,205,324 (17,844 ) Total $ 743,774 $ (4,851 ) $ 631,678 $ (14,578 ) $ 1,375,452 $ (19,429 ) December 31, 2014 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,729 $ (2 ) $ 5,546 $ (38 ) $ 7,275 $ (40 ) Debt Securities Issued by States and Political Subdivisions 78,068 (305 ) 94,543 (1,140 ) 172,611 (1,445 ) 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 ) 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 ) |
Schedule of interest income from taxable and non-taxable investment securities | Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Taxable $ 27,776 $ 32,316 $ 57,068 $ 65,743 Non-Taxable 5,329 5,319 10,642 10,541 Total Interest Income from Investment Securities $ 33,105 $ 37,635 $ 67,710 $ 76,284 |
Schedule of carrying value of company's Federal Home Loan Bank and Federal Reserve Bank | As of June 30, 2015 and December 31, 2014 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines (“FHLB Des Moines”) stock and Federal Reserve Bank stock was as follows: (dollars in thousands) June 30, December 31, Federal Home Loan Bank Stock $ 16,000 $ 47,075 Federal Reserve Bank Stock 19,418 19,299 Total $ 35,418 $ 66,374 |
Loans and Leases and the Allo24
Loans and Leases and the Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Schedule of Loan and Lease Portfolio | The Company’s loan and lease portfolio was comprised of the following as of June 30, 2015 and December 31, 2014 : (dollars in thousands) June 30, December 31, Commercial Commercial and Industrial $ 1,173,259 $ 1,055,243 Commercial Mortgage 1,528,685 1,437,513 Construction 118,714 109,183 Lease Financing 222,113 226,189 Total Commercial 3,042,771 2,828,128 Consumer Residential Mortgage 2,787,847 2,571,090 Home Equity 931,191 866,688 Automobile 352,128 323,848 Other 1 314,501 307,835 Total Consumer 4,385,667 4,069,461 Total Loans and Leases $ 7,428,438 $ 6,897,589 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 three and six months ended June 30, 2015 and 2014 . 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 June 30, 2015 and 2014 . (dollars in thousands) Commercial Consumer Total Three Months Ended June 30, 2015 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,834 $ 41,627 $ 107,461 Loans and Leases Charged-Off (255 ) (3,241 ) (3,496 ) Recoveries on Loans and Leases Previously Charged-Off 486 1,555 2,041 Net Loans and Leases Recovered (Charged-Off) 231 (1,686 ) (1,455 ) Provision for Credit Losses 940 (940 ) — Balance at End of Period $ 67,005 $ 39,001 $ 106,006 Six Months Ended June 30, 2015 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 64,551 $ 44,137 $ 108,688 Loans and Leases Charged-Off (490 ) (7,094 ) (7,584 ) Recoveries on Loans and Leases Previously Charged-Off 1,222 3,680 4,902 Net Loans and Leases Recovered (Charged-Off) 732 (3,414 ) (2,682 ) Provision for Credit Losses 1,722 (1,722 ) — Balance at End of Period $ 67,005 $ 39,001 $ 106,006 As of June 30, 2015 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 2,160 $ 3,405 $ 5,565 Collectively Evaluated for Impairment 64,845 35,596 100,441 Total $ 67,005 $ 39,001 $ 106,006 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 27,512 $ 39,267 $ 66,779 Collectively Evaluated for Impairment 3,015,259 4,346,400 7,361,659 Total $ 3,042,771 $ 4,385,667 $ 7,428,438 Three Months Ended June 30, 2014 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 71,390 $ 42,736 $ 114,126 Loans and Leases Charged-Off (815 ) (3,182 ) (3,997 ) Recoveries on Loans and Leases Previously Charged-Off 2,156 3,752 5,908 Net Loans and Leases Recovered (Charged-Off) 1,341 570 1,911 Provision for Credit Losses (845 ) (1,354 ) (2,199 ) Balance at End of Period $ 71,886 $ 41,952 $ 113,838 Six Months Ended June 30, 2014 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 71,446 $ 44,008 $ 115,454 Loans and Leases Charged-Off (1,634 ) (6,401 ) (8,035 ) Recoveries on Loans and Leases Previously Charged-Off 3,097 5,521 8,618 Net Loans and Leases Recovered (Charged-Off) 1,463 (880 ) 583 Provision for Credit Losses (1,023 ) (1,176 ) (2,199 ) Balance at End of Period $ 71,886 $ 41,952 $ 113,838 As of June 30, 2014 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 8,693 $ 3,332 $ 12,025 Collectively Evaluated for Impairment 63,193 38,620 101,813 Total $ 71,886 $ 41,952 $ 113,838 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 27,089 $ 38,007 $ 65,096 Collectively Evaluated for Impairment 2,666,419 3,694,838 6,361,257 Total $ 2,693,508 $ 3,732,845 $ 6,426,353 |
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 June 30, 2015 and December 31, 2014 . June 30, 2015 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,119,752 $ 1,461,791 $ 116,971 $ 221,647 $ 2,920,161 Special Mention 16,460 24,289 — 83 40,832 Classified 37,047 42,605 1,743 383 81,778 Total $ 1,173,259 $ 1,528,685 $ 118,714 $ 222,113 $ 3,042,771 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 2,772,013 $ 926,305 $ 351,806 $ 313,723 $ 4,363,847 Classified 15,834 4,886 322 778 21,820 Total $ 2,787,847 $ 931,191 $ 352,128 $ 314,501 $ 4,385,667 Total Recorded Investment in Loans and Leases $ 7,428,438 December 31, 2014 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total 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 Mortgage Home Equity Automobile Other 1 Total 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 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 June 30, 2015 and December 31, 2014 . (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Past Due 90 Days or More Non-Accrual Total Past Due and Non-Accrual Current Total Loans and Leases Non-Accrual Loans and Leases that are Current 2 As of June 30, 2015 Commercial Commercial and Industrial $ 482 $ 2,312 $ 750 $ 8,299 $ 11,843 $ 1,161,416 $ 1,173,259 $ 2,813 Commercial Mortgage — 31 — 716 747 1,527,938 1,528,685 492 Construction — — — — — 118,714 118,714 — Lease Financing — — — — — 222,113 222,113 — Total Commercial 482 2,343 750 9,015 12,590 3,030,181 3,042,771 3,305 Consumer Residential Mortgage 7,678 2,335 4,789 14,918 29,720 2,758,127 2,787,847 3,439 Home Equity 2,226 1,271 2,395 3,528 9,420 921,771 931,191 1,361 Automobile 7,135 1,206 323 — 8,664 343,464 352,128 — Other 1 2,446 1,789 1,395 — 5,630 308,871 314,501 — Total Consumer 19,485 6,601 8,902 18,446 53,434 4,332,233 4,385,667 4,800 Total $ 19,967 $ 8,944 $ 9,652 $ 27,461 $ 66,024 $ 7,362,414 $ 7,428,438 $ 8,105 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 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 | The following presents by class, information related to impaired loans as of June 30, 2015 and December 31, 2014 . (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses June 30, 2015 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 12,604 $ 17,915 $ — Commercial Mortgage 6,973 6,973 — Construction 1,647 1,647 — Total Commercial 21,224 26,535 — Total Impaired Loans with No Related Allowance Recorded $ 21,224 $ 26,535 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 6,288 $ 12,888 $ 2,160 Total Commercial 6,288 12,888 2,160 Consumer Residential Mortgage 31,185 37,268 3,265 Home Equity 1,191 1,191 14 Automobile 5,787 5,787 94 Other 1 1,104 1,104 32 Total Consumer 39,267 45,350 3,405 Total Impaired Loans with an Allowance Recorded $ 45,555 $ 58,238 $ 5,565 Impaired Loans: Commercial $ 27,512 $ 39,423 $ 2,160 Consumer 39,267 45,350 3,405 Total Impaired Loans $ 66,779 $ 84,773 $ 5,565 December 31, 2014 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 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 three and six months ended June 30, 2015 and 2014 . Three Months Ended Three Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 12,201 $ 110 $ 11,275 $ 66 Commercial Mortgage 6,690 66 7,135 56 Construction 1,658 27 1,696 22 Total Commercial 20,549 203 20,106 144 Consumer Other 1 — — 15 — Total Consumer — — 15 — Total Impaired Loans with No Related Allowance Recorded $ 20,549 $ 203 $ 20,121 $ 144 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 6,250 $ 28 $ 8,347 $ 27 Total Commercial 6,250 28 8,347 27 Consumer Residential Mortgage 31,455 264 31,368 244 Home Equity 1,197 11 995 9 Automobile 5,667 111 5,080 106 Other 1 1,042 27 437 10 Total Consumer 39,361 413 37,880 369 Total Impaired Loans with an Allowance Recorded $ 45,611 $ 441 $ 46,227 $ 396 Impaired Loans: Commercial $ 26,799 $ 231 $ 28,453 $ 171 Consumer 39,361 413 37,895 369 Total Impaired Loans $ 66,160 $ 644 $ 66,348 $ 540 Six Months Ended Six Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 11,388 $ 208 $ 11,753 $ 158 Commercial Mortgage 6,620 131 9,722 111 Construction 1,668 54 1,483 38 Total Commercial 19,676 393 22,958 307 Consumer Other 1 — — 10 — Total Consumer — — 10 — Total Impaired Loans with No Related Allowance Recorded $ 19,676 $ 393 $ 22,968 $ 307 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 6,561 $ 54 $ 8,832 $ 55 Total Commercial 6,561 54 8,832 55 Consumer Residential Mortgage 31,747 531 31,691 480 Home Equity 1,135 19 928 14 Automobile 5,569 215 5,114 213 Other 1 999 49 401 18 Total Consumer 39,450 814 38,134 725 Total Impaired Loans with an Allowance Recorded $ 46,011 $ 868 $ 46,966 $ 780 Impaired Loans: Commercial $ 26,237 $ 447 $ 31,790 $ 362 Consumer 39,450 814 38,144 725 Total Impaired Loans $ 65,687 $ 1,261 $ 69,934 $ 1,087 1 Comprised of other revolving credit and installment financing. |
Schedule of Loans Modified in a TDR | The following presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2015 and 2014 . Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 22 $ 4,535 $ 2 7 $ 1,429 $ 2 Commercial Mortgage 1 624 62 — — — Total Commercial 23 5,159 64 7 1,429 2 Consumer Residential Mortgage 5 1,414 92 4 1,033 25 Home Equity — — — 1 90 1 Automobile 40 888 14 35 603 8 Other 2 33 254 7 12 106 4 Total Consumer 78 2,556 113 52 1,832 38 Total 101 $ 7,715 $ 177 59 $ 3,261 $ 40 Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 27 $ 4,611 $ 3 12 $ 4,177 $ 2 Commercial Mortgage 2 1,115 62 1 349 — Total Commercial 29 5,726 65 13 4,526 2 Consumer Residential Mortgage 10 3,488 136 9 3,330 57 Home Equity 2 203 2 2 161 3 Automobile 75 1,645 27 70 1,185 16 Other 2 53 383 11 21 187 6 Total Consumer 140 5,719 176 102 4,863 82 Total 169 $ 11,445 $ 241 115 $ 9,389 $ 84 1 The period end balances reflect all 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 Period, and Within Twelve Months of their Modification Date by Class | The following presents by class, all loans modified in a TDR that defaulted during the three and six months ended June 30, 2015 and 2014 , 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. Three Months Ended Three Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Commercial Commercial and Industrial 1 $ 4,471 2 $ 768 Total Commercial 1 4,471 2 768 Consumer Automobile 5 86 3 55 Other 2 12 70 3 23 Total Consumer 17 156 6 78 Total 18 $ 4,627 8 $ 846 Six Months Ended Six Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Commercial Commercial and Industrial 1 $ 4,471 2 $ 768 Total Commercial 1 4,471 2 768 Consumer Residential Mortgage 1 305 2 514 Automobile 7 120 5 75 Other 2 16 99 4 31 Total Consumer 24 524 11 620 Total 25 $ 4,995 13 $ 1,388 1 The period end balances reflect all 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. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Analysis of mortgage servicing rights accounted for under the fair value measurement method | For the three and six months ended June 30, 2015 and 2014 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Balance at Beginning of Period $ 2,277 $ 3,381 $ 2,604 $ 3,826 Change in Fair Value: Due to Change in Valuation Assumptions 1 — (322 ) (251 ) (671 ) Due to Payoffs (89 ) (99 ) (165 ) (195 ) Total Changes in Fair Value of Mortgage Servicing Rights (89 ) (421 ) (416 ) (866 ) Balance at End of Period $ 2,188 $ 2,960 $ 2,188 $ 2,960 1 Primarily 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 three and six months ended June 30, 2015 and 2014 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method, net of valuation allowance, was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Balance at Beginning of Period $ 21,366 $ 23,997 $ 22,091 $ 24,297 Servicing Rights that Resulted From Asset Transfers 551 210 685 564 Amortization (756 ) (698 ) (1,595 ) (1,352 ) Valuation Allowance Provision 77 (72 ) 57 (72 ) Balance at End of Period $ 21,238 $ 23,437 $ 21,238 $ 23,437 Valuation Allowance: Balance at Beginning of Period $ (77 ) $ — $ (57 ) $ — Valuation Allowance Provision 77 (72 ) 57 (72 ) Balance at End of Period $ — $ (72 ) $ — $ (72 ) Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method Beginning of Period $ 21,431 $ 28,303 $ 22,837 $ 30,100 End of Period $ 26,205 $ 25,848 $ 26,205 $ 25,848 |
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 June 30, 2015 and December 31, 2014 were as follows: June 30, December 31, 2014 Weighted-Average Constant Prepayment Rate 1 8.50 % 11.62 % Weighted-Average Life (in years) 7.67 6.28 Weighted-Average Note Rate 4.25 % 4.28 % Weighted-Average Discount Rate 2 9.56 % 10.61 % 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 June 30, 2015 and December 31, 2014 is presented in the following table. (dollars in thousands) June 30, December 31, Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (315 ) $ (265 ) Decrease in fair value from 50 bps adverse change (625 ) (524 ) Discount Rate Decrease in fair value from 25 bps adverse change (315 ) (250 ) Decrease in fair value from 50 bps adverse change (623 ) (495 ) |
Low Income Housing Tax Credit26
Low Income Housing Tax Credit Partnerships (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | As of June 30, 2015 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2015 $ 12,668 2016 20,668 2017 1,148 2018 15 2019 75 Thereafter 67 Total Unfunded Commitments $ 34,641 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2015 and 2014 . Three Months Ended Six Months Ended (dollars in thousands) 2015 2014 2015 2014 Effective Yield Method Tax credits and other tax benefits recognized $ 3,353 $ 2,599 $ 6,742 $ 5,310 Amortization Expense in Provision for Income Taxes 1,998 1,358 3,891 2,760 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Offsetting [Abstract] | |
Schedule of Repurchase Agreements - by maturity date and collateral type | The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of June 30, 2015 , disaggregated by the class of collateral pledged. Remaining Contractual Maturity of Repurchase Agreements (dollars in thousands) Up to 91-365 days 1-3 Years After Total June 30, 2015 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 76,802 $ 235,067 $ 311,869 Debt Securities Issued by States and Political Subdivisions 17,701 47,891 4,102 — 69,694 Mortgage-Backed Securities: Residential - Government Agencies 18,857 2,957 50,834 109,654 182,302 Residential - U.S. Government-Sponsored Enterprises 5,802 — 22,364 80,279 108,445 Total $ 42,360 $ 50,848 $ 154,102 $ 425,000 $ 672,310 |
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 June 30, 2015 and December 31, 2014 . 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 Recognized in the Statements of Condition Gross Amounts Offset in the Statements of Condition Net Amounts Presented in the Statements of Condition Gross Amounts Not Offset in the Statements of Condition (dollars in thousands) Netting Adjustments per Master Netting Arrangements Fair Value of Collateral Pledged 1 Net Amount June 30, 2015 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ — $ — $ — $ — $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 15,039 — 15,039 — — 15,039 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 72,310 — 72,310 — 72,310 — $ 672,310 $ — $ 672,310 $ — $ 672,310 $ — 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 $ — 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 investment securities pledged was $0.7 billion as of June 30, 2015 and December 31, 2014 . 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 as of June 30, 2015 and December 31, 2014 . The investment securities pledged as of June 30, 2015 and December 31, 2014 had a fair value of $2.0 billion and $2.1 billion , respectively. |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of other comprehensive income | The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 : (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2015 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (13,018 ) $ (5,132 ) $ (7,886 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 455 179 276 Net Unrealized Gains (Losses) on Investment Securities (12,563 ) (4,953 ) (7,610 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 444 175 269 Amortization of Prior Service Credit (80 ) (31 ) (49 ) Defined Benefit Plans, Net 364 144 220 Other Comprehensive Income (Loss) $ (12,199 ) $ (4,809 ) $ (7,390 ) Three Months Ended June 30, 2014 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 14,621 $ 5,764 $ 8,857 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (64 ) (25 ) $ (39 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 (332 ) (131 ) (201 ) Net Unrealized Gains (Losses) on Investment Securities 14,225 5,608 8,617 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 338 133 205 Amortization of Prior Service Credit (80 ) (31 ) (49 ) Defined Benefit Plans, Net 258 102 156 Other Comprehensive Income (Loss) $ 14,483 $ 5,710 $ 8,773 Six Months Ended June 30, 2015 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (4,307 ) $ (1,697 ) $ (2,610 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 485 191 294 Net Unrealized Gains (Losses) on Investment Securities (3,822 ) (1,506 ) (2,316 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 887 349 538 Amortization of Prior Service Credit (161 ) (63 ) (98 ) Defined Benefit Plans, Net 726 286 440 Other Comprehensive Income (Loss) $ (3,096 ) $ (1,220 ) $ (1,876 ) Six Months Ended June 30, 2014 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 25,318 $ 9,988 $ 15,330 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (64 ) (25 ) $ (39 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 (665 ) (262 ) (403 ) Net Unrealized Gains (Losses) on Investment Securities 24,589 9,701 14,888 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 677 267 410 Amortization of Prior Service Credit (161 ) (63 ) (98 ) Defined Benefit Plans, Net 516 204 312 Other Comprehensive Income (Loss) $ 25,105 $ 9,905 $ 15,200 1 The amount relates to the amortization/accretion of unrealized net 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. |
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, for the three and six months ended June 30, 2015 and 2014 : (dollars in thousands) Investment Securities-Available-for-Sale Investment Securities-Held-to-Maturity Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, 2015 Balance at Beginning of Period $ 21,260 $ (8,537 ) $ (33,895 ) $ (21,172 ) Other Comprehensive Income (Loss) Before Reclassifications (7,886 ) — — (7,886 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 276 220 496 Total Other Comprehensive Income (Loss) (7,886 ) 276 220 (7,390 ) Balance at End of Period $ 13,374 $ (8,261 ) $ (33,675 ) $ (28,562 ) Three Months Ended June 30, 2014 Balance at Beginning of Period $ 5,173 $ (8,331 ) $ (22,238 ) $ (25,396 ) Other Comprehensive Income (Loss) Before Reclassifications 8,857 — — 8,857 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (39 ) (201 ) 156 (84 ) Total Other Comprehensive Income (Loss) 8,818 (201 ) 156 8,773 Balance at End of Period $ 13,991 $ (8,532 ) $ (22,082 ) $ (16,623 ) Six Months Ended June 30, 2015 Balance at Beginning of Period $ 15,984 $ (8,555 ) $ (34,115 ) $ (26,686 ) Other Comprehensive Income (Loss) Before Reclassifications (2,610 ) — — (2,610 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 294 440 734 Total Other Comprehensive Income (Loss) (2,610 ) 294 440 (1,876 ) Balance at End of Period $ 13,374 $ (8,261 ) $ (33,675 ) $ (28,562 ) Six Months Ended June 30, 2014 Balance at Beginning of Period $ (1,300 ) $ (8,129 ) $ (22,394 ) $ (31,823 ) Other Comprehensive Income (Loss) Before Reclassifications 15,330 — — 15,330 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (39 ) (403 ) 312 (130 ) Total Other Comprehensive Income (Loss) 15,291 (403 ) 312 15,200 Balance at End of Period $ 13,991 $ (8,532 ) $ (22,082 ) $ (16,623 ) |
Reclassification out of accumulated other comprehensive income | The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 : 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 Three Months Ended June 30, (dollars in thousands) 2015 2014 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (455 ) $ 332 Interest Income 179 (131 ) Provision for Income Tax (276 ) 201 Net of Tax Sale of Investment Securities Available-for-Sale — 64 Investment Securities Gains, Net — (25 ) Provision for Income Tax — 39 Net of tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 80 80 Net Actuarial Losses 2 (444 ) (338 ) (364 ) (258 ) Total Before Tax 144 102 Provision for Income Tax (220 ) (156 ) Net of Tax Total Reclassifications for the Period $ (496 ) $ 84 Net of Tax 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 Six Months Ended June 30, (dollars in thousands) 2015 2014 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (485 ) $ 666 Interest Income 191 (263 ) Provision for Income Tax (294 ) 403 Net of Tax Sale of Investment Securities Available-for-Sale — 64 Investment Securities Gains, Net — (25 ) Provision for Income Tax — 39 Net of tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 161 161 Net Actuarial Losses 2 (887 ) (677 ) (726 ) (516 ) Total Before Tax 286 204 Provision for Income Tax (440 ) (312 ) Net of Tax Total Reclassifications for the Period $ (734 ) $ 130 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 10 for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 three and six months ended June 30, 2015 and 2014 : Three Months Ended Six Months Ended 2015 2014 2015 2014 Denominator for Basic Earnings Per Share 43,305,813 44,053,899 43,345,667 44,123,030 Dilutive Effect of Equity Based Awards 212,536 192,532 212,997 209,808 Denominator for Diluted Earnings Per Share 43,518,349 44,246,431 43,558,664 44,332,838 Antidilutive Stock Options and Restricted Stock Outstanding — 862 — 862 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Selected Business Segment Financial Information | Selected business segment financial information as of and for the three and six months ended June 30, 2015 and 2014 were as follows: (dollars in thousands) Retail Banking Commercial Banking Investment Services Treasury and Other Consolidated Total Three Months Ended June 30, 2015 Net Interest Income $ 50,550 $ 35,880 $ 4,335 $ 7,017 $ 97,782 Provision for Credit Losses 1,727 (266 ) (8 ) (1,453 ) — Net Interest Income After Provision for Credit Losses 48,823 36,146 4,343 8,470 97,782 Noninterest Income 20,809 5,793 15,680 3,643 45,925 Noninterest Expense (49,158 ) (16,569 ) (14,572 ) (3,275 ) (83,574 ) Income Before Provision for Income Taxes 20,474 25,370 5,451 8,838 60,133 Provision for Income Taxes (7,219 ) (8,975 ) (2,017 ) (768 ) (18,979 ) Net Income $ 13,255 $ 16,395 $ 3,434 $ 8,070 $ 41,154 Total Assets as of June 30, 2015 $ 4,404,619 $ 2,984,756 $ 204,253 $ 7,654,415 $ 15,248,043 Three Months Ended June 30, 2014 Net Interest Income $ 44,094 $ 28,222 $ 3,679 $ 18,417 $ 94,412 Provision for Credit Losses (414 ) (1,269 ) (226 ) (290 ) (2,199 ) Net Interest Income After Provision for Credit Losses 44,508 29,491 3,905 18,707 96,611 Noninterest Income 19,988 5,581 14,411 4,501 44,481 Noninterest Expense (48,647 ) (16,462 ) (13,342 ) (2,631 ) (81,082 ) Income Before Provision for Income Taxes 15,849 18,610 4,974 20,577 60,010 Provision for Income Taxes (5,936 ) (6,320 ) (1,844 ) (4,420 ) (18,520 ) Net Income $ 9,913 $ 12,290 $ 3,130 $ 16,157 $ 41,490 Total Assets as of June 30, 2014 $ 3,761,140 $ 2,633,218 $ 194,220 $ 8,255,927 $ 14,844,505 Six Months Ended June 30, 2015 Net Interest Income $ 98,900 $ 70,148 $ 8,636 $ 16,868 $ 194,552 Provision for Credit Losses 3,450 (730 ) (16 ) (2,704 ) — Net Interest Income After Provision for Credit Losses 95,450 70,878 8,652 19,572 194,552 Noninterest Income 39,915 11,349 30,407 16,561 98,232 Noninterest Expense (99,498 ) (34,304 ) (29,162 ) (7,525 ) (170,489 ) Income Before Provision for Income Taxes 35,867 47,923 9,897 28,608 122,295 Provision for Income Taxes (12,744 ) (16,859 ) (3,662 ) (5,434 ) (38,699 ) Net Income $ 23,123 $ 31,064 $ 6,235 $ 23,174 $ 83,596 Total Assets as of June 30, 2015 $ 4,404,619 $ 2,984,756 $ 204,253 $ 7,654,415 $ 15,248,043 Six Months Ended June 30, 2014 Net Interest Income $ 85,538 $ 55,144 $ 7,234 $ 39,729 $ 187,645 Provision for Credit Losses 1,041 (1,329 ) (294 ) (1,617 ) (2,199 ) Net Interest Income After Provision for Credit Losses 84,497 56,473 7,528 41,346 189,844 Noninterest Income 39,343 11,799 28,761 9,346 89,249 Noninterest Expense (98,013 ) (33,424 ) (27,763 ) (5,429 ) (164,629 ) Income Before Provision for Income Taxes 25,827 34,848 8,526 45,263 114,464 Provision for Income Taxes (9,750 ) (11,740 ) (3,161 ) (9,731 ) (34,382 ) Net Income $ 16,077 $ 23,108 $ 5,365 $ 35,532 $ 80,082 Total Assets as of June 30, 2014 $ 3,761,140 $ 2,633,218 $ 194,220 $ 8,255,927 $ 14,844,505 |
Pension Plans and Postretirem31
Pension Plans and Postretirement Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
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 three and six months ended June 30, 2015 and 2014 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2015 2014 Three Months Ended June 30, Service Cost $ — $ — $ 182 $ 157 Interest Cost 1,187 1,243 324 347 Expected Return on Plan Assets (1,305 ) (1,275 ) — — Amortization of: Prior Service Credit — — (80 ) (80 ) Net Actuarial Losses (Gains) 444 351 — (13 ) Net Periodic Benefit Cost $ 326 $ 319 $ 426 $ 411 Six Months Ended June 30, Service Cost $ — $ — $ 364 $ 314 Interest Cost 2,373 2,485 648 695 Expected Return on Plan Assets (2,609 ) (2,550 ) — — Amortization of: Prior Service Credit — — (161 ) (161 ) Net Actuarial Losses (Gains) 887 703 — (26 ) Net Periodic Benefit Cost $ 651 $ 638 $ 851 $ 822 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 7,442 $ 402 $ 2,354 $ 152 Forward Commitments 20,086 (35 ) 5,404 (13 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 197,814 15,007 183,283 16,206 Pay Fixed/Receive Variable Swaps 197,814 (15,039 ) 183,283 (16,240 ) Foreign Exchange Contracts 24,019 117 44,240 (345 ) |
Derivative financial instruments, their fair values, and balance sheet location | The following table presents the Company’s derivative financial instruments, their fair values, and balance sheet location as of June 30, 2015 and December 31, 2014 : Derivative Financial Instruments June 30, 2015 December 31, 2014 Not Designated as Hedging Instruments 1 Asset Liability Asset Liability (dollars in thousands) Derivatives Derivatives Derivatives Derivatives Interest Rate Lock Commitments $ 403 $ 1 $ 152 $ — Forward Commitments 1 36 — 13 Interest Rate Swap Agreements 15,007 15,039 16,262 16,296 Foreign Exchange Contracts 120 3 101 446 Total $ 15,531 $ 15,079 $ 16,515 $ 16,755 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 and losses recognized in the consolidated statements of income for the three and six months ended June 30, 2015 and 2014 : Location of Derivative Financial Instruments Net Gains (Losses) Three Months Ended Six Months Ended Not Designated as Hedging Instruments Recognized in the June 30, June 30, (dollars in thousands) Statements of Income 2015 2014 2015 2014 Interest Rate Lock Commitments Mortgage Banking $ 824 $ 781 $ 1,410 $ 1,882 Forward Commitments Mortgage Banking 125 (132 ) 147 (486 ) Interest Rate Swap Agreements Other Noninterest Income 407 110 407 114 Foreign Exchange Contracts Other Noninterest Income 696 644 1,345 1,443 Total $ 2,052 $ 1,403 $ 3,309 $ 2,953 |
Commitments, Contingencies, a33
Commitments, Contingencies, and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Credit commitments | The Company’s credit commitments as of June 30, 2015 and December 31, 2014 were as follows: (dollars in thousands) June 30, December 31, Unfunded Commitments to Extend Credit $ 2,467,709 $ 2,388,432 Standby Letters of Credit 45,417 48,157 Commercial Letters of Credit 16,411 14,130 Total Credit Commitments $ 2,529,537 $ 2,450,719 |
Fair Value of Assets and Liab34
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 : Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) (Level 1) (Level 2) (Level 3) Total June 30, 2015 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 60,928 $ 309,837 $ — $ 370,765 Debt Securities Issued by States and Political Subdivisions — 748,859 — 748,859 Debt Securities Issued by Corporations — 309,861 — 309,861 Mortgage-Backed Securities: Residential - Government Agencies — 387,363 — 387,363 Residential - U.S. Government-Sponsored Enterprises — 304,771 — 304,771 Commercial - Government Agencies — 153,742 — 153,742 Total Mortgage-Backed Securities — 845,876 — 845,876 Total Investment Securities Available-for-Sale 60,928 2,214,433 — 2,275,361 Loans Held for Sale — 18,483 — 18,483 Mortgage Servicing Rights — — 2,188 2,188 Other Assets 20,349 — — 20,349 Derivatives 1 — 121 15,410 15,531 Total Assets Measured at Fair Value on a $ 81,277 $ 2,233,037 $ 17,598 $ 2,331,912 Liabilities: Derivatives 1 $ — $ 39 $ 15,040 $ 15,079 Total Liabilities Measured at Fair Value on a $ — $ 39 $ 15,040 $ 15,079 December 31, 2014 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 61,271 $ 269,987 $ — $ 331,258 Debt Securities Issued by States and Political Subdivisions — 743,970 — 743,970 Debt Securities Issued by Corporations — 294,833 — 294,833 Mortgage-Backed Securities: 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 Liabilities: Derivatives 1 $ — $ 459 $ 16,296 $ 16,755 Total Liabilities Measured at Fair Value on a $ — $ 459 $ 16,296 $ 16,755 1 The fair value of each class of derivatives is shown in Note 11 to the Consolidated Financial Statements. |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the three and six months ended June 30, 2015 and 2014 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage Servicing Rights 1 Net Derivative Assets and Liabilities 2 Three Months Ended June 30, 2015 Balance as of April 1, 2015 $ 2,277 $ 270 Realized and Unrealized Net Gains (Losses): Included in Net Income (89 ) 826 Transfers to Loans Held for Sale — (726 ) Balance as of June 30, 2015 $ 2,188 $ 370 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 370 Three Months Ended June 30, 2014 Balance as of April 1, 2014 $ 3,381 $ 289 Realized and Unrealized Net Gains (Losses): Included in Net Income (421 ) 891 Transfers to Loans Held for Sale — (1,073 ) Balance as of June 30, 2014 $ 2,960 $ 107 Total Unrealized Net Gains (Losses) Included in Net Income $ (322 ) $ 107 Six Months Ended June 30, 2015 Balance as of January 1, 2015 $ 2,604 $ 118 Realized and Unrealized Net Gains (Losses): Included in Net Income (416 ) 1,412 Transfers to Loans Held for Sale — (1,160 ) Balance as of June 30, 2015 $ 2,188 $ 370 Total Unrealized Net Gains (Losses) Included in Net Income $ (251 ) $ 370 Six Months Ended June 30, 2014 Balance as of January 1, 2014 $ 3,826 $ 379 Realized and Unrealized Net Gains (Losses): Included in Net Income (866 ) 1,994 Transfers to Loans Held for Sale — (2,266 ) Balance as of June 30, 2014 $ 2,960 $ 107 Total Unrealized Net Gains (Losses) Included in Net Income $ (671 ) $ 107 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 June 30, 2015 and December 31, 2014 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value (dollars in thousands) Valuation Technique Description Jun. 30, Dec. 31, Jun. 30, Dec. 31, Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 8.50 % 11.62 % $ 28,393 $ 25,441 Discount Rate 2 9.56 % 10.61 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 92.65 % 93.85 % $ 402 $ 152 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.22 % 0.21 % $ (32 ) $ (34 ) 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. |
Assets and liabilities measured at fair value on a nonrecurring basis | The following table represents the assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 . (dollars in thousands) Fair Value Hierarchy Net Carrying Amount Valuation Allowance June 30, 2015 Mortgage Servicing Rights - amortization method Level 3 $ 21,238 $ — Foreclosed Real Estate Level 3 1,989 354 December 31, 2014 Mortgage Servicing Rights - amortization method Level 3 $ 22,091 $ 57 Foreclosed Real Estate Level 3 2,311 89 |
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 June 30, 2015 and December 31, 2014 . (dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Unpaid Principal June 30, 2015 Loans Held for Sale $ 18,483 $ 18,073 $ 410 December 31, 2014 Loans Held for Sale $ 5,136 $ 4,740 $ 396 |
Schedule of carrying amount, fair value, and fair value hierarchy of financial instruments | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 . 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 Carrying Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 4,199,121 $ 4,240,732 $ 562,811 $ 3,677,921 $ — Loans 1 7,074,536 7,562,369 — — 7,562,369 Financial Instruments - Liabilities Time Deposits 1,189,620 1,192,354 — 1,192,354 — Securities Sold Under Agreements to Repurchase 672,310 735,823 — 735,823 — Other Debt 2 159,938 160,913 — 160,913 — December 31, 2014 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 — Other Debt 2 163,005 163,911 — 163,911 — 1 Net of unearned income and the Allowance. 2 Excludes capitalized lease obligations. |
Investment Securities (Amortiza
Investment Securities (Amortization Cost, Gross Unrealized Gains/Losses, and Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | $ 2,253,285 | $ 2,262,807 |
Available-for-Sale: Gross Unrealized Gains | 35,769 | 41,668 |
Available-for-Sale: Gross Unrealized Losses | (13,693) | (15,285) |
Available-for-Sale | 2,275,361 | 2,289,190 |
Held-to-maturity Securities [Abstract] | ||
Held-to-Maturity: Amortized Cost | 4,199,121 | 4,466,679 |
Held-to-Maturity: Gross Unrealized Gains | 61,040 | 66,859 |
Held-to-Maturity: Gross Unrealized Losses | (19,429) | (29,043) |
Held-to-Maturity: Fair Value | 4,240,732 | 4,504,495 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 365,844 | 325,365 |
Available-for-Sale: Gross Unrealized Gains | 5,048 | 5,933 |
Available-for-Sale: Gross Unrealized Losses | (127) | (40) |
Available-for-Sale | 370,765 | 331,258 |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 731,724 | 723,474 |
Available-for-Sale: Gross Unrealized Gains | 18,911 | 21,941 |
Available-for-Sale: Gross Unrealized Losses | (1,776) | (1,445) |
Available-for-Sale | 748,859 | 743,970 |
Debt Securities Issued by Corporations | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 313,196 | 298,272 |
Available-for-Sale: Gross Unrealized Gains | 421 | 546 |
Available-for-Sale: Gross Unrealized Losses | (3,756) | (3,985) |
Available-for-Sale | 309,861 | 294,833 |
Mortgage-Backed Securities | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 842,521 | 915,696 |
Available-for-Sale: Gross Unrealized Gains | 11,389 | 13,248 |
Available-for-Sale: Gross Unrealized Losses | (8,034) | (9,815) |
Available-for-Sale | 845,876 | 919,129 |
Residential - Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 379,489 | 452,493 |
Available-for-Sale: Gross Unrealized Gains | 9,085 | 10,986 |
Available-for-Sale: Gross Unrealized Losses | (1,211) | (1,043) |
Available-for-Sale | 387,363 | 462,436 |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 303,170 | 276,390 |
Available-for-Sale: Gross Unrealized Gains | 2,304 | 2,262 |
Available-for-Sale: Gross Unrealized Losses | (703) | (191) |
Available-for-Sale | 304,771 | 278,461 |
Commercial - Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 159,862 | 186,813 |
Available-for-Sale: Gross Unrealized Gains | 0 | 0 |
Available-for-Sale: Gross Unrealized Losses | (6,120) | (8,581) |
Available-for-Sale | 153,742 | 178,232 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Held-to-maturity Securities [Abstract] | ||
Held-to-Maturity: Amortized Cost | 559,587 | 498,767 |
Held-to-Maturity: Gross Unrealized Gains | 3,401 | 2,008 |
Held-to-Maturity: Gross Unrealized Losses | (177) | (1,159) |
Held-to-Maturity: Fair Value | 562,811 | 499,616 |
Debt Securities Issued by States and Political Subdivisions | ||
Held-to-maturity Securities [Abstract] | ||
Held-to-Maturity: Amortized Cost | 247,783 | 249,559 |
Held-to-Maturity: Gross Unrealized Gains | 13,173 | 15,459 |
Held-to-Maturity: Gross Unrealized Losses | 0 | 0 |
Held-to-Maturity: Fair Value | 260,956 | 265,018 |
Debt Securities Issued by Corporations | ||
Held-to-maturity Securities [Abstract] | ||
Held-to-Maturity: Amortized Cost | 159,031 | 166,686 |
Held-to-Maturity: Gross Unrealized Gains | 1,202 | 109 |
Held-to-Maturity: Gross Unrealized Losses | (1,408) | (3,442) |
Held-to-Maturity: Fair Value | 158,825 | 163,353 |
Mortgage-Backed Securities | ||
Held-to-maturity Securities [Abstract] | ||
Held-to-Maturity: Amortized Cost | 3,232,720 | 3,551,667 |
Held-to-Maturity: Gross Unrealized Gains | 43,264 | 49,283 |
Held-to-Maturity: Gross Unrealized Losses | (17,844) | (24,442) |
Held-to-Maturity: Fair Value | $ 3,258,140 | $ 3,576,508 |
Investment Securities (Contract
Investment Securities (Contractual Maturities and Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis Rolling Maturity[Abstract] | ||
Due in One Year or Less | $ 85,358 | |
Due After One Year Through Five Years | 436,379 | |
Due After Five Years Through Ten Years | 490,364 | |
Due After Ten Years | 93,204 | |
Amortized Cost, Total | 1,105,305 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Due in One Year or Less | 85,907 | |
Due After One Year Through Five Years | 437,170 | |
Due After Five Years Through Ten Years | 497,559 | |
Due After Ten Years | 99,012 | |
Fair Value, Total | 1,119,648 | |
Available-for-Sale: Amortized Cost | 2,253,285 | $ 2,262,807 |
Available-for-Sale: Fair Value | 2,275,361 | 2,289,190 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Rolling Maturities (Abstract] | ||
Due in One Year or Less | 79,884 | |
Due After One Year Through Five Years | 490,508 | |
Due After Five Years Through Ten Years | 270,234 | |
Due After Ten Years | 125,775 | |
Amortized Cost, Total | 966,401 | |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Due in One Year or Less | 80,195 | |
Due After One Year Through Five Years | 493,749 | |
Due After Five Years Through Ten Years | 275,890 | |
Due After Ten Years | 132,758 | |
Fair Value, Total | 982,592 | |
Held-to-Maturity: Amortized Cost | 4,199,121 | |
Held-to-Maturity: Fair Value | 4,240,732 | 4,504,495 |
Carrying value of investment securities which were pledged to secure deposits of gov't entities and repos | 2,700,000 | 2,800,000 |
Debt Securities Issued by Government Agencies | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 305,459 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 309,837 | |
Mortgage-Backed Securities | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 842,521 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 845,876 | |
Available-for-Sale: Amortized Cost | 842,521 | 915,696 |
Available-for-Sale: Fair Value | 845,876 | 919,129 |
Residential - Government Agencies | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 379,489 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 387,363 | |
Available-for-Sale: Amortized Cost | 379,489 | 452,493 |
Available-for-Sale: Fair Value | 387,363 | 462,436 |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 303,170 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 304,771 | |
Available-for-Sale: Amortized Cost | 303,170 | 276,390 |
Available-for-Sale: Fair Value | 304,771 | 278,461 |
Commercial - Government Agencies | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 159,862 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 153,742 | |
Available-for-Sale: Amortized Cost | 159,862 | 186,813 |
Available-for-Sale: Fair Value | 153,742 | 178,232 |
Mortgage-Backed Securities | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 3,232,720 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 3,258,140 | |
Held-to-Maturity: Fair Value | $ 3,258,140 | $ 3,576,508 |
Investment Securities (Gains an
Investment Securities (Gains and Losses on Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross Gains on Sales of Investment Securities | $ 86 | $ 2,079 | $ 10,317 | $ 4,239 |
Gross Losses on Sales of Investment Securities | 0 | 0 | 0 | 0 |
Net Gains on Sales of Investment Securities | $ 86 | $ 2,079 | $ 10,317 | $ 4,239 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Position - Less than 12 Mos., 12 Mos. or Longer) (Details) $ in Thousands | Jun. 30, 2015USD ($)security | Dec. 31, 2014USD ($) |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | $ 537,747 | $ 260,475 |
Less Than 12 Months, Gross Unrealized Losses | (4,434) | (1,677) |
12 Months or Longer, Fair Value | 312,619 | 470,871 |
12 Months or Longer, Gross Unrealized Losses | (9,259) | (13,608) |
Total Fair Value | 850,366 | 731,346 |
Total Gross Unrealized Losses | (13,693) | (15,285) |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 743,774 | 567,527 |
Less Than 12 Months, Gross Unrealized Losses | (4,851) | (1,884) |
12 Months or Longer, Fair Value | 631,678 | 1,243,333 |
12 Months or Longer, Gross Unrealized Losses | (14,578) | (27,159) |
Total Fair Value | 1,375,452 | 1,810,860 |
Total Gross Unrealized Losses | $ (19,429) | (29,043) |
Number of investment securities that were in an unrealized loss position | security | 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 | $ 58,296 | 1,729 |
Less Than 12 Months, Gross Unrealized Losses | (102) | (2) |
12 Months or Longer, Fair Value | 5,178 | 5,546 |
12 Months or Longer, Gross Unrealized Losses | (25) | (38) |
Total Fair Value | 63,474 | 7,275 |
Total Gross Unrealized Losses | (127) | (40) |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 193,853 | 78,068 |
Less Than 12 Months, Gross Unrealized Losses | (1,776) | (305) |
12 Months or Longer, Fair Value | 0 | 94,543 |
12 Months or Longer, Gross Unrealized Losses | 0 | (1,140) |
Total Fair Value | 193,853 | 172,611 |
Total Gross Unrealized Losses | (1,776) | (1,445) |
Debt Securities Issued by Corporations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 126,177 | 73,829 |
Less Than 12 Months, Gross Unrealized Losses | (1,843) | (1,171) |
12 Months or Longer, Fair Value | 143,190 | 180,335 |
12 Months or Longer, Gross Unrealized Losses | (1,913) | (2,814) |
Total Fair Value | 269,367 | 254,164 |
Total Gross Unrealized Losses | (3,756) | (3,985) |
Mortgage-Backed Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 159,421 | 106,849 |
Less Than 12 Months, Gross Unrealized Losses | (713) | (199) |
12 Months or Longer, Fair Value | 164,251 | 190,447 |
12 Months or Longer, Gross Unrealized Losses | (7,321) | (9,616) |
Total Fair Value | 323,672 | 297,296 |
Total Gross Unrealized Losses | (8,034) | (9,815) |
Residential - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 17,450 | 3,025 |
Less Than 12 Months, Gross Unrealized Losses | (10) | (8) |
12 Months or Longer, Fair Value | 10,508 | 12,215 |
12 Months or Longer, Gross Unrealized Losses | (1,201) | (1,035) |
Total Fair Value | 27,958 | 15,240 |
Total Gross Unrealized Losses | (1,211) | (1,043) |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 141,971 | 103,824 |
Less Than 12 Months, Gross Unrealized Losses | (703) | (191) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 141,971 | 103,824 |
Total Gross Unrealized Losses | (703) | (191) |
Commercial - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 0 | 0 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 153,743 | 178,232 |
12 Months or Longer, Gross Unrealized Losses | (6,120) | (8,581) |
Total Fair Value | 153,743 | 178,232 |
Total Gross Unrealized Losses | (6,120) | (8,581) |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 60,215 | 70,016 |
Less Than 12 Months, Gross Unrealized Losses | (101) | (134) |
12 Months or Longer, Fair Value | 30,169 | 144,222 |
12 Months or Longer, Gross Unrealized Losses | (76) | (1,025) |
Total Fair Value | 90,384 | 214,238 |
Total Gross Unrealized Losses | (177) | (1,159) |
Debt Securities Issued by Corporations | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 4,204 | 46,196 |
Less Than 12 Months, Gross Unrealized Losses | (1) | (349) |
12 Months or Longer, Fair Value | 75,540 | 82,109 |
12 Months or Longer, Gross Unrealized Losses | (1,407) | (3,093) |
Total Fair Value | 79,744 | 128,305 |
Total Gross Unrealized Losses | (1,408) | (3,442) |
Mortgage-Backed Securities | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 679,355 | 451,315 |
Less Than 12 Months, Gross Unrealized Losses | (4,749) | (1,401) |
12 Months or Longer, Fair Value | 525,969 | 1,017,002 |
12 Months or Longer, Gross Unrealized Losses | (13,095) | (23,041) |
Total Fair Value | 1,205,324 | 1,468,317 |
Total Gross Unrealized Losses | $ (17,844) | $ (24,442) |
(Interest Income - Taxable_Non-
(Interest Income - Taxable/Non-Taxable Invest. Sec.) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Taxable And Non-Taxable Interest Income [Abstract] | ||||
Interest Income from Investment Securities, Taxable | $ 27,776 | $ 32,316 | $ 57,068 | $ 65,743 |
Interest Income from Investment Securities, Non-Taxable | 5,329 | 5,319 | 10,642 | 10,541 |
Total Interest Income from Investment Securities | $ 33,105 | $ 37,635 | $ 67,710 | $ 76,284 |
Investment Securities (Municipa
Investment Securities (Municipal Bonds Narrative) (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
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] | |
Debt Securities Issued by State and Political Subdivision, State of Hawaii | $ 590.4 |
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 | 58.00% |
Hawaiian Municipal Debt Securities | Investment Concentration Risk | HAWAII | General Obligation Bond | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration Risk, Percentage | 77.00% |
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 | 91.00% |
(FHLB and FRB Stocks) (Details)
(FHLB and FRB Stocks) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $ 16,000 | $ 47,075 |
Federal Reserve Bank Stock | 19,418 | 19,299 |
Total | $ 35,418 | $ 66,374 |
Investment Securities (Visa Cla
Investment Securities (Visa Class B Restricted Shares Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | |
Net Investment Income [Line Items] | ||||
Net Gain on Sale of Investment Securities | $ | $ 86 | $ 2,079 | $ 10,317 | $ 4,239 |
Visa Class B Restricted Securities | ||||
Net Investment Income [Line Items] | ||||
Conversion Ratio to Class A shares | 1.6483 | 1.6483 | ||
Net Gain on Sale of Investment Securities | $ | $ 10,100 | |||
Sale of investment securities, shares | 95,000 | |||
Equity securities remaining, shares | 293,214 | 293,214 | ||
Donation of Investment Securities, Shares | 9,300 | |||
Visa Class A Unrestricted Securities | ||||
Net Investment Income [Line Items] | ||||
Equity securities remaining, shares | 483,305 | 483,305 |
Loans and Leases and the Allo43
Loans and Leases and the Allowance for Loan and Lease Losses (Loans and Leases Portfolio and Narrative) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Loan and lease portfolio | |||||
Loans and Leases | $ 7,428,438 | $ 6,426,353 | $ 7,428,438 | $ 6,426,353 | $ 6,897,589 |
Net Gains Related to Sales of Mortgage Loans | 1,800 | 600 | 2,300 | 1,300 | |
Commercial | |||||
Loan and lease portfolio | |||||
Loans and Leases | 3,042,771 | 2,693,508 | 3,042,771 | 2,693,508 | 2,828,128 |
Commercial and Industrial | |||||
Loan and lease portfolio | |||||
Loans and Leases | 1,173,259 | 1,173,259 | 1,055,243 | ||
Commercial Mortgage | |||||
Loan and lease portfolio | |||||
Loans and Leases | 1,528,685 | 1,528,685 | 1,437,513 | ||
Construction | |||||
Loan and lease portfolio | |||||
Loans and Leases | 118,714 | 118,714 | 109,183 | ||
Lease Financing | |||||
Loan and lease portfolio | |||||
Loans and Leases | 222,113 | 222,113 | 226,189 | ||
Consumer | |||||
Loan and lease portfolio | |||||
Loans and Leases | 4,385,667 | $ 3,732,845 | 4,385,667 | $ 3,732,845 | 4,069,461 |
Residential Mortgage | |||||
Loan and lease portfolio | |||||
Loans and Leases | 2,787,847 | 2,787,847 | 2,571,090 | ||
Home Equity | |||||
Loan and lease portfolio | |||||
Loans and Leases | 931,191 | 931,191 | 866,688 | ||
Automobile | |||||
Loan and lease portfolio | |||||
Loans and Leases | 352,128 | 352,128 | 323,848 | ||
Other | |||||
Loan and lease portfolio | |||||
Loans and Leases | $ 314,501 | $ 314,501 | $ 307,835 |
Loans and Leases and the Allo44
Loans and Leases and the Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Allowance for Loan and Lease Losses: | |||||||
Balance at Beginning of Period | $ 107,461 | $ 114,126 | $ 108,688 | $ 115,454 | |||
Loans and Leases Charged-Off | (3,496) | (3,997) | (7,584) | (8,035) | |||
Recoveries on Loans and Leases Previously Charged-Off | 2,041 | 5,908 | 4,902 | 8,618 | |||
Net Loans and Leases Recovered (Charged-Off) | (1,455) | 1,911 | (2,682) | 583 | |||
Provision for Credit Losses | 0 | (2,199) | 0 | (2,199) | |||
Balance at End of Period | 106,006 | 113,838 | 106,006 | 113,838 | |||
Allowance for Loan and Lease Losses: | |||||||
Individually Evaluated for Impairment | $ 5,565 | $ 12,025 | |||||
Collectively Evaluated for Impairment | 100,441 | 101,813 | |||||
Total | 107,461 | 114,126 | 108,688 | 115,454 | 106,006 | $ 108,688 | 113,838 |
Recorded Investment in Loans and Leases: | |||||||
Individually Evaluated for Impairment | 66,779 | 65,096 | |||||
Collectively Evaluated for Impairment | 7,361,659 | 6,361,257 | |||||
Total Loans and Leases | 7,428,438 | 6,897,589 | 6,426,353 | ||||
Commercial | |||||||
Allowance for Loan and Lease Losses: | |||||||
Balance at Beginning of Period | 65,834 | 71,390 | 64,551 | 71,446 | |||
Loans and Leases Charged-Off | (255) | (815) | (490) | (1,634) | |||
Recoveries on Loans and Leases Previously Charged-Off | 486 | 2,156 | 1,222 | 3,097 | |||
Net Loans and Leases Recovered (Charged-Off) | 231 | 1,341 | 732 | 1,463 | |||
Provision for Credit Losses | 940 | (845) | 1,722 | (1,023) | |||
Balance at End of Period | 67,005 | 71,886 | 67,005 | 71,886 | |||
Allowance for Loan and Lease Losses: | |||||||
Individually Evaluated for Impairment | 2,160 | 8,693 | |||||
Collectively Evaluated for Impairment | 64,845 | 63,193 | |||||
Total | 65,834 | 71,390 | 64,551 | 71,446 | 67,005 | 64,551 | 71,886 |
Recorded Investment in Loans and Leases: | |||||||
Individually Evaluated for Impairment | 27,512 | 27,089 | |||||
Collectively Evaluated for Impairment | 3,015,259 | 2,666,419 | |||||
Total Loans and Leases | 3,042,771 | 2,828,128 | 2,693,508 | ||||
Consumer | |||||||
Allowance for Loan and Lease Losses: | |||||||
Balance at Beginning of Period | 41,627 | 42,736 | 44,137 | 44,008 | |||
Loans and Leases Charged-Off | (3,241) | (3,182) | (7,094) | (6,401) | |||
Recoveries on Loans and Leases Previously Charged-Off | 1,555 | 3,752 | 3,680 | 5,521 | |||
Net Loans and Leases Recovered (Charged-Off) | (1,686) | 570 | (3,414) | (880) | |||
Provision for Credit Losses | (940) | (1,354) | (1,722) | (1,176) | |||
Balance at End of Period | 39,001 | 41,952 | 39,001 | 41,952 | |||
Allowance for Loan and Lease Losses: | |||||||
Individually Evaluated for Impairment | 3,405 | 3,332 | |||||
Collectively Evaluated for Impairment | 35,596 | 38,620 | |||||
Total | $ 41,627 | $ 42,736 | $ 44,137 | $ 44,008 | 39,001 | 44,137 | 41,952 |
Recorded Investment in Loans and Leases: | |||||||
Individually Evaluated for Impairment | 39,267 | 38,007 | |||||
Collectively Evaluated for Impairment | 4,346,400 | 3,694,838 | |||||
Total Loans and Leases | $ 4,385,667 | $ 4,069,461 | $ 3,732,845 |
Loans and Leases and the Allo45
Loans and Leases and the Allowance for Loan and Lease Losses (Credit Quality Indicators & Narrative) (Details 3) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 7,428,438 | $ 6,897,589 | $ 6,426,353 |
Commercial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 3,042,771 | 2,828,128 | 2,693,508 |
Commercial and Industrial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,173,259 | 1,055,243 | |
Commercial Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,528,685 | 1,437,513 | |
Construction | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 118,714 | 109,183 | |
Lease Financing | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 222,113 | 226,189 | |
Consumer | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 4,385,667 | 4,069,461 | $ 3,732,845 |
Residential Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 2,787,847 | 2,571,090 | |
Home Equity | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 931,191 | 866,688 | |
Automobile | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 352,128 | 323,848 | |
Other | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 314,501 | 307,835 | |
Pass | Commercial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 2,920,161 | 2,693,450 | |
Pass | Commercial and Industrial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,119,752 | 1,001,474 | |
Pass | Commercial Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,461,791 | 1,358,812 | |
Pass | Construction | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 116,971 | 107,381 | |
Pass | Lease Financing | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 221,647 | 225,783 | |
Pass | Consumer | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 4,363,847 | 4,048,753 | |
Pass | Residential Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 2,772,013 | 2,556,140 | |
Pass | Home Equity | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 926,305 | 862,258 | |
Pass | Automobile | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 351,806 | 323,232 | |
Pass | Other | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 313,723 | 307,123 | |
Special Mention | Commercial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 40,832 | 62,463 | |
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 | 16,460 | 17,364 | |
Special Mention | Commercial Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 24,289 | 45,082 | |
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 | $ 83 | 17 | |
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 | 6 months | ||
Classified | Commercial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 81,778 | 72,215 | |
Classified | Commercial and Industrial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 37,047 | 36,405 | |
Classified | Commercial Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 42,605 | 33,619 | |
Classified | Construction | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,743 | 1,802 | |
Classified | Lease Financing | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 383 | 389 | |
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 | $ 21,820 | 20,708 | |
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 | $ 15,834 | 14,950 | |
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 | $ 4,886 | 4,430 | |
Classified | Automobile | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 322 | 616 | |
Classified | Other | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 778 | $ 712 |
Loans and Leases and the Allo46
Loans and Leases and the Allowance for Loan and Lease Losses (Aging Analysis) (Details 4) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | $ 27,461 | $ 27,771 | |
Total Past Due and Non-Accrual | 66,024 | 64,184 | |
Current | 7,362,414 | 6,833,405 | |
Total Loans and Leases | 7,428,438 | 6,897,589 | $ 6,426,353 |
Non-Accrual Loans and Leases that are Current | $ 8,105 | 8,826 | |
Number of days non-accrual loans are not past due | 30 days | ||
Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | $ 9,015 | 9,833 | |
Total Past Due and Non-Accrual | 12,590 | 11,641 | |
Current | 3,030,181 | 2,816,487 | |
Total Loans and Leases | 3,042,771 | 2,828,128 | 2,693,508 |
Non-Accrual Loans and Leases that are Current | 3,305 | 7,819 | |
Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 8,299 | 9,088 | |
Total Past Due and Non-Accrual | 11,843 | 10,438 | |
Current | 1,161,416 | 1,044,805 | |
Total Loans and Leases | 1,173,259 | 1,055,243 | |
Non-Accrual Loans and Leases that are Current | 2,813 | 7,819 | |
Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 716 | 745 | |
Total Past Due and Non-Accrual | 747 | 1,203 | |
Current | 1,527,938 | 1,436,310 | |
Total Loans and Leases | 1,528,685 | 1,437,513 | |
Non-Accrual Loans and Leases that are Current | 492 | 0 | |
Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 0 | 0 | |
Current | 118,714 | 109,183 | |
Total Loans and Leases | 118,714 | 109,183 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Lease Financing | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 0 | 0 | |
Current | 222,113 | 226,189 | |
Total Loans and Leases | 222,113 | 226,189 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 18,446 | 17,938 | |
Total Past Due and Non-Accrual | 53,434 | 52,543 | |
Current | 4,332,233 | 4,016,918 | |
Total Loans and Leases | 4,385,667 | 4,069,461 | $ 3,732,845 |
Non-Accrual Loans and Leases that are Current | 4,800 | 1,007 | |
Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 14,918 | 14,841 | |
Total Past Due and Non-Accrual | 29,720 | 26,361 | |
Current | 2,758,127 | 2,544,729 | |
Total Loans and Leases | 2,787,847 | 2,571,090 | |
Non-Accrual Loans and Leases that are Current | 3,439 | 632 | |
Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 3,528 | 3,097 | |
Total Past Due and Non-Accrual | 9,420 | 11,815 | |
Current | 921,771 | 854,873 | |
Total Loans and Leases | 931,191 | 866,688 | |
Non-Accrual Loans and Leases that are Current | 1,361 | 375 | |
Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 8,664 | 9,961 | |
Current | 343,464 | 313,887 | |
Total Loans and Leases | 352,128 | 323,848 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 5,630 | 4,406 | |
Current | 308,871 | 303,429 | |
Total Loans and Leases | 314,501 | 307,835 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 19,967 | 20,096 | |
30 - 59 Days Past Due | Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 482 | 1,450 | |
30 - 59 Days Past Due | Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 482 | 992 | |
30 - 59 Days Past Due | Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 458 | |
30 - 59 Days Past Due | Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
30 - 59 Days Past Due | Lease Financing | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
30 - 59 Days Past Due | Consumer | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 19,485 | 18,646 | |
30 - 59 Days Past Due | Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 7,678 | 4,907 | |
30 - 59 Days Past Due | Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,226 | 3,461 | |
30 - 59 Days Past Due | Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 7,135 | 7,862 | |
30 - 59 Days Past Due | Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,446 | 2,416 | |
60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 8,944 | 7,656 | |
60 - 89 Days Past Due | Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,343 | 356 | |
60 - 89 Days Past Due | Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,312 | 356 | |
60 - 89 Days Past Due | Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 31 | 0 | |
60 - 89 Days Past Due | Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
60 - 89 Days Past Due | Lease Financing | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
60 - 89 Days Past Due | Consumer | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 6,601 | 7,300 | |
60 - 89 Days Past Due | Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,335 | 2,107 | |
60 - 89 Days Past Due | Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,271 | 2,661 | |
60 - 89 Days Past Due | Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,206 | 1,483 | |
60 - 89 Days Past Due | Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,789 | 1,049 | |
Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 9,652 | 8,661 | |
Past Due 90 Days or More | Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 750 | 2 | |
Past Due 90 Days or More | Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 750 | 2 | |
Past Due 90 Days or More | Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Past Due 90 Days or More | Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Past Due 90 Days or More | Lease Financing | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Past Due 90 Days or More | Consumer | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 8,902 | 8,659 | |
Past Due 90 Days or More | Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 4,789 | 4,506 | |
Past Due 90 Days or More | Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,395 | 2,596 | |
Past Due 90 Days or More | Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 323 | 616 | |
Past Due 90 Days or More | Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | $ 1,395 | $ 941 |
Loans and Leases and the Allo47
Loans and Leases and the Allowance for Loan and Lease Losses (Impaired Loans) (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 21,224 | $ 21,224 | $ 17,932 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 26,535 | 26,535 | 23,182 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 45,555 | 45,555 | 46,815 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 58,238 | 58,238 | 59,073 | ||
Related Allowance for Loan Losses | 5,565 | 5,565 | 5,948 | ||
Recorded Investment | 66,779 | 66,779 | 64,747 | ||
Unpaid Principal Balance | 84,773 | 84,773 | 82,255 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 20,549 | $ 20,121 | 19,676 | $ 22,968 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 203 | 144 | 393 | 307 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 45,611 | 46,227 | 46,011 | 46,966 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 441 | 396 | 868 | 780 | |
Average Recorded Investment | 66,160 | 66,348 | 65,687 | 69,934 | |
Interest Income Recognized | 644 | 540 | 1,261 | 1,087 | |
Commercial | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 21,224 | 21,224 | 17,932 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 26,535 | 26,535 | 23,182 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,288 | 6,288 | 7,184 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 12,888 | 12,888 | 13,784 | ||
Related Allowance for Loan Losses | 2,160 | 2,160 | 2,387 | ||
Recorded Investment | 27,512 | 27,512 | 25,116 | ||
Unpaid Principal Balance | 39,423 | 39,423 | 36,966 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 20,549 | 20,106 | 19,676 | 22,958 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 203 | 144 | 393 | 307 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 6,250 | 8,347 | 6,561 | 8,832 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 28 | 27 | 54 | 55 | |
Average Recorded Investment | 26,799 | 28,453 | 26,237 | 31,790 | |
Interest Income Recognized | 231 | 171 | 447 | 362 | |
Commercial and Industrial | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 12,604 | 12,604 | 9,763 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 17,915 | 17,915 | 15,013 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,288 | 6,288 | 7,184 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 12,888 | 12,888 | 13,784 | ||
Related Allowance for Loan Losses | 2,160 | 2,160 | 2,387 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 12,201 | 11,275 | 11,388 | 11,753 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 110 | 66 | 208 | 158 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 6,250 | 8,347 | 6,561 | 8,832 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 28 | 27 | 54 | 55 | |
Commercial Mortgage | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 6,973 | 6,973 | 6,480 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 6,973 | 6,973 | 6,480 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 6,690 | 7,135 | 6,620 | 9,722 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 66 | 56 | 131 | 111 | |
Construction | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,647 | 1,647 | 1,689 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,647 | 1,647 | 1,689 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,658 | 1,696 | 1,668 | 1,483 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 27 | 22 | 54 | 38 | |
Consumer | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 39,267 | 39,267 | 39,631 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 45,350 | 45,350 | 45,289 | ||
Related Allowance for Loan Losses | 3,405 | 3,405 | 3,561 | ||
Recorded Investment | 39,267 | 39,267 | 39,631 | ||
Unpaid Principal Balance | 45,350 | 45,350 | 45,289 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 15 | 0 | 10 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 39,361 | 37,880 | 39,450 | 38,134 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 413 | 369 | 814 | 725 | |
Average Recorded Investment | 39,361 | 37,895 | 39,450 | 38,144 | |
Interest Income Recognized | 413 | 369 | 814 | 725 | |
Residential Mortgage | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 31,185 | 31,185 | 32,331 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 37,268 | 37,268 | 37,989 | ||
Related Allowance for Loan Losses | 3,265 | 3,265 | 3,445 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 31,455 | 31,368 | 31,747 | 31,691 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 264 | 244 | 531 | 480 | |
Home Equity | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,191 | 1,191 | 1,012 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,191 | 1,191 | 1,012 | ||
Related Allowance for Loan Losses | 14 | 14 | 16 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,197 | 995 | 1,135 | 928 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 11 | 9 | 19 | 14 | |
Automobile | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,787 | 5,787 | 5,375 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 5,787 | 5,787 | 5,375 | ||
Related Allowance for Loan Losses | 94 | 94 | 66 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 5,667 | 5,080 | 5,569 | 5,114 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 111 | 106 | 215 | 213 | |
Other | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,104 | 1,104 | 913 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,104 | 1,104 | 913 | ||
Related Allowance for Loan Losses | 32 | 32 | $ 34 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 15 | 0 | 10 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,042 | 437 | 999 | 401 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 27 | $ 10 | $ 49 | $ 18 |
Loans and Leases and the Allo48
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring & Narrative) (Details 6) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | Dec. 31, 2014USD ($) | |
Loans and Leases and the Allowance for Loan and Lease Losses | |||||
Loans Modified in a TDR | $ 63,200 | $ 60,200 | |||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 101 | 59 | 169 | 115 | |
Recorded Investment (as of period end) | $ 7,715 | $ 3,261 | $ 11,445 | $ 9,389 | |
Increase in Allowance (as of period end) | $ 177 | $ 40 | $ 241 | $ 84 | |
Land Loan | 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 | ||||
Commercial | |||||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 23 | 7 | 29 | 13 | |
Recorded Investment (as of period end) | $ 5,159 | $ 1,429 | $ 5,726 | $ 4,526 | |
Increase in Allowance (as of period end) | $ 64 | $ 2 | $ 65 | $ 2 | |
Commercial and Industrial | |||||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 22 | 7 | 27 | 12 | |
Recorded Investment (as of period end) | $ 4,535 | $ 1,429 | $ 4,611 | $ 4,177 | |
Increase in Allowance (as of period end) | $ 2 | $ 2 | $ 3 | $ 2 | |
Commercial Mortgage | |||||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 1 | 0 | 2 | 1 | |
Recorded Investment (as of period end) | $ 624 | $ 0 | $ 1,115 | $ 349 | |
Increase in Allowance (as of period end) | $ 62 | $ 0 | $ 62 | $ 0 | |
Consumer | |||||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 78 | 52 | 140 | 102 | |
Recorded Investment (as of period end) | $ 2,556 | $ 1,832 | $ 5,719 | $ 4,863 | |
Increase in Allowance (as of period end) | $ 113 | $ 38 | $ 176 | $ 82 | |
Residential Mortgage | |||||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 5 | 4 | 10 | 9 | |
Recorded Investment (as of period end) | $ 1,414 | $ 1,033 | $ 3,488 | $ 3,330 | |
Increase in Allowance (as of period end) | $ 92 | $ 25 | $ 136 | $ 57 | |
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 | contract | 0 | 1 | 2 | 2 | |
Recorded Investment (as of period end) | $ 0 | $ 90 | $ 203 | $ 161 | |
Increase in Allowance (as of period end) | $ 0 | $ 1 | $ 2 | $ 3 | |
Automobile | |||||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 40 | 35 | 75 | 70 | |
Recorded Investment (as of period end) | $ 888 | $ 603 | $ 1,645 | $ 1,185 | |
Increase in Allowance (as of period end) | $ 14 | $ 8 | $ 27 | $ 16 | |
Other | |||||
Loans Modified as a TDR | |||||
Number of Contracts | contract | 33 | 12 | 53 | 21 | |
Recorded Investment (as of period end) | $ 254 | $ 106 | $ 383 | $ 187 | |
Increase in Allowance (as of period end) | $ 7 | $ 4 | $ 11 | $ 6 |
Loans and Leases and the Allo49
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring's that Defaulted During the Period) (Details 7) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | |
Information related to loans modified as a TDR | ||||
Number of Contracts | 18 | 8 | 25 | 13 |
Recorded Investment (as of period end) | $ | $ 4,627 | $ 846 | $ 4,995 | $ 1,388 |
Commercial | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts | 1 | 2 | 1 | 2 |
Recorded Investment (as of period end) | $ | $ 4,471 | $ 768 | $ 4,471 | $ 768 |
Commercial and Industrial | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts | 1 | 2 | 1 | 2 |
Recorded Investment (as of period end) | $ | $ 4,471 | $ 768 | $ 4,471 | $ 768 |
Consumer | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts | 17 | 6 | 24 | 11 |
Recorded Investment (as of period end) | $ | $ 156 | $ 78 | $ 524 | $ 620 |
Residential Mortgage | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts | 1 | 2 | ||
Recorded Investment (as of period end) | $ | $ 305 | $ 514 | ||
Automobile | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts | 5 | 3 | 7 | 5 |
Recorded Investment (as of period end) | $ | $ 86 | $ 55 | $ 120 | $ 75 |
Other | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts | 12 | 3 | 16 | 4 |
Recorded Investment (as of period end) | $ | $ 70 | $ 23 | $ 99 | $ 31 |
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 Allo50
Loans and Leases and the Allowance for Loan and Lease Losses (Foreclosure Proceedings Narrative) (Details 8) $ in Millions | Jun. 30, 2015USD ($) |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure | $ 8 |
Mortgage Servicing Rights (Narr
Mortgage Servicing Rights (Narrative) (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Transfers and Servicing of Financial Assets [Abstract] | |||||
Residential mortgage loans serviced for third parties | $ 2,800 | $ 2,800 | $ 2,900 | ||
Servicing income, including late and ancillary fees | $ 1.8 | $ 2 | $ 3.7 | $ 4 |
Mortgage Servicing Rights (Fair
Mortgage Servicing Rights (Fair value method rollforward) (Details 2) - Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Mortgage servicing rights accounted for under the fair value measurement method [Rollforward] | ||||
Balance at Beginning of Period | $ 2,277 | $ 3,381 | $ 2,604 | $ 3,826 |
Due to Change in Valuation Assumptions | 0 | (322) | (251) | (671) |
Due to Payoffs | (89) | (99) | (165) | (195) |
Total Changes in Fair Value of Mortgage Servicing Rights | (89) | (421) | (416) | (866) |
Balance at End of Period | $ 2,188 | $ 2,960 | $ 2,188 | $ 2,960 |
Mortgage Servicing Rights (Amor
Mortgage Servicing Rights (Amortization method rollforward) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Valuation Allowance for Impairment of Mortgage Servicing Rights Accounted for under the Amortization Method [Roll Forward] | ||||
Balance at Beginning of Period | $ (57) | |||
Balance at End of Period | $ 0 | 0 | ||
Mortgage Servicing Rights | ||||
Mortgage Servicing Rights Accounted for Under the Amortization Method {Rollforward) | ||||
Balance at Beginning of Period | 21,366 | $ 23,997 | 22,091 | $ 24,297 |
Servicing Rights that Resulted From Asset Transfers | 551 | 210 | 685 | 564 |
Amortization | (756) | (698) | (1,595) | (1,352) |
Valuation Allowance Provision | 77 | (72) | 57 | (72) |
Balance at End of Period | 21,238 | 23,437 | 21,238 | 23,437 |
Valuation Allowance for Impairment of Mortgage Servicing Rights Accounted for under the Amortization Method [Roll Forward] | ||||
Balance at Beginning of Period | (77) | 0 | (57) | 0 |
Valuation Allowance Provision | 77 | (72) | 57 | (72) |
Balance at End of Period | 0 | (72) | 0 | (72) |
Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method | ||||
Beginning of Period | 21,431 | 28,303 | 22,837 | 30,100 |
End of Period | $ 26,205 | $ 25,848 | $ 26,205 | $ 25,848 |
Mortgage Servicing Rights (Key
Mortgage Servicing Rights (Key assumptions) (Details 4) - Mortgage Servicing Rights | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Key data and assumptions used in estimating the fair value of mortgage servicing rights | ||
Weighted-Average Constant Prepayment Rate (as a percent) | 8.50% | 11.62% |
Weighted-Average Life (in years) | 7 years 8 months 3 days | 6 years 3 months 12 days |
Weighted-Average Note Rate (as a percent) | 4.25% | 4.28% |
Weighted-Average Discount Rate (as a percent) | 9.56% | 10.61% |
Mortgage Servicing Rights (Sens
Mortgage Servicing Rights (Sensitivity analysis) (Details 5) - Mortgage Servicing Rights - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Constant Prepayment Rate | ||
Decrease in fair value from 25 basis points (“bps”) adverse change | $ (315) | $ (265) |
Decrease in fair value from 50 bps adverse change | (625) | (524) |
Discount Rate | ||
Decrease in fair value from 25 bps adverse change | (315) | (250) |
Decrease in fair value from 50 bps adverse change | $ (623) | $ (495) |
Low Income Housing Tax Credit56
Low Income Housing Tax Credit Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Affordable Housing Tax Credit Investments, Unfunded Commitment [Abstract] | |||||
2,015 | $ 12,668 | $ 12,668 | |||
2,016 | 20,668 | 20,668 | |||
2,017 | 1,148 | 1,148 | |||
2,018 | 15 | 15 | |||
2,019 | 75 | 75 | |||
Thereafter | 67 | 67 | |||
Total Unfunded Commitments | 34,641 | 34,641 | |||
Investments in Affordable Housing Projects [Abstract] | |||||
Net affordable housing tax credit investments and related unfunded commitments | 72,600 | 72,600 | $ 68,500 | ||
Tax Credits and Other Tax Benefits recognized | 3,353 | $ 2,599 | 6,742 | $ 5,310 | |
Amortization expense in provision for income taxes | $ 1,998 | $ 1,358 | $ 3,891 | $ 2,760 |
Balance Sheet Offsetting (Repos
Balance Sheet Offsetting (Repos - by maturity date and collateral type) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | $ 672,310 | $ 688,601 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 311,869 | |
Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 69,694 | |
Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 182,302 | |
Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 108,445 | |
Maturity Up To 90 Days [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 42,360 | |
Maturity Up To 90 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity Up To 90 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 17,701 | |
Maturity Up To 90 Days [Member] | Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 18,857 | |
Maturity Up To 90 Days [Member] | Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 5,802 | |
Maturity 91 To 365 Days [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 50,848 | |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 47,891 | |
Maturity 91 To 365 Days [Member] | Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 2,957 | |
Maturity 91 To 365 Days [Member] | Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity 1 To 3 Years [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 154,102 | |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 76,802 | |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 4,102 | |
Maturity 1 To 3 Years [Member] | Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 50,834 | |
Maturity 1 To 3 Years [Member] | Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 22,364 | |
Maturity After 3 Years [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 425,000 | |
Maturity After 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 235,067 | |
Maturity After 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity After 3 Years [Member] | Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 109,654 | |
Maturity After 3 Years [Member] | Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | $ 80,279 |
Balance Sheet Offsetting (Asset
Balance Sheet Offsetting (Assets and liabilities subject to MNA, or repurchase agreements) (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Offsetting Assets and Liabilities [Line items] | ||
Deposits, Government Entities | $ 13,090,695 | $ 12,633,089 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 672,310 | 688,601 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 672,310 | 688,601 |
Repurchase Agreements, Fair Value of Collateral Pledged | 672,310 | 688,601 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | 0 | 0 |
Interest Rate Swap Agreements | ||
Offsetting Assets and Liabilities [Line items] | ||
Net liability positions, aggregate fair value | 15,000 | 16,200 |
Institutional Counterparties | Interest Rate Swap Agreements | ||
Assets: | ||
Gross Amounts of Recognized Assets | 0 | 28 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 0 | 28 |
Netting Adjustments per Master Netting Arrangements | 0 | 28 |
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 | 15,039 | 16,268 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 15,039 | 16,268 |
Derivative Liability, Netting Adjustments per Master Netting Arrangements | 0 | 28 |
Derivative, Collateral, Right to Reclaim Securities | 0 | 0 |
Derivative Liabilities, Net Amount | 15,039 | 16,240 |
Private Institutions | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 700,000 | 700,000 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 600,000 | 600,000 |
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 | 600,000 |
Repurchase Agreements, Fair Value of Collateral Pledged | 600,000 | 600,000 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | 0 | 0 |
Government Entities | ||
Offsetting Assets and Liabilities [Line items] | ||
Deposits, Government Entities | 1,300,000 | 1,300,000 |
Fair Value of Investment Securities Pledged, Government Entities | 2,000,000 | 2,100,000 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 72,310 | 88,601 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 72,310 | 88,601 |
Repurchase Agreements, Fair Value of Collateral Pledged | 72,310 | 88,601 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | $ 0 | $ 0 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Income (Loss) (AOCI Components Pre Post & Tax Effect) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Comprehensive Loss, Before Tax: | ||||
Net Unrealized Gains (Losses) Arising During the Period | $ (13,018) | $ 14,621 | $ (4,307) | $ 25,318 |
Gain (Loss) on sale, reclassed from AOCI, before Tax | (64) | (64) | ||
Amortization of unrealized gains/losses HTM, before Tax | 455 | (332) | 485 | (665) |
Net Unrealized Gains (Losses) on Investment Securities | (12,563) | 14,225 | (3,822) | 24,589 |
Amortization of Net Actuarial Losses | 444 | 338 | 887 | 677 |
Amortization of Prior Service Credit | (80) | (80) | (161) | (161) |
Defined Benefit Plans, Net | 364 | 258 | 726 | 516 |
Other Comprehensive Income (Loss) | (12,199) | 14,483 | (3,096) | 25,105 |
Other Comprehensive Loss, Tax Effect: | ||||
Net Unrealized Gains (Losses) Arising During the Period | (5,132) | 5,764 | (1,697) | 9,988 |
Gain (Loss) on sale, reclassed from AOCI, Tax | (25) | (25) | ||
The tax effect of other comprehensive income (loss) reclassification for amortization of holding gains/losses on HTM Securities, tax effect. | 179 | (131) | 191 | (262) |
Tax effect on Unrealized gain/loss on Investment Securities | (4,953) | 5,608 | (1,506) | 9,701 |
Amortization of Net Actuarial Losses | 175 | 133 | 349 | 267 |
Amortization of Prior Service Credit | (31) | (31) | (63) | (63) |
Defined Benefit Plans, Net | 144 | 102 | 286 | 204 |
Other Comprehensive Income (Loss) | (4,809) | 5,710 | (1,220) | 9,905 |
Other Comprehensive Loss, Net of Tax: | ||||
Net Unrealized Gains (Losses) Arising During the Period | (7,886) | 8,857 | (2,610) | 15,330 |
Gain (Loss) on sale, reclassed from AOCI, Net of Tax | (39) | (39) | ||
Other Comprehensive Income Reclassification Adjustment for Amortization of Gains on Held To Maturity Securities after Tax | 276 | (201) | 294 | (403) |
Net Unrealized Gains (Losses) on Investment Securities, net of tax | (7,610) | 8,617 | (2,316) | 14,888 |
Amortization of Net Actuarial Losses | 269 | 205 | 538 | 410 |
Amortization of Prior Service Credit | (49) | (49) | (98) | (98) |
Defined Benefit Plans, Net | 220 | 156 | 440 | 312 |
Total Other Comprehensive Income (Loss) | $ (7,390) | $ 8,773 | $ (1,876) | $ 15,200 |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Income (Loss) (Change in AOCI Components net of tax) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | $ (21,172) | $ (25,396) | $ (26,686) | $ (31,823) |
Other Comprehensive Income (Loss) Before Reclassifications | (7,886) | 8,857 | (2,610) | 15,330 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 496 | (84) | 734 | (130) |
Total Other Comprehensive Income (Loss) | (7,390) | 8,773 | (1,876) | 15,200 |
Balance at End of Period | (28,562) | (16,623) | (28,562) | (16,623) |
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (33,895) | (22,238) | (34,115) | (22,394) |
Other Comprehensive Income (Loss) Before Reclassifications | 0 | 0 | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 220 | 156 | 440 | 312 |
Total Other Comprehensive Income (Loss) | 220 | 156 | 440 | 312 |
Balance at End of Period | (33,675) | (22,082) | (33,675) | (22,082) |
Available-for-sale Securities | Unrealized Gains and Losses on Net Investment Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | 21,260 | 5,173 | 15,984 | (1,300) |
Other Comprehensive Income (Loss) Before Reclassifications | (7,886) | 8,857 | (2,610) | 15,330 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 0 | (39) | 0 | (39) |
Total Other Comprehensive Income (Loss) | (7,886) | 8,818 | (2,610) | 15,291 |
Balance at End of Period | 13,374 | 13,991 | 13,374 | 13,991 |
Held-to-maturity Securities | Unrealized Gains and Losses on Net Investment Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (8,537) | (8,331) | (8,555) | (8,129) |
Other Comprehensive Income (Loss) Before Reclassifications | 0 | 0 | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 276 | (201) | 294 | (403) |
Total Other Comprehensive Income (Loss) | 276 | (201) | 294 | (403) |
Balance at End of Period | $ (8,261) | $ (8,532) | $ (8,261) | $ (8,532) |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Loss) (AOCI Reclass to IS) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Benefits | $ (47,610) | $ (45,081) | $ (97,390) | $ (91,978) |
Income Before Provision for Income Taxes | 60,133 | 60,010 | 122,295 | 114,464 |
Tax Benefit (Expense) | (18,979) | (18,520) | (38,699) | (34,382) |
Net Income | 41,154 | 41,490 | 83,596 | 80,082 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Income | (496) | 84 | (734) | 130 |
Amortization of Unrealized Gains(Losses) of Investment Securities Transferred from AFS to HTM | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest Income | (455) | 332 | (485) | 666 |
Tax Benefit (Expense) | 179 | (131) | 191 | (263) |
Net Income | (276) | 201 | (294) | 403 |
Sale of Investment Securities Available-for-Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Available-for-sale Securities, Gross Realized Gain (Loss) | 0 | 64 | 0 | 64 |
Tax Benefit (Expense) | 0 | (25) | 0 | (25) |
Net Income | 0 | 39 | 0 | 39 |
Amortization of Defined Benefit Pension Items | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Before Provision for Income Taxes | (364) | (258) | (726) | (516) |
Tax Benefit (Expense) | 144 | 102 | 286 | 204 |
Net Income | (220) | (156) | (440) | (312) |
Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Benefits | 80 | 80 | 161 | 161 |
Net Actuarial Losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Benefits | $ (444) | $ (338) | $ (887) | $ (677) |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reconciliation of Diluted Shares | ||||
Denominator for Basic Earnings Per Share (in shares) | 43,305,813 | 44,053,899 | 43,345,667 | 44,123,030 |
Dilutive Effect of Equity Based Awards (in shares) | 212,536 | 192,532 | 212,997 | 209,808 |
Denominator for Diluted Earnings Per Share (in shares) | 43,518,349 | 44,246,431 | 43,558,664 | 44,332,838 |
Antidilutive Stock Options and Restricted Stock Outstanding (in shares) | 0 | 862 | 0 | 862 |
Business Segments (Business Seg
Business Segments (Business Segments Financial Information and Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)atmbranch | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||
Federal and State Effective Tax Rate Used for Segment Reporting | 37.00% | ||||
Business segment financial information | |||||
Net Interest Income | $ 97,782 | $ 94,412 | $ 194,552 | $ 187,645 | |
Provision for Credit Losses | 0 | (2,199) | 0 | (2,199) | |
Net Interest Income After Provision for Credit Losses | 97,782 | 96,611 | 194,552 | 189,844 | |
Noninterest Income | 45,925 | 44,481 | 98,232 | 89,249 | |
Noninterest Expense | (83,574) | (81,082) | (170,489) | (164,629) | |
Income Before Provision for Income Taxes | 60,133 | 60,010 | 122,295 | 114,464 | |
Provision for Income Taxes | (18,979) | (18,520) | (38,699) | (34,382) | |
Net Income | 41,154 | 41,490 | 83,596 | 80,082 | |
Total Assets | 15,248,043 | 14,844,505 | $ 15,248,043 | 14,844,505 | $ 14,787,208 |
Retail Banking | |||||
Business segment financial information | |||||
Number of branch locations through which products and services are delivered to customers | branch | 71 | ||||
Number of ATM's through which products and services are delivered to customers | atm | 455 | ||||
Net Interest Income | 50,550 | 44,094 | $ 98,900 | 85,538 | |
Provision for Credit Losses | 1,727 | (414) | 3,450 | 1,041 | |
Net Interest Income After Provision for Credit Losses | 48,823 | 44,508 | 95,450 | 84,497 | |
Noninterest Income | 20,809 | 19,988 | 39,915 | 39,343 | |
Noninterest Expense | (49,158) | (48,647) | (99,498) | (98,013) | |
Income Before Provision for Income Taxes | 20,474 | 15,849 | 35,867 | 25,827 | |
Provision for Income Taxes | (7,219) | (5,936) | (12,744) | (9,750) | |
Net Income | 13,255 | 9,913 | 23,123 | 16,077 | |
Total Assets | 4,404,619 | 3,761,140 | 4,404,619 | 3,761,140 | |
Commercial Banking | |||||
Business segment financial information | |||||
Net Interest Income | 35,880 | 28,222 | 70,148 | 55,144 | |
Provision for Credit Losses | (266) | (1,269) | (730) | (1,329) | |
Net Interest Income After Provision for Credit Losses | 36,146 | 29,491 | 70,878 | 56,473 | |
Noninterest Income | 5,793 | 5,581 | 11,349 | 11,799 | |
Noninterest Expense | (16,569) | (16,462) | (34,304) | (33,424) | |
Income Before Provision for Income Taxes | 25,370 | 18,610 | 47,923 | 34,848 | |
Provision for Income Taxes | (8,975) | (6,320) | (16,859) | (11,740) | |
Net Income | 16,395 | 12,290 | 31,064 | 23,108 | |
Total Assets | 2,984,756 | 2,633,218 | 2,984,756 | 2,633,218 | |
Investment Services | |||||
Business segment financial information | |||||
Net Interest Income | 4,335 | 3,679 | 8,636 | 7,234 | |
Provision for Credit Losses | (8) | (226) | (16) | (294) | |
Net Interest Income After Provision for Credit Losses | 4,343 | 3,905 | 8,652 | 7,528 | |
Noninterest Income | 15,680 | 14,411 | 30,407 | 28,761 | |
Noninterest Expense | (14,572) | (13,342) | (29,162) | (27,763) | |
Income Before Provision for Income Taxes | 5,451 | 4,974 | 9,897 | 8,526 | |
Provision for Income Taxes | (2,017) | (1,844) | (3,662) | (3,161) | |
Net Income | 3,434 | 3,130 | 6,235 | 5,365 | |
Total Assets | 204,253 | 194,220 | 204,253 | 194,220 | |
Treasury and Other | |||||
Business segment financial information | |||||
Net Interest Income | 7,017 | 18,417 | 16,868 | 39,729 | |
Provision for Credit Losses | (1,453) | (290) | (2,704) | (1,617) | |
Net Interest Income After Provision for Credit Losses | 8,470 | 18,707 | 19,572 | 41,346 | |
Noninterest Income | 3,643 | 4,501 | 16,561 | 9,346 | |
Noninterest Expense | (3,275) | (2,631) | (7,525) | (5,429) | |
Income Before Provision for Income Taxes | 8,838 | 20,577 | 28,608 | 45,263 | |
Provision for Income Taxes | (768) | (4,420) | (5,434) | (9,731) | |
Net Income | 8,070 | 16,157 | 23,174 | 35,532 | |
Total Assets | $ 7,654,415 | $ 8,255,927 | $ 7,654,415 | $ 8,255,927 |
Pension Plans and Postretirem64
Pension Plans and Postretirement Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits | ||||
Net periodic benefit cost for pension plans and the postretirement benefit plan | ||||
Service Cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Cost | 1,187 | 1,243 | 2,373 | 2,485 |
Expected Return on Plan Assets | (1,305) | (1,275) | (2,609) | (2,550) |
Amortization of Prior Service Credit | 0 | 0 | 0 | 0 |
Amortization of Net Actuarial Losses (Gains) | 444 | 351 | 887 | 703 |
Net Periodic Benefit Cost | 326 | 319 | 651 | 638 |
Employer Contributions | 100 | 200 | ||
Estimated Future Employer Contributions in Current Fiscal Year | 500 | |||
Postretirement Benefits | ||||
Net periodic benefit cost for pension plans and the postretirement benefit plan | ||||
Service Cost | 182 | 157 | 364 | 314 |
Interest Cost | 324 | 347 | 648 | 695 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service Credit | (80) | (80) | (161) | (161) |
Amortization of Net Actuarial Losses (Gains) | 0 | (13) | 0 | (26) |
Net Periodic Benefit Cost | 426 | $ 411 | 851 | $ 822 |
Employer Contributions | $ 300 | 800 | ||
Estimated Future Employer Contributions in Current Fiscal Year | $ 1,400 |
Derivative Financial Instrume65
Derivative Financial Instruments (Notional Amounts) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 7,442 | $ 2,354 |
Fair Value | 402 | 152 |
Forward Commitments | ||
Derivative [Line Items] | ||
Notional Amount | 20,086 | 5,404 |
Fair Value | (35) | (13) |
Receive Fixed or Pay Variable Swap | ||
Derivative [Line Items] | ||
Notional Amount | 197,814 | 183,283 |
Fair Value | 15,007 | 16,206 |
Pay Fixed or Receive Variable Swap | ||
Derivative [Line Items] | ||
Notional Amount | 197,814 | 183,283 |
Fair Value | (15,039) | (16,240) |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Amount | 24,019 | 44,240 |
Fair Value | $ 117 | $ (345) |
Derivative Financial Instrume66
Derivative Financial Instruments (Assets and liabilities) (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Asset Derivatives | $ 15,531 | $ 16,515 | |
Liability Derivatives | 15,079 | 16,755 | |
Interest Rate Lock Commitments | |||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Asset Derivatives | 403 | 152 | |
Liability Derivatives | 1 | 0 | |
Forward Commitments | |||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Asset Derivatives | 1 | 0 | |
Liability Derivatives | 36 | 13 | |
Interest Rate Swap Agreements | |||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Asset Derivatives | 15,007 | 16,262 | |
Liability Derivatives | 15,039 | 16,296 | |
Foreign Exchange Contracts | |||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Asset Derivatives | 120 | 101 | |
Liability Derivatives | $ 3 | $ 446 | |
Conversion Rate Swap Agreement | |||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||
Liability Derivatives | $ 100 |
Derivative Financial Instrume67
Derivative Financial Instruments (Net gains or losses) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in income | $ 2,052 | $ 1,403 | $ 3,309 | $ 2,953 |
Interest Rate Lock Commitments | Mortgage Banking Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in income | 824 | 781 | 1,410 | 1,882 |
Forward Commitments | Mortgage Banking Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in income | 125 | (132) | 147 | (486) |
Interest Rate Swap Agreements | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in income | 407 | 110 | 407 | 114 |
Foreign Exchange Contracts | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in income | $ 696 | $ 644 | $ 1,345 | $ 1,443 |
Derivative Financial Instrume68
Derivative Financial Instruments (Conversion Rate Swap Agreement narrative) (Details 4) $ in Thousands | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) |
Derivative [Line Items] | |||
Liability Derivatives | $ 15,079 | $ 16,755 | |
Visa Class B Restricted Securities | |||
Derivative [Line Items] | |||
Conversion Ratio to Class A shares | 1.6483 | ||
Conversion Rate Swap Agreement | |||
Derivative [Line Items] | |||
Liability Derivatives | $ 100 |
Commitments, Contingencies, a69
Commitments, Contingencies, and Guarantees (Credit Commitments) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Credit Commitments | ||
Credit Commitments | $ 2,529,537 | $ 2,450,719 |
Unfunded Commitments to Extend Credit | ||
Credit Commitments | ||
Credit Commitments | 2,467,709 | 2,388,432 |
Standby Letters of Credit | ||
Credit Commitments | ||
Credit Commitments | 45,417 | 48,157 |
Commercial Letters of Credit | ||
Credit Commitments | ||
Credit Commitments | $ 16,411 | $ 14,130 |
Commitments, Contingencies, a70
Commitments, Contingencies, and Guarantees (Narrative) (Details 2) - Jun. 30, 2015 - Residential Mortgage $ in Millions | USD ($)Loan |
Representations and Warranties [Line Items] | |
Continuing Involvement with Transferred Financial Assets, Principal Amount Outstanding | $ | $ 2,600 |
Number of Mortgage Loans Repurchased | 3 |
Residential Mortgage Loans Repurchased, Unpaid Principal Balance | $ | $ 0.9 |
Number of Mortgage Loans Repurchased, Delinquent | 2 |
Number of Mortgage Loans Repurchased, Pending | 0 |
Number of Mortgage Loans Repurchased due to Loan Servicing Activities, Pending | 0 |
Current Residential Mortgage Loans Serviced for Third Parties as Percentage of Total | 99.00% |
Fair Value of Assets and Liab71
Fair Value of Assets and Liabilities (Fair value on recurring basis) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Available-for-Sale: Fair Value | $ 2,275,361 | $ 2,289,190 |
Loans Held for Sale | 18,483 | 5,136 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,275,361 | 2,289,190 |
Loans Held for Sale | 18,483 | 5,136 |
Mortgage Servicing Rights | 2,188 | 2,604 |
Other Assets | 20,349 | 18,794 |
Derivatives | 15,531 | 16,515 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,331,912 | 2,332,239 |
Liabilites: | ||
Derivatives | 15,079 | 16,755 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 15,079 | 16,755 |
Fair Value, Measurements, Recurring [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 370,765 | 331,258 |
Fair Value, Measurements, Recurring [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 748,859 | 743,970 |
Fair Value, Measurements, Recurring [Member] | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 309,861 | 294,833 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 845,876 | 919,129 |
Fair Value, Measurements, Recurring [Member] | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 387,363 | 462,436 |
Fair Value, Measurements, Recurring [Member] | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 304,771 | 278,461 |
Fair Value, Measurements, Recurring [Member] | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 153,742 | 178,232 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets: | ||
Available-for-Sale: Fair Value | 60,928 | 61,271 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 20,349 | 18,794 |
Derivatives | 0 | 0 |
Total Assets Measured at Fair Value on a Recurring Basis | 81,277 | 80,065 |
Liabilites: | ||
Derivatives | 0 | 0 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 60,928 | 61,271 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,214,433 | 2,227,919 |
Loans Held for Sale | 18,483 | 5,136 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 0 | 0 |
Derivatives | 121 | 101 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,233,037 | 2,233,156 |
Liabilites: | ||
Derivatives | 39 | 459 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 39 | 459 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 309,837 | 269,987 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 748,859 | 743,970 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 309,861 | 294,833 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 845,876 | 919,129 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 387,363 | 462,436 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 304,771 | 278,461 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 153,742 | 178,232 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 2,188 | 2,604 |
Other Assets | 0 | 0 |
Derivatives | 15,410 | 16,414 |
Total Assets Measured at Fair Value on a Recurring Basis | 17,598 | 19,018 |
Liabilites: | ||
Derivatives | 15,040 | 16,296 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 15,040 | 16,296 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | $ 0 | $ 0 |
Fair Value of Assets and Liab72
Fair Value of Assets and Liabilities (FV on recurring basis-Level 3 rollforward) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Mortgage Servicing Rights Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, Mortgage Servicing Rights, Beginning Balance | $ 2,277 | $ 3,381 | $ 2,604 | $ 3,826 |
Fair Value, Mortgage Servicing Rights, Realized and Unrealized Net Gains (Losses) Included in Net Income | (89) | (421) | (416) | (866) |
Fair Value, Mortgage Servicing Rights, Ending Balance | 2,188 | 2,960 | 2,188 | 2,960 |
Fair Value, Mortgage Service Rights, Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | 0 | (322) | (251) | (671) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, Net Derivative Assets and Liabilities, Beginning Balance | 270 | 289 | 118 | 379 |
Fair Value, Net Derivative Assets and Liabilities, Realized and Unrealized Net Gains (Losses) Included in Net Income | 826 | 891 | 1,412 | 1,994 |
Fair Value, Net Derivative Assets and Liabilities, Transfers to Loans Held for Sale | (726) | (1,073) | (1,160) | (2,266) |
Fair Value, Net Derivative Assets and Liabilities, Ending Balance | 370 | 107 | 370 | 107 |
Fair Value, Net Derivative Assets and Liabilities,Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | $ 370 | $ 107 | $ 370 | $ 107 |
Fair Value of Assets and Liab73
Fair Value of Assets and Liabilities (FV on recurring or nonrecurring basis-level 3 inputs) (Details 3) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Interest Rate Lock Commitments | Pricing Model | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Weighted Average Closing Ratio (as a percent) | 92.65% | 93.85% |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 402 | $ 152 |
Interest Rate Swap Agreements | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Weighted Average Credit Factor (as a percent) | 0.22% | 0.21% |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ (32) | $ (34) |
Mortgage Servicing Rights | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Weighted Average Constant Prepayment Rate (as a percent) | 8.50% | 11.62% |
Weighted Average Discount Rate (as a percent) | 9.56% | 10.61% |
Mortgage Servicing Rights, at Fair Value | $ 28,393 | $ 25,441 |
Fair Value of Assets and Liab74
Fair Value of Assets and Liabilities (Fair value on a nonrecurring basis) (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Servicing Rights accounted for under the amortization method, valuation allowance | $ 0 | $ 57 |
Foreclosed Real Estate | 1,989 | 2,311 |
Foreclosed Real Estate, Valuation Allowance | 354 | 89 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Servicing Rights accounted for under the amortization method | 21,238 | 22,091 |
Foreclosed Real Estate | $ 1,989 | $ 2,311 |
Fair Value of Assets and Liab75
Fair Value of Assets and Liabilities (FV option) (Details 5) - Residential mortgage loans held for sale - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Option | ||
Aggregate Fair Value | $ 18,483 | $ 5,136 |
Aggregate Unpaid Principal | 18,073 | 4,740 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 410 | $ 396 |
Fair Value of Assets and Liab76
Fair Value of Assets and Liabilities (Financial instruments not recorded at FV on recurring basis) (Details 6) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | $ 4,240,732 | $ 4,504,495 |
Carrying Amount | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 4,199,121 | 4,466,679 |
Loans | 7,074,536 | 6,542,719 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,189,620 | 1,434,001 |
Securities Sold Under Agreements to Repurchase | 672,310 | 688,601 |
Long-Term Debt | 159,938 | 163,005 |
Fair Value | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 4,240,732 | 4,504,495 |
Loans | 7,562,369 | 7,048,757 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,192,354 | 1,437,064 |
Securities Sold Under Agreements to Repurchase | 735,823 | 758,781 |
Long-Term Debt | 160,913 | 163,911 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 562,811 | 499,616 |
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 | 3,677,921 | 4,004,879 |
Loans | 0 | 0 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,192,354 | 1,437,064 |
Securities Sold Under Agreements to Repurchase | 735,823 | 758,781 |
Long-Term Debt | 160,913 | 163,911 |
Fair Value | Significant Other Unobservable Inputs (Level 3) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 0 | 0 |
Loans | 7,562,369 | 7,048,757 |
Financial Instruments - Liabilities | ||
Time Deposits | 0 | 0 |
Securities Sold Under Agreements to Repurchase | 0 | 0 |
Long-Term Debt | $ 0 | $ 0 |
Uncategorized Items - boh-20150
Label | Element | Value |
Commercial Mortgage-Backed Securities Issued by Government Agencies [Member] | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateFairValue | $ 297,606 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 1,970 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 241 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateNetCarryingAmount | 297,800 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 171,091 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 56,238 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 2,164 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 3,791 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 2,164 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 3,791 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 1,170 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 3,612 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 179 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 994 |
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 297,606 |
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 306,383 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 110,069 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 124,594 |
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 297,800 |
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 309,933 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 166,307 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 295,685 |
Residential Mortgage-Backed Securities issued by U.S. government agencies [Member] | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateFairValue | 2,540,387 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 38,545 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 45,407 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateNetCarryingAmount | 2,517,442 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 469,731 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 845,911 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 15,600 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 20,636 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 15,600 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 20,636 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 11,925 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 19,429 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 1,207 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 3,675 |
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 2,540,387 |
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 2,887,140 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 280,967 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 482,495 |
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 2,517,442 |
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 2,862,369 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 1,126,878 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 952,226 |
Residential Mortgage-Backed Securities Issued by U.S. Government Sponsored Enterprises [Member] | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateFairValue | 420,147 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 2,749 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 3,635 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateNetCarryingAmount | 417,478 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 15 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 80 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 15 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 80 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 15 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 80 |
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 382,985 |
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 420,147 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 45,754 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 86,791 |
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 379,365 |
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 417,478 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 45,754 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | $ 86,791 |