Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 17, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | BANK OF HAWAII CORP | ||
Entity Central Index Key | 46,195 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,840,055,498 | ||
Entity Common Stock, Shares Outstanding | 43,104,770 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | |||
Interest and Fees on Loans and Leases | $ 298,522 | $ 267,407 | $ 253,276 |
Income on Investment Securities | |||
Available-for-Sale | 41,492 | 42,475 | 53,570 |
Held-to-Maturity | 89,650 | 105,860 | 90,062 |
Deposits | 8 | 9 | 10 |
Funds Sold | 1,133 | 673 | 415 |
Other | 1,305 | 1,209 | 1,172 |
Total Interest Income | 432,110 | 417,633 | 398,505 |
Interest Expense | |||
Deposits | 9,626 | 9,534 | 10,143 |
Securities Sold Under Agreements to Repurchase | 25,364 | 25,905 | 26,837 |
Funds Purchased | 12 | 13 | 44 |
Short-Term Borrowings | 0 | 0 | 2 |
Other Debt | 3,021 | 2,525 | 2,572 |
Total Interest Expense | 38,023 | 37,977 | 39,598 |
Net Interest Income | 394,087 | 379,656 | 358,907 |
Provision for Credit Losses | 1,000 | (4,864) | 0 |
Net Interest Income After Provision for Credit Losses | 393,087 | 384,520 | 358,907 |
Noninterest Income | |||
Trust and Asset Management | 47,685 | 47,798 | 47,932 |
Mortgage Banking | 11,583 | 7,571 | 19,186 |
Service Charges on Deposit Accounts | 34,072 | 35,669 | 37,124 |
Fees, Exchange, and Other Service Charges | 53,353 | 53,401 | 50,469 |
Investment Securities Gains (Losses), Net | 10,160 | 8,063 | 0 |
Annuity and Insurance | 7,664 | 8,065 | 9,190 |
Bank-Owned Life Insurance | 7,039 | 6,639 | 5,892 |
Other | 14,663 | 12,811 | 16,430 |
Total Noninterest Income | 186,219 | 180,017 | 186,223 |
Noninterest Expense | |||
Salaries and Benefits | 191,963 | 183,028 | 184,211 |
Net Occupancy | 30,217 | 37,296 | 38,745 |
Net Equipment | 20,162 | 18,479 | 18,366 |
Data Processing | 16,472 | 14,979 | 13,840 |
Professional Fees | 9,660 | 9,794 | 9,405 |
FDIC Insurance | 8,669 | 7,936 | 7,765 |
Other | 70,961 | 55,387 | 58,637 |
Total Noninterest Expense | 348,104 | 326,899 | 330,969 |
Income Before Provision for Income Taxes | 231,202 | 237,638 | 214,161 |
Provision for Income Taxes | 70,498 | 74,596 | 63,659 |
Net Income | $ 160,704 | $ 163,042 | $ 150,502 |
Basic Earnings Per Share (in dollars per share) | $ 3.72 | $ 3.71 | $ 3.39 |
Diluted Earnings Per Share (in dollars per share) | 3.70 | 3.69 | 3.38 |
Dividends Declared Per Share (in dollars per share) | $ 1.80 | $ 1.80 | $ 1.80 |
Basic Weighted Average Shares (in shares) | 43,217,818 | 43,899,208 | 44,380,948 |
Diluted Weighted Average Shares (in shares) | 43,454,877 | 44,125,456 | 44,572,725 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 160,704 | $ 163,042 | $ 150,502 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Net Unrealized Gains (Losses) on Investment Securities | (2,125) | 16,858 | (69,206) |
Defined Benefit Plans, Net | 5,254 | (11,721) | 8,175 |
Other Comprehensive Income (Loss) | 3,129 | 5,137 | (61,031) |
Comprehensive Income | $ 163,833 | $ 168,179 | $ 89,471 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Interest-Bearing Deposits in Other Banks | $ 4,130 | $ 2,873 |
Funds Sold | 592,892 | 360,577 |
Investment Securities | ||
Available-for-Sale | 2,256,818 | 2,289,190 |
Held-to-Maturity (Fair Value of $4,006,412 and $4,504,495) | 3,982,736 | 4,466,679 |
Loans Held for Sale | 4,808 | 5,136 |
Loans and Leases | 7,878,985 | 6,897,589 |
Allowance for Loan and Lease Losses | (102,880) | (108,688) |
Net Loans and Leases | 7,776,105 | 6,788,901 |
Total Earning Assets | 14,617,489 | 13,913,356 |
Cash and Due From Banks | 158,699 | 172,126 |
Premises and Equipment, Net | 111,199 | 109,854 |
Accrued Interest Receivable | 44,719 | 44,654 |
Foreclosed Real Estate | 824 | 2,311 |
Mortgage Servicing Rights | 23,002 | 24,695 |
Goodwill | 31,517 | 31,517 |
Bank-Owned Life Insurance | 268,175 | 262,807 |
Other Assets | 199,392 | 225,888 |
Total Assets | 15,455,016 | 14,787,208 |
Deposits | ||
Noninterest-Bearing Demand | 4,286,331 | 3,832,943 |
Interest-Bearing Demand | 2,761,930 | 2,559,570 |
Savings | 5,025,191 | 4,806,575 |
Time | 1,177,651 | 1,434,001 |
Total Deposits | 13,251,103 | 12,633,089 |
Funds Purchased | 7,333 | 8,459 |
Securities Sold Under Agreements to Repurchase | 628,857 | 688,601 |
Long-Term Debt | 245,786 | 173,912 |
Retirement Benefits Payable | 47,374 | 55,477 |
Accrued Interest Payable | 5,032 | 5,148 |
Taxes Payable and Deferred Taxes | 17,737 | 27,777 |
Other Liabilities | 135,534 | 139,659 |
Total Liabilities | $ 14,338,756 | $ 13,732,122 |
Commitments, Contingencies, and Guarantees (Note 20) | ||
Shareholders' Equity | ||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2015 - 57,749,071 / 43,282,153 and December 31, 2014 - 57,634,755 / 43,724,208) | $ 575 | $ 574 |
Capital Surplus | 542,041 | 531,932 |
Accumulated Other Comprehensive Loss | (23,557) | (26,686) |
Retained Earnings | 1,316,260 | 1,234,801 |
Treasury Stock, at Cost (Shares: December 31, 2015 - 14,466,918 and December 31, 2014 - 13,910,547) | (719,059) | (685,535) |
Total Shareholders' Equity | 1,116,260 | 1,055,086 |
Total Liabilities and Shareholders' Equity | $ 15,455,016 | $ 14,787,208 |
Consolidated Statements of Con5
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Held-to-Maturity, Fair Value | $ 4,006,412 | $ 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 | 57,749,071 | 57,634,755 |
Common Stock, outstanding shares | 43,282,153 | 43,724,208 |
Treasury Stock, Shares | 14,466,918 | 13,910,547 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Balance at Beginning of Period at Dec. 31, 2012 | $ 1,021,665 | $ 571 | $ 515,619 | $ 29,208 | $ 1,084,477 | $ (608,210) |
Beginning Balance (in shares) at Dec. 31, 2012 | 44,754,835 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 150,502 | 150,502 | ||||
Other Comprehensive Income (Loss) | (61,031) | (61,031) | ||||
Share-Based Compensation | 5,546 | 5,546 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 15,483 | $ 1 | 1,340 | (2,691) | 16,833 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 505,691 | |||||
Common Stock Repurchased | (39,655) | (39,655) | ||||
Common Stock Repurchased (in shares) | (770,141) | |||||
Cash Dividends Declared ($1.80 per share) | (80,534) | (80,534) | ||||
Balance at End of Period at Dec. 31, 2013 | 1,011,976 | $ 572 | 522,505 | (31,823) | 1,151,754 | (631,032) |
Ending Balance (in shares) at Dec. 31, 2013 | 44,490,385 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 163,042 | 163,042 | ||||
Other Comprehensive Income (Loss) | 5,137 | 5,137 | ||||
Share-Based Compensation | 7,870 | 7,870 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 10,767 | $ 2 | 1,557 | (335) | 9,543 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 345,278 | |||||
Common Stock Repurchased | (64,046) | (64,046) | ||||
Common Stock Repurchased (in shares) | (1,111,455) | |||||
Cash Dividends Declared ($1.80 per share) | (79,660) | (79,660) | ||||
Balance at End of Period at Dec. 31, 2014 | $ 1,055,086 | $ 574 | 531,932 | (26,686) | 1,234,801 | (685,535) |
Ending Balance (in shares) at Dec. 31, 2014 | 43,724,208 | 43,724,208 | ||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | $ 160,704 | 160,704 | ||||
Other Comprehensive Income (Loss) | 3,129 | 3,129 | ||||
Share-Based Compensation | 7,689 | 7,689 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 21,000 | $ 1 | 2,420 | (878) | 19,457 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 401,904 | |||||
Common Stock Repurchased | $ (52,981) | (52,981) | ||||
Common Stock Repurchased (in shares) | (802,255) | (843,959) | ||||
Cash Dividends Declared ($1.80 per share) | $ (78,367) | (78,367) | ||||
Balance at End of Period at Dec. 31, 2015 | $ 1,116,260 | $ 575 | $ 542,041 | $ (23,557) | $ 1,316,260 | $ (719,059) |
Ending Balance (in shares) at Dec. 31, 2015 | 43,282,153 | 43,282,153 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends Declared Per Share (in dollars per share) | $ 1.80 | $ 1.80 | $ 1.80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net Income | $ 160,704 | $ 163,042 | $ 150,502 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Provision for Credit Losses | 1,000 | (4,864) | 0 |
Impairment of Equipment Held for Sale | 9,453 | 0 | 0 |
Depreciation and Amortization | 12,785 | 12,442 | 12,128 |
Amortization of Deferred Loan and Lease Fees | (1,896) | (2,064) | (3,275) |
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 49,698 | 50,280 | 58,575 |
Share-Based Compensation | 7,689 | 7,870 | 5,546 |
Benefit Plan Contributions | (1,974) | (1,561) | (1,229) |
Deferred Income Taxes | (6,517) | (5,211) | 503 |
Net Gains (Losses) on Sale of Loans and Leases | (4,139) | (2,896) | (19,952) |
Net Losses (Gains) on Investment Securities | (10,160) | (8,063) | 0 |
Proceeds from Sales of Loans Held for Sale | 188,141 | 72,096 | 683,772 |
Originations of Loans Held for Sale | (183,027) | (68,006) | (652,821) |
Tax Benefits from Share-Based Compensation | (1,076) | (670) | (948) |
Net Change in Other Assets and Other Liabilities | 13,331 | (2,915) | 9,162 |
Net Cash Provided by Operating Activities | 234,012 | 209,480 | 241,963 |
Investment Securities Available-for-Sale: | |||
Proceeds from Prepayments and Maturities | 413,587 | 325,211 | 919,579 |
Proceeds from Sales | 67,985 | 16,574 | 0 |
Purchases | (468,573) | (375,620) | (510,548) |
Investment Securities Held-to-Maturity: | |||
Proceeds from Prepayments and Maturities | 979,007 | 776,876 | 1,054,466 |
Purchases | (518,664) | (525,070) | (1,661,874) |
Payments to Acquire Life Insurance Policies | 0 | (35,000) | 0 |
Net Change in Loans and Leases | (990,315) | (809,382) | (257,158) |
Premises and Equipment, Net | (14,130) | (13,660) | (15,759) |
Net Cash Provided by (Used in) Investing Activities | (531,103) | (640,071) | (471,294) |
Financing Activities | |||
Net Change in Deposits | 618,014 | 718,433 | 385,174 |
Net Change in Short-Term Borrowings | (60,870) | (82,971) | 9,788 |
Proceeds from Long-Term Debt | 175,000 | 0 | 50,000 |
Repayments of Other Debt | (100,000) | 0 | 0 |
Tax Benefits from Share-Based Compensation | 1,076 | 670 | 948 |
Proceeds from Issuance of Common Stock | 15,364 | 9,995 | 14,495 |
Repurchase of Common Stock | (52,981) | (64,046) | (39,655) |
Cash Dividends Paid | (78,367) | (79,660) | (80,534) |
Net Cash Provided by (Used in) Financing Activities | 517,236 | 502,421 | 340,216 |
Net Change in Cash and Cash Equivalents | 220,145 | 71,830 | 110,885 |
Cash and Cash Equivalents at End of Period | 755,721 | 535,576 | 463,746 |
Cash and Cash Equivalents at Beginning of Period | 535,576 | 463,746 | 352,861 |
Supplemental Information | |||
Cash Paid for Interest | 37,419 | 36,795 | 38,424 |
Cash Paid for Income Taxes | 72,740 | 72,127 | 75,166 |
Non-Cash Investing and Financing Activities: | |||
Transfer from Investment Securities Available-For-Sale to Investment Securities Held-To-Maturity | 0 | 0 | 579,888 |
Transfer from Loans to Foreclosed Real Estate | 676 | 3,950 | 5,429 |
Transfer of Portfolio Loans and Leases to Held-for-sale | $ 101,803 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 majority of the Company's operations consist of customary commercial and consumer banking services including, but not limited to, lending, leasing, deposit services, trust and investment activities, brokerage services, and trade financing. The accounting and reporting principles of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices within the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. Certain prior period information has been reclassified to conform to the current year presentation. The following is a summary of the Company's significant accounting policies: Consolidation The Consolidated Financial Statements include the accounts of the Parent and its subsidiaries. The Parent's principal operating subsidiary is Bank of Hawaii (the "Bank"). All significant intercompany accounts and transactions have been eliminated in consolidation. Variable Interest Entities Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity's net asset value. The primary beneficiary consolidates the variable interest entity ("VIE"). The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The Company has a limited partnership interest in several low-income housing partnerships. These partnerships provide funds for the construction and operation of apartment complexes that provide affordable housing to that segment of the population with lower family income. If these developments successfully attract a specified percentage of residents falling in that lower income range, state and/or federal income tax credits are made available to the partners. The tax credits are generally recognized over 10 years. In order to continue receiving the tax credits each year over the life of the partnership, the low-income residency targets must be maintained. Prior to January 1, 2015, the Company utilized the effective yield method whereby the Company recognized tax credits generally over 10 years and amortized the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the Company. On January 1, 2015, the Company adopted ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects" prospectively for new investments. ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. As permitted by ASU No. 2014-01, the Company elected to continue to utilize the effective yield method for investments made prior to January 1, 2015. See Accounting Standards Adopted in 2015 below for more information. Unfunded commitments to fund these low-income housing partnerships were $25.3 million and $31.4 million as of December 31, 2015 and 2014 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. The Company also has limited partnership interests in three solar energy tax credit partnership investments. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of the investment, the Company will receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. The tax benefits are generally recognized over 6 years. These entities meet the definition of a VIE; however, the Company is not the primary beneficiary of the entities, as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. While the partnership agreements allow the limited partners, through a majority vote, to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. The investment in these entities is initially recorded at cost, which approximates the maximum exposure to loss as a result of the Company's involvement with these unconsolidated entities. The balance of the Company's investments in these entities was $79.0 million and $77.5 million as of December 31, 2015 and 2014 , respectively, and is included in other assets in the consolidated statements of condition. Investment Securities Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities as of December 31, 2015 and 2014 . Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities, comprised of debt and mortgage-backed securities, are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield using the interest method over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. Other-Than-Temporary-Impairments of Investment Securities The Company conducts an other-than-temporary-impairment ("OTTI") analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. As of December 31, 2015 , management determined that the Company did not own any investment securities that were other-than-temporarily-impaired. Loans Held for Sale Residential mortgage loans with the intent to be sold in the secondary market are accounted for on an aggregate basis under the fair value option. Fair value is primarily determined based on quoted prices for similar loans in active markets. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized as part of the cost basis of the loan at the time of sale. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in the mortgage banking component of noninterest income. Commercial loans that management has an active plan to sell are valued on an individual basis at the lower-of-cost-or fair value. Fair value is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Any reduction in the loan's value, prior to being transferred to the held for sale category, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. Further decreases in the fair value of the loan are recognized in noninterest expense. Loans and Leases Loans are reported at the principal amount outstanding, net of unearned income including unamortized deferred loan fees and costs, and cumulative net charge-offs. Interest income is recognized on an accrual basis. Loan origination fees, certain direct costs, and unearned discounts and premiums, if any, are deferred and are generally amortized into interest income as yield adjustments using the interest method over the contractual life of the loan. Loan commitment fees are generally recognized into noninterest income. Other credit-related fees are recognized as fee income, a component of noninterest income, when earned. Direct financing leases are carried at the aggregate of lease payments receivable plus the estimated residual value of leased property, less unearned income. Leveraged leases, which are a form of direct financing leases, are carried net of non-recourse debt. Unearned income on direct financing and leveraged leases is amortized over the lease term by methods that approximate the interest method. Residual values on leased assets are periodically reviewed for impairment. Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan and lease losses (the "Allowance"). Management has determined that the Company has two portfolio segments of loans and leases (commercial and consumer) in determining the Allowance. Both quantitative and qualitative factors are used by management at the portfolio segment level in determining the adequacy of the Allowance for the Company. Classes of loans and leases are a disaggregation of a Company's portfolio segments. Classes are defined as a group of loans and leases which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has eight classes of loans and leases (commercial and industrial, commercial mortgage, construction, lease financing, residential mortgage, home equity, automobile, and other). The "other" class of loans and leases is comprised of revolving credit, credit cards, installment, and lease financing arrangements. Non-Performing Loans and Leases Generally, all classes of commercial loans and leases are placed on non-accrual status upon becoming contractually past due 90 days as to principal or interest (unless loans and leases are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), when terms are renegotiated below market levels, or where substantial doubt about full repayment of principal or interest is evident. For residential mortgage and home equity loan classes, loans past due 120 days as to principal or interest may be placed on non-accrual status, and a partial charge-off may be recorded, depending on the collateral value and/or the collectability of the loan. For automobile and other consumer loan classes, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due (180 days past due for credit cards) as to principal or interest. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. A loan or lease may be returned to accrual status when all delinquent interest and principal become current in accordance with the terms of the loan or lease agreement and when doubt about repayment is resolved. Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor's prospects for repayment and the fair value of collateral. For the pooled segment of the Company's commercial and industrial loan class, which consists of small business loans, the entire outstanding balance of the loan remains on accrual status until it is charged off during the month that the loan becomes 120 days past due as to principal or interest. As previously mentioned, for residential mortgage and home equity loan classes, a partial charge-off may be recorded at 120 days past due as to principal or interest depending on the collateral value and/or the collectability of the loan. In the event that a loan or line in the home equity loan class is behind another financial institution's first mortgage, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest, unless the combined loan-to-value ratio is 60% or less. As noted above, loans in the automobile and other consumer loan classes are charged off in its entirety upon the loan becoming 120 days past due (180 days past due for credit cards) as to principal or interest. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans (except lease financing and small business loans), and all loans modified in a troubled debt restructuring. Impaired loans exclude lease financing and smaller balance homogeneous loans (consumer and small business non-accruing loans) that are collectively evaluated for impairment. For all classes of commercial loans, a quarterly evaluation of individual commercial borrowers is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk. When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), impairment is recognized by establishing or adjusting an existing allocation of the Allowance, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis. Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower's financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. Reserve for Credit Losses The Company's reserve for credit losses is comprised of two components, the Allowance and the reserve for unfunded commitments (the "Unfunded Reserve"). Allowance for Loan and Lease Losses The Company maintains an Allowance adequate to cover management's estimate of probable credit losses as of the balance sheet date. Loans and leases that are charged off reduce the Allowance while recoveries of loans and leases previously charged off increase the Allowance. Other changes to the level of the Allowance are recognized through charges or credits to the provision for credit losses (the "Provision"). The Allowance considers both unimpaired and impaired loans and is developed and documented at the portfolio segment level (commercial and consumer). The level of the Allowance related to the Company's commercial portfolio segment is generally based on the credit risk ratings and historical loss experience of individual borrowers. This is supplemented as necessary by credit judgment to address observed changes in trends and conditions, and other relevant environmental and economic factors that may affect the collectability of loans and leases. Excluding those loans and leases evaluated individually for impairment, the Company's remaining commercial loans and leases are pooled and collectively evaluated for impairment based on business unit and internal risk rating segmentation. The level of the Allowance related to the Company's consumer portfolio segment is generally based on analyses of homogeneous pools of loans and leases. Loans and leases are pooled based on similar loan and lease risk characteristics for collective evaluation of impairment. Loss estimates are calculated based on historical rolling average loss rates and average delinquency flows to loss. Consumer loans that have been individually evaluated for impairment or modified in a troubled debt restructuring are excluded from the homogeneous pools. Impairment related to such loans is generally determined based on the present value of expected future cash flows discounted at the loan's original effective interest rate. The Allowance also includes an estimate for inherent losses not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), economic trends and conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of net charge-offs. In addition, the Company uses a variety of other tools to estimate probable credit losses including, but not limited to, a rolling quarterly forecast of asset quality metrics; stress testing; and performance indicators based on the Company's own experience, peers, or other industry sources. Reserve for Unfunded Commitments The Unfunded Reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker's acceptances, and standby and commercial letters of credit. The process used to determine the Unfunded Reserve is consistent with the process for determining the Allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the Unfunded Reserve is adjusted by recording an expense or recovery in other noninterest expense. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, and funds sold. All amounts are readily convertible to cash and have maturities of less than 90 days. Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives generally range up to 30 years for buildings and up to 10 years for equipment. Capitalized leased assets and leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Repairs and maintenance are charged to expense as incurred, while improvements which extend the estimated useful life of the asset are capitalized and depreciated over the estimated remaining life of the asset. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than its carrying amount. In that event, the Company records a loss for the difference between the carrying amount and the fair value of the asset based on quoted market prices, if applicable, or a discounted cash flow analysis. Foreclosed Real Estate Foreclosed real estate consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property's fair value at the time of acquisition, a charge-off is recorded against the Allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the Allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other noninterest income. Subsequent decreases in the property's fair value and operating expenses of the property are recognized through charges to other noninterest expense. The fair value of the property acquired is based on third party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. Mortgage Servicing Rights Mortgage servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. Mortgage servicing rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company's mortgage servicing rights accounted for under the fair value method are carried on the statements of condition at fair value with changes in fair value recorded in mortgage banking income in the period in which the change occurs. Changes in the fair value of mortgage servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. The Company's mortgage servicing rights accounted for under the amortization method are initially recorded at fair value. However, these mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the mortgage servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these mortgage servicing rights exceeds fair value. Goodwill Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Company has two reporting units that were assigned goodwill: Investment Services and Retail Banking. The Company performs its annual evaluation of goodwill impairment in the fourth quarter of each year and on an interim basis if events or changes in circumstances indicate that there may be impairment. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The qualitative factors considered include, but are not limited to, macroeconomic and State of Hawaii economic conditions, industry and market conditions and trends, the Company's financial performance, market capitalization, stock price, and any Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise an impairment test is performed. The goodwill impairment test is a two-step test. The first step of the goodwill impairment test compares the estimated fair value of identified reporting units with their carrying amount, including goodwill. If the estimated fair value of a reporting unit is less than the carrying value, the second step must be performed to determine the implied fair value of the reporting unit's goodwill and the amount of goodwill impairment, if any. The implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the implied fair value of goodwill is less than the carrying amount, a loss would be recognized in other noninterest expense to reduce the carrying amount to the implied fair value of goodwill. Subsequent reversals of goodwill impairment are prohibited. For the year ended December 31, 2015 , the Company's goodwill impairment evaluation indicated that there was no impairment. Non-Marketable Equity Securities The Company is required to own Federal Home Loan Bank ("FHLB") of Des Moines and Federal Reserve Bank ("FRB") stock as a condition of membership. These non-marketable equity securities are accounted for at cost which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. These securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and are periodically evaluated for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Securities Sold Under Agreements to Repurchase The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the securities sold under agreements to repurchase remain in the respective asset accounts. See Note 19 (Balance Sheet Offsetting) for more information. Pension and Postretirement Benefit Plans The Company incurs certain employment-related expenses associated with its two frozen pension plans and a postretirement benefit plan (the "Plans"). In order to measure the expense associated with the Plans, various assumptions are made including the discount rate, expected return on plan assets, anticipated mortality rates, and expected future healthcare costs. The assumptions are based on historical experience as well as current facts and circumstances. The Company uses a December 31 measurement date for its Plans. As of the measurement date, plan assets are determined based on fair value, generally representing observable market prices. The projected benefit obligation is primarily determined based on the present value of projected benefit distributions at an assumed discount rate. Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial gains or losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains or losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining expected lives of the pension plan participants and over the average remaining future service years of the postretirement benefit plan participants. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. The Company recognizes in its consolidated statements of condition an asset for a plan's overfunded status or a liability for a plan's underfunded status. The Company also measures the Plans' assets and obligations that determine its funded status as of the end of the year and recognizes those changes in other comprehensive income, net of tax. Income Taxes The Parent files a consolidated federal income tax return with the Bank and its subsidiaries. Calculation of the Company's provision for income taxes requires the interpretation of income tax laws and regulations and the use of estimates and judgments in its determination. The Company is subject to examination by governmental authorities that may give rise to income tax issues due to differing interpretations. Changes to the liability for income taxes also occ |
Restrictions on Cash
Restrictions on Cash | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash | The Company is required to maintain cash on hand or on deposit with the Federal Reserve Bank based on the amount of certain customer deposits, mainly checking accounts. The Bank's average required reserve balances were $99.3 million and $92.3 million as of December 31, 2015 and 2014 , respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | The amortized cost, gross unrealized gains and losses, and fair value of the Company's investment securities as of December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) Amortized Gross Gross Fair December 31, 2015 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 356,260 $ 3,472 $ (838 ) $ 358,894 Debt Securities Issued by States and Political Subdivisions 709,724 22,498 (304 ) 731,918 Debt Securities Issued by Corporations 313,136 236 (4,502 ) 308,870 Mortgage-Backed Securities: Residential - Government Agencies 310,966 6,546 (1,267 ) 316,245 Residential - U.S. Government-Sponsored Enterprises 442,760 1,368 (2,264 ) 441,864 Commercial - Government Agencies 103,227 — (4,200 ) 99,027 Total Mortgage-Backed Securities 856,953 7,914 (7,731 ) 857,136 Total $ 2,236,073 $ 34,120 $ (13,375 ) $ 2,256,818 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 489,747 $ 1,359 $ (1,139 ) $ 489,967 Debt Securities Issued by States and Political Subdivisions 245,980 17,114 — 263,094 Debt Securities Issued by Corporations 151,301 368 (2,041 ) 149,628 Mortgage-Backed Securities: Residential - Government Agencies 2,191,138 27,893 (19,067 ) 2,199,964 Residential - U.S. Government-Sponsored Enterprises 647,762 1,656 (2,616 ) 646,802 Commercial - Government Agencies 256,808 2,381 (2,232 ) 256,957 Total Mortgage-Backed Securities 3,095,708 31,930 (23,915 ) 3,103,723 Total $ 3,982,736 $ 50,771 $ (27,095 ) $ 4,006,412 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 December 31, 2013 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 390,873 $ 6,640 $ (234 ) $ 397,279 Debt Securities Issued by States and Political Subdivisions 691,861 8,396 (13,455 ) 686,802 Debt Securities Issued by Corporations 280,172 1,165 (7,836 ) 273,501 Mortgage-Backed Securities: Residential - Government Agencies 641,227 13,816 (1,849 ) 653,194 Residential - U.S. Government-Sponsored Enterprises 21,865 1,403 — 23,268 Commercial - Government Agencies 219,859 — (10,206 ) 209,653 Total Mortgage-Backed Securities 882,951 15,219 (12,055 ) 886,115 Total $ 2,245,857 $ 31,420 $ (33,580 ) $ 2,243,697 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 433,987 $ 3,045 $ (3,667 ) $ 433,365 Debt Securities Issued by States and Political Subdivisions 253,039 817 (133 ) 253,723 Debt Securities Issued by Corporations 190,181 — (5,708 ) 184,473 Mortgage-Backed Securities: Residential - Government Agencies 3,523,343 31,786 (66,572 ) 3,488,557 Residential - U.S. Government-Sponsored Enterprises 21,602 1,423 — 23,025 Commercial - Government Agencies 322,367 — (7,923 ) 314,444 Total Mortgage-Backed Securities 3,867,312 33,209 (74,495 ) 3,826,026 Total $ 4,744,519 $ 37,071 $ (84,003 ) $ 4,697,587 The table below presents an analysis of the contractual maturities of the Company's investment securities as of December 31, 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 Fair Value Available-for-Sale: Due in One Year or Less $ 69,889 $ 70,173 Due After One Year Through Five Years 474,444 477,064 Due After Five Years Through Ten Years 408,341 419,001 Due After Ten Years 70,732 75,096 1,023,406 1,041,334 Debt Securities Issued by Government Agencies 355,714 358,348 Mortgage-Backed Securities: Residential - Government Agencies 310,966 316,245 Residential - U.S. Government-Sponsored Enterprises 442,760 441,864 Commercial - Government Agencies 103,227 99,027 Total Mortgage-Backed Securities 856,953 857,136 Total $ 2,236,073 $ 2,256,818 Held-to-Maturity: Due After One Year Through Five Years $ 522,433 $ 523,945 Due After Five Years Through Ten Years 292,951 301,459 Due After Ten Years 71,644 77,285 887,028 902,689 Mortgage-Backed Securities: Residential - Government Agencies 2,191,138 2,199,964 Residential - U.S. Government-Sponsored Enterprises 647,762 646,802 Commercial - Government Agencies 256,808 256,957 Total Mortgage-Backed Securities 3,095,708 3,103,723 Total $ 3,982,736 $ 4,006,412 Investment securities with carrying values of $2.5 billion , $2.8 billion , and $2.6 billion as of December 31, 2015 , 2014 , and 2013 , respectively, were pledged to secure deposits of governmental entities and securities sold under agreements to repurchase. The table below presents the gains and losses from the sales of investment securities for the years ended December 31, 2015 , 2014 , and 2013 . (dollars in thousands) 2015 2014 2013 Gross Gains on Sales of Investment Securities $ 11,640 $ 8,063 $ — Gross Losses on Sales of Investment Securities (1,480 ) — — Net Gains on Sales of Investment Securities $ 10,160 $ 8,063 $ — The securities sold for losses in 2015 were government agency commercial mortgage-backed securities categorized as available-for-sale. These loans were sold to reduce our allocation to the sector and did not represent an overall change in strategy. The income tax expense related to the Company's net realized gains on the sales of investment securities was $4.0 million in 2015 and $3.2 million in 2014 . There were no sales of investment securities in 2013 . The Company's investment securities in an unrealized loss position, segregated by continuous length of impairment, were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2015 Available-for-Sales: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 144,260 $ (822 ) $ 5,452 $ (16 ) $ 149,712 $ (838 ) Debt Securities Issued by States and Political Subdivisions 72,248 (252 ) 6,798 (52 ) 79,046 (304 ) Debt Securities Issued by Corporations 101,269 (1,747 ) 162,304 (2,755 ) 263,573 (4,502 ) Mortgage-Backed Securities: Residential - Government Agencies 30,679 (130 ) 9,117 (1,137 ) 39,796 (1,267 ) Residential - U.S. Government-Sponsored Enterprises 346,603 (2,264 ) — — 346,603 (2,264 ) Commercial - Government Agencies — — 99,026 (4,200 ) 99,026 (4,200 ) Total Mortgage-Backed Securities 377,282 (2,394 ) 108,143 (5,337 ) 485,425 (7,731 ) Total $ 695,059 $ (5,215 ) $ 282,697 $ (8,160 ) $ 977,756 $ (13,375 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 264,747 $ (1,139 ) $ — $ — $ 264,747 $ (1,139 ) Debt Securities Issued by Corporations 28,218 (66 ) 71,208 (1,975 ) 99,426 (2,041 ) Mortgage-Backed Securities: Residential - Government Agencies 562,502 (5,828 ) 414,207 (13,239 ) 976,709 (19,067 ) Residential - U.S. Government-Sponsored Enterprises 450,147 (2,616 ) — — 450,147 (2,616 ) Commercial - Government Agencies 74,040 (958 ) 52,207 (1,274 ) 126,247 (2,232 ) Total Mortgage-Backed Securities 1,086,689 (9,402 ) 466,414 (14,513 ) 1,553,103 (23,915 ) Total $ 1,379,654 $ (10,607 ) $ 537,622 $ (16,488 ) $ 1,917,276 $ (27,095 ) December 31, 2014 Available-for-Sales: 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 December 31, 2015 , which were comprised of 224 securities, represent an other-than-temporary impairment. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. As of December 31, 2015 , the gross unrealized losses reported for mortgage-backed securities were mostly related to investment securities issued by the Government National Mortgage Association. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost bases, which may be at maturity. Interest income from taxable and non-taxable investment securities for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Year Ended December 31, (dollars in thousands) 2015 2014 2013 Taxable $ 109,912 $ 127,128 $ 125,379 Non-Taxable 21,230 21,207 18,253 Total Interest Income from Investment Securities $ 131,142 $ 148,335 $ 143,632 As of December 31, 2015 , included in the Company's investment securities portfolio were debt securities issued by political subdivisions within the State of Hawaii of $575.7 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. Of the Company's total Hawaii municipal bond holdings, 77% were general obligation issuances. As of December 31, 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 December 31, 2015 and 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: December 31, (dollars in thousands) 2015 2014 Federal Home Loan Bank Stock $ 19,000 $ 47,075 Federal Reserve Bank Stock 19,836 19,299 Total $ 38,836 $ 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 by recognizing temporary declines in value. Effective May 31, 2015, FHLB Des Moines completed its 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 December 31, 2015 , the conversion ratio was 1.6483 . For the year ended December 31, 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 288,714 Class B shares ( 475,887 Class A equivalents) that the Company owns are carried at a zero cost basis. The Company also contributed 13,800 Visa Class B restricted shares to the Bank of Hawaii Foundation during 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 | 12 Months Ended |
Dec. 31, 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 The Company's loan and lease portfolio was comprised of the following as of December 31, 2015 and 2014 : December 31, (dollars in thousands) 2015 2014 Commercial Commercial and Industrial $ 1,115,168 $ 1,055,243 Commercial Mortgage 1,677,147 1,437,513 Construction 156,660 109,183 Lease Financing 204,877 226,189 Total Commercial 3,153,852 2,828,128 Consumer Residential Mortgage 2,925,605 2,571,090 Home Equity 1,069,400 866,688 Automobile 381,735 323,848 Other 1 348,393 307,835 Total Consumer 4,725,133 4,069,461 Total Loans and Leases $ 7,878,985 $ 6,897,589 1 Comprised of other revolving credit, installment, and lease financing. Total loans and leases were reported net of unearned income of $47.3 million and $57.0 million as of December 31, 2015 and 2014 , respectively. Commercial loans and residential mortgage loans of $1.0 billion were pledged to secure an undrawn FRB line of credit as of December 31, 2015 and 2014 . As of December 31, 2015 and 2014 , residential mortgage loans of approximately $1.7 billion and $1.1 billion , respectively, were pledged under a blanket pledge arrangement to secure FHLB advances. See Note 10 (Other Debt) for FHLB advances outstanding as of December 31, 2015 and 2014 . Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income, were $5.9 million , $2.4 million , and $8.7 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Net gains on sales of commercial loans were not material for the years ended December 31, 2015 , 2014 , and 2013 . Substantially all of the Company's lending activity is with customers located in Hawaii. A substantial portion of the Company's real estate loans are secured by real estate in Hawaii. Allowance for Loan and Lease Losses The following presents by portfolio segment, the activity in the Allowance for the years ended December 31, 2015 , 2014 , and 2013 . The following also presents by portfolio segment, the balance in the Allowance disaggregated on the basis of the Company's impairment measurement method and the related recorded investment in loans and leases as of December 31, 2015 , 2014 , and 2013 . (dollars in thousands) Commercial Consumer Total For the Year Ended December 31, 2015 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 64,551 $ 44,137 $ 108,688 Loans and Leases Charged-Off (954 ) (15,485 ) (16,439 ) Recoveries on Loans and Leases Previously Charged-Off 2,173 7,458 9,631 Net Loans and Leases Recovered (Charged-Off) 1,219 (8,027 ) (6,808 ) Provision for Credit Losses (5,056 ) 6,056 1,000 Balance at End of Period $ 60,714 $ 42,166 $ 102,880 As of December 31, 2015 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 205 $ 3,373 $ 3,578 Collectively Evaluated for Impairment 60,509 38,793 99,302 Total $ 60,714 $ 42,166 $ 102,880 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 27,950 $ 38,747 $ 66,697 Collectively Evaluated for Impairment 3,125,902 4,686,386 7,812,288 Total $ 3,153,852 $ 4,725,133 $ 7,878,985 For the Year Ended December 31, 2014 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 71,446 $ 44,008 $ 115,454 Loans and Leases Charged-Off (2,068 ) (13,371 ) (15,439 ) Recoveries on Loans and Leases Previously Charged-Off 4,721 8,816 13,537 Net Loans and Leases Recovered (Charged-Off) 2,653 (4,555 ) (1,902 ) Provision for Credit Losses (9,548 ) 4,684 (4,864 ) Balance at End of Period $ 64,551 $ 44,137 $ 108,688 As of December 31, 2014 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 2,387 $ 3,561 $ 5,948 Collectively Evaluated for Impairment 62,164 40,576 102,740 Total $ 64,551 $ 44,137 $ 108,688 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 25,116 $ 39,631 $ 64,747 Collectively Evaluated for Impairment 2,803,012 4,029,830 6,832,842 Total $ 2,828,128 $ 4,069,461 $ 6,897,589 For the Year Ended December 31, 2013 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 72,704 $ 56,153 $ 128,857 Loans and Leases Charged-Off (8,099 ) (17,021 ) (25,120 ) Recoveries on Loans and Leases Previously Charged-Off 2,644 9,073 11,717 Net Loans and Leases Charged-Off (5,455 ) (7,948 ) (13,403 ) Provision for Credit Losses 4,197 (4,197 ) — Balance at End of Period $ 71,446 $ 44,008 $ 115,454 As of December 31, 2013 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 9,054 $ 3,722 $ 12,776 Collectively Evaluated for Impairment 62,392 40,286 102,678 Total $ 71,446 $ 44,008 $ 115,454 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 38,469 $ 38,646 $ 77,115 Collectively Evaluated for Impairment 2,489,964 3,528,308 6,018,272 Total $ 2,528,433 $ 3,566,954 $ 6,095,387 Credit Quality Indicators The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk-rated and monitored collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Company's credit quality indicators: Pass: Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Management believes that there is a low likelihood of loss related to those loans and leases that are considered pass. Special Mention: Loans and leases in the classes within the commercial portfolio segment that have potential weaknesses that deserve management's close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The special mention credit quality indicator is not used for classes of loans and leases that are included in the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans and leases that are considered special mention. Classified: Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection and the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection, the first mortgage is with the Company, and the current combined loan-to-value ratio is 60% or less. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered classified for a period of up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from classified status. Management believes that there is a distinct possibility that the Company will sustain some loss if the deficiencies related to classified loans and leases are not corrected in a timely manner. The Company's credit quality indicators are periodically updated on a case-by-case basis. The following presents by class and by credit quality indicator, the recorded investment in the Company's loans and leases as of December 31, 2015 and 2014 . December 31, 2015 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,059,475 $ 1,591,696 $ 154,976 $ 204,348 $ 3,010,495 Special Mention 28,076 43,674 80 76 71,906 Classified 27,617 41,777 1,604 453 71,451 Total $ 1,115,168 $ 1,677,147 $ 156,660 $ 204,877 $ 3,153,852 (dollars in thousands) Residential Home Automobile Other 1 Total Pass $ 2,910,667 $ 1,064,253 $ 381,420 $ 347,710 $ 4,704,050 Classified 14,938 5,147 315 683 21,083 Total $ 2,925,605 $ 1,069,400 $ 381,735 $ 348,393 $ 4,725,133 Total Recorded Investment in Loans and Leases $ 7,878,985 December 31, 2014 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,001,474 $ 1,358,812 $ 107,381 $ 225,783 $ 2,693,450 Special Mention 17,364 45,082 — 17 62,463 Classified 36,405 33,619 1,802 389 72,215 Total $ 1,055,243 $ 1,437,513 $ 109,183 $ 226,189 $ 2,828,128 (dollars in thousands) Residential Home Automobile Other 1 Total 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 December 31, 2015 and 2014 . (dollars in thousands) 30 - 59 60 - 89 Past Due Non- Total Current Total Loans Non-Accrual 2 As of December 31, 2015 Commercial Commercial and Industrial $ 1,118 $ 359 $ — $ 5,829 $ 7,306 $ 1,107,862 $ 1,115,168 $ 452 Commercial Mortgage 1,245 27 — 3,469 4,741 1,672,406 1,677,147 2,890 Construction 2,120 — — — 2,120 154,540 156,660 — Lease Financing — — — — — 204,877 204,877 — Total Commercial 4,483 386 0 9,298 14,167 3,139,685 3,153,852 3,342 Consumer Residential Mortgage 7,148 3,993 4,453 14,598 30,192 2,895,413 2,925,605 2,056 Home Equity 3,856 1,906 1,710 4,081 11,553 1,057,847 1,069,400 1,710 Automobile 8,103 1,803 315 — 10,221 371,514 381,735 — Other 1 2,281 1,448 1,096 — 4,825 343,568 348,393 — Total Consumer 21,388 9,150 7,574 18,679 56,791 4,668,342 4,725,133 3,766 Total $ 25,871 $ 9,536 $ 7,574 $ 27,977 $ 70,958 $ 7,808,027 $ 7,878,985 $ 7,108 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 December 31, 2015 and 2014 . (dollars in thousands) Recorded Unpaid Related December 31, 2015 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 14,650 $ 28,212 $ — Commercial Mortgage 10,407 13,907 — Construction 1,604 1,604 — Total Commercial 26,661 43,723 — Total Impaired Loans with No Related Allowance Recorded $ 26,661 $ 43,723 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,289 $ 1,289 $ 205 Total Commercial 1,289 1,289 205 Consumer Residential Mortgage 28,981 34,694 3,171 Home Equity 1,089 1,089 12 Automobile 7,012 7,012 143 Other 1 1,665 1,665 47 Total Consumer 38,747 44,460 3,373 Total Impaired Loans with an Allowance Recorded $ 40,036 $ 45,749 $ 3,578 Impaired Loans: Commercial $ 27,950 $ 45,012 $ 205 Consumer 38,747 44,460 3,373 Total Impaired Loans $ 66,697 $ 89,472 $ 3,578 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 years ended December 31, 2015 and 2014 . Year Ended Year Ended (dollars in thousands) Average Interest Average Interest Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 12,589 $ 406 $ 11,167 $ 318 Commercial Mortgage 7,521 268 8,529 225 Construction 1,647 106 1,570 93 Total Commercial 21,757 780 21,266 636 Consumer Other 1 — — 6 — Total Consumer — — 6 — Total Impaired Loans with No Related Allowance Recorded $ 21,757 $ 780 $ 21,272 $ 636 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 5,379 $ 98 $ 8,045 $ 118 Total Commercial 5,379 98 8,045 118 Consumer Residential Mortgage 30,895 1,133 31,998 1,028 Home Equity 1,137 42 964 34 Automobile 5,992 432 5,263 433 Other 1 1,198 111 560 49 Total Consumer 39,222 1,718 38,785 1,544 Total Impaired Loans with an Allowance Recorded $ 44,601 $ 1,816 $ 46,830 $ 1,662 Impaired Loans: Commercial $ 27,136 $ 878 $ 29,311 $ 754 Consumer 39,222 1,718 38,791 1,544 Total Impaired Loans $ 66,358 $ 2,596 $ 68,102 $ 2,298 1 Comprised of other revolving credit and installment financing. For the year ended December 31, 2013 , the average recorded investment in impaired loans was $61.2 million and the interest income recognized on impaired loans was $1.8 million . For the years ended December 31, 2015 , 2014 , and 2013 , the amount of interest income recognized by the Company within the period that the loans were impaired were primarily related to loans modified in a troubled debt restructuring that were on accrual status. For the years ended December 31, 2015 , 2014 , and 2013 , the amount of interest income recognized using a cash-basis method of accounting during the time within that period that the loans were impaired was not material. Modifications A modification of a loan constitutes a troubled debt restructuring ("TDR") when the Company for economic or legal reasons related to a borrower's financial difficulties grants a concession to the borrower that it would not otherwise consider. Loans modified in a TDR were $65.0 million and $60.2 million as of December 31, 2015 and 2014 , respectively. There were no commitments to lend additional funds on loans modified in a TDR as of December 31, 2015 and 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 involve extending the interest-only payments up to an additional five years with a balloon payment due at maturity, or re-amortizing the remaining balance over a period up to 360 months . Interest rates are not changed for land loan modifications. Home equity modifications are made infrequently and uniquely designed to meet the specific needs of each borrower. Automobile loans modified in a TDR are primarily comprised of loans where the Company has lowered monthly payments by extending the term. Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific Allowance associated with the loan. An Allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. The following presents by class, information related to loans modified in a TDR during the years ended December 31, 2015 and 2014 . Loans Modified as a TDR for the Loans Modified as a TDR for the Troubled Debt Restructurings (dollars in thousands ) Number of Recorded 1 Increase in Number of Recorded 1 Increase in Commercial Commercial and Industrial 30 $ 5,414 $ 1 19 $ 10,263 $ 2,360 Commercial Mortgage 4 4,307 — 1 315 — Total Commercial 34 9,721 1 20 10,578 2,360 Consumer Residential Mortgage 13 4,255 99 17 6,329 278 Home Equity 3 367 4 2 156 2 Automobile 170 3,996 81 131 2,576 32 Other 2 168 1,099 31 84 666 25 Total Consumer 354 9,717 215 234 9,727 337 Total 388 $ 19,438 $ 216 254 $ 20,305 $ 2,697 1 The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. The following presents by class, loans modified in a TDR that defaulted during the year ended December 31, 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. Year Ended December 31, 2015 Year Ended December 31, 2014 TDRs that Defaulted During the Period, (dollars in thousands) Number of Recorded 1 Number of Recorded 1 Commercial Commercial and Industrial 2 $ 4,924 4 $ 728 Total Commercial 2 4,924 4 728 Consumer Residential Mortgage 4 1,449 2 506 Automobile 10 220 6 77 Other 2 21 118 6 48 Total Consumer 35 1,787 14 631 Total 37 $ 6,711 18 $ 1,359 1 The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The specific Allowance associated with the loan may be increased, adjustments may be made in the allocation of the Allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $8.5 million as of December 31, 2015 . Related Party Loans Certain directors and executive officers of the Company, companies in which they are principal owners, and trusts in which they are involved, have loans with the Bank. These loans were made in the ordinary course of business at normal credit terms, including interest rate and collateral requirements. As of December 31, 2015 and 2014 , related party loan balances were $16.7 million and $17.0 million , respectively. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 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 $2.7 billion as of December 31, 2015 , $2.9 billion as of December 31, 2014 , and $3.1 billion as of December 31, 2013 . 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 21 (Fair Value of Assets and Liabilities) for more information). Changes to the balance of mortgage servicing rights are recorded in mortgage banking income in the Company’s consolidated statements of income. The Company’s mortgage servicing activities include collecting principal, interest, and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Servicing income, including late and ancillary fees, was $7.2 million , $7.9 million , and $8.0 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Servicing income is recorded in mortgage banking income in the Company’s consolidated statements of income. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in Hawaii. For the years ended December 31, 2015 , 2014 , and 2013 , the change in the fair value of the Company's mortgage servicing rights accounted for under the fair value measurement method was as follows: (dollars in thousands) 2015 2014 2013 Balance at Beginning of Year $ 2,604 $ 3,826 $ 4,761 Changes in Fair Value: Due to Change in Valuation Assumptions 1 (251 ) (869 ) 127 Due to Payoffs (383 ) (353 ) (1,062 ) Total Changes in Fair Value of Mortgage Servicing Rights (634 ) (1,222 ) (935 ) Balance at End of Year $ 1,970 $ 2,604 $ 3,826 1 Principally represents changes in discount rates and loan repayment rate assumptions, mostly due to changes in interest rates. For the years ended December 31, 2015 , 2014 , and 2013 , the change in the carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows: (dollars in thousands) 2015 2014 2013 Balance at Beginning of Year $ 22,091 $ 24,297 $ 20,479 Servicing Rights that Resulted From Asset Transfers 1,737 747 6,351 Amortization (2,832 ) (2,896 ) (2,533 ) Valuation Allowance Provision 36 (57 ) — Balance at End of Year $ 21,032 $ 22,091 $ 24,297 Valuation Allowance: Balance at Beginning of Year $ (57 ) $ — $ — Valuation Allowance Provision 36 (57 ) — Balance at End of Year $ (21 ) $ (57 ) $ — Fair Value: Balance at Beginning of Year $ 22,837 $ 30,100 $ 23,143 Balance at End of Year $ 24,804 $ 22,837 $ 30,100 The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of December 31, 2015 and 2014 were as follows: December 31, 2015 2014 Weighted-Average Constant Prepayment Rate 1 9.10 % 11.62 % Weighted-Average Life (in years) 7.40 6.28 Weighted-Average Note Rate 4.23 % 4.28 % Weighted-Average Discount Rate 2 9.38 % 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 December 31, 2015 and 2014 is presented in the following table. December 31, (dollars in thousands) 2015 2014 Constant Prepayment Rate Decrease in fair value from 25 basis points ("bps") adverse change $ (285 ) $ (265 ) Decrease in fair value from 50 bps adverse change (566 ) (524 ) Discount Rate Decrease in fair value from 25 bps adverse change (292 ) (250 ) Decrease in fair value from 50 bps adverse change (577 ) (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. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | The components of the Company's premises and equipment as of December 31, 2015 and 2014 were as follows: (dollars in thousands) Cost Accumulated Net Book Value December 31, 2015 Premises $ 322,552 $ (238,912 ) $ 83,640 Equipment 111,071 (86,176 ) 24,895 Capital Leases 6,593 (3,929 ) 2,664 Total $ 440,216 $ (329,017 ) $ 111,199 December 31, 2014 Premises $ 322,536 $ (235,464 ) $ 87,072 Equipment 106,623 (86,577 ) 20,046 Capital Leases 6,593 (3,857 ) 2,736 Total $ 435,752 $ (325,898 ) $ 109,854 Depreciation and amortization (including capital lease amortization) included in noninterest expense was $12.8 million , $12.4 million , and $12.1 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. There was no impairment of the Company's premises and equipment for the years ended December 31, 2015 , 2014 and 2013 . |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | The components of the Company's other assets as of December 31, 2015 and 2014 were as follows: December 31, (dollars in thousands) 2015 2014 Federal Home Loan Bank and Federal Reserve Bank Stock $ 38,836 $ 66,374 Derivative Financial Instruments 13,967 16,515 Low-Income Housing and Other Equity Investments 79,033 77,495 Deferred Compensation Plan Assets 20,262 18,794 Prepaid Expenses 8,262 7,787 Accounts Receivable 12,539 13,405 Other 26,493 25,518 Total $ 199,392 $ 225,888 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Time Deposits As of December 31, 2015 and 2014 , the Company's total time deposits were $1.2 billion and $1.4 billion , respectively. As of December 31, 2015 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount 2016 $ 933,273 2017 161,913 2018 34,467 2019 15,293 2020 17,667 Thereafter 15,038 Total $ 1,177,651 The amount of time deposits with balances of $100,000 or more was $0.9 billion and $1.2 billion as of December 31, 2015 and 2014 , respectively. As of December 31, 2015 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount Three Months or Less $ 422,466 Over Three Months through Six Months 202,100 Over Six Months through Twelve Months 164,806 Over Twelve Months 139,767 Total $ 929,139 Public Deposits As of December 31, 2015 and 2014 , deposits of governmental entities of $1.2 billion and $1.3 billion , respectively, required collateralization by acceptable investment securities of the Company. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings Disclosure Abstract | |
Borrowings | Borrowings Details of the Company's short-term borrowings (original maturity of one year or less) as of December 31, 2015 and 2014 were as follows: December 31, (dollars in thousands) 2015 2014 Funds Purchased 1 Amounts Outstanding $ 7,333 $ 8,459 Weighted-Average Interest Rate 0.14 % 0.14 % Securities Sold Under Agreements to Repurchase (short-term) 2 Amounts Outstanding $ 3,992 $ 7,700 Weighted-Average Interest Rate 0.06 % 0.10 % 1 Federal funds purchased generally mature on the next business day following the date of purchase. 2 Consists entirely of repurchase agreements with government entities. Excludes long-term repurchase agreements with government entities of $49.9 million and $80.9 million as of December 31, 2015 , and 2014 , respectively, and long-term repurchase agreements with private institutions of $575.0 million and $600.0 million as of December 31, 2015 and 2014 , respectively. The Company's total securities sold under agreements to repurchase were $628.9 million and $688.6 million as of December 31, 2015 and 2014 , respectively. As of December 31, 2015 , all of our repurchase agreements were at fixed interest rates. As of December 31, 2015 , long-term repurchase agreements (original maturity over one year) placed with government entities were $49.9 million with a weighted-average interest rate of 0.37% . Remaining terms ranged from 2016 to 2017 with a weighted-average maturity of 56 days. As of December 31, 2015 , long-term repurchase agreements placed with private institutions were $575.0 million with a weighted-average interest rate of 4.22% . Remaining terms ranged from 2016 to 2022 with a weighted-average maturity of 3.6 years. Some of our repurchase agreements with private institutions may be terminated at earlier specified dates by the private institution or in some cases by either the private institution or the Company. If all such agreements were to terminate at the earliest possible date, the weighted-average maturity for our repurchase agreements with private institutions would decrease to 1.5 years. |
Other Debt
Other Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Other Debt | The Company's other debt as of December 31, 2015 and 2014 were as follows: December 31, (dollars in thousands) 2015 2014 Federal Home Loan Bank Advances $ 225,000 $ 150,000 Non-Recourse Debt 9,938 13,005 Capital Lease Obligations 10,848 10,907 Total $ 245,786 $ 173,912 As a member of the FHLB, the Bank may borrow funds from the FHLB in amounts up to 35% of the Bank's total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. As of December 31, 2015 , our eight FHLB advances totaled $225.0 million with a weighted-average interest rate of 1.15% and maturity dates ranging from 2016 to 2018. As of December 31, 2015 , the Company had a remaining line of credit with the FHLB of $1.1 billion . See Note 4 (Loans and Leases and the Allowance for Loan and Lease Losses) for loans pledged to the FHLB as of December 31, 2015 and 2014 . As of December 31, 2015 , the Company's non-recourse debt was bearing interest at a fixed rate of 6.3% with maturity in June 2021. Capital lease obligations relate to office space at the Company's headquarters. The lease began in 1993 and has a 60 year term. Lease payments are fixed at $0.8 million per year through December 2022 (one-time inflation adjustment on January 1, 2018) and are negotiable thereafter. As of December 31, 2015 , the Company had an undrawn line of credit with the FRB of $560.8 million . See Note 4 (Loans and Leases and the Allowance for Loan and Lease Losses) for loans pledged to the FRB as of December 31, 2015 and 2014 . As of December 31, 2015 , the annual maturities of the Company's other debt, exclusive of capital lease obligations, were expected to be as follows: (dollars in thousands) Amount 2016 $ 52,785 2017 — 2018 175,000 2019 — 2020 3,464 Thereafter 3,689 Total $ 234,938 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Regulatory Capital The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2015 and 2014 : (dollars in thousands) Well Capitalized Company Bank As of December 31, 2015: Shareholders' Equity $ 1,116,260 $ 1,036,355 Common Equity Tier 1 Capital 1 1,112,598 1,043,070 Tier 1 Capital 1 1,112,598 1,043,070 Total Capital 1 1,212,245 1,142,573 Common Equity Tier 1 Capital Ratio 1 6.5 % 13.97 % 13.12 % Tier 1 Capital Ratio 1 8 % 13.97 % 13.12 % Total Capital Ratio 1 10 % 15.22 % 14.37 % Tier 1 Leverage Ratio 1 5 % 7.26 % 6.81 % As of December 31, 2014: Shareholders' Equity $ 1,055,086 $ 975,723 Tier 1 Capital 1,039,631 974,397 Total Capital 1,128,416 1,063,085 Tier 1 Capital Ratio 6 % 14.69 % 13.78 % Total Capital Ratio 10 % 15.94 % 15.04 % Tier 1 Leverage Ratio 5 % 7.13 % 6.69 % 1 Calculated under Basel III rules, which became effective January 1, 2015. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by regulators about the components of regulatory capital, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Tier 1 and Total Capital. Both Common Equity Tier 1 Capital and Tier 1 Capital are common shareholders' equity, reduced by certain intangible assets, postretirement benefit liability adjustments, and unrealized gains and losses on investment securities. Total Capital is Tier 1 Capital plus an allowable amount of the reserve for credit losses. Risk-weighted assets are calculated by taking assets and credit equivalent amounts of off-balance-sheet items and assigning them to one of several broad risk categories. Four capital ratios are used to measure capital adequacy: Common Equity Tier 1 Capital divided by risk-weighted assets, as defined; Tier 1 Capital divided by risk-weighted assets; Total Capital divided by risk-weighted assets; and the Tier 1 Leverage ratio, which is Tier 1 Capital divided by quarterly adjusted average total assets. As of December 31, 2015 , the Company and the Bank were well capitalized as defined in the regulatory framework for prompt corrective action. There were no conditions or events since December 31, 2015 that management believes have changed the Company or the Bank's capital classifications. Dividends Dividends paid by the Parent are substantially funded from dividends received from the Bank. The Bank is subject to federal and state regulatory restrictions that limit cash dividends and loans to the Parent. These restrictions generally require advanced approval from the Bank's regulator for payment of dividends in excess of the sum of net income for the current calendar year and the retained net income of the prior two calendar years. Common Stock Repurchase Program The Parent has a common stock repurchase program in which shares repurchased are held in treasury stock for reissuance in connection with share-based compensation plans and for general corporate purposes. For the year ended December 31, 2015 , the Parent repurchased 802,255 shares of common stock under its share repurchase program at an average cost per share of $62.61 and a total cost of $50.2 million . From the beginning of the stock repurchase program in July 2001 through December 31, 2015 , the Parent repurchased a total of 52.8 million shares of common stock at an average cost of $37.35 per share and a total cost of $2.0 billion . From January 1, 2016 through February 17, 2016 , the Parent repurchased an additional 149,500 shares of common stock at an average cost of $59.50 per share for a total of $8.9 million . The actual amount and timing of future share repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors. Accumulated Other Comprehensive Income The following table presents the components of other comprehensive income (loss), net of tax: (dollars in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2015 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (5,448 ) $ (2,138 ) $ (3,310 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (190 ) (75 ) (115 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 2,136 836 1,300 Net Unrealized Gains (Losses) on Investment Securities (3,502 ) (1,377 ) (2,125 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period 7,335 2,869 4,466 Amortization of Net Actuarial Losses (Gains) 1,624 641 983 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net 8,637 3,383 5,254 Other Comprehensive Income (Loss) $ 5,135 $ 2,006 $ 3,129 Year Ended December 31, 2014 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 28,609 $ 11,286 $ 17,323 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 (703 ) (277 ) (426 ) Net Unrealized Gains (Losses) on Investment Securities 27,842 10,984 16,858 Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period (20,286 ) (8,000 ) (12,286 ) Amortization of Net Actuarial Losses (Gains) 1,256 496 760 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net (19,352 ) (7,631 ) (11,721 ) Other Comprehensive Income (Loss) $ 8,490 $ 3,353 $ 5,137 Year Ended December 31, 2013 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (105,842 ) $ (41,715 ) $ (64,127 ) 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 (8,386 ) (3,307 ) (5,079 ) Net Unrealized Gains (Losses) on Investment Securities (114,228 ) (45,022 ) (69,206 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period 12,132 4,785 7,347 Amortization of Net Actuarial Losses (Gains) 1,688 665 1,023 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net 13,498 5,323 8,175 Other Comprehensive Income (Loss) $ (100,730 ) $ (39,699 ) $ (61,031 ) 1 The amount relates to the amortization/accretion of unrealized gains and losses related to the Company's reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield. The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax: (dollars in thousands) Investment Securities-Available-For-Sale Investment Securities-Held-To-Maturities Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2015 Balance at Beginning of Period $ 15,984 $ (8,555 ) $ (34,115 ) $ (26,686 ) Other Comprehensive Income (Loss) Before Reclassifications (3,310 ) — 4,466 1,156 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (115 ) 1,300 788 1,973 Total Other Comprehensive Income (Loss) (3,425 ) 1,300 5,254 3,129 Balance at End of Period $ 12,559 $ (7,255 ) $ (28,861 ) $ (23,557 ) Year Ended December 31, 2014 Balance at Beginning Period $ (1,300 ) $ (8,129 ) $ (22,394 ) $ (31,823 ) Other Comprehensive Income (Loss) Before Reclassifications 17,323 — (12,286 ) 5,037 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (39 ) (426 ) 565 100 Total Other Comprehensive Income (Loss) 17,284 (426 ) (11,721 ) 5,137 Balance at End of Period $ 15,984 $ (8,555 ) $ (34,115 ) $ (26,686 ) Year Ended December 31, 2013 Balance at Beginning Period $ 45,996 $ 13,781 $ (30,569 ) $ 29,208 Other Comprehensive Income (Loss) Before Reclassifications (47,296 ) (16,831 ) 7,347 (56,780 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — (5,079 ) 828 (4,251 ) Total Other Comprehensive Income (Loss) (47,296 ) (21,910 ) 8,175 (61,031 ) Balance at End of Period $ (1,300 ) $ (8,129 ) $ (22,394 ) $ (31,823 ) The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented (dollars in thousands) Year Ended December 31, 2015 2014 2013 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (2,136 ) $ 703 $ 8,386 Interest Income 836 (277 ) (3,307 ) Provision for Income Tax (1,300 ) 426 5,079 Net of Tax Sales of Investment Securities Available-for-Sale 190 64 — Investment Securities Gains (Losses), Net (75 ) (25 ) — Provision for Income Tax 115 39 — Net of Tax Amortization of Defined Benefit Plans Items Prior Service Credit 2 322 322 322 Net Actuarial Losses 2 (1,624 ) (1,256 ) (1,688 ) (1,302 ) (934 ) (1,366 ) Total Before Tax 514 369 538 Provision for Income Tax (788 ) (565 ) (828 ) Net of Tax Total Reclassifications for the Period $ (1,973 ) $ (100 ) $ 4,251 Net of Tax 1 Amounts in parentheses indicate reductions to net income. 2 These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in Salaries and Benefits on the consolidated statements of income. See Note 14 (Employee Benefits) for additional details. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share There were no adjustments to net income, the numerator, for purposes of computing basic earnings per share. The following is a reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding for the years ended December 31, 2015 , 2014 , and 2013 : Weighted Average Shares 2015 2014 2013 Denominator for Basic Earnings Per Share 43,217,818 43,899,208 44,380,948 Dilutive Effect of Equity Based Awards 237,059 226,248 191,777 Denominator for Diluted Earnings Per Share 43,454,877 44,125,456 44,572,725 Antidilutive Stock Options and Restricted Stock Outstanding — — 25,101 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 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 70 branch locations and 456 ATMs throughout Hawaii and the Pacific Islands, e-Bankoh (on-line banking service), a 24-hour customer service center, and a mobile banking service. Commercial Banking Commercial Banking offers products including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. Commercial lending and deposit products are offered to middle-market and large companies in Hawaii and the Pacific Islands. Commercial real estate mortgages focus on customers that include investors, developers, and builders predominantly domiciled in Hawaii. Commercial Banking also includes international banking and provides merchant services to its small business customers. Investment Services Investment Services includes private banking 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 years ended December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) Retail Commercial Investment Treasury Consolidated Year Ended December 31, 2015 Net Interest Income $ 202,259 $ 143,944 $ 18,494 $ 29,390 $ 394,087 Provision for Credit Losses 8,033 (1,165 ) (43 ) (5,825 ) 1,000 Net Interest Income After Provision for Credit Losses 194,226 145,109 18,537 35,215 393,087 Noninterest Income 82,391 21,804 58,835 23,189 186,219 Noninterest Expense (199,572 ) (76,891 ) (57,852 ) (13,789 ) (348,104 ) Income Before Provision for Income Taxes 77,045 90,022 19,520 44,615 231,202 Provision for Income Taxes (27,330 ) (31,457 ) (7,222 ) (4,489 ) (70,498 ) Net Income $ 49,715 $ 58,565 $ 12,298 $ 40,126 $ 160,704 Total Assets as of December 31, 2015 $ 4,680,888 $ 3,099,132 $ 274,469 $ 7,400,527 $ 15,455,016 Year Ended December 31, 2014 Net Interest Income $ 178,480 $ 119,655 $ 15,238 $ 66,283 $ 379,656 Provision for Credit Losses 4,783 (2,369 ) (313 ) (6,965 ) (4,864 ) Net Interest Income After Provision for Credit Losses 173,697 122,024 15,551 73,248 384,520 Noninterest Income 79,562 23,635 57,618 19,202 180,017 Noninterest Expense (196,254 ) (66,760 ) (54,571 ) (9,314 ) (326,899 ) Income Before Provision for Income Taxes 57,005 78,899 18,598 83,136 237,638 Provision for Income Taxes (21,079 ) (26,952 ) (6,894 ) (19,671 ) (74,596 ) Net Income $ 35,926 $ 51,947 $ 11,704 $ 63,465 $ 163,042 Total Assets as of December 31, 2014 $ 4,088,878 $ 2,787,537 $ 202,645 $ 7,708,148 $ 14,787,208 Year Ended December 31, 2013 Net Interest Income $ 160,869 $ 99,733 $ 14,199 $ 84,106 $ 358,907 Provision for Credit Losses 8,565 4,918 (71 ) (13,412 ) — Net Interest Income After Provision for Credit Losses 152,304 94,815 14,270 97,518 358,907 Noninterest Income 87,493 27,488 59,336 11,906 186,223 Noninterest Expense (199,222 ) (65,189 ) (55,002 ) (11,556 ) (330,969 ) Income Before Provision for Income Taxes 40,575 57,114 18,604 97,868 214,161 Provision for Income Taxes (15,496 ) (18,877 ) (6,883 ) (22,403 ) (63,659 ) Net Income $ 25,079 $ 38,237 $ 11,721 $ 75,465 $ 150,502 Total Assets as of December 31, 2013 $ 3,627,700 $ 2,458,001 $ 189,421 $ 7,809,158 $ 14,084,280 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits The Company has defined contribution plans, defined benefit plans, and a postretirement benefit plan. Defined Contribution Plans The Bank of Hawaii Retirement Savings Plan (the "Savings Plan") has three Company contribution components in addition to employee contributions: 1) 401(k) matching, as described below; 2) a 3% fixed amount based on eligible compensation; and 3) a discretionary value-sharing contribution. Under the 401(k) matching component, participating employees may contribute up to 50% of their eligible compensation (within federal limits) to the Savings Plan. The Company makes matching contributions on behalf of participants equal to $1.25 for each $1.00 contributed by participants, up to 2% of the participants' eligible compensation, and $0.50 for every $1.00 contributed by participants over 2% , up to 5% of the participants' eligible compensation. A 3% fixed contribution and a discretionary value-sharing contribution, that is linked to the Company's financial goals, are made regardless of whether the participating employee contributes to the Savings Plan and are invested in accordance with the participant's selection of investment options available under the Savings Plan. The Company also has a non-qualified savings plan which covers certain employees with compensation exceeding Internal Revenue Service ("IRS") limits on pay amounts in the allocation of the Savings Plan's benefits. Total expense for all components of the Company's defined contribution plans was $12.0 million , $12.1 million , and $11.2 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Defined Benefit Plans The Company has two defined benefit plans (the "Pension Plans"). In 1995, the Company froze its non-contributory, qualified defined benefit retirement plan (the "Retirement Plan") and the excess retirement plan (the "Excess Plan"), which covered employees of the Company and participating subsidiaries who met certain eligibility requirements. Beginning January 1, 2001, the Pension Plans no longer provided for compensation increases in the determination of benefits. The projected benefit obligation is equal to the accumulated benefit obligation due to the frozen status of the Pension Plans. The assets of the Retirement Plan primarily consist of equity and fixed income mutual funds. The Excess Plan is a non-qualified excess retirement benefit plan which covers certain employees of the Company and participating subsidiaries with compensation exceeding IRS limits on pay amounts applicable to the Pension Plan's benefit formula. The Excess Plan has no plan assets. The Excess Plan's projected benefit obligation and accumulated benefit obligation were $4.1 million and $4.8 million as of December 31, 2015 and 2014 , respectively. Postretirement Benefit Plan The Company's postretirement benefit plan provides retirees hired before January 1, 2012 with medical and dental insurance coverage. For eligible participants that retired before 2008 and met certain age requirements, the Company and retiree share in the cost of providing postretirement benefits where both the employer and retirees pay a portion of the insurance premiums. Eligible participants who retired before 2008 who did not meet certain age requirements continued on the Company's benefit plans, but pay for their full insurance premiums. Participants who retired on or after January 1, 2008, who have medical or dental coverage under the Company's plans immediately before retirement and meet certain age and years of service requirements as of December 31, 2008 are also eligible to participate in the Company's benefit plans, but must pay for their full insurance premiums. Retirees age 65 and older are provided with a Medicare supplemental plan subsidy. Most employees of the Company who have met certain eligibility requirements are covered by this plan. Participants who retired on or after January 1, 2008 who met certain age and/or years of service requirements are eligible for the Health Reimbursement Account ("HRA") program. The HRA program provides retirees with an initial credit based on years of service. Thereafter, an annual credit up to a maximum of $1,200 is provided into the HRA. The retiree may use the HRA for medical, vision, prescription drug and dental premiums, co-payments, and medically necessary health care expenses that are not covered by any medical or dental insurance program or flexible health spending account. As of December 31, 2015 and 2014 , the Company had no segregated assets to provide for postretirement benefits. The following table provides a reconciliation of changes in benefit obligation and fair value of plan assets, as well as the funded status recognized in the Company's consolidated statements of condition for the Pension Plans and postretirement benefit plan for the years ended December 31, 2015 and 2014 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2015 2014 Benefit Obligation at Beginning of Year $ 114,707 $ 98,085 $ 30,804 $ 27,296 Service Cost — — 621 586 Interest Cost 4,655 4,975 1,155 1,325 Actuarial Losses (Gains) (7,647 ) 16,954 (5,783 ) 2,674 Employer Benefits Paid 1 (5,722 ) (5,307 ) (1,490 ) (1,077 ) Benefit Obligation at End of Year $ 105,993 $ 114,707 $ 25,307 $ 30,804 Fair Value of Plan Assets at Beginning of Year $ 90,154 $ 90,535 $ — $ — Actual Return on Plan Assets (1,058 ) 4,442 — — Employer Contributions 484 484 1,490 1,077 Employer Benefits Paid 1 (5,722 ) (5,307 ) (1,490 ) (1,077 ) Fair Value of Plan Assets at End of Year $ 83,858 $ 90,154 $ — $ — Funded Status at End of Year 2 $ (22,135 ) $ (24,553 ) $ (25,307 ) $ (30,804 ) 1 Participants' contributions relative to the postretirement benefit plan were offset against employer benefits paid in the table above. Participants' contributions for postretirement benefits were $0.6 million and $0.7 million for the years ended December 31, 2015 and 2014 , respectively. 2 Amounts are recognized in Retirement Benefits Payable in the consolidated statements of condition. The following presents the amounts recognized in the Company's accumulated other comprehensive income for the Pension Plans and postretirement benefit plan as of December 31, 2015 and 2014 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2015 2014 Amounts Recognized in Accumulated Other Net Actuarial Gains (Losses) $ (33,239 ) $ (35,254 ) $ 3,768 $ 333 Net Prior Service Credit — — 610 806 Total Amounts Recognized in Accumulated Other $ (33,239 ) $ (35,254 ) $ 4,378 $ 1,139 Components of net periodic benefit cost for the Company's Pension Plans and the postretirement benefit plan are presented in the following table for the years ended December 31, 2015 , 2014 , and 2013 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2013 2015 2014 2013 Service Cost $ — $ — $ — $ 621 $ 586 $ 670 Interest Cost 4,655 4,975 4,514 1,155 1,325 1,188 Expected Return on Plan Assets (5,222 ) (5,100 ) (5,250 ) — — — Amortization of: Prior Service Credit 1 — — — (322 ) (322 ) (322 ) Net Actuarial Losses (Gains) 1 1,713 1,408 1,688 (89 ) (152 ) — Net Periodic Benefit Cost $ 1,146 $ 1,283 $ 952 $ 1,365 $ 1,437 $ 1,536 1 Represents reclassification adjustments from accumulated other comprehensive income during the period. The estimated net actuarial loss related to the Company's Pension Plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost for the year ending December 31, 2016 is approximately $1.6 million . The estimated net actuarial gain and prior service credit related to the Company's postretirement benefit plan that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost for the year ending December 31, 2016 is approximately $0.6 million . Assumptions used to determine the benefit obligations as of December 31, 2015 and 2014 for the Company's Pension Plans and postretirement benefit plan were as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Weighted Average Assumptions as of December 31: Discount Rate 4.70 % 4.25 % 4.74 % 4.28 % Health Care Cost Trend Rate Assumed For Next Year — — 6.70 % 7.00 % The health care cost trend rate is assumed to decrease annually, until reaching the ultimate trend rate of 4.5% in 2027 . Assumptions used to determine the net periodic benefit cost for the Company's Pension Plans and postretirement benefit plan for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 Weighted Average Assumptions as of December 31: Discount Rate 4.25 % 5.22 % 4.29 % 4.28 % 5.22 % 4.29 % Expected Long-Term Rate of Return on Plan Assets 6.00 % 6.00 % 6.00 % — — — Health Care Cost Trend Rate — — — 7.00 % 7.20 % 7.70 % A combination of factors is used by management in determining the expected long-term rate of return on plan assets. Historical return experience for major asset categories are evaluated and current market factors, such as inflation and interest rates, are considered in determining the expected long-term rate of return assumption. A one percent change in the health care cost trend rate assumption (with all other assumptions remaining constant) would have impacted the service and interest cost components of the net periodic postretirement benefit cost and the postretirement benefit obligation as of and for the year ended December 31, 2015 as follows: (dollars in thousands) One Percent One Percent Effect on the Total of Service and Interest Cost Component of $ 147 $ (152 ) Effect on the Postretirement Benefit Obligation 2,004 (1,756 ) The Company expects to contribute $0.5 million to the Pension Plans and $1.0 million to the postretirement benefit plan for the year ending December 31, 2016 . As of December 31, 2015 , expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter were as follows: (dollars in thousands) Pension Benefits Postretirement Benefits 2016 $ 6,139 $ 1,001 2017 6,345 1,004 2018 6,494 988 2019 6,752 1,016 2020 6,918 1,081 Years 2021-2025 35,744 6,992 Retirement Plan Assets The Company's overall investment strategy is to maintain the purchasing power of the current assets and all future contributions by producing positive rates of return on plan assets; achieve capital growth towards the attainment of full funding of the Retirement Plan's termination liability; maximize returns within reasonable and prudent levels of risk; and control costs of administering the plan and managing the investments. The long-term investment objective is to achieve an overall annualized total return, gross of fees, above the blended benchmark index comprised of 35% S&P 500 Index, 25% MSCI ACWI ex-US Index, and 40% Barclays Capital Aggregate Bond Index. Subject to liquidity requirements, the asset allocation targets are 60% for equity securities, 40% for fixed income securities with a 10% to 20% range permitted from the strategic targets, and zero to 20% for cash. Within the equity securities portfolio, the range for domestic securities is from 50% to 100% and the range for international securities is from 0% to 50% . All assets selected for the Retirement Plan must have a readily ascertainable market value and must be readily marketable. Due to market fluctuations or cash flows, the allocation for each asset class may be breached by as much as 5% on a temporary basis. However, asset allocations are expected to conform to target ranges within 90 days of such an occurrence. The fair values of the Retirement Plan assets as of December 31, 2015 and 2014 by asset category were as follows: Fair Value Measurements Asset Category (dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total as of Dec. 31, 2015 Total as of Dec. 31, 2014 Cash $ 1,313 $ — $ — $ 1,313 $ 1,385 Equity Securities – Mutual Funds: Mixed-Cap 30,949 — — 30,949 33,648 International 17,917 — — 17,917 18,882 Emerging Market 1,982 — — 1,982 2,053 Fixed Income Securities – Mutual Funds 31,697 — — 31,697 34,186 Total $ 83,858 $ — $ — $ 83,858 $ 90,154 Quoted prices for these investments were available in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company has share-based compensation plans which allow grants of stock options, restricted stock, stock appreciation rights, and restricted stock units to its employees and non-employee directors. The Company's employee stock option plans are shareholder approved and administered by the Human Resources and Compensation Committee of the Board of Directors. Stock options provide grantees the option to purchase shares of the Parent's common stock at a specified exercise price and, generally, expire 10 years from the date of grant. Stock option grants include incentive and non-qualified stock options whose vesting may be subject to one or more criteria, including employment or achievement of Company performance measures. Stock option exercise prices were equal to the quoted market price of the Parent's common stock on the date of grant. Restricted stock provides grantees with rights to shares of common stock upon completion of one or more criteria, including service period, performance or other conditions as established by the Compensation Committee, such as vesting tied to the Company's financial performances relative to the peer group or achievement of an absolute financial performance target. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. Generally, restricted stock vests over periods ranging from one to five years from the date of grant. Restricted stock and dividends may be forfeited if an employee terminates prior to vesting. As of December 31, 2015 , total shares authorized under the plans were 1.3 million shares, of which 1.1 million shares were available for future grants. The Company recognizes compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the requisite service period. Share-based compensation is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders' equity. For the years ended December 31, 2015 , 2014 , and 2013 , compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows: (dollars in thousands) 2015 2014 2013 Compensation Expense $ 7,689 $ 7,870 $ 5,546 Income Tax Benefit 3,036 3,104 2,188 Restricted Stock As of December 31, 2015 , unrecognized compensation expense related to unvested restricted stock was $8.3 million . The unrecognized compensation expense is expected to be recognized over a weighted average period of 1.83 years. The following table presents the activity for restricted stock: Number of Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2012 211,526 $ 47.91 Granted 170,991 47.69 Vested (133,245 ) 48.39 $ 6,448 Forfeited (9,497 ) 47.54 Unvested as of December 31, 2013 239,775 $ 47.50 Granted 155,447 58.45 Vested (130,238 ) 47.32 $ 6,163 Forfeited (1,538 ) 51.19 Unvested as of December 31, 2014 263,446 $ 53.04 Granted 116,331 57.31 Vested (108,949 ) 52.47 $ 5,759 Forfeited (2,015 ) 54.17 Unvested as of December 31, 2015 1 268,813 $ 55.92 1 As of December 31, 2015, 26,281 shares were unvested from service-based grants. Restricted Stock Units During 2015 and 2014, the Company granted RSUs payable solely in cash. The RSUs vest over periods ranging from three to four years from the date of grant and are subject to forfeiture until performance and employment targets are achieved. Upon vesting, the RSUs are converted to cash based on the closing stock price on the vesting date. Total recognized compensation expense related to the RSUs was $3.3 million and $1.6 million for the years ended December 31, 2015 and 2014 , respectively. The following table presents the activity for RSU: Number of Units Weighted Average Fair Value of Restricted Balance as of December 31, 2013 — $ — Granted 105,405 55.17 Balance as of December 31, 2014 105,405 $ 55.17 Granted 61,751 56.68 Vested (31,651 ) 55.17 $ 1,940 Balance as of December 31, 2015 135,505 $ 55.86 Stock Options There were no stock options granted for the years ended December 31, 2015 and 2014 . All stock options granted were fully vested as of December 31, 2014 . The Company reissues treasury stock to satisfy stock option exercises. The following table presents the activity related to stock options under all plans for the year ended December 31, 2015 : Stock Weighted Weighted Aggregate Stock Options Outstanding as of January 1, 2015 755,343 $ 46.29 Exercised (197,927 ) 49.03 Forfeited (2,057 ) 47.35 Stock Options Outstanding as of December 31, 2015 555,359 45.31 5.8 $ 9,770 Stock Options Vested and Exercisable as of December 31, 2015 555,359 45.31 5.8 9,770 The following summarizes certain stock option activity of the Company for the years ended December 31, 2015 , 2014 , and 2013 : (dollars in thousands) 2015 2014 2013 Intrinsic Value of Stock Options Exercised $ 2,754 $ 1,209 $ 3,262 Cash Received from Stock Options Exercised 9,704 4,083 8,369 Tax Benefits Realized from Stock Options Exercised 330 34 690 Total Fair Value of Stock Options that Vested — — 3,731 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Provision for Income Taxes The components of the Company's provision for income taxes for the years ended December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) 2015 2014 2013 Current: Federal $ 73,278 $ 76,789 $ 63,731 State 3,737 3,018 (575 ) Total Current 77,015 79,807 63,156 Deferred: Federal (6,801 ) (5,603 ) (231 ) State 284 392 734 Total Deferred (6,517 ) (5,211 ) 503 Provision for Income Taxes $ 70,498 $ 74,596 $ 63,659 The tax effects of fair value adjustments on available-for-sale investment securities, the amortization of gains related to held-to-maturity investment securities, the minimum pension liability adjustment, and tax benefits related to stock options are recorded directly to consolidated shareholders' equity. The net tax charge recorded directly to consolidated shareholders' equity was $1.0 million and $2.7 million for the years ended December 31, 2015 and 2014 , respectively. The net tax benefit recorded directly to consolidated shareholders' equity was $40.6 million for the year ended December 31, 2013 . Deferred Tax Liabilities and Assets As of December 31, 2015 and 2014 , significant components of the Company's deferred tax liabilities and assets were as follows: December 31, (dollars in thousands) 2015 2014 Deferred Tax Liabilities: Accrued Pension Cost $ (13,707 ) $ (14,014 ) Federal Home Loan Bank Stock (5,088 ) (6,658 ) Lease Transactions (85,874 ) (97,864 ) Energy Tax Credits (8,054 ) (5,716 ) Net Unrealized Gains on Investments Securities (3,453 ) (4,830 ) Deferred Loan Fees (7,744 ) (5,982 ) Originated Mortgage Servicing Rights (9,104 ) (9,777 ) Other (657 ) (599 ) Gross Deferred Tax Liabilities (133,681 ) (145,440 ) Deferred Tax Assets: Accelerated Depreciation 7,775 9,419 Allowance for Loan Losses 42,890 44,877 Minimum Pension Liability 18,831 22,214 Accrued Expenses 16,738 15,622 Postretirement Benefit Obligations 12,849 12,884 Capital Lease Expenses 3,231 3,222 Restricted Stock 6,262 5,288 Investment in Unincorporated Entities 1,951 3,084 Deductible State and Local Taxes 4,166 5,598 Other 7,225 6,898 Gross Deferred Tax Assets Before Valuation Allowance 121,918 129,106 Valuation Allowance (3,932 ) (4,656 ) Gross Deferred Tax Assets After Valuation Allowance 117,986 124,450 Net Deferred Tax Liabilities $ (15,695 ) $ (20,990 ) Both positive and negative evidence was considered by management in determining the need for a valuation allowance. Negative evidence included the uncertainty regarding the generation of capital gains in future years and restrictions on the ability to sell low-income housing investments during periods when carrybacks of capital losses are allowed. Positive evidence included capital gains in the current year and carryback years. After considering all available evidence, management determined that a valuation allowance to offset deferred tax assets related to low-income housing investments that can only be used to offset capital gains was appropriate. Management determined that a valuation allowance was not required for the remaining deferred tax assets because it is more likely than not these assets will be realized through future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, and taxable income in prior carryback years. Certain events covered by Internal Revenue Code Section 593(e) will trigger a recapture of base year reserves of acquired thrift institutions. The base year reserves of acquired thrift institutions would be recaptured if an entity ceases to qualify as a bank for federal income tax purposes. The base year reserves of thrift institutions also remain subject to income tax penalty provisions that, in general, require recapture upon certain stock redemptions of, and excess distributions to, shareholders. As of December 31, 2015 , retained earnings included $18.2 million of base year reserves for which the deferred federal income tax liability of $7.2 million has not been recognized. Effective Tax Rate The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate for the years ended December 31, 2015 , 2014 , and 2013 : 2015 2014 2013 Statutory Federal Income Tax Rate 35.00 % 35.00 % 35.00 % Increase (Decrease) in Income Tax Rate Resulting From: State Taxes, Net of Federal Income Tax 1.23 0.59 0.11 Tax Reserve Adjustments 0.38 0.88 (0.44 ) Leveraged Leases 0.06 0.01 0.02 Low-Income Housing Investments (0.78 ) (0.10 ) (0.51 ) Investment Tax Credits (0.89 ) (0.68 ) (0.80 ) Bank-Owned Life Insurance (1.06 ) (0.97 ) (0.96 ) Tax-Exempt Income (3.03 ) (2.83 ) (2.78 ) Other (0.42 ) (0.51 ) 0.09 Effective Tax Rate 30.49 % 31.39 % 29.73 % Unrecognized Tax Benefits The Company is required to record a liability, referred to as an unrecognized tax benefit ("UTB"), for the entire amount of benefit taken in a prior or future income tax return when the Company determines that a tax position has a less than 50% likelihood of being accepted by the taxing authority. The following presents a reconciliation of the Company's liability for UTBs for the years ended December 31, 2015 , 2014 , and 2013 : (dollars in thousands) 2015 2014 2013 Unrecognized Tax Benefits at Beginning of Year $ 12,229 $ 11,846 $ 15,433 Gross Increases, Related to Tax Positions Taken in a Prior Period 398 1,074 1,587 Gross Decreases, Related to Tax Positions Taken in a Prior Period (98 ) (314 ) (194 ) Gross Increases, Related to Current Period Tax Positions 573 498 1,557 Lapse of Statute of Limitations (1,500 ) (875 ) (6,537 ) Unrecognized Tax Benefits at End of Year $ 11,602 $ 12,229 $ 11,846 As of December 31, 2015 and 2014 , $10.8 million and $11.3 million , respectively, in liabilities for UTBs was related to UTBs that if reversed would have an impact on the Company's effective tax rate. Management believes that it is reasonably possible that the Company's liability for UTBs could significantly decrease as a result of the expiration of statutes of limitations and potential settlements with taxing authorities within the next 12 months. However, management is currently not able to estimate a range of possible change in the amount of the liability for UTBs recorded as of December 31, 2015 . The Company classifies interest and penalties, if any, related to the liability for UTBs as a component of the provision for income taxes. For the years ended December 31, 2015 , 2014 , and 2013 , the Company recorded a net tax provision of less than $0.1 million , net tax provision of $0.2 million , and a net tax benefit of $1.2 million , respectively, for interest and penalties. As of December 31, 2015 and 2014 , the Company had accrued $2.2 million for the payment of possible interest and penalties. During the year ended December 31, 2015 , the Company filed a protest with the IRS related to its 2011 tax return. It is currently awaiting an appeals hearing. The federal tax returns for 2012 through 2014 remain subject to examination. The Company's State of Hawaii income tax returns for 2012 through 2014 remain subject to examination by the taxing authorities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 4,375 $ 270 $ 2,354 $ 152 Forward Commitments 5,862 4 5,404 (13 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 203,667 13,021 183,283 16,206 Pay Fixed/Receive Variable Swaps 203,667 (13,051 ) 183,283 (16,240 ) Foreign Exchange Contracts 42,777 104 44,240 (345 ) The following table presents the Company's derivative financial instruments, their fair values, and the location in the consolidated statements of condition as of December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 Derivative Financial Instruments Not Designated 1 (dollars in thousands) Asset Liability Asset Liability Interest Rate Lock Commitments $ 270 $ — $ 152 $ — Forward Commitments 5 1 — 13 Interest Rate Swap Agreements 13,543 13,573 16,262 16,296 Foreign Exchange Contracts 149 45 101 446 Total $ 13,967 $ 13,619 $ 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 or losses recognized in the consolidated statements of income for the years ended December 31, 2015 , 2014 , and 2013 : Location of Net Gains (Losses)Recognized in the Year Ended December 31, Derivative Financial Instruments Not Designated (dollars in thousands) 2015 2014 2013 Interest Rate Lock Commitments Mortgage Banking $ 2,779 $ 3,072 $ 6,092 Forward Commitments Mortgage Banking 27 (527 ) 8,085 Interest Rate Swap Agreements Other Noninterest Income 1,085 130 292 Foreign Exchange Contracts Other Noninterest Income 2,783 3,107 3,182 Total $ 6,674 $ 5,782 $ 17,651 Management has received authorization from the Bank’s Board of Directors to use derivative financial instruments as an end-user in connection with the Bank's risk management activities and to accommodate the needs of the Bank's customers. As with any financial instrument, derivative financial instruments have inherent risks. Market risk is defined as the risk of adverse financial impact due to fluctuations in interest rates, foreign exchange rates, and equity prices. Market risks associated with derivative financial instruments are balanced with the expected returns to enhance earnings performance and shareholder value, while limiting the volatility of each. The Company uses various processes to monitor its overall market risk exposure, including sensitivity analysis, value-at-risk calculations, and other methodologies. Derivative financial instruments are also subject to credit and counterparty risk, which is defined as the risk of financial loss if a borrower or counterparty is either unable or unwilling to repay borrowings or settle transactions in accordance with the underlying contractual terms. Credit and counterparty risks associated with derivative financial instruments are similar to those relating to traditional financial instruments. The Company manages derivative credit and counterparty risk by evaluating the creditworthiness of each borrower or counterparty, adhering to the same credit approval process used for commercial lending activities. As of December 31, 2015 and 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 19 (Balance Sheet Offsetting) for more information. The Company’s interest rate swap agreements with institutional counterparties contain credit-risk-related contingent features tied to the Company’s debt ratings or capitalization levels. Under these provisions, if the Company’s debt rating falls below investment grade or if the Company’s capitalization levels fall below stipulated thresholds, certain counterparties may require immediate and ongoing collateralization on interest rate swaps in net liability positions, or may require immediate settlement of the contracts. As of December 31, 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. These conversion rate swap agreements are 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 December 31, 2015 , these conversion rate swap agreements were valued at zero as further reductions to the conversion ratio were deemed neither probable nor reasonably estimable by management. See Note 3 (Investment Securities) for more information. |
Affordable Housing Projects Tax
Affordable Housing Projects Tax Credit Partnerships Affordable Housing Projects Tax Credit Partnerships | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Affordable Housing Projects 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 December 31, 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 $68.8 million and $68.5 million as of December 31, 2015 and 2014 , respectively, and are included in other assets in the consolidated statements of condition. Unfunded Commitments As of December 31, 2015 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2016 $ 16,305 2017 8,778 2018 28 2019 75 2020 3 Thereafter 65 Total Unfunded Commitments $ 25,254 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the years ended December 31, 2015 , 2014 , and 2013 . (dollars in thousands) 2015 2014 2013 Effective Yield Method Tax credits and other tax benefits recognized $ 13,448 $ 10,946 $ 9,416 Amortization Expense in Provision for Income Taxes 7,735 5,881 4,673 There were no impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances related to LIHTC investments for the years ended December 31, 2015 , 2014 , and 2013 . |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 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 $13.1 million and $16.2 million as of December 31, 2015 and December 31, 2014 , respectively. See Note 17 (Derivative Financial Instruments) 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 sales and subsequent repurchases 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 December 31, 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 December 31, 2015 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 200,000 $ 110,313 $ 310,313 Debt Securities Issued by States and Political Subdivisions 47,915 4,692 100 — 52,707 Mortgage-Backed Securities: Residential - Government Agencies 1,150 51,169 — 102,919 155,238 Residential - U.S. Government-Sponsored Enterprises — 23,831 — 86,768 110,599 Total $ 49,065 $ 79,692 $ 200,100 $ 300,000 $ 628,857 The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of December 31, 2015 and 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 December 31, 2015 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 261 $ — $ 261 $ 261 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 13,312 — 13,312 261 — 13,051 Repurchase Agreements: Private Institutions 575,000 — 575,000 — 575,000 — Government Entities 53,857 — 53,857 — 53,857 — $ 628,857 $ — $ 628,857 $ — $ 628,857 $ — 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 securities pledged was $663.2 million and $694.7 million as of December 31, 2015 and 2014 , respectively. For repurchase agreements with government entities, the fair value of securities pledged was $66.9 million as of December 31, 2015 . |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments, Contingencies, and Guarantees The Company's credit commitments as of December 31, 2015 were as follows: (dollars in thousands) December 31, 2015 Unfunded Commitments to Extend Credit $ 2,604,429 Standby Letters of Credit 48,153 Commercial Letters of Credit 15,867 Total $ 2,668,449 Unfunded Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. Standby and Commercial Letters of Credit Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. The Company has recourse against the customer for any amount it is required to pay to a third party under a standby letter of credit, and generally holds cash or deposits as collateral on those standby letters of credit for which collateral is deemed necessary. Assets valued at $33.5 million secured certain specifically identified standby letters of credit as of December 31, 2015 . As of December 31, 2015 , the standby and commercial letters of credit had remaining terms ranging from 1 to 27 months. Lease Commitments A portion of the Company's headquarters' building is leased with a lease term through 2052. The Company leases certain other branch premises and equipment with lease terms extending through 2048. Most of the leases for premises provide for a base rent over a specified period with renewal options thereafter. Portions of certain properties are subleased for periods expiring in various years through 2024. Lease terms generally specify that the Company is to pay for taxes, maintenance, and other operating costs. Rental expense for all operating leases for the years ended December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) 2015 2014 2013 Minimum Rentals $ 18,826 $ 18,411 $ 19,258 Sublease Rental Income (6,212 ) (6,647 ) (6,806 ) Total $ 12,614 $ 11,764 $ 12,452 Future minimum payments for capital leases and non-cancelable operating leases with initial or remaining terms of one year or more consisted of the following as of December 31, 2015 : (dollars in thousands) Capital Leases Operating Leases 2016 $ 825 $ 13,752 2017 825 11,289 2018 825 9,974 2019 825 8,253 2020 825 7,993 Thereafter 26,405 99,276 Total Future Minimum Lease Payments 30,530 $ 150,537 Amounts Representing Interest (19,682 ) Present Value of Net Future Minimum Lease Payments $ 10,848 Minimum future rental income receivable under non-cancelable subleases was $13.5 million as of December 31, 2015 . Contingencies The Company, along with other members of Visa, are parties to Loss and Judgment Sharing Agreements (the "Agreements"), which provide that the Company along with other member banks of Visa, will share, based on its proportionate interest in Visa, in any losses from certain litigation specified in the Agreements. In March 2008, Visa funded an escrow account from its initial public offering to settle claims covered under the Agreements. In connection with the initial public offering, the Company received restricted Class B common stock in Visa. Should the escrow account established by Visa not be sufficient to cover litigation claims specified in the Agreements, Visa is entitled to fund additional amounts to the escrow account by reducing each member bank's Class B conversion ratio to unrestricted Class A shares. As of December 31, 2015 , management believes that the Company's indemnification of Visa, related to the costs of these lawsuits, will be sufficiently funded from the escrow account or through future reductions in the conversion ratio. See Note 3 (Investment Securities) and Note 17 (Derivative Financial Instruments) for more information. In addition to the litigation noted above, the Company is subject to various other pending and threatened legal proceedings arising out of the normal course of business or operations. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the most recent information available. On a case-by-case basis, reserves are established for those legal claims for which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. Based on information currently available, management believes that the eventual outcome of these other actions against the Company will not be materially in excess of such amounts 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 December 31, 2015 , the unpaid principal balance of residential mortgage loans sold by the Company was $2.5 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 year ended December 31, 2015 , the Company repurchased four residential mortgage loans with an aggregate unpaid principal balance totaling $1.2 million as a result of the representation and warranty provisions contained in these contracts. Three of these loans were delinquent as to principal and interest at the time of repurchase, however, no losses were incurred related to these repurchases. As of December 31, 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 year ended December 31, 2015 , the Company had no repurchase requests related to loan servicing activities, nor were there any pending repurchase requests as of December 31, 2015 . Although to date repurchase requests related to representation and warranty provisions, and servicing activities have been limited, it is possible that requests to repurchase mortgage loans may increase in frequency as investors more aggressively pursue all means of recovering losses on their purchased loans. However, as of December 31, 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 December 31, 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 | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The following is a description of the valuation methodologies and key inputs used to measure assets and liabilities recorded at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Investment Securities Available-for-Sale Fair values of investment securities available-for-sale were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury, as quoted prices were available, unadjusted, for identical securities in active markets. Level 2 investment securities were primarily comprised of debt securities issued by the Small Business Administration, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Investment securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs to determine fair value. As of December 31, 2015 and 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 agreements represent 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 date. As of December 31, 2015 and 2014, the conversion rate swap agreements were valued at zero as reductions to the conversion ratio were neither probable nor reasonably estimable by management. These conversion rate swap agreements are classified as a Level 2 measurement. See Note 17 (Derivative Financial Instruments) for more information. The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers and counterparties that carry high quality credit ratings. Credit risk associated with borrowers or counterparties as well as the Company’s non-performance risk is factored into the determination of the fair value of derivative financial instruments. The table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 : (dollars in thousands) Quoted Prices Significant Significant Total December 31, 2015 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 545 $ 358,349 $ — $ 358,894 Debt Securities Issued by States and Political Subdivisions — 731,918 — 731,918 Debt Securities Issued by Corporations — 308,870 — 308,870 Mortgage-Backed Securities: Residential - Government Agencies — 316,245 — 316,245 Residential - U.S. Government-Sponsored Enterprises — 441,864 — 441,864 Commercial - Government Agencies — 99,027 — 99,027 Total Mortgage-Backed Securities — 857,136 — 857,136 Total Investment Securities Available-for-Sale 545 2,256,273 — 2,256,818 Loans Held for Sale — 4,808 — 4,808 Mortgage Servicing Rights — — 1,970 1,970 Other Assets 20,262 — — 20,262 Derivatives 1 — 154 13,813 13,967 Total Assets Measured at Fair Value on a $ 20,807 $ 2,261,235 $ 15,783 $ 2,297,825 Liabilities: Derivatives 1 $ — $ 46 $ 13,573 $ 13,619 Total Liabilities Measured at Fair Value on a $ — $ 46 $ 13,573 $ 13,619 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 17 to the Consolidated Financial Statements. For the years ended December 31, 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 1 Net Derivative Assets and Liabilities 2 Year Ended December 31, 2015 Balance as of January 1, 2015 $ 2,604 $ 118 Realized and Unrealized Net Gains (Losses): Included in Net Income (634 ) 2,783 Transfers to Loans Held for Sale — (2,661 ) Balance as of December 31, 2015 $ 1,970 $ 240 Total Unrealized Net Gains (Losses) Included in Net Income $ (251 ) $ 240 Year Ended December 31, 2014 Balance as of January 1, 2014 $ 3,826 $ 379 Realized and Unrealized Net Gains (Losses): Included in Net Income (1,222 ) 3,195 Transfers to Loans Held for Sale — (3,456 ) Balance as of December 31, 2014 $ 2,604 $ 118 Total Unrealized Net Gains (Losses) Included in Net Income $ (868 ) $ 118 1 Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company's consolidated statements of income. 2 Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company's consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company's consolidated statements of income. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2015 and 2014 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value December 31, December 31, (dollars in thousands) Valuation Technique Description 2015 2014 2015 2014 Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 9.10 % 11.62 % $ 26,774 $ 25,441 Discount Rate 2 9.38 % 10.61 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 94.70 % 93.85 % $ 270 $ 152 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.22 % 0.21 % $ (30 ) $ (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 December 31, 2015 and 2014 . (dollars in thousands) Fair Value Hierarchy Net Carrying Amount Valuation Allowance December 31, 2015 Mortgage Servicing Rights - amortization method Level 3 $ 21,032 $ 21 Foreclosed Real Estate Level 3 824 — Other Assets - Equipment Held for Sale Level 3 4,657 9,453 December 31, 2014 Mortgage Servicing Rights - amortization method Level 3 $ 22,091 $ 57 Foreclosed Real Estate Level 3 2,311 89 The write-down of mortgage servicing rights accounted for under the amortization method was primarily due to changes in certain key assumptions used to estimate fair value. As previously mentioned, all of the Company's mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. The December 31, 2014 valuation allowance for the Company's foreclosed real estate related to one commercial property. This property was sold in the third quarter of 2015. The Company's equipment held for sale represents six aircraft that were previously on lease agreements. An impairment charge of $9.5 million (included in other noninterest expense in the Company's consolidated statements of income) was recorded in the third quarter of 2015 to reduce the carrying value to estimated fair value less cost to sell based on recent appraisals, market conditions, and management judgment. The aircraft are currently being marketed for sale through a third party broker. Due to the use of significant unobservable inputs combined with significant management judgment regarding the fair value of the six aircraft, the carrying value is deemed a Level 3 measurement. For segment reporting (see Note 13 (Business Segments)), the carrying value is included in the Commercial Banking segment. As appraisals on foreclosed real estate and equipment held for sale 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 December 31, 2015 and 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 December 31, 2015 and 2014 . (dollars in thousands) Aggregate Aggregate Aggregate Fair Value December 31, 2015 Loans Held for Sale $ 4,808 $ 4,575 $ 233 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 years ended December 31, 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 value of the Company’s time deposits was calculated using discounted cash flow analyses, applying discount rates based on market yield curve rates for similar 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 based on market yield curve rates for similar maturities. Other Debt The fair value of the Company’s other debt was calculated using a discounted cash flow approach, applying discount rates based on market yield curve rates for similar maturities. 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 December 31, 2015 and 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 (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities(Level 1) Significant Significant December 31, 2015 Financial Instruments – Assets Investment Securities Held-to-Maturity $ 3,982,736 $ 4,006,412 $ 489,967 $ 3,516,445 $ — Loans 1 7,538,454 7,967,385 — — 7,967,385 Financial Instruments – Liabilities Time Deposits 1,177,651 1,178,837 — 1,178,837 — Securities Sold Under Agreements to Repurchase 628,857 686,853 — 686,853 — Other Debt 2 234,938 235,668 — 235,668 — 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. |
Bank of Hawaii Corporation Fina
Bank of Hawaii Corporation Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Bank of Hawaii Corporation Financial Statements | Bank of Hawaii Corporation Financial Statements Condensed financial statements of the Parent were as follows: Condensed Statements of Comprehensive Income Year Ended December 31, (dollars in thousands) 2015 2014 2013 Income Dividends and Interest from Bank of Hawaii $ 115,000 $ 136,000 $ 133,000 Investment Securities Gains, Net 9,870 7,810 — Other Income 973 690 727 Total Income 125,843 144,500 133,727 Noninterest Expense Intercompany Salaries and Services 651 839 852 Other Expenses 2,325 2,067 2,942 Total Noninterest Expense 2,976 2,906 3,794 Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries 122,867 141,594 129,933 Income Tax Benefit (Expense) (1,670 ) 225 2,211 Equity in Undistributed Income of Subsidiaries 39,507 21,223 18,358 Net Income $ 160,704 $ 163,042 $ 150,502 Comprehensive Income $ 163,833 $ 168,179 $ 89,471 Condensed Statements of Condition (dollars in thousands) December 31, 2015 December 31, 2014 Assets Cash with Bank of Hawaii $ 63,755 $ 68,563 Investment Securities Held-to-Maturity 4,960 4,947 Goodwill 14,129 14,129 Income Taxes Receivable and Deferred Tax Assets 2,445 2,868 Other Assets 7,842 7,825 Equity in Net Assets of Subsidiaries 1,036,977 976,354 Total Assets $ 1,130,108 $ 1,074,686 Liabilities Income Taxes Payable $ 5,072 $ 6,269 Other Liabilities 8,776 13,331 Total Liabilities 13,848 19,600 Shareholders' Equity 1,116,260 1,055,086 Total Liabilities and Shareholders' Equity $ 1,130,108 $ 1,074,686 Condensed Statements of Cash Flows Year Ended December 31, (dollars in thousands) 2015 2014 2013 Operating Activities Net Income $ 160,704 $ 163,042 $ 150,502 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Share-Based Compensation 639 656 616 Net Gains on Sales of Investment Securities (9,870 ) (7,810 ) — Equity in Undistributed Income of Subsidiaries (39,507 ) (21,223 ) (18,358 ) Net Change in Other Assets and Other Liabilities (481 ) 78 1,980 Net Cash Provided by Operating Activities 111,485 134,743 134,740 Investing Activities Capital Contributions to the Bank (10,179 ) — — Proceeds from Sales of Investment Securities 9,870 7,810 — Purchase of Investment Securities Held-to-Maturity — (4,936 ) — Net Cash Provided by (Used in) Investing Activities (309 ) 2,874 — Financing Activities Proceeds from Issuance of Common Stock 15,364 9,995 14,495 Repurchase of Common Stock (52,981 ) (64,046 ) (39,655 ) Cash Dividends Paid (78,367 ) (79,660 ) (80,534 ) Net Cash Used in Financing Activities (115,984 ) (133,711 ) (105,694 ) Net Change in Cash and Cash Equivalents (4,808 ) 3,906 29,046 Cash and Cash Equivalents at Beginning of Period 68,563 64,657 35,611 Cash and Cash Equivalents at End of Period $ 63,755 $ 68,563 $ 64,657 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accounting and reporting principles of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices within the financial services industry. |
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. |
Consolidation | Consolidation The Consolidated Financial Statements include the accounts of the Parent and its subsidiaries. The Parent's principal operating subsidiary is Bank of Hawaii (the "Bank"). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity's net asset value. The primary beneficiary consolidates the variable interest entity ("VIE"). The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The Company has a limited partnership interest in several low-income housing partnerships. These partnerships provide funds for the construction and operation of apartment complexes that provide affordable housing to that segment of the population with lower family income. If these developments successfully attract a specified percentage of residents falling in that lower income range, state and/or federal income tax credits are made available to the partners. The tax credits are generally recognized over 10 years. In order to continue receiving the tax credits each year over the life of the partnership, the low-income residency targets must be maintained. Prior to January 1, 2015, the Company utilized the effective yield method whereby the Company recognized tax credits generally over 10 years and amortized the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the Company. On January 1, 2015, the Company adopted ASU No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects" prospectively for new investments. ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. As permitted by ASU No. 2014-01, the Company elected to continue to utilize the effective yield method for investments made prior to January 1, 2015. See Accounting Standards Adopted in 2015 below for more information. Unfunded commitments to fund these low-income housing partnerships were $25.3 million and $31.4 million as of December 31, 2015 and 2014 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. The Company also has limited partnership interests in three solar energy tax credit partnership investments. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of the investment, the Company will receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. The tax benefits are generally recognized over 6 years. These entities meet the definition of a VIE; however, the Company is not the primary beneficiary of the entities, as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. While the partnership agreements allow the limited partners, through a majority vote, to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. The investment in these entities is initially recorded at cost, which approximates the maximum exposure to loss as a result of the Company's involvement with these unconsolidated entities. The balance of the Company's investments in these entities was $79.0 million and $77.5 million as of December 31, 2015 and 2014 , respectively, and is included in other assets in the consolidated statements of condition. |
Investment Securities | Investment Securities Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities as of December 31, 2015 and 2014 . Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities, comprised of debt and mortgage-backed securities, are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield using the interest method over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. |
Other-Than-Temporary Impairments of Investment Securities | Other-Than-Temporary-Impairments of Investment Securities The Company conducts an other-than-temporary-impairment ("OTTI") analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. As of December 31, 2015 , management determined that the Company did not own any investment securities that were other-than-temporarily-impaired. |
Loans Held for Sale | Loans Held for Sale Residential mortgage loans with the intent to be sold in the secondary market are accounted for on an aggregate basis under the fair value option. Fair value is primarily determined based on quoted prices for similar loans in active markets. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized as part of the cost basis of the loan at the time of sale. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in the mortgage banking component of noninterest income. Commercial loans that management has an active plan to sell are valued on an individual basis at the lower-of-cost-or fair value. Fair value is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Any reduction in the loan's value, prior to being transferred to the held for sale category, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. Further decreases in the fair value of the loan are recognized in noninterest expense. |
Loans and Leases | Loans and Leases Loans are reported at the principal amount outstanding, net of unearned income including unamortized deferred loan fees and costs, and cumulative net charge-offs. Interest income is recognized on an accrual basis. Loan origination fees, certain direct costs, and unearned discounts and premiums, if any, are deferred and are generally amortized into interest income as yield adjustments using the interest method over the contractual life of the loan. Loan commitment fees are generally recognized into noninterest income. Other credit-related fees are recognized as fee income, a component of noninterest income, when earned. Direct financing leases are carried at the aggregate of lease payments receivable plus the estimated residual value of leased property, less unearned income. Leveraged leases, which are a form of direct financing leases, are carried net of non-recourse debt. Unearned income on direct financing and leveraged leases is amortized over the lease term by methods that approximate the interest method. Residual values on leased assets are periodically reviewed for impairment. Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan and lease losses (the "Allowance"). Management has determined that the Company has two portfolio segments of loans and leases (commercial and consumer) in determining the Allowance. Both quantitative and qualitative factors are used by management at the portfolio segment level in determining the adequacy of the Allowance for the Company. Classes of loans and leases are a disaggregation of a Company's portfolio segments. Classes are defined as a group of loans and leases which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has eight classes of loans and leases (commercial and industrial, commercial mortgage, construction, lease financing, residential mortgage, home equity, automobile, and other). The "other" class of loans and leases is comprised of revolving credit, credit cards, installment, and lease financing arrangements. |
Non-Performing Loans and Leases | Non-Performing Loans and Leases Generally, all classes of commercial loans and leases are placed on non-accrual status upon becoming contractually past due 90 days as to principal or interest (unless loans and leases are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), when terms are renegotiated below market levels, or where substantial doubt about full repayment of principal or interest is evident. For residential mortgage and home equity loan classes, loans past due 120 days as to principal or interest may be placed on non-accrual status, and a partial charge-off may be recorded, depending on the collateral value and/or the collectability of the loan. For automobile and other consumer loan classes, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due (180 days past due for credit cards) as to principal or interest. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. A loan or lease may be returned to accrual status when all delinquent interest and principal become current in accordance with the terms of the loan or lease agreement and when doubt about repayment is resolved. Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor's prospects for repayment and the fair value of collateral. For the pooled segment of the Company's commercial and industrial loan class, which consists of small business loans, the entire outstanding balance of the loan remains on accrual status until it is charged off during the month that the loan becomes 120 days past due as to principal or interest. As previously mentioned, for residential mortgage and home equity loan classes, a partial charge-off may be recorded at 120 days past due as to principal or interest depending on the collateral value and/or the collectability of the loan. In the event that a loan or line in the home equity loan class is behind another financial institution's first mortgage, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest, unless the combined loan-to-value ratio is 60% or less. As noted above, loans in the automobile and other consumer loan classes are charged off in its entirety upon the loan becoming 120 days past due (180 days past due for credit cards) as to principal or interest. |
Impaired Loans | Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans (except lease financing and small business loans), and all loans modified in a troubled debt restructuring. Impaired loans exclude lease financing and smaller balance homogeneous loans (consumer and small business non-accruing loans) that are collectively evaluated for impairment. For all classes of commercial loans, a quarterly evaluation of individual commercial borrowers is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk. When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), impairment is recognized by establishing or adjusting an existing allocation of the Allowance, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis. |
Loans Modified in a Troubled Debt Restructuring | Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower's financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. |
Reserve for Credit Losses | Reserve for Credit Losses The Company's reserve for credit losses is comprised of two components, the Allowance and the reserve for unfunded commitments (the "Unfunded Reserve"). |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The Company maintains an Allowance adequate to cover management's estimate of probable credit losses as of the balance sheet date. Loans and leases that are charged off reduce the Allowance while recoveries of loans and leases previously charged off increase the Allowance. Other changes to the level of the Allowance are recognized through charges or credits to the provision for credit losses (the "Provision"). The Allowance considers both unimpaired and impaired loans and is developed and documented at the portfolio segment level (commercial and consumer). The level of the Allowance related to the Company's commercial portfolio segment is generally based on the credit risk ratings and historical loss experience of individual borrowers. This is supplemented as necessary by credit judgment to address observed changes in trends and conditions, and other relevant environmental and economic factors that may affect the collectability of loans and leases. Excluding those loans and leases evaluated individually for impairment, the Company's remaining commercial loans and leases are pooled and collectively evaluated for impairment based on business unit and internal risk rating segmentation. The level of the Allowance related to the Company's consumer portfolio segment is generally based on analyses of homogeneous pools of loans and leases. Loans and leases are pooled based on similar loan and lease risk characteristics for collective evaluation of impairment. Loss estimates are calculated based on historical rolling average loss rates and average delinquency flows to loss. Consumer loans that have been individually evaluated for impairment or modified in a troubled debt restructuring are excluded from the homogeneous pools. Impairment related to such loans is generally determined based on the present value of expected future cash flows discounted at the loan's original effective interest rate. The Allowance also includes an estimate for inherent losses not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), economic trends and conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of net charge-offs. In addition, the Company uses a variety of other tools to estimate probable credit losses including, but not limited to, a rolling quarterly forecast of asset quality metrics; stress testing; and performance indicators based on the Company's own experience, peers, or other industry sources. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The Unfunded Reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker's acceptances, and standby and commercial letters of credit. The process used to determine the Unfunded Reserve is consistent with the process for determining the Allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the Unfunded Reserve is adjusted by recording an expense or recovery in other noninterest expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, and funds sold. All amounts are readily convertible to cash and have maturities of less than 90 days. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives generally range up to 30 years for buildings and up to 10 years for equipment. Capitalized leased assets and leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Repairs and maintenance are charged to expense as incurred, while improvements which extend the estimated useful life of the asset are capitalized and depreciated over the estimated remaining life of the asset. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than its carrying amount. In that event, the Company records a loss for the difference between the carrying amount and the fair value of the asset based on quoted market prices, if applicable, or a discounted cash flow analysis |
Foreclosed Real Estate | Foreclosed Real Estate Foreclosed real estate consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property's fair value at the time of acquisition, a charge-off is recorded against the Allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the Allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other noninterest income. Subsequent decreases in the property's fair value and operating expenses of the property are recognized through charges to other noninterest expense. The fair value of the property acquired is based on third party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. Mortgage servicing rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company's mortgage servicing rights accounted for under the fair value method are carried on the statements of condition at fair value with changes in fair value recorded in mortgage banking income in the period in which the change occurs. Changes in the fair value of mortgage servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. The Company's mortgage servicing rights accounted for under the amortization method are initially recorded at fair value. However, these mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the mortgage servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these mortgage servicing rights exceeds fair value. |
Goodwill | Goodwill Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Company has two reporting units that were assigned goodwill: Investment Services and Retail Banking. The Company performs its annual evaluation of goodwill impairment in the fourth quarter of each year and on an interim basis if events or changes in circumstances indicate that there may be impairment. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The qualitative factors considered include, but are not limited to, macroeconomic and State of Hawaii economic conditions, industry and market conditions and trends, the Company's financial performance, market capitalization, stock price, and any Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise an impairment test is performed. The goodwill impairment test is a two-step test. The first step of the goodwill impairment test compares the estimated fair value of identified reporting units with their carrying amount, including goodwill. If the estimated fair value of a reporting unit is less than the carrying value, the second step must be performed to determine the implied fair value of the reporting unit's goodwill and the amount of goodwill impairment, if any. The implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the implied fair value of goodwill is less than the carrying amount, a loss would be recognized in other noninterest expense to reduce the carrying amount to the implied fair value of goodwill. Subsequent reversals of goodwill impairment are prohibited. For the year ended December 31, 2015 , the Company's goodwill impairment evaluation indicated that there was no impairment. |
Non-Marketable Equity Securities | Non-Marketable Equity Securities The Company is required to own Federal Home Loan Bank ("FHLB") of Des Moines and Federal Reserve Bank ("FRB") stock as a condition of membership. These non-marketable equity securities are accounted for at cost which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. These securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and are periodically evaluated for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than by recognizing temporary declines in value. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the securities sold under agreements to repurchase remain in the respective asset accounts. See Note 19 (Balance Sheet Offsetting) for more information. |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The Company incurs certain employment-related expenses associated with its two frozen pension plans and a postretirement benefit plan (the "Plans"). In order to measure the expense associated with the Plans, various assumptions are made including the discount rate, expected return on plan assets, anticipated mortality rates, and expected future healthcare costs. The assumptions are based on historical experience as well as current facts and circumstances. The Company uses a December 31 measurement date for its Plans. As of the measurement date, plan assets are determined based on fair value, generally representing observable market prices. The projected benefit obligation is primarily determined based on the present value of projected benefit distributions at an assumed discount rate. Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial gains or losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains or losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining expected lives of the pension plan participants and over the average remaining future service years of the postretirement benefit plan participants. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. The Company recognizes in its consolidated statements of condition an asset for a plan's overfunded status or a liability for a plan's underfunded status. The Company also measures the Plans' assets and obligations that determine its funded status as of the end of the year and recognizes those changes in other comprehensive income, net of tax. |
Income Taxes | Income Taxes The Parent files a consolidated federal income tax return with the Bank and its subsidiaries. Calculation of the Company's provision for income taxes requires the interpretation of income tax laws and regulations and the use of estimates and judgments in its determination. The Company is subject to examination by governmental authorities that may give rise to income tax issues due to differing interpretations. Changes to the liability for income taxes also occur due to changes in income tax rates, implementation of new business strategies, resolution of issues with taxing authorities, and newly enacted statutory, judicial, and regulatory guidance. Deferred income taxes are provided to reflect the tax effect of temporary differences between financial statement carrying amounts and the corresponding tax basis of assets and liabilities. Deferred income taxes are calculated by applying enacted statutory tax rates and tax laws to future years in which temporary differences are expected to reverse. The impact on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that the tax rate change is enacted. A deferred tax valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. The Company's tax sharing policy provides for the settlement of income taxes between each relevant subsidiary as if the subsidiary had filed a separate return. Payments are made to the Parent by subsidiaries with tax liabilities and subsidiaries that generate tax benefits receive payments for those benefits as used. The Company maintains reserves for certain tax positions that arise in the normal course of business. As of December 31, 2015 , these positions were evaluated based on an assessment of probabilities as to the likelihood of whether a liability had been incurred. Such assessments are reviewed as events occur and adjustments to the reserves are made as appropriate. In evaluating a tax position for recognition, the Company evaluates whether it is more likely than not that a tax position will be sustained upon examination, including resolution of related appeals or litigation processes, based on the technical merits of the position. If the tax position meets the more likely than not recognition threshold, the tax position is measured and recognized in the Company's Consolidated Financial Statements as the largest amount of tax benefit that, in management's judgment, is greater than 50% likely of being realized upon ultimate settlement. |
Treasury Stock | Treasury Stock Shares of the Parent's common stock that are repurchased are recorded in treasury stock at cost. On the date of subsequent re-issuance, the treasury stock account is reduced by the cost of such stock on a first-in, first-out basis. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, assuming conversion of all potentially dilutive common stock equivalents. |
Derivative Financial Instruments | Derivative Financial Instruments In the ordinary course of business, the Company enters into derivative financial instruments as an end-user in connection with its risk management activities and to accommodate the needs of its customers. The Company has elected not to qualify for hedge accounting methods addressed under current provisions of GAAP. Derivative financial instruments are stated at fair value on the consolidated statements of condition with changes in fair value reported in current period earnings. |
Share-Based Compensation | Share-Based Compensation The Company may grant share-based compensation to employees and non-employee directors in the form of restricted stock, restricted stock units and stock options. The fair value of restricted stock is determined based on the closing price of the Parent's common stock on the date of grant. The Company recognizes compensation expense related to restricted stock on a straight-line basis over the vesting period for service-based awards, plus additional recognition of costs associated with accelerated vesting based on the projected attainment of Company performance measures. Beginning in 2014, the Company issued restricted stock units ("RSUs") payable solely in cash which are accounted for as other liabilities in the statement of condition. The fair value of RSUs is initially valued based on the closing price of the Parent's common stock on the date of grant and is amortized in the statement of income over the vesting period. The RSUs are subsequently remeasured in the same manner described above at the end of each reporting period until settlement. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Parent's common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Parent's common stock at the time of grant. The amortization of the expense related to stock options reflects estimated forfeitures, adjusted for actual forfeiture experience. Amortization expense related to stock options is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders' equity. As the expense related to stock options is recognized, a deferred tax asset is established that represents an estimate of future income tax deductions from the release of restrictions or the exercise of stock options. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred |
International Operations | International Operations The Bank has operations that are conducted in certain Pacific Islands that are denominated in U.S. dollars. These operations are classified as domestic. |
Fair Value Measurements | Fair Value Measurements Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. Fair value is based on the assumptions that management believes market participants would use when pricing an asset or liability. Fair value measurement and disclosure guidance established a three-level fair value hierarchy that prioritizes the use of inputs used in valuation methodologies. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company's assets and liabilities on a quarterly basis. The three-level fair value hierarchy is as follows: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed. In determining fair value measurements, management assesses whether the volume and level of activity for an asset or liability have significantly decreased. In such instances, management determines whether recent quoted prices are associated with illiquid or inactive markets. If management concludes that quoted prices are associated with illiquid or inactive markets, adjustments to quoted prices may be necessary or management may conclude that a change in valuation technique or the use of multiple valuation techniques may be appropriate to estimate an asset or liability's fair value |
Accounting Standards Adopted in the Current Year or Pending Adoption | Accounting Standards Adopted in 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 18 (Affordable Housing Projects Tax Credit Partnerships)). 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 did not have a material impact on the Company's Consolidated Financial Statements. In January 2014, the FASB issued ASU No. 2014-04, "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both: (1) the amount of foreclosed residential real estate property held by the creditor; and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. 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 June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 19 (Balance Sheet Offsetting)). The Company adopted the amendments in this ASU effective January 1, 2015. As of December 31, 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 December 31, 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 and 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 was initially effective for public entities for interim and annual reporting periods beginning after December 15, 2016; early adoption was not permitted. However, in August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers - Deferral of the Effective Date" which defers 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 did not 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 did not have a material impact on the Company's Consolidated Financial Statements. In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted as of the beginning of the fiscal year of adoption only for provisions (3) and (6) above. Early adoption of the other provisions mentioned above is not permitted. The Company is currently evaluating the provisions of ASU No. 2016-01 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) Amortized Gross Gross Fair December 31, 2015 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 356,260 $ 3,472 $ (838 ) $ 358,894 Debt Securities Issued by States and Political Subdivisions 709,724 22,498 (304 ) 731,918 Debt Securities Issued by Corporations 313,136 236 (4,502 ) 308,870 Mortgage-Backed Securities: Residential - Government Agencies 310,966 6,546 (1,267 ) 316,245 Residential - U.S. Government-Sponsored Enterprises 442,760 1,368 (2,264 ) 441,864 Commercial - Government Agencies 103,227 — (4,200 ) 99,027 Total Mortgage-Backed Securities 856,953 7,914 (7,731 ) 857,136 Total $ 2,236,073 $ 34,120 $ (13,375 ) $ 2,256,818 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 489,747 $ 1,359 $ (1,139 ) $ 489,967 Debt Securities Issued by States and Political Subdivisions 245,980 17,114 — 263,094 Debt Securities Issued by Corporations 151,301 368 (2,041 ) 149,628 Mortgage-Backed Securities: Residential - Government Agencies 2,191,138 27,893 (19,067 ) 2,199,964 Residential - U.S. Government-Sponsored Enterprises 647,762 1,656 (2,616 ) 646,802 Commercial - Government Agencies 256,808 2,381 (2,232 ) 256,957 Total Mortgage-Backed Securities 3,095,708 31,930 (23,915 ) 3,103,723 Total $ 3,982,736 $ 50,771 $ (27,095 ) $ 4,006,412 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 December 31, 2013 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 390,873 $ 6,640 $ (234 ) $ 397,279 Debt Securities Issued by States and Political Subdivisions 691,861 8,396 (13,455 ) 686,802 Debt Securities Issued by Corporations 280,172 1,165 (7,836 ) 273,501 Mortgage-Backed Securities: Residential - Government Agencies 641,227 13,816 (1,849 ) 653,194 Residential - U.S. Government-Sponsored Enterprises 21,865 1,403 — 23,268 Commercial - Government Agencies 219,859 — (10,206 ) 209,653 Total Mortgage-Backed Securities 882,951 15,219 (12,055 ) 886,115 Total $ 2,245,857 $ 31,420 $ (33,580 ) $ 2,243,697 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 433,987 $ 3,045 $ (3,667 ) $ 433,365 Debt Securities Issued by States and Political Subdivisions 253,039 817 (133 ) 253,723 Debt Securities Issued by Corporations 190,181 — (5,708 ) 184,473 Mortgage-Backed Securities: Residential - Government Agencies 3,523,343 31,786 (66,572 ) 3,488,557 Residential - U.S. Government-Sponsored Enterprises 21,602 1,423 — 23,025 Commercial - Government Agencies 322,367 — (7,923 ) 314,444 Total Mortgage-Backed Securities 3,867,312 33,209 (74,495 ) 3,826,026 Total $ 4,744,519 $ 37,071 $ (84,003 ) $ 4,697,587 |
Analysis of the contractual maturities of investment securities | The table below presents an analysis of the contractual maturities of the Company's investment securities as of December 31, 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 Fair Value Available-for-Sale: Due in One Year or Less $ 69,889 $ 70,173 Due After One Year Through Five Years 474,444 477,064 Due After Five Years Through Ten Years 408,341 419,001 Due After Ten Years 70,732 75,096 1,023,406 1,041,334 Debt Securities Issued by Government Agencies 355,714 358,348 Mortgage-Backed Securities: Residential - Government Agencies 310,966 316,245 Residential - U.S. Government-Sponsored Enterprises 442,760 441,864 Commercial - Government Agencies 103,227 99,027 Total Mortgage-Backed Securities 856,953 857,136 Total $ 2,236,073 $ 2,256,818 Held-to-Maturity: Due After One Year Through Five Years $ 522,433 $ 523,945 Due After Five Years Through Ten Years 292,951 301,459 Due After Ten Years 71,644 77,285 887,028 902,689 Mortgage-Backed Securities: Residential - Government Agencies 2,191,138 2,199,964 Residential - U.S. Government-Sponsored Enterprises 647,762 646,802 Commercial - Government Agencies 256,808 256,957 Total Mortgage-Backed Securities 3,095,708 3,103,723 Total $ 3,982,736 $ 4,006,412 |
Gross gains and losses from sale of investment securities | gains and losses from the sales of investment securities for the years ended December 31, 2015 , 2014 , and 2013 . (dollars in thousands) 2015 2014 2013 Gross Gains on Sales of Investment Securities $ 11,640 $ 8,063 $ — Gross Losses on Sales of Investment Securities (1,480 ) — — Net Gains on Sales of Investment Securities $ 10,160 $ 8,063 $ — |
Schedule of investment securities in an unrealized loss position | The Company's investment securities in an unrealized loss position, segregated by continuous length of impairment, were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2015 Available-for-Sales: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 144,260 $ (822 ) $ 5,452 $ (16 ) $ 149,712 $ (838 ) Debt Securities Issued by States and Political Subdivisions 72,248 (252 ) 6,798 (52 ) 79,046 (304 ) Debt Securities Issued by Corporations 101,269 (1,747 ) 162,304 (2,755 ) 263,573 (4,502 ) Mortgage-Backed Securities: Residential - Government Agencies 30,679 (130 ) 9,117 (1,137 ) 39,796 (1,267 ) Residential - U.S. Government-Sponsored Enterprises 346,603 (2,264 ) — — 346,603 (2,264 ) Commercial - Government Agencies — — 99,026 (4,200 ) 99,026 (4,200 ) Total Mortgage-Backed Securities 377,282 (2,394 ) 108,143 (5,337 ) 485,425 (7,731 ) Total $ 695,059 $ (5,215 ) $ 282,697 $ (8,160 ) $ 977,756 $ (13,375 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 264,747 $ (1,139 ) $ — $ — $ 264,747 $ (1,139 ) Debt Securities Issued by Corporations 28,218 (66 ) 71,208 (1,975 ) 99,426 (2,041 ) Mortgage-Backed Securities: Residential - Government Agencies 562,502 (5,828 ) 414,207 (13,239 ) 976,709 (19,067 ) Residential - U.S. Government-Sponsored Enterprises 450,147 (2,616 ) — — 450,147 (2,616 ) Commercial - Government Agencies 74,040 (958 ) 52,207 (1,274 ) 126,247 (2,232 ) Total Mortgage-Backed Securities 1,086,689 (9,402 ) 466,414 (14,513 ) 1,553,103 (23,915 ) Total $ 1,379,654 $ (10,607 ) $ 537,622 $ (16,488 ) $ 1,917,276 $ (27,095 ) December 31, 2014 Available-for-Sales: 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 ) |
Interest income from taxable and non-taxable investment securities. | Interest income from taxable and non-taxable investment securities for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Year Ended December 31, (dollars in thousands) 2015 2014 2013 Taxable $ 109,912 $ 127,128 $ 125,379 Non-Taxable 21,230 21,207 18,253 Total Interest Income from Investment Securities $ 131,142 $ 148,335 $ 143,632 |
Schedule of carrying value of company's federal home loan bank and federal reserve bank | As of December 31, 2015 and 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: December 31, (dollars in thousands) 2015 2014 Federal Home Loan Bank Stock $ 19,000 $ 47,075 Federal Reserve Bank Stock 19,836 19,299 Total $ 38,836 $ 66,374 |
Loans and Leases and the Allo33
Loans and Leases and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 2014 : December 31, (dollars in thousands) 2015 2014 Commercial Commercial and Industrial $ 1,115,168 $ 1,055,243 Commercial Mortgage 1,677,147 1,437,513 Construction 156,660 109,183 Lease Financing 204,877 226,189 Total Commercial 3,153,852 2,828,128 Consumer Residential Mortgage 2,925,605 2,571,090 Home Equity 1,069,400 866,688 Automobile 381,735 323,848 Other 1 348,393 307,835 Total Consumer 4,725,133 4,069,461 Total Loans and Leases $ 7,878,985 $ 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 years ended December 31, 2015 , 2014 , and 2013 . The following also presents by portfolio segment, the balance in the Allowance disaggregated on the basis of the Company's impairment measurement method and the related recorded investment in loans and leases as of December 31, 2015 , 2014 , and 2013 . (dollars in thousands) Commercial Consumer Total For the Year Ended December 31, 2015 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 64,551 $ 44,137 $ 108,688 Loans and Leases Charged-Off (954 ) (15,485 ) (16,439 ) Recoveries on Loans and Leases Previously Charged-Off 2,173 7,458 9,631 Net Loans and Leases Recovered (Charged-Off) 1,219 (8,027 ) (6,808 ) Provision for Credit Losses (5,056 ) 6,056 1,000 Balance at End of Period $ 60,714 $ 42,166 $ 102,880 As of December 31, 2015 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 205 $ 3,373 $ 3,578 Collectively Evaluated for Impairment 60,509 38,793 99,302 Total $ 60,714 $ 42,166 $ 102,880 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 27,950 $ 38,747 $ 66,697 Collectively Evaluated for Impairment 3,125,902 4,686,386 7,812,288 Total $ 3,153,852 $ 4,725,133 $ 7,878,985 For the Year Ended December 31, 2014 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 71,446 $ 44,008 $ 115,454 Loans and Leases Charged-Off (2,068 ) (13,371 ) (15,439 ) Recoveries on Loans and Leases Previously Charged-Off 4,721 8,816 13,537 Net Loans and Leases Recovered (Charged-Off) 2,653 (4,555 ) (1,902 ) Provision for Credit Losses (9,548 ) 4,684 (4,864 ) Balance at End of Period $ 64,551 $ 44,137 $ 108,688 As of December 31, 2014 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 2,387 $ 3,561 $ 5,948 Collectively Evaluated for Impairment 62,164 40,576 102,740 Total $ 64,551 $ 44,137 $ 108,688 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 25,116 $ 39,631 $ 64,747 Collectively Evaluated for Impairment 2,803,012 4,029,830 6,832,842 Total $ 2,828,128 $ 4,069,461 $ 6,897,589 For the Year Ended December 31, 2013 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 72,704 $ 56,153 $ 128,857 Loans and Leases Charged-Off (8,099 ) (17,021 ) (25,120 ) Recoveries on Loans and Leases Previously Charged-Off 2,644 9,073 11,717 Net Loans and Leases Charged-Off (5,455 ) (7,948 ) (13,403 ) Provision for Credit Losses 4,197 (4,197 ) — Balance at End of Period $ 71,446 $ 44,008 $ 115,454 As of December 31, 2013 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 9,054 $ 3,722 $ 12,776 Collectively Evaluated for Impairment 62,392 40,286 102,678 Total $ 71,446 $ 44,008 $ 115,454 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 38,469 $ 38,646 $ 77,115 Collectively Evaluated for Impairment 2,489,964 3,528,308 6,018,272 Total $ 2,528,433 $ 3,566,954 $ 6,095,387 |
Schedule of recorded investment in loans and leases by class and by credit quality indicator | The following presents by class and by credit quality indicator, the recorded investment in the Company's loans and leases as of December 31, 2015 and 2014 . December 31, 2015 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,059,475 $ 1,591,696 $ 154,976 $ 204,348 $ 3,010,495 Special Mention 28,076 43,674 80 76 71,906 Classified 27,617 41,777 1,604 453 71,451 Total $ 1,115,168 $ 1,677,147 $ 156,660 $ 204,877 $ 3,153,852 (dollars in thousands) Residential Home Automobile Other 1 Total Pass $ 2,910,667 $ 1,064,253 $ 381,420 $ 347,710 $ 4,704,050 Classified 14,938 5,147 315 683 21,083 Total $ 2,925,605 $ 1,069,400 $ 381,735 $ 348,393 $ 4,725,133 Total Recorded Investment in Loans and Leases $ 7,878,985 December 31, 2014 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,001,474 $ 1,358,812 $ 107,381 $ 225,783 $ 2,693,450 Special Mention 17,364 45,082 — 17 62,463 Classified 36,405 33,619 1,802 389 72,215 Total $ 1,055,243 $ 1,437,513 $ 109,183 $ 226,189 $ 2,828,128 (dollars in thousands) Residential Home Automobile Other 1 Total 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 December 31, 2015 and 2014 . (dollars in thousands) 30 - 59 60 - 89 Past Due Non- Total Current Total Loans Non-Accrual 2 As of December 31, 2015 Commercial Commercial and Industrial $ 1,118 $ 359 $ — $ 5,829 $ 7,306 $ 1,107,862 $ 1,115,168 $ 452 Commercial Mortgage 1,245 27 — 3,469 4,741 1,672,406 1,677,147 2,890 Construction 2,120 — — — 2,120 154,540 156,660 — Lease Financing — — — — — 204,877 204,877 — Total Commercial 4,483 386 0 9,298 14,167 3,139,685 3,153,852 3,342 Consumer Residential Mortgage 7,148 3,993 4,453 14,598 30,192 2,895,413 2,925,605 2,056 Home Equity 3,856 1,906 1,710 4,081 11,553 1,057,847 1,069,400 1,710 Automobile 8,103 1,803 315 — 10,221 371,514 381,735 — Other 1 2,281 1,448 1,096 — 4,825 343,568 348,393 — Total Consumer 21,388 9,150 7,574 18,679 56,791 4,668,342 4,725,133 3,766 Total $ 25,871 $ 9,536 $ 7,574 $ 27,977 $ 70,958 $ 7,808,027 $ 7,878,985 $ 7,108 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 as of the balance sheet date | The following presents by class, information related to impaired loans as of December 31, 2015 and 2014 . (dollars in thousands) Recorded Unpaid Related December 31, 2015 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 14,650 $ 28,212 $ — Commercial Mortgage 10,407 13,907 — Construction 1,604 1,604 — Total Commercial 26,661 43,723 — Total Impaired Loans with No Related Allowance Recorded $ 26,661 $ 43,723 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,289 $ 1,289 $ 205 Total Commercial 1,289 1,289 205 Consumer Residential Mortgage 28,981 34,694 3,171 Home Equity 1,089 1,089 12 Automobile 7,012 7,012 143 Other 1 1,665 1,665 47 Total Consumer 38,747 44,460 3,373 Total Impaired Loans with an Allowance Recorded $ 40,036 $ 45,749 $ 3,578 Impaired Loans: Commercial $ 27,950 $ 45,012 $ 205 Consumer 38,747 44,460 3,373 Total Impaired Loans $ 66,697 $ 89,472 $ 3,578 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 years ended December 31, 2015 and 2014 . Year Ended Year Ended (dollars in thousands) Average Interest Average Interest Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 12,589 $ 406 $ 11,167 $ 318 Commercial Mortgage 7,521 268 8,529 225 Construction 1,647 106 1,570 93 Total Commercial 21,757 780 21,266 636 Consumer Other 1 — — 6 — Total Consumer — — 6 — Total Impaired Loans with No Related Allowance Recorded $ 21,757 $ 780 $ 21,272 $ 636 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 5,379 $ 98 $ 8,045 $ 118 Total Commercial 5,379 98 8,045 118 Consumer Residential Mortgage 30,895 1,133 31,998 1,028 Home Equity 1,137 42 964 34 Automobile 5,992 432 5,263 433 Other 1 1,198 111 560 49 Total Consumer 39,222 1,718 38,785 1,544 Total Impaired Loans with an Allowance Recorded $ 44,601 $ 1,816 $ 46,830 $ 1,662 Impaired Loans: Commercial $ 27,136 $ 878 $ 29,311 $ 754 Consumer 39,222 1,718 38,791 1,544 Total Impaired Loans $ 66,358 $ 2,596 $ 68,102 $ 2,298 1 Comprised of other revolving credit and installment financing. |
Schedule of loans modified as a TDR | The following presents by class, information related to loans modified in a TDR during the years ended December 31, 2015 and 2014 . Loans Modified as a TDR for the Loans Modified as a TDR for the Troubled Debt Restructurings (dollars in thousands ) Number of Recorded 1 Increase in Number of Recorded 1 Increase in Commercial Commercial and Industrial 30 $ 5,414 $ 1 19 $ 10,263 $ 2,360 Commercial Mortgage 4 4,307 — 1 315 — Total Commercial 34 9,721 1 20 10,578 2,360 Consumer Residential Mortgage 13 4,255 99 17 6,329 278 Home Equity 3 367 4 2 156 2 Automobile 170 3,996 81 131 2,576 32 Other 2 168 1,099 31 84 666 25 Total Consumer 354 9,717 215 234 9,727 337 Total 388 $ 19,438 $ 216 254 $ 20,305 $ 2,697 1 The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. |
Schedule of loans modified in a TDR that defaulted during the year, and within twelve months of their modification date by class | The following presents by class, loans modified in a TDR that defaulted during the year ended December 31, 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. Year Ended December 31, 2015 Year Ended December 31, 2014 TDRs that Defaulted During the Period, (dollars in thousands) Number of Recorded 1 Number of Recorded 1 Commercial Commercial and Industrial 2 $ 4,924 4 $ 728 Total Commercial 2 4,924 4 728 Consumer Residential Mortgage 4 1,449 2 506 Automobile 10 220 6 77 Other 2 21 118 6 48 Total Consumer 35 1,787 14 631 Total 37 $ 6,711 18 $ 1,359 1 The period end balances reflect all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged off, or foreclosed upon by period end are not included. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Analysis of mortgage servicing rights accounted for under the fair value measurement method | For the years ended December 31, 2015 , 2014 , and 2013 , the change in the fair value of the Company's mortgage servicing rights accounted for under the fair value measurement method was as follows: (dollars in thousands) 2015 2014 2013 Balance at Beginning of Year $ 2,604 $ 3,826 $ 4,761 Changes in Fair Value: Due to Change in Valuation Assumptions 1 (251 ) (869 ) 127 Due to Payoffs (383 ) (353 ) (1,062 ) Total Changes in Fair Value of Mortgage Servicing Rights (634 ) (1,222 ) (935 ) Balance at End of Year $ 1,970 $ 2,604 $ 3,826 1 Principally represents changes in discount rates and loan repayment rate assumptions, mostly due to changes in interest rates. |
Analysis of mortgage servicing rights accounted for under the amortization method | For the years ended December 31, 2015 , 2014 , and 2013 , the change in the carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows: (dollars in thousands) 2015 2014 2013 Balance at Beginning of Year $ 22,091 $ 24,297 $ 20,479 Servicing Rights that Resulted From Asset Transfers 1,737 747 6,351 Amortization (2,832 ) (2,896 ) (2,533 ) Valuation Allowance Provision 36 (57 ) — Balance at End of Year $ 21,032 $ 22,091 $ 24,297 Valuation Allowance: Balance at Beginning of Year $ (57 ) $ — $ — Valuation Allowance Provision 36 (57 ) — Balance at End of Year $ (21 ) $ (57 ) $ — Fair Value: Balance at Beginning of Year $ 22,837 $ 30,100 $ 23,143 Balance at End of Year $ 24,804 $ 22,837 $ 30,100 |
Schedule of key data and assumptions used in estimating the fair value of mortgage servicing rights | The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of December 31, 2015 and 2014 were as follows: December 31, 2015 2014 Weighted-Average Constant Prepayment Rate 1 9.10 % 11.62 % Weighted-Average Life (in years) 7.40 6.28 Weighted-Average Note Rate 4.23 % 4.28 % Weighted-Average Discount Rate 2 9.38 % 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 December 31, 2015 and 2014 is presented in the following table. December 31, (dollars in thousands) 2015 2014 Constant Prepayment Rate Decrease in fair value from 25 basis points ("bps") adverse change $ (285 ) $ (265 ) Decrease in fair value from 50 bps adverse change (566 ) (524 ) Discount Rate Decrease in fair value from 25 bps adverse change (292 ) (250 ) Decrease in fair value from 50 bps adverse change (577 ) (495 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | The components of the Company's premises and equipment as of December 31, 2015 and 2014 were as follows: (dollars in thousands) Cost Accumulated Net Book Value December 31, 2015 Premises $ 322,552 $ (238,912 ) $ 83,640 Equipment 111,071 (86,176 ) 24,895 Capital Leases 6,593 (3,929 ) 2,664 Total $ 440,216 $ (329,017 ) $ 111,199 December 31, 2014 Premises $ 322,536 $ (235,464 ) $ 87,072 Equipment 106,623 (86,577 ) 20,046 Capital Leases 6,593 (3,857 ) 2,736 Total $ 435,752 $ (325,898 ) $ 109,854 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | The components of the Company's other assets as of December 31, 2015 and 2014 were as follows: December 31, (dollars in thousands) 2015 2014 Federal Home Loan Bank and Federal Reserve Bank Stock $ 38,836 $ 66,374 Derivative Financial Instruments 13,967 16,515 Low-Income Housing and Other Equity Investments 79,033 77,495 Deferred Compensation Plan Assets 20,262 18,794 Prepaid Expenses 8,262 7,787 Accounts Receivable 12,539 13,405 Other 26,493 25,518 Total $ 199,392 $ 225,888 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of time deposits with contractual maturities | Time Deposits As of December 31, 2015 and 2014 , the Company's total time deposits were $1.2 billion and $1.4 billion , respectively. As of December 31, 2015 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount 2016 $ 933,273 2017 161,913 2018 34,467 2019 15,293 2020 17,667 Thereafter 15,038 Total $ 1,177,651 |
Schedule of time deposits with balances of $100,000 or more with contractual maturities | The amount of time deposits with balances of $100,000 or more was $0.9 billion and $1.2 billion as of December 31, 2015 and 2014 , respectively. As of December 31, 2015 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount Three Months or Less $ 422,466 Over Three Months through Six Months 202,100 Over Six Months through Twelve Months 164,806 Over Twelve Months 139,767 Total $ 929,139 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings Disclosure Abstract | |
Schedule of details of short-term borrowings | Details of the Company's short-term borrowings (original maturity of one year or less) as of December 31, 2015 and 2014 were as follows: December 31, (dollars in thousands) 2015 2014 Funds Purchased 1 Amounts Outstanding $ 7,333 $ 8,459 Weighted-Average Interest Rate 0.14 % 0.14 % Securities Sold Under Agreements to Repurchase (short-term) 2 Amounts Outstanding $ 3,992 $ 7,700 Weighted-Average Interest Rate 0.06 % 0.10 % 1 Federal funds purchased generally mature on the next business day following the date of purchase. 2 Consists entirely of repurchase agreements with government entities. Excludes long-term repurchase agreements with government entities of $49.9 million and $80.9 million as of December 31, 2015 , and 2014 , respectively, and long-term repurchase agreements with private institutions of $575.0 million and $600.0 million as of December 31, 2015 and 2014 , respectively. |
Other Debt (Tables)
Other Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of other debt | The Company's other debt as of December 31, 2015 and 2014 were as follows: December 31, (dollars in thousands) 2015 2014 Federal Home Loan Bank Advances $ 225,000 $ 150,000 Non-Recourse Debt 9,938 13,005 Capital Lease Obligations 10,848 10,907 Total $ 245,786 $ 173,912 |
Schedule of annual maturities of long-term debt, exclusive of capital lease obligations | As of December 31, 2015 , the annual maturities of the Company's other debt, exclusive of capital lease obligations, were expected to be as follows: (dollars in thousands) Amount 2016 $ 52,785 2017 — 2018 175,000 2019 — 2020 3,464 Thereafter 3,689 Total $ 234,938 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank | The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2015 and 2014 : (dollars in thousands) Well Capitalized Company Bank As of December 31, 2015: Shareholders' Equity $ 1,116,260 $ 1,036,355 Common Equity Tier 1 Capital 1 1,112,598 1,043,070 Tier 1 Capital 1 1,112,598 1,043,070 Total Capital 1 1,212,245 1,142,573 Common Equity Tier 1 Capital Ratio 1 6.5 % 13.97 % 13.12 % Tier 1 Capital Ratio 1 8 % 13.97 % 13.12 % Total Capital Ratio 1 10 % 15.22 % 14.37 % Tier 1 Leverage Ratio 1 5 % 7.26 % 6.81 % As of December 31, 2014: Shareholders' Equity $ 1,055,086 $ 975,723 Tier 1 Capital 1,039,631 974,397 Total Capital 1,128,416 1,063,085 Tier 1 Capital Ratio 6 % 14.69 % 13.78 % Total Capital Ratio 10 % 15.94 % 15.04 % Tier 1 Leverage Ratio 5 % 7.13 % 6.69 % |
Components of other comprehensive income | The following table presents the components of other comprehensive income (loss), net of tax: (dollars in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2015 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (5,448 ) $ (2,138 ) $ (3,310 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (190 ) (75 ) (115 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 2,136 836 1,300 Net Unrealized Gains (Losses) on Investment Securities (3,502 ) (1,377 ) (2,125 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period 7,335 2,869 4,466 Amortization of Net Actuarial Losses (Gains) 1,624 641 983 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net 8,637 3,383 5,254 Other Comprehensive Income (Loss) $ 5,135 $ 2,006 $ 3,129 Year Ended December 31, 2014 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 28,609 $ 11,286 $ 17,323 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 (703 ) (277 ) (426 ) Net Unrealized Gains (Losses) on Investment Securities 27,842 10,984 16,858 Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period (20,286 ) (8,000 ) (12,286 ) Amortization of Net Actuarial Losses (Gains) 1,256 496 760 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net (19,352 ) (7,631 ) (11,721 ) Other Comprehensive Income (Loss) $ 8,490 $ 3,353 $ 5,137 Year Ended December 31, 2013 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (105,842 ) $ (41,715 ) $ (64,127 ) 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 (8,386 ) (3,307 ) (5,079 ) Net Unrealized Gains (Losses) on Investment Securities (114,228 ) (45,022 ) (69,206 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period 12,132 4,785 7,347 Amortization of Net Actuarial Losses (Gains) 1,688 665 1,023 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net 13,498 5,323 8,175 Other Comprehensive Income (Loss) $ (100,730 ) $ (39,699 ) $ (61,031 ) 1 The amount relates to the amortization/accretion of unrealized gains and losses related to the Company's reclassification of available-for-sale investment securities to the held-to-maturity category. |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax: (dollars in thousands) Investment Securities-Available-For-Sale Investment Securities-Held-To-Maturities Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2015 Balance at Beginning of Period $ 15,984 $ (8,555 ) $ (34,115 ) $ (26,686 ) Other Comprehensive Income (Loss) Before Reclassifications (3,310 ) — 4,466 1,156 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (115 ) 1,300 788 1,973 Total Other Comprehensive Income (Loss) (3,425 ) 1,300 5,254 3,129 Balance at End of Period $ 12,559 $ (7,255 ) $ (28,861 ) $ (23,557 ) Year Ended December 31, 2014 Balance at Beginning Period $ (1,300 ) $ (8,129 ) $ (22,394 ) $ (31,823 ) Other Comprehensive Income (Loss) Before Reclassifications 17,323 — (12,286 ) 5,037 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (39 ) (426 ) 565 100 Total Other Comprehensive Income (Loss) 17,284 (426 ) (11,721 ) 5,137 Balance at End of Period $ 15,984 $ (8,555 ) $ (34,115 ) $ (26,686 ) Year Ended December 31, 2013 Balance at Beginning Period $ 45,996 $ 13,781 $ (30,569 ) $ 29,208 Other Comprehensive Income (Loss) Before Reclassifications (47,296 ) (16,831 ) 7,347 (56,780 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — (5,079 ) 828 (4,251 ) Total Other Comprehensive Income (Loss) (47,296 ) (21,910 ) 8,175 (61,031 ) Balance at End of Period $ (1,300 ) $ (8,129 ) $ (22,394 ) $ (31,823 ) |
Reclassification out of accumulated other comprehensive income | The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented (dollars in thousands) Year Ended December 31, 2015 2014 2013 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (2,136 ) $ 703 $ 8,386 Interest Income 836 (277 ) (3,307 ) Provision for Income Tax (1,300 ) 426 5,079 Net of Tax Sales of Investment Securities Available-for-Sale 190 64 — Investment Securities Gains (Losses), Net (75 ) (25 ) — Provision for Income Tax 115 39 — Net of Tax Amortization of Defined Benefit Plans Items Prior Service Credit 2 322 322 322 Net Actuarial Losses 2 (1,624 ) (1,256 ) (1,688 ) (1,302 ) (934 ) (1,366 ) Total Before Tax 514 369 538 Provision for Income Tax (788 ) (565 ) (828 ) Net of Tax Total Reclassifications for the Period $ (1,973 ) $ (100 ) $ 4,251 Net of Tax 1 Amounts in parentheses indicate reductions to net income. 2 These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in Salaries and Benefits on the consolidated statements of income. See Note 14 (Employee Benefits) for additional details. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2015 , 2014 , and 2013 : Weighted Average Shares 2015 2014 2013 Denominator for Basic Earnings Per Share 43,217,818 43,899,208 44,380,948 Dilutive Effect of Equity Based Awards 237,059 226,248 191,777 Denominator for Diluted Earnings Per Share 43,454,877 44,125,456 44,572,725 Antidilutive Stock Options and Restricted Stock Outstanding — — 25,101 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Selected business segment financial information | Selected business segment financial information as of and for the years ended December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) Retail Commercial Investment Treasury Consolidated Year Ended December 31, 2015 Net Interest Income $ 202,259 $ 143,944 $ 18,494 $ 29,390 $ 394,087 Provision for Credit Losses 8,033 (1,165 ) (43 ) (5,825 ) 1,000 Net Interest Income After Provision for Credit Losses 194,226 145,109 18,537 35,215 393,087 Noninterest Income 82,391 21,804 58,835 23,189 186,219 Noninterest Expense (199,572 ) (76,891 ) (57,852 ) (13,789 ) (348,104 ) Income Before Provision for Income Taxes 77,045 90,022 19,520 44,615 231,202 Provision for Income Taxes (27,330 ) (31,457 ) (7,222 ) (4,489 ) (70,498 ) Net Income $ 49,715 $ 58,565 $ 12,298 $ 40,126 $ 160,704 Total Assets as of December 31, 2015 $ 4,680,888 $ 3,099,132 $ 274,469 $ 7,400,527 $ 15,455,016 Year Ended December 31, 2014 Net Interest Income $ 178,480 $ 119,655 $ 15,238 $ 66,283 $ 379,656 Provision for Credit Losses 4,783 (2,369 ) (313 ) (6,965 ) (4,864 ) Net Interest Income After Provision for Credit Losses 173,697 122,024 15,551 73,248 384,520 Noninterest Income 79,562 23,635 57,618 19,202 180,017 Noninterest Expense (196,254 ) (66,760 ) (54,571 ) (9,314 ) (326,899 ) Income Before Provision for Income Taxes 57,005 78,899 18,598 83,136 237,638 Provision for Income Taxes (21,079 ) (26,952 ) (6,894 ) (19,671 ) (74,596 ) Net Income $ 35,926 $ 51,947 $ 11,704 $ 63,465 $ 163,042 Total Assets as of December 31, 2014 $ 4,088,878 $ 2,787,537 $ 202,645 $ 7,708,148 $ 14,787,208 Year Ended December 31, 2013 Net Interest Income $ 160,869 $ 99,733 $ 14,199 $ 84,106 $ 358,907 Provision for Credit Losses 8,565 4,918 (71 ) (13,412 ) — Net Interest Income After Provision for Credit Losses 152,304 94,815 14,270 97,518 358,907 Noninterest Income 87,493 27,488 59,336 11,906 186,223 Noninterest Expense (199,222 ) (65,189 ) (55,002 ) (11,556 ) (330,969 ) Income Before Provision for Income Taxes 40,575 57,114 18,604 97,868 214,161 Provision for Income Taxes (15,496 ) (18,877 ) (6,883 ) (22,403 ) (63,659 ) Net Income $ 25,079 $ 38,237 $ 11,721 $ 75,465 $ 150,502 Total Assets as of December 31, 2013 $ 3,627,700 $ 2,458,001 $ 189,421 $ 7,809,158 $ 14,084,280 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plan Assumptions Used in Calculating Net Periodic Benefit Cost [Table Text Block] | Assumptions used to determine the net periodic benefit cost for the Company's Pension Plans and postretirement benefit plan for the years ended December 31, 2015 , 2014 , and 2013 were as follows: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 Weighted Average Assumptions as of December 31: Discount Rate 4.25 % 5.22 % 4.29 % 4.28 % 5.22 % 4.29 % Expected Long-Term Rate of Return on Plan Assets 6.00 % 6.00 % 6.00 % — — — Health Care Cost Trend Rate — — — 7.00 % 7.20 % 7.70 % |
Schedule of reconciliation of changes in the benefit obligation and the fair value of plan assets, as well as the funded status recognized in the consolidated statements of condition for the pension plans and postretirement benefit plan | The following table provides a reconciliation of changes in benefit obligation and fair value of plan assets, as well as the funded status recognized in the Company's consolidated statements of condition for the Pension Plans and postretirement benefit plan for the years ended December 31, 2015 and 2014 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2015 2014 Benefit Obligation at Beginning of Year $ 114,707 $ 98,085 $ 30,804 $ 27,296 Service Cost — — 621 586 Interest Cost 4,655 4,975 1,155 1,325 Actuarial Losses (Gains) (7,647 ) 16,954 (5,783 ) 2,674 Employer Benefits Paid 1 (5,722 ) (5,307 ) (1,490 ) (1,077 ) Benefit Obligation at End of Year $ 105,993 $ 114,707 $ 25,307 $ 30,804 Fair Value of Plan Assets at Beginning of Year $ 90,154 $ 90,535 $ — $ — Actual Return on Plan Assets (1,058 ) 4,442 — — Employer Contributions 484 484 1,490 1,077 Employer Benefits Paid 1 (5,722 ) (5,307 ) (1,490 ) (1,077 ) Fair Value of Plan Assets at End of Year $ 83,858 $ 90,154 $ — $ — Funded Status at End of Year 2 $ (22,135 ) $ (24,553 ) $ (25,307 ) $ (30,804 ) 1 Participants' contributions relative to the postretirement benefit plan were offset against employer benefits paid in the table above. Participants' contributions for postretirement benefits were $0.6 million and $0.7 million for the years ended December 31, 2015 and 2014 , respectively. 2 Amounts are recognized in Retirement Benefits Payable in the consolidated statements of condition. |
Schedule of amounts recognized in accumulated other comprehensive income (loss) | The following presents the amounts recognized in the Company's accumulated other comprehensive income for the Pension Plans and postretirement benefit plan as of December 31, 2015 and 2014 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2015 2014 Amounts Recognized in Accumulated Other Net Actuarial Gains (Losses) $ (33,239 ) $ (35,254 ) $ 3,768 $ 333 Net Prior Service Credit — — 610 806 Total Amounts Recognized in Accumulated Other $ (33,239 ) $ (35,254 ) $ 4,378 $ 1,139 |
Schedule of components of net periodic benefit cost | Components of net periodic benefit cost for the Company's Pension Plans and the postretirement benefit plan are presented in the following table for the years ended December 31, 2015 , 2014 , and 2013 . Pension Benefits Postretirement Benefits (dollars in thousands) 2015 2014 2013 2015 2014 2013 Service Cost $ — $ — $ — $ 621 $ 586 $ 670 Interest Cost 4,655 4,975 4,514 1,155 1,325 1,188 Expected Return on Plan Assets (5,222 ) (5,100 ) (5,250 ) — — — Amortization of: Prior Service Credit 1 — — — (322 ) (322 ) (322 ) Net Actuarial Losses (Gains) 1 1,713 1,408 1,688 (89 ) (152 ) — Net Periodic Benefit Cost $ 1,146 $ 1,283 $ 952 $ 1,365 $ 1,437 $ 1,536 1 Represents reclassification adjustments from accumulated other comprehensive income during the period. |
Schedule of assumptions used to determine the benefit obligations/net periodic cost | Assumptions used to determine the benefit obligations as of December 31, 2015 and 2014 for the Company's Pension Plans and postretirement benefit plan were as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Weighted Average Assumptions as of December 31: Discount Rate 4.70 % 4.25 % 4.74 % 4.28 % Health Care Cost Trend Rate Assumed For Next Year — — 6.70 % 7.00 % |
Schedule of impact of one percent change in the health care cost trend rate assumption | A one percent change in the health care cost trend rate assumption (with all other assumptions remaining constant) would have impacted the service and interest cost components of the net periodic postretirement benefit cost and the postretirement benefit obligation as of and for the year ended December 31, 2015 as follows: (dollars in thousands) One Percent One Percent Effect on the Total of Service and Interest Cost Component of $ 147 $ (152 ) Effect on the Postretirement Benefit Obligation 2,004 (1,756 ) |
Schedule of expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | As of December 31, 2015 , expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter were as follows: (dollars in thousands) Pension Benefits Postretirement Benefits 2016 $ 6,139 $ 1,001 2017 6,345 1,004 2018 6,494 988 2019 6,752 1,016 2020 6,918 1,081 Years 2021-2025 35,744 6,992 |
Schedule of the fair values of the retirement plan assets by asset category | Fair Value Measurements Asset Category (dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total as of Dec. 31, 2015 Total as of Dec. 31, 2014 Cash $ 1,313 $ — $ — $ 1,313 $ 1,385 Equity Securities – Mutual Funds: Mixed-Cap 30,949 — — 30,949 33,648 International 17,917 — — 17,917 18,882 Emerging Market 1,982 — — 1,982 2,053 Fixed Income Securities – Mutual Funds 31,697 — — 31,697 34,186 Total $ 83,858 $ — $ — $ 83,858 $ 90,154 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of compensation expense and the related income tax benefit recognized for all share-based awards | For the years ended December 31, 2015 , 2014 , and 2013 , compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows: (dollars in thousands) 2015 2014 2013 Compensation Expense $ 7,689 $ 7,870 $ 5,546 Income Tax Benefit 3,036 3,104 2,188 |
Schedule of activity for restricted stock | The following table presents the activity for restricted stock: Number of Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2012 211,526 $ 47.91 Granted 170,991 47.69 Vested (133,245 ) 48.39 $ 6,448 Forfeited (9,497 ) 47.54 Unvested as of December 31, 2013 239,775 $ 47.50 Granted 155,447 58.45 Vested (130,238 ) 47.32 $ 6,163 Forfeited (1,538 ) 51.19 Unvested as of December 31, 2014 263,446 $ 53.04 Granted 116,331 57.31 Vested (108,949 ) 52.47 $ 5,759 Forfeited (2,015 ) 54.17 Unvested as of December 31, 2015 1 268,813 $ 55.92 |
Schedule of activity for restricted stock units | The following table presents the activity for RSU: Number of Units Weighted Average Fair Value of Restricted Balance as of December 31, 2013 — $ — Granted 105,405 55.17 Balance as of December 31, 2014 105,405 $ 55.17 Granted 61,751 56.68 Vested (31,651 ) 55.17 $ 1,940 Balance as of December 31, 2015 135,505 $ 55.86 |
Schedule of activity related to stock options | The following table presents the activity related to stock options under all plans for the year ended December 31, 2015 : Stock Weighted Weighted Aggregate Stock Options Outstanding as of January 1, 2015 755,343 $ 46.29 Exercised (197,927 ) 49.03 Forfeited (2,057 ) 47.35 Stock Options Outstanding as of December 31, 2015 555,359 45.31 5.8 $ 9,770 Stock Options Vested and Exercisable as of December 31, 2015 555,359 45.31 5.8 9,770 |
Summary of certain stock option activity of the Company | The following summarizes certain stock option activity of the Company for the years ended December 31, 2015 , 2014 , and 2013 : (dollars in thousands) 2015 2014 2013 Intrinsic Value of Stock Options Exercised $ 2,754 $ 1,209 $ 3,262 Cash Received from Stock Options Exercised 9,704 4,083 8,369 Tax Benefits Realized from Stock Options Exercised 330 34 690 Total Fair Value of Stock Options that Vested — — 3,731 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of the Company's Provision for Income Taxes | The components of the Company's provision for income taxes for the years ended December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) 2015 2014 2013 Current: Federal $ 73,278 $ 76,789 $ 63,731 State 3,737 3,018 (575 ) Total Current 77,015 79,807 63,156 Deferred: Federal (6,801 ) (5,603 ) (231 ) State 284 392 734 Total Deferred (6,517 ) (5,211 ) 503 Provision for Income Taxes $ 70,498 $ 74,596 $ 63,659 |
Schedule of significant components of the Company's Deferred Tax Liabilities and Assets | As of December 31, 2015 and 2014 , significant components of the Company's deferred tax liabilities and assets were as follows: December 31, (dollars in thousands) 2015 2014 Deferred Tax Liabilities: Accrued Pension Cost $ (13,707 ) $ (14,014 ) Federal Home Loan Bank Stock (5,088 ) (6,658 ) Lease Transactions (85,874 ) (97,864 ) Energy Tax Credits (8,054 ) (5,716 ) Net Unrealized Gains on Investments Securities (3,453 ) (4,830 ) Deferred Loan Fees (7,744 ) (5,982 ) Originated Mortgage Servicing Rights (9,104 ) (9,777 ) Other (657 ) (599 ) Gross Deferred Tax Liabilities (133,681 ) (145,440 ) Deferred Tax Assets: Accelerated Depreciation 7,775 9,419 Allowance for Loan Losses 42,890 44,877 Minimum Pension Liability 18,831 22,214 Accrued Expenses 16,738 15,622 Postretirement Benefit Obligations 12,849 12,884 Capital Lease Expenses 3,231 3,222 Restricted Stock 6,262 5,288 Investment in Unincorporated Entities 1,951 3,084 Deductible State and Local Taxes 4,166 5,598 Other 7,225 6,898 Gross Deferred Tax Assets Before Valuation Allowance 121,918 129,106 Valuation Allowance (3,932 ) (4,656 ) Gross Deferred Tax Assets After Valuation Allowance 117,986 124,450 Net Deferred Tax Liabilities $ (15,695 ) $ (20,990 ) |
Schedule of reconciliation of the statutory federal income tax rate to the Company's Effective Tax Rate | The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate for the years ended December 31, 2015 , 2014 , and 2013 : 2015 2014 2013 Statutory Federal Income Tax Rate 35.00 % 35.00 % 35.00 % Increase (Decrease) in Income Tax Rate Resulting From: State Taxes, Net of Federal Income Tax 1.23 0.59 0.11 Tax Reserve Adjustments 0.38 0.88 (0.44 ) Leveraged Leases 0.06 0.01 0.02 Low-Income Housing Investments (0.78 ) (0.10 ) (0.51 ) Investment Tax Credits (0.89 ) (0.68 ) (0.80 ) Bank-Owned Life Insurance (1.06 ) (0.97 ) (0.96 ) Tax-Exempt Income (3.03 ) (2.83 ) (2.78 ) Other (0.42 ) (0.51 ) 0.09 Effective Tax Rate 30.49 % 31.39 % 29.73 % |
Schedule of reconciliation of the Company's Liability for Unrecognized Tax Benefits | December 31, 2015 , 2014 , and 2013 : (dollars in thousands) 2015 2014 2013 Unrecognized Tax Benefits at Beginning of Year $ 12,229 $ 11,846 $ 15,433 Gross Increases, Related to Tax Positions Taken in a Prior Period 398 1,074 1,587 Gross Decreases, Related to Tax Positions Taken in a Prior Period (98 ) (314 ) (194 ) Gross Increases, Related to Current Period Tax Positions 573 498 1,557 Lapse of Statute of Limitations (1,500 ) (875 ) (6,537 ) Unrecognized Tax Benefits at End of Year $ 11,602 $ 12,229 $ 11,846 |
Derivative Financial Instrume46
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 4,375 $ 270 $ 2,354 $ 152 Forward Commitments 5,862 4 5,404 (13 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 203,667 13,021 183,283 16,206 Pay Fixed/Receive Variable Swaps 203,667 (13,051 ) 183,283 (16,240 ) Foreign Exchange Contracts 42,777 104 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 the location in the consolidated statements of condition as of December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 Derivative Financial Instruments Not Designated 1 (dollars in thousands) Asset Liability Asset Liability Interest Rate Lock Commitments $ 270 $ — $ 152 $ — Forward Commitments 5 1 — 13 Interest Rate Swap Agreements 13,543 13,573 16,262 16,296 Foreign Exchange Contracts 149 45 101 446 Total $ 13,967 $ 13,619 $ 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 or losses recognized in the consolidated statements of income for the years ended December 31, 2015 , 2014 , and 2013 : Location of Net Gains (Losses)Recognized in the Year Ended December 31, Derivative Financial Instruments Not Designated (dollars in thousands) 2015 2014 2013 Interest Rate Lock Commitments Mortgage Banking $ 2,779 $ 3,072 $ 6,092 Forward Commitments Mortgage Banking 27 (527 ) 8,085 Interest Rate Swap Agreements Other Noninterest Income 1,085 130 292 Foreign Exchange Contracts Other Noninterest Income 2,783 3,107 3,182 Total $ 6,674 $ 5,782 $ 17,651 |
Affordable Housing Projects T47
Affordable Housing Projects Tax Credit Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | As of December 31, 2015 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2016 $ 16,305 2017 8,778 2018 28 2019 75 2020 3 Thereafter 65 Total Unfunded Commitments $ 25,254 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the years ended December 31, 2015 , 2014 , and 2013 . (dollars in thousands) 2015 2014 2013 Effective Yield Method Tax credits and other tax benefits recognized $ 13,448 $ 10,946 $ 9,416 Amortization Expense in Provision for Income Taxes 7,735 5,881 4,673 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 December 31, 2015 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 200,000 $ 110,313 $ 310,313 Debt Securities Issued by States and Political Subdivisions 47,915 4,692 100 — 52,707 Mortgage-Backed Securities: Residential - Government Agencies 1,150 51,169 — 102,919 155,238 Residential - U.S. Government-Sponsored Enterprises — 23,831 — 86,768 110,599 Total $ 49,065 $ 79,692 $ 200,100 $ 300,000 $ 628,857 |
Schedule of assets and liabilities subject to an enforceable master netting arrangement | The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of December 31, 2015 and 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 December 31, 2015 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 261 $ — $ 261 $ 261 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 13,312 — 13,312 261 — 13,051 Repurchase Agreements: Private Institutions 575,000 — 575,000 — 575,000 — Government Entities 53,857 — 53,857 — 53,857 — $ 628,857 $ — $ 628,857 $ — $ 628,857 $ — 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 securities pledged was $663.2 million and $694.7 million as of December 31, 2015 and 2014 , respectively. For repurchase agreements with government entities, the fair value of securities pledged was $66.9 million as of December 31, 2015 . |
Commitments, Contingencies, a49
Commitments, Contingencies, and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Credit commitments | The Company's credit commitments as of December 31, 2015 were as follows: (dollars in thousands) December 31, 2015 Unfunded Commitments to Extend Credit $ 2,604,429 Standby Letters of Credit 48,153 Commercial Letters of Credit 15,867 Total $ 2,668,449 |
Schedule of rental expense | Rental expense for all operating leases for the years ended December 31, 2015 , 2014 , and 2013 were as follows: (dollars in thousands) 2015 2014 2013 Minimum Rentals $ 18,826 $ 18,411 $ 19,258 Sublease Rental Income (6,212 ) (6,647 ) (6,806 ) Total $ 12,614 $ 11,764 $ 12,452 |
Schedule of future minimum payments for capital leases and non-cancelable operating leases | Future minimum payments for capital leases and non-cancelable operating leases with initial or remaining terms of one year or more consisted of the following as of December 31, 2015 : (dollars in thousands) Capital Leases Operating Leases 2016 $ 825 $ 13,752 2017 825 11,289 2018 825 9,974 2019 825 8,253 2020 825 7,993 Thereafter 26,405 99,276 Total Future Minimum Lease Payments 30,530 $ 150,537 Amounts Representing Interest (19,682 ) Present Value of Net Future Minimum Lease Payments $ 10,848 |
Fair Value of Assets and Liab50
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 2014 : (dollars in thousands) Quoted Prices Significant Significant Total December 31, 2015 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 545 $ 358,349 $ — $ 358,894 Debt Securities Issued by States and Political Subdivisions — 731,918 — 731,918 Debt Securities Issued by Corporations — 308,870 — 308,870 Mortgage-Backed Securities: Residential - Government Agencies — 316,245 — 316,245 Residential - U.S. Government-Sponsored Enterprises — 441,864 — 441,864 Commercial - Government Agencies — 99,027 — 99,027 Total Mortgage-Backed Securities — 857,136 — 857,136 Total Investment Securities Available-for-Sale 545 2,256,273 — 2,256,818 Loans Held for Sale — 4,808 — 4,808 Mortgage Servicing Rights — — 1,970 1,970 Other Assets 20,262 — — 20,262 Derivatives 1 — 154 13,813 13,967 Total Assets Measured at Fair Value on a $ 20,807 $ 2,261,235 $ 15,783 $ 2,297,825 Liabilities: Derivatives 1 $ — $ 46 $ 13,573 $ 13,619 Total Liabilities Measured at Fair Value on a $ — $ 46 $ 13,573 $ 13,619 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 17 to the Consolidated Financial Statements. |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the years ended December 31, 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 1 Net Derivative Assets and Liabilities 2 Year Ended December 31, 2015 Balance as of January 1, 2015 $ 2,604 $ 118 Realized and Unrealized Net Gains (Losses): Included in Net Income (634 ) 2,783 Transfers to Loans Held for Sale — (2,661 ) Balance as of December 31, 2015 $ 1,970 $ 240 Total Unrealized Net Gains (Losses) Included in Net Income $ (251 ) $ 240 Year Ended December 31, 2014 Balance as of January 1, 2014 $ 3,826 $ 379 Realized and Unrealized Net Gains (Losses): Included in Net Income (1,222 ) 3,195 Transfers to Loans Held for Sale — (3,456 ) Balance as of December 31, 2014 $ 2,604 $ 118 Total Unrealized Net Gains (Losses) Included in Net Income $ (868 ) $ 118 1 Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company's consolidated statements of income. 2 Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company's consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company's consolidated statements of income. |
Summary of the significant unobservable inputs | For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2015 and 2014 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value December 31, December 31, (dollars in thousands) Valuation Technique Description 2015 2014 2015 2014 Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 9.10 % 11.62 % $ 26,774 $ 25,441 Discount Rate 2 9.38 % 10.61 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 94.70 % 93.85 % $ 270 $ 152 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.22 % 0.21 % $ (30 ) $ (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 December 31, 2015 and 2014 . (dollars in thousands) Fair Value Hierarchy Net Carrying Amount Valuation Allowance December 31, 2015 Mortgage Servicing Rights - amortization method Level 3 $ 21,032 $ 21 Foreclosed Real Estate Level 3 824 — Other Assets - Equipment Held for Sale Level 3 4,657 9,453 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 December 31, 2015 and 2014 . (dollars in thousands) Aggregate Aggregate Aggregate Fair Value December 31, 2015 Loans Held for Sale $ 4,808 $ 4,575 $ 233 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 December 31, 2015 and 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 (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities(Level 1) Significant Significant December 31, 2015 Financial Instruments – Assets Investment Securities Held-to-Maturity $ 3,982,736 $ 4,006,412 $ 489,967 $ 3,516,445 $ — Loans 1 7,538,454 7,967,385 — — 7,967,385 Financial Instruments – Liabilities Time Deposits 1,177,651 1,178,837 — 1,178,837 — Securities Sold Under Agreements to Repurchase 628,857 686,853 — 686,853 — Other Debt 2 234,938 235,668 — 235,668 — 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. |
Bank of Hawaii Corporation Fi51
Bank of Hawaii Corporation Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed statements of income | Condensed Statements of Comprehensive Income Year Ended December 31, (dollars in thousands) 2015 2014 2013 Income Dividends and Interest from Bank of Hawaii $ 115,000 $ 136,000 $ 133,000 Investment Securities Gains, Net 9,870 7,810 — Other Income 973 690 727 Total Income 125,843 144,500 133,727 Noninterest Expense Intercompany Salaries and Services 651 839 852 Other Expenses 2,325 2,067 2,942 Total Noninterest Expense 2,976 2,906 3,794 Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries 122,867 141,594 129,933 Income Tax Benefit (Expense) (1,670 ) 225 2,211 Equity in Undistributed Income of Subsidiaries 39,507 21,223 18,358 Net Income $ 160,704 $ 163,042 $ 150,502 Comprehensive Income $ 163,833 $ 168,179 $ 89,471 |
Schedule of condensed statements of condition | Condensed Statements of Condition (dollars in thousands) December 31, 2015 December 31, 2014 Assets Cash with Bank of Hawaii $ 63,755 $ 68,563 Investment Securities Held-to-Maturity 4,960 4,947 Goodwill 14,129 14,129 Income Taxes Receivable and Deferred Tax Assets 2,445 2,868 Other Assets 7,842 7,825 Equity in Net Assets of Subsidiaries 1,036,977 976,354 Total Assets $ 1,130,108 $ 1,074,686 Liabilities Income Taxes Payable $ 5,072 $ 6,269 Other Liabilities 8,776 13,331 Total Liabilities 13,848 19,600 Shareholders' Equity 1,116,260 1,055,086 Total Liabilities and Shareholders' Equity $ 1,130,108 $ 1,074,686 |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows Year Ended December 31, (dollars in thousands) 2015 2014 2013 Operating Activities Net Income $ 160,704 $ 163,042 $ 150,502 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Share-Based Compensation 639 656 616 Net Gains on Sales of Investment Securities (9,870 ) (7,810 ) — Equity in Undistributed Income of Subsidiaries (39,507 ) (21,223 ) (18,358 ) Net Change in Other Assets and Other Liabilities (481 ) 78 1,980 Net Cash Provided by Operating Activities 111,485 134,743 134,740 Investing Activities Capital Contributions to the Bank (10,179 ) — — Proceeds from Sales of Investment Securities 9,870 7,810 — Purchase of Investment Securities Held-to-Maturity — (4,936 ) — Net Cash Provided by (Used in) Investing Activities (309 ) 2,874 — Financing Activities Proceeds from Issuance of Common Stock 15,364 9,995 14,495 Repurchase of Common Stock (52,981 ) (64,046 ) (39,655 ) Cash Dividends Paid (78,367 ) (79,660 ) (80,534 ) Net Cash Used in Financing Activities (115,984 ) (133,711 ) (105,694 ) Net Change in Cash and Cash Equivalents (4,808 ) 3,906 29,046 Cash and Cash Equivalents at Beginning of Period 68,563 64,657 35,611 Cash and Cash Equivalents at End of Period $ 63,755 $ 68,563 $ 64,657 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (VIEs, Receivables and loans, Cash Equivalents) (Details 1) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)classsegmentcomponent | Dec. 31, 2014USD ($) | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 79 | $ 77.5 |
Loans and Leases | ||
Number of portfolio segments of loans and leases (commercial and consumer) | segment | 2 | |
Number of classes of loans and leases determined by management | class | 8 | |
Loans modified in a troubled debt restructuring | ||
Period during which non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status (in months) | 6 months | |
Number of components of company's reserve for credit losses | component | 2 | |
Cash and Cash Equivalents | ||
Maximum original maturity period of cash and cash equivalents (in days) | 90 days | |
Low-income housing partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits or benefits are generally recognized (in years) | 10 years | |
Unfunded commitments to fund low-income housing partnerships | $ 25.3 | $ 31.4 |
Solar energy partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits or benefits are generally recognized (in years) | 6 years | |
Commercial | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered to place loans and leases on non-accrual status (in days) | 90 days | |
Residential mortgage and home equity loan | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered to place loans and leases on non-accrual status (in days) | 120 days | |
Home Equity | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days | |
Home Equity | Maximum | ||
Non-Performing Loans and Leases | ||
Combined loan-to-value ratio, considered in determining whether the entire outstanding balance on the loan is to be charged-off or not (as a percent) | 60.00% | |
Automobile and Other consumer | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days | |
Commercial and Industrial | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Property and equipment and other) (Details 2) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)plan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Pension and Postretirement Benefit Plans | |||
Number of company's pension plans | plan | 2 | ||
Minimum percentage of net acturial gain (loss) will be amortized in net periodic benefit cost | 10.00% | ||
Income Taxes | |||
Minimum percentage of likelihood of tax position being realized upon ultimate settlement according to management's judgment | 50.00% | ||
Advertising Costs | |||
Advertising costs | $ | $ 5.3 | $ 5.3 | $ 5 |
Maximum | Building | |||
Premises and Equipment | |||
Estimated useful lives (in years) | 30 years | ||
Maximum | Equipment | |||
Premises and Equipment | |||
Estimated useful lives (in years) | 10 years |
Restrictions on Cash (Details 1
Restrictions on Cash (Details 1) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Required minimum average reserve balance based on the amount of deposits held with the Federal Reserve Bank | $ 99.3 | $ 92.3 |
Investment Securities (Amort co
Investment Securities (Amort cost, unrealized gains and losses, and fair value) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | $ 3,982,736 | $ 4,466,679 | $ 4,744,519 |
Held-to-Maturity: Gross Unrealized Gains | 50,771 | 66,859 | 37,071 |
Held-to-Maturity: Gross Unrealized Losses | (27,095) | (29,043) | (84,003) |
Held-to-Maturity: Fair Value | 4,006,412 | 4,504,495 | 4,697,587 |
Available-for-Sale: | |||
Available-for-Sale: Amortized Cost | 2,236,073 | 2,262,807 | 2,245,857 |
Available-for-Sale: Gross Unrealized Gains | 34,120 | 41,668 | 31,420 |
Available-for-Sale: Gross Unrealized Losses | (13,375) | (15,285) | (33,580) |
Available-for-Sale | 2,256,818 | 2,289,190 | 2,243,697 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | |||
Available-for-Sale: | |||
Available-for-Sale: Amortized Cost | 356,260 | 325,365 | 390,873 |
Available-for-Sale: Gross Unrealized Gains | 3,472 | 5,933 | 6,640 |
Available-for-Sale: Gross Unrealized Losses | (838) | (40) | (234) |
Available-for-Sale | 358,894 | 331,258 | 397,279 |
Debt Securities Issued by States and Political Subdivisions | |||
Available-for-Sale: | |||
Available-for-Sale: Amortized Cost | 709,724 | 723,474 | 691,861 |
Available-for-Sale: Gross Unrealized Gains | 22,498 | 21,941 | 8,396 |
Available-for-Sale: Gross Unrealized Losses | (304) | (1,445) | (13,455) |
Available-for-Sale | 731,918 | 743,970 | 686,802 |
Debt Securities Issued by Corporations | |||
Available-for-Sale: | |||
Available-for-Sale: Amortized Cost | 313,136 | 298,272 | 280,172 |
Available-for-Sale: Gross Unrealized Gains | 236 | 546 | 1,165 |
Available-for-Sale: Gross Unrealized Losses | (4,502) | (3,985) | (7,836) |
Available-for-Sale | 308,870 | 294,833 | 273,501 |
Mortgage-Backed Securities | |||
Available-for-Sale: | |||
Available-for-Sale: Amortized Cost | 856,953 | 915,696 | 882,951 |
Available-for-Sale: Gross Unrealized Gains | 7,914 | 13,248 | 15,219 |
Available-for-Sale: Gross Unrealized Losses | (7,731) | (9,815) | (12,055) |
Available-for-Sale | 857,136 | 919,129 | 886,115 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 489,747 | 498,767 | 433,987 |
Held-to-Maturity: Gross Unrealized Gains | 1,359 | 2,008 | 3,045 |
Held-to-Maturity: Gross Unrealized Losses | (1,139) | (1,159) | (3,667) |
Held-to-Maturity: Fair Value | 489,967 | 499,616 | 433,365 |
Debt Securities Issued by States and Political Subdivisions | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 245,980 | 249,559 | 253,039 |
Held-to-Maturity: Gross Unrealized Gains | 17,114 | 15,459 | 817 |
Held-to-Maturity: Gross Unrealized Losses | 0 | 0 | (133) |
Held-to-Maturity: Fair Value | 263,094 | 265,018 | 253,723 |
Debt Securities Issued by Corporations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 151,301 | 166,686 | 190,181 |
Held-to-Maturity: Gross Unrealized Gains | 368 | 109 | 0 |
Held-to-Maturity: Gross Unrealized Losses | (2,041) | (3,442) | (5,708) |
Held-to-Maturity: Fair Value | 149,628 | 163,353 | 184,473 |
Mortgage-Backed Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 3,095,708 | 3,551,667 | 3,867,312 |
Held-to-Maturity: Gross Unrealized Gains | 31,930 | 49,283 | 33,209 |
Held-to-Maturity: Gross Unrealized Losses | (23,915) | (24,442) | (74,495) |
Held-to-Maturity: Fair Value | 3,103,723 | 3,576,508 | 3,826,026 |
Residential - Government Agencies | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 2,191,138 | 2,862,369 | 3,523,343 |
Held-to-Maturity: Gross Unrealized Gains | 27,893 | 45,407 | 31,786 |
Held-to-Maturity: Gross Unrealized Losses | (19,067) | (20,636) | (66,572) |
Held-to-Maturity: Fair Value | 2,199,964 | 2,887,140 | 3,488,557 |
Residential - U.S. Government Sponsored Enterprises | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 647,762 | 379,365 | 21,602 |
Held-to-Maturity: Gross Unrealized Gains | 1,656 | 3,635 | 1,423 |
Held-to-Maturity: Gross Unrealized Losses | (2,616) | (15) | 0 |
Held-to-Maturity: Fair Value | 646,802 | 382,985 | 23,025 |
Commercial - Government Agencies | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 256,808 | 309,933 | |
Held-to-Maturity: Gross Unrealized Gains | 2,381 | 241 | 0 |
Held-to-Maturity: Gross Unrealized Losses | (2,232) | (3,791) | (7,923) |
Held-to-Maturity: Fair Value | $ 256,957 | $ 306,383 | $ 314,444 |
Investment Securities (Contract
Investment Securities (Contractual Maturities and Narrative) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis Rolling Maturity [Abstract] | |||
Due in One Year or Less | $ 69,889 | ||
Due After One Year Through Five Years | 474,444 | ||
Due After Five Years Through Ten Years | 408,341 | ||
Due After Ten Years | 70,732 | ||
Available-for-Sale, Total | 1,023,406 | ||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | |||
Due in One Year or Less | 70,173 | ||
Due After One Year Through Five Years | 477,064 | ||
Due After Five Years Through Ten Years | 419,001 | ||
Due After Ten Years | 75,096 | ||
Fair Value, Total | 1,041,334 | ||
Available-for-Sale: Amortized Cost | 2,236,073 | $ 2,262,807 | $ 2,245,857 |
Available-for-Sale: Fair Value | 2,256,818 | 2,289,190 | 2,243,697 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Rolling Maturity [Abstract] | |||
Due After One Year Through Five Years | 522,433 | ||
Due After Five Years Through Ten Years | 292,951 | ||
Due After Ten Years | 71,644 | ||
Amortized Cost, Total | 887,028 | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | |||
Due After One Year Through Five Years | 523,945 | ||
Due After Five Years Through Ten Years | 301,459 | ||
Due After Ten Years | 77,285 | ||
Fair Value, Total | 902,689 | ||
Held-to-Maturity: Amortized Cost | 3,982,736 | ||
Held-to-Maturity: Fair Value | 4,006,412 | 4,504,495 | 4,697,587 |
Carrying value of investment securities which were pledged to secure deposits of gov't entities and repos | 2,500,000 | 2,800,000 | 2,600,000 |
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 | 355,714 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 358,348 | ||
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 | 856,953 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 857,136 | ||
Available-for-Sale: Amortized Cost | 856,953 | 915,696 | 882,951 |
Available-for-Sale: Fair Value | 857,136 | 919,129 | 886,115 |
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 | 310,966 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 316,245 | ||
Available-for-Sale: Amortized Cost | 310,966 | 452,493 | 641,227 |
Available-for-Sale: Fair Value | 316,245 | 462,436 | 653,194 |
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 | 442,760 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 441,864 | ||
Available-for-Sale: Amortized Cost | 442,760 | 276,390 | 21,865 |
Available-for-Sale: Fair Value | 441,864 | 278,461 | 23,268 |
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 | 103,227 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 99,027 | ||
Available-for-Sale: Amortized Cost | 103,227 | 186,813 | 219,859 |
Available-for-Sale: Fair Value | 99,027 | 178,232 | 209,653 |
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 | 3,095,708 | ||
Held-to-Maturity: Mortgage-Backed-Securities: Fair Value | 3,103,723 | ||
Held-to-Maturity: Fair Value | $ 3,103,723 | $ 3,576,508 | $ 3,826,026 |
Investment Securities (Gains an
Investment Securities (Gains and Losses on Sales) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross Gains on Sales of Investment Securities | $ 11,640 | $ 8,063 | $ 0 |
Gross Losses on Sales of Investment Securities | (1,480) | 0 | 0 |
Net Gains on Sales of Investment Securities | 10,160 | 8,063 | $ 0 |
Tax on Sale of Investment Securities | $ 4,000 | $ 3,200 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Position - Less than 12 Mos., 12 Mos. or Longer) (Details 4) $ in Thousands | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | $ 695,059 | $ 260,475 |
Less Than 12 Months, Gross Unrealized Losses | (5,215) | (1,677) |
12 Months or Longer, Fair Value | 282,697 | 470,871 |
12 Months or Longer, Gross Unrealized Losses | (8,160) | (13,608) |
Total Fair Value | 977,756 | 731,346 |
Total Gross Unrealized Losses | (13,375) | (15,285) |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 1,379,654 | 567,527 |
Less than 12 Months, Gross Unrealized Losses | (10,607) | (1,884) |
12 Months or Longer, Fair Value | 537,622 | 1,243,333 |
12 Months or Longer, Gross Unrealized Losses | (16,488) | (27,159) |
Total, Fair Value | 1,917,276 | 1,810,860 |
Total Gross Unrealized Losses | $ (27,095) | (29,043) |
Number of Investment Securities in Unrealized Loss Position | security | 224 | |
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 | $ 144,260 | 1,729 |
Less Than 12 Months, Gross Unrealized Losses | (822) | (2) |
12 Months or Longer, Fair Value | 5,452 | 5,546 |
12 Months or Longer, Gross Unrealized Losses | (16) | (38) |
Total Fair Value | 149,712 | 7,275 |
Total Gross Unrealized Losses | (838) | (40) |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 72,248 | 78,068 |
Less Than 12 Months, Gross Unrealized Losses | (252) | (305) |
12 Months or Longer, Fair Value | 6,798 | 94,543 |
12 Months or Longer, Gross Unrealized Losses | (52) | (1,140) |
Total Fair Value | 79,046 | 172,611 |
Total Gross Unrealized Losses | (304) | (1,445) |
Debt Securities Issued by Corporations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 101,269 | 73,829 |
Less Than 12 Months, Gross Unrealized Losses | (1,747) | (1,171) |
12 Months or Longer, Fair Value | 162,304 | 180,335 |
12 Months or Longer, Gross Unrealized Losses | (2,755) | (2,814) |
Total Fair Value | 263,573 | 254,164 |
Total Gross Unrealized Losses | (4,502) | (3,985) |
Mortgage-Backed Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 377,282 | 106,849 |
Less Than 12 Months, Gross Unrealized Losses | (2,394) | (199) |
12 Months or Longer, Fair Value | 108,143 | 190,447 |
12 Months or Longer, Gross Unrealized Losses | (5,337) | (9,616) |
Total Fair Value | 485,425 | 297,296 |
Total Gross Unrealized Losses | (7,731) | (9,815) |
Residential - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 30,679 | 3,025 |
Less Than 12 Months, Gross Unrealized Losses | (130) | (8) |
12 Months or Longer, Fair Value | 9,117 | 12,215 |
12 Months or Longer, Gross Unrealized Losses | (1,137) | (1,035) |
Total Fair Value | 39,796 | 15,240 |
Total Gross Unrealized Losses | (1,267) | (1,043) |
Residential - U.S. Government Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 346,603 | 103,824 |
Less Than 12 Months, Gross Unrealized Losses | (2,264) | (191) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 346,603 | 103,824 |
Total Gross Unrealized Losses | (2,264) | (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 | 99,026 | 178,232 |
12 Months or Longer, Gross Unrealized Losses | (4,200) | (8,581) |
Total Fair Value | 99,026 | 178,232 |
Total Gross Unrealized Losses | (4,200) | (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 | 264,747 | 70,016 |
Less than 12 Months, Gross Unrealized Losses | (1,139) | (134) |
12 Months or Longer, Fair Value | 0 | 144,222 |
12 Months or Longer, Gross Unrealized Losses | 0 | (1,025) |
Total, Fair Value | 264,747 | 214,238 |
Total Gross Unrealized Losses | (1,139) | (1,159) |
Debt Securities Issued by Corporations | ||
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 28,218 | 46,196 |
Less than 12 Months, Gross Unrealized Losses | (66) | (349) |
12 Months or Longer, Fair Value | 71,208 | 82,109 |
12 Months or Longer, Gross Unrealized Losses | (1,975) | (3,093) |
Total, Fair Value | 99,426 | 128,305 |
Total Gross Unrealized Losses | (2,041) | (3,442) |
Mortgage-Backed Securities | ||
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 1,086,689 | 451,315 |
Less than 12 Months, Gross Unrealized Losses | (9,402) | (1,401) |
12 Months or Longer, Fair Value | 466,414 | 1,017,002 |
12 Months or Longer, Gross Unrealized Losses | (14,513) | (23,041) |
Total, Fair Value | 1,553,103 | 1,468,317 |
Total Gross Unrealized Losses | $ (23,915) | $ (24,442) |
Investment Securities (Interest
Investment Securities (Interest Income - Taxable/Non-Taxable Invest. Sec.) (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Interest Income from Investment Securities, Taxable | $ 109,912 | $ 127,128 | $ 125,379 |
Interest Income from Investment Securities, Non-Taxable | 21,230 | 21,207 | 18,253 |
Total Interest Income from Investment Securities | $ 131,142 | $ 148,335 | $ 143,632 |
Investment Securities (Municipa
Investment Securities (Municipal Bond Narrative) (Details 6) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
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 | $ 575.7 |
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% |
Investment Securities (FHLB and
Investment Securities (FHLB and FRB Stocks) (Details 7) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $ 19,000 | $ 47,075 |
Federal Reserve Bank Stock | 19,836 | 19,299 |
Total | $ 38,836 | $ 66,374 |
Investment Securities (Visa Cla
Investment Securities (Visa Class B Restricted Shares Narrative) (Details 8) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Net Investment Income [Line Items] | |||
Net Gains on Sales of Investment Securities | $ | $ 10,160 | $ 8,063 | $ 0 |
Visa Class B Restricted Securities | |||
Net Investment Income [Line Items] | |||
Conversion ratio to Class A shares | 1.6483 | ||
Net Gains on Sales of Investment Securities | $ | $ 10,100 | ||
Sale of investment securities, shares | 95,000 | ||
Equity securities remaining, shares | 288,714 | ||
Donation of Investment Securities, Shares | 13,800 | ||
Visa Class A Unrestricted Securities | |||
Net Investment Income [Line Items] | |||
Equity securities remaining, shares | 475,887 |
Loans and Leases and the Allo63
Loans and Leases and the Allowance for Loan and Lease Losses (Loans and Leases Portolio & Narrative) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loan and lease portfolio | |||
Loans and Leases | $ 7,878,985 | $ 6,897,589 | $ 6,095,387 |
Unearned income on loans and leases | 47,300 | 57,000 | |
Commercial loans and residential mortgage loans pledged to secure an undrawn FRB line of credit | 1,000,000 | ||
Residential mortgage loans pledged under a blanket pledge arrangement to secure FHLB advance | 1,700,000 | 1,100,000 | |
Net gains related to sales of residential mortgage loans | 5,900 | 2,400 | 8,700 |
Commercial | |||
Loan and lease portfolio | |||
Loans and Leases | 3,153,852 | 2,828,128 | 2,528,433 |
Commercial | Commercial and Industrial | |||
Loan and lease portfolio | |||
Loans and Leases | 1,115,168 | 1,055,243 | |
Commercial | Commercial Mortgage | |||
Loan and lease portfolio | |||
Loans and Leases | 1,677,147 | 1,437,513 | |
Commercial | Construction | |||
Loan and lease portfolio | |||
Loans and Leases | 156,660 | 109,183 | |
Commercial | Lease Financing | |||
Loan and lease portfolio | |||
Loans and Leases | 204,877 | 226,189 | |
Consumer | |||
Loan and lease portfolio | |||
Loans and Leases | 4,725,133 | 4,069,461 | $ 3,566,954 |
Consumer | Residential Mortgage | |||
Loan and lease portfolio | |||
Loans and Leases | 2,925,605 | 2,571,090 | |
Consumer | Home Equity | |||
Loan and lease portfolio | |||
Loans and Leases | 1,069,400 | 866,688 | |
Consumer | Automobile | |||
Loan and lease portfolio | |||
Loans and Leases | 381,735 | 323,848 | |
Consumer | Other | |||
Loan and lease portfolio | |||
Loans and Leases | $ 348,393 | $ 307,835 |
Loans and Leases and the Allo64
Loans and Leases and the Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan and Lease Losses: | ||||||
Balance at the Beginning of Period | $ 108,688 | $ 115,454 | $ 128,857 | |||
Loans and Leases Charged-Off | (16,439) | (15,439) | (25,120) | |||
Recoveries on Loans and Leases Previously Charged-Off | 9,631 | 13,537 | 11,717 | |||
Net Loans and Leases Recovered (Charged-Off) | (6,808) | (1,902) | (13,403) | |||
Provision for Credit Losses | 1,000 | (4,864) | 0 | |||
Balance at End of Period | 102,880 | 108,688 | 115,454 | |||
Allowance for Loan and Lease Losses: | ||||||
Individually Evaluated for Impairment | $ 3,578 | $ 5,948 | $ 12,776 | |||
Collectively Evaluated for Impairment | 99,302 | 102,740 | 102,678 | |||
Total | 108,688 | 115,454 | 128,857 | 102,880 | 108,688 | 115,454 |
Recorded Investment in Loans and Leases: | ||||||
Individually Evaluated for Impairment | 66,697 | 64,747 | 77,115 | |||
Collectively Evaluated for Impairment | 7,812,288 | 6,832,842 | 6,018,272 | |||
Total Loans and Leases | 7,878,985 | 6,897,589 | 6,095,387 | |||
Commercial | ||||||
Allowance for Loan and Lease Losses: | ||||||
Balance at the Beginning of Period | 64,551 | 71,446 | 72,704 | |||
Loans and Leases Charged-Off | (954) | (2,068) | (8,099) | |||
Recoveries on Loans and Leases Previously Charged-Off | 2,173 | 4,721 | 2,644 | |||
Net Loans and Leases Recovered (Charged-Off) | 1,219 | 2,653 | (5,455) | |||
Provision for Credit Losses | (5,056) | (9,548) | 4,197 | |||
Balance at End of Period | 60,714 | 64,551 | 71,446 | |||
Allowance for Loan and Lease Losses: | ||||||
Individually Evaluated for Impairment | 205 | 2,387 | 9,054 | |||
Collectively Evaluated for Impairment | 60,509 | 62,164 | 62,392 | |||
Total | 64,551 | 71,446 | 72,704 | 60,714 | 64,551 | 71,446 |
Recorded Investment in Loans and Leases: | ||||||
Individually Evaluated for Impairment | 27,950 | 25,116 | 38,469 | |||
Collectively Evaluated for Impairment | 3,125,902 | 2,803,012 | 2,489,964 | |||
Total Loans and Leases | 3,153,852 | 2,828,128 | 2,528,433 | |||
Consumer | ||||||
Allowance for Loan and Lease Losses: | ||||||
Balance at the Beginning of Period | 44,137 | 44,008 | 56,153 | |||
Loans and Leases Charged-Off | (15,485) | (13,371) | (17,021) | |||
Recoveries on Loans and Leases Previously Charged-Off | 7,458 | 8,816 | 9,073 | |||
Net Loans and Leases Recovered (Charged-Off) | (8,027) | (4,555) | (7,948) | |||
Provision for Credit Losses | 6,056 | 4,684 | (4,197) | |||
Balance at End of Period | 42,166 | 44,137 | 44,008 | |||
Allowance for Loan and Lease Losses: | ||||||
Individually Evaluated for Impairment | 3,373 | 3,561 | 3,722 | |||
Collectively Evaluated for Impairment | 38,793 | 40,576 | 40,286 | |||
Total | $ 44,137 | $ 44,008 | $ 56,153 | 42,166 | 44,137 | 44,008 |
Recorded Investment in Loans and Leases: | ||||||
Individually Evaluated for Impairment | 38,747 | 39,631 | 38,646 | |||
Collectively Evaluated for Impairment | 4,686,386 | 4,029,830 | 3,528,308 | |||
Total Loans and Leases | $ 4,725,133 | $ 4,069,461 | $ 3,566,954 |
Loans and Leases and the Allo65
Loans and Leases and the Allowance for Loan and Lease Losses (Credit Quality Indicators & Narrative) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 7,878,985 | $ 6,897,589 | $ 6,095,387 |
Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Number of months up to which residential and home equity loans may be considered classified, even if they are current as to principal and interest (in months) | 6 months | ||
Residential Mortgage | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | ||
Home Equity | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | ||
Commercial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 3,153,852 | 2,828,128 | 2,528,433 |
Commercial | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 3,010,495 | 2,693,450 | |
Commercial | Special Mention | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 71,906 | 62,463 | |
Commercial | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 71,451 | 72,215 | |
Commercial | Commercial and Industrial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,115,168 | 1,055,243 | |
Commercial | Commercial and Industrial | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,059,475 | 1,001,474 | |
Commercial | Commercial and Industrial | Special Mention | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 28,076 | 17,364 | |
Commercial | Commercial and Industrial | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 27,617 | 36,405 | |
Commercial | Commercial Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,677,147 | 1,437,513 | |
Commercial | Commercial Mortgage | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,591,696 | 1,358,812 | |
Commercial | Commercial Mortgage | Special Mention | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 43,674 | 45,082 | |
Commercial | Commercial Mortgage | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 41,777 | 33,619 | |
Commercial | Construction | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 156,660 | 109,183 | |
Commercial | Construction | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 154,976 | 107,381 | |
Commercial | Construction | Special Mention | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 80 | 0 | |
Commercial | Construction | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,604 | 1,802 | |
Commercial | Lease Financing | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 204,877 | 226,189 | |
Commercial | Lease Financing | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 204,348 | 225,783 | |
Commercial | Lease Financing | Special Mention | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 76 | 17 | |
Commercial | Lease Financing | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 453 | 389 | |
Consumer | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 4,725,133 | 4,069,461 | $ 3,566,954 |
Consumer | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 4,704,050 | 4,048,753 | |
Consumer | Classified | |||
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 | $ 21,083 | 20,708 | |
Consumer | Residential Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 2,925,605 | 2,571,090 | |
Consumer | Residential Mortgage | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 2,910,667 | 2,556,140 | |
Consumer | Residential Mortgage | Classified | |||
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 | $ 14,938 | 14,950 | |
Consumer | Home Equity | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,069,400 | 866,688 | |
Consumer | Home Equity | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 1,064,253 | 862,258 | |
Consumer | Home Equity | Classified | |||
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 | $ 5,147 | 4,430 | |
Consumer | Automobile | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 381,735 | 323,848 | |
Consumer | Automobile | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 381,420 | 323,232 | |
Consumer | Automobile | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 315 | 616 | |
Consumer | Other | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 348,393 | 307,835 | |
Consumer | Other | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 347,710 | 307,123 | |
Consumer | Other | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 683 | $ 712 |
Loans and Leases and the Allo66
Loans and Leases and the Allowance for Loan and Lease Losses (Aging Analysis) (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | $ 27,977 | $ 27,771 | |
Total Past Due and Non-Accrual | 70,958 | 64,184 | |
Current | 7,808,027 | 6,833,405 | |
Total Loans and Leases | 7,878,985 | 6,897,589 | $ 6,095,387 |
Non-Accrual Loans and Leases that are Current | $ 7,108 | 8,826 | |
Number of days non-accrual loans and leases are not past due | 30 days | ||
30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | $ 25,871 | 20,096 | |
60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 9,536 | 7,656 | |
Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 7,574 | 8,661 | |
Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 9,298 | 9,833 | |
Total Past Due and Non-Accrual | 14,167 | 11,641 | |
Current | 3,139,685 | 2,816,487 | |
Total Loans and Leases | 3,153,852 | 2,828,128 | 2,528,433 |
Non-Accrual Loans and Leases that are Current | 3,342 | 7,819 | |
Commercial | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 4,483 | 1,450 | |
Commercial | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 386 | 356 | |
Commercial | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 2 | |
Commercial | Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 5,829 | 9,088 | |
Total Past Due and Non-Accrual | 7,306 | 10,438 | |
Current | 1,107,862 | 1,044,805 | |
Total Loans and Leases | 1,115,168 | 1,055,243 | |
Non-Accrual Loans and Leases that are Current | 452 | 7,819 | |
Commercial | Commercial and Industrial | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,118 | 992 | |
Commercial | Commercial and Industrial | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 359 | 356 | |
Commercial | Commercial and Industrial | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 2 | |
Commercial | Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 3,469 | 745 | |
Total Past Due and Non-Accrual | 4,741 | 1,203 | |
Current | 1,672,406 | 1,436,310 | |
Total Loans and Leases | 1,677,147 | 1,437,513 | |
Non-Accrual Loans and Leases that are Current | 2,890 | 0 | |
Commercial | Commercial Mortgage | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,245 | 458 | |
Commercial | Commercial Mortgage | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 27 | 0 | |
Commercial | Commercial Mortgage | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 2,120 | 0 | |
Current | 154,540 | 109,183 | |
Total Loans and Leases | 156,660 | 109,183 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Commercial | Construction | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,120 | 0 | |
Commercial | Construction | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Construction | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | 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 | 204,877 | 226,189 | |
Total Loans and Leases | 204,877 | 226,189 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Commercial | Lease Financing | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Lease Financing | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Lease Financing | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Consumer | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 18,679 | 17,938 | |
Total Past Due and Non-Accrual | 56,791 | 52,543 | |
Current | 4,668,342 | 4,016,918 | |
Total Loans and Leases | 4,725,133 | 4,069,461 | $ 3,566,954 |
Non-Accrual Loans and Leases that are Current | 3,766 | 1,007 | |
Consumer | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 21,388 | 18,646 | |
Consumer | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 9,150 | 7,300 | |
Consumer | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 7,574 | 8,659 | |
Consumer | Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 14,598 | 14,841 | |
Total Past Due and Non-Accrual | 30,192 | 26,361 | |
Current | 2,895,413 | 2,544,729 | |
Total Loans and Leases | 2,925,605 | 2,571,090 | |
Non-Accrual Loans and Leases that are Current | 2,056 | 632 | |
Consumer | Residential Mortgage | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 7,148 | 4,907 | |
Consumer | Residential Mortgage | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 3,993 | 2,107 | |
Consumer | Residential Mortgage | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 4,453 | 4,506 | |
Consumer | Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 4,081 | 3,097 | |
Total Past Due and Non-Accrual | 11,553 | 11,815 | |
Current | 1,057,847 | 854,873 | |
Total Loans and Leases | 1,069,400 | 866,688 | |
Non-Accrual Loans and Leases that are Current | 1,710 | 375 | |
Consumer | Home Equity | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 3,856 | 3,461 | |
Consumer | Home Equity | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,906 | 2,661 | |
Consumer | Home Equity | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,710 | 2,596 | |
Consumer | Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 10,221 | 9,961 | |
Current | 371,514 | 313,887 | |
Total Loans and Leases | 381,735 | 323,848 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | Automobile | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 8,103 | 7,862 | |
Consumer | Automobile | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,803 | 1,483 | |
Consumer | Automobile | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 315 | 616 | |
Consumer | Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 4,825 | 4,406 | |
Current | 343,568 | 303,429 | |
Total Loans and Leases | 348,393 | 307,835 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | Other | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,281 | 2,416 | |
Consumer | Other | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,448 | 1,049 | |
Consumer | Other | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | $ 1,096 | $ 941 |
Loans and Leases and the Allo67
Loans and Leases and the Allowance for Loan and Lease Losses (Impaired Loans) (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | $ 26,661 | $ 17,932 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 43,723 | 23,182 | |
Impaired Loans with Related Allowance, Recorded Investment | 40,036 | 46,815 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 45,749 | 59,073 | |
Related Allowance for Loan Losses | 3,578 | 5,948 | |
Recorded Investment | 66,697 | 64,747 | |
Unpaid Principal Balance | 89,472 | 82,255 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 21,757 | 21,272 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 780 | 636 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 44,601 | 46,830 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 1,816 | 1,662 | |
Average Recorded Investment | 66,358 | 68,102 | $ 61,200 |
Interest Income Recognized | 2,596 | 2,298 | $ 1,800 |
Commercial | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 26,661 | 17,932 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 43,723 | 23,182 | |
Impaired Loans with Related Allowance, Recorded Investment | 1,289 | 7,184 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 1,289 | 13,784 | |
Related Allowance for Loan Losses | 205 | 2,387 | |
Recorded Investment | 27,950 | 25,116 | |
Unpaid Principal Balance | 45,012 | 36,966 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 21,757 | 21,266 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 780 | 636 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 5,379 | 8,045 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 98 | 118 | |
Average Recorded Investment | 27,136 | 29,311 | |
Interest Income Recognized | 878 | 754 | |
Commercial | Commercial and Industrial | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 14,650 | 9,763 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 28,212 | 15,013 | |
Impaired Loans with Related Allowance, Recorded Investment | 1,289 | 7,184 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 1,289 | 13,784 | |
Related Allowance for Loan Losses | 205 | 2,387 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 12,589 | 11,167 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 406 | 318 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 5,379 | 8,045 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 98 | 118 | |
Commercial | Commercial Mortgage | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 10,407 | 6,480 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 13,907 | 6,480 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 7,521 | 8,529 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 268 | 225 | |
Commercial | Construction | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 1,604 | 1,689 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 1,604 | 1,689 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 1,647 | 1,570 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 106 | 93 | |
Consumer | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 38,747 | 39,631 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 44,460 | 45,289 | |
Related Allowance for Loan Losses | 3,373 | 3,561 | |
Recorded Investment | 38,747 | 39,631 | |
Unpaid Principal Balance | 44,460 | 45,289 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 0 | 6 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 0 | 0 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 39,222 | 38,785 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 1,718 | 1,544 | |
Average Recorded Investment | 39,222 | 38,791 | |
Interest Income Recognized | 1,718 | 1,544 | |
Consumer | Residential Mortgage | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 28,981 | 32,331 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 34,694 | 37,989 | |
Related Allowance for Loan Losses | 3,171 | 3,445 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 30,895 | 31,998 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 1,133 | 1,028 | |
Consumer | Home Equity | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 1,089 | 1,012 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 1,089 | 1,012 | |
Related Allowance for Loan Losses | 12 | 16 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 1,137 | 964 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 42 | 34 | |
Consumer | Automobile | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 7,012 | 5,375 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 7,012 | 5,375 | |
Related Allowance for Loan Losses | 143 | 66 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 5,992 | 5,263 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 432 | 433 | |
Consumer | Other | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 1,665 | 913 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 1,665 | 913 | |
Related Allowance for Loan Losses | 47 | 34 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 0 | 6 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 0 | 0 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 1,198 | 560 | |
Impaired Loans with Related Allowance, Interest Income Recognized | $ 111 | $ 49 |
Loans and Leases and the Allo68
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restrucuring & Narrative) (Details 6) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | |
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Loans modified in a TDR | $ 65,000 | $ 60,200 |
Available commitments under Revolving Credit Lines, Modified as TDR | $ 0 | |
Loans Modified as a TDR | ||
Number of Contracts | contract | 388 | 254 |
Recorded Investment (as of period end) | $ 19,438 | $ 20,305 |
Increase in Allowance (as of period end) | $ 216 | $ 2,697 |
Residential Mortgage | Maximum | ||
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Period of time loan being fully amortized | 40 years | |
Land Loans | Maximum | ||
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Period of time loan being fully amortized | 360 months | |
Extending balloon payments | 5 years | |
Commercial | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 34 | 20 |
Recorded Investment (as of period end) | $ 9,721 | $ 10,578 |
Increase in Allowance (as of period end) | $ 1 | $ 2,360 |
Commercial | Commercial and Industrial | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 30 | 19 |
Recorded Investment (as of period end) | $ 5,414 | $ 10,263 |
Increase in Allowance (as of period end) | $ 1 | $ 2,360 |
Commercial | Commercial Mortgage | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 4 | 1 |
Recorded Investment (as of period end) | $ 4,307 | $ 315 |
Increase in Allowance (as of period end) | $ 0 | $ 0 |
Consumer | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 354 | 234 |
Recorded Investment (as of period end) | $ 9,717 | $ 9,727 |
Increase in Allowance (as of period end) | $ 215 | $ 337 |
Consumer | Residential Mortgage | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 13 | 17 |
Recorded Investment (as of period end) | $ 4,255 | $ 6,329 |
Increase in Allowance (as of period end) | $ 99 | $ 278 |
Consumer | Home Equity | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 3 | 2 |
Recorded Investment (as of period end) | $ 367 | $ 156 |
Increase in Allowance (as of period end) | $ 4 | $ 2 |
Consumer | Automobile | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 170 | 131 |
Recorded Investment (as of period end) | $ 3,996 | $ 2,576 |
Increase in Allowance (as of period end) | $ 81 | $ 32 |
Consumer | Other | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 168 | 84 |
Recorded Investment (as of period end) | $ 1,099 | $ 666 |
Increase in Allowance (as of period end) | $ 31 | $ 25 |
Loans and Leases and the Allo69
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring's that Defaulted During the Period) (Details 7) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | |
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 37 | 18 |
Recorded Investment (as of period end) | $ | $ 6,711 | $ 1,359 |
Minimum | ||
Information related to loans modified as a TDR | ||
Default period past due following modification of loans in TDR (in days) | 60 days | |
Commercial | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 2 | 4 |
Recorded Investment (as of period end) | $ | $ 4,924 | $ 728 |
Commercial | Commercial and Industrial | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 2 | 4 |
Recorded Investment (as of period end) | $ | $ 4,924 | $ 728 |
Consumer | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 35 | 14 |
Recorded Investment (as of period end) | $ | $ 1,787 | $ 631 |
Consumer | Residential Mortgage | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 4 | 2 |
Recorded Investment (as of period end) | $ | $ 1,449 | $ 506 |
Consumer | Automobile | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 10 | 6 |
Recorded Investment (as of period end) | $ | $ 220 | $ 77 |
Consumer | Other | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 21 | 6 |
Recorded Investment (as of period end) | $ | $ 118 | $ 48 |
Loans and Leases and the Allo70
Loans and Leases and the Allowance for Loan and Lease Losses (Foreclosure Proceedings Narrative) (Details 8) $ in Millions | Dec. 31, 2015USD ($) |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Mortgage Loans in Process of Foreclosure, Amount | $ 8.5 |
Loans and Leases and the Allo71
Loans and Leases and the Allowance for Loan and Lease Losses (Related Party Loans Narrative) (Details 9) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | ||
Due from Related Parties | $ 16.7 | $ 17 |
Mortgage Servicing Rights (Narr
Mortgage Servicing Rights (Narrative) (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Residential Mortgage Loans Serviced for Third Parties | $ 2,700 | $ 3,100 | |
Servicing income, including late and ancillary fees | $ 7.2 | $ 7.9 | $ 8 |
Mortgage Servicing Rights (Fair
Mortgage Servicing Rights (Fair value method rollforward) (Details 2) - Mortgage Servicing Rights - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in fair value of the mortgage servicing rights accounted for under the fair value measurement method | |||
Balance at Beginning of Year | $ 2,604 | $ 3,826 | $ 4,761 |
Changes in Fair Value: | |||
Due to Change in Valuation Assumptions | (251) | (869) | 127 |
Due to Payoffs | (383) | (353) | (1,062) |
Total Changes in Fair Value of Mortgage Servicing Rights | (634) | (1,222) | (935) |
Balance at End of Year | $ 1,970 | $ 2,604 | $ 3,826 |
Mortgage Servicing Rights (Amor
Mortgage Servicing Rights (Amortization method rollforward) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Allowance [Roll Forward] | |||
Balance at Beginning of Year | $ (57) | ||
Balance at End of Year | (21) | $ (57) | |
Mortgage Servicing Rights | |||
Change in Carrying Value of Mortgage Servicing Rights Accounted for Under the Amortization Method, Net of a Valuation Allowance | |||
Balance at beginning of Year | 22,091 | 24,297 | $ 20,479 |
Servicing Rights that Resulted From Asset Transfers | 1,737 | 747 | 6,351 |
Amortization | (2,832) | (2,896) | (2,533) |
Valuation Allowance Provision | 36 | (57) | 0 |
Balance at end of Year | 21,032 | 22,091 | 24,297 |
Valuation Allowance [Roll Forward] | |||
Balance at Beginning of Year | (57) | 0 | 0 |
Valuation Allowance Provision | 36 | (57) | 0 |
Balance at End of Year | (21) | (57) | 0 |
Fair Value: | |||
Balance at Beginning of Year | 22,837 | 30,100 | 23,143 |
Balance at End of Year | $ 24,804 | $ 22,837 | $ 30,100 |
Mortgage Servicing Rights (Key
Mortgage Servicing Rights (Key assumptions) (Details 4) - Mortgage Servicing Rights | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Key assumptions used in estimating the fair value of mortgage servicing rights | ||
Weighted-Average Constant Prepayment Rate (as a percent) | 9.10% | 11.62% |
Weighted-Average Life (in years) | 7 years 4 months 26 days | 6 years 3 months 12 days |
Weighted-Average Note Rate (as a percent) | 4.23% | 4.28% |
Weighted-Average Discount Rate (as a percent) | 9.38% | 10.61% |
Mortgage Servicing Rights (Sens
Mortgage Servicing Rights (Sensitivity analysis) (Details 5) - Mortgage Servicing Rights - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Constant Prepayment Rate | ||
Decrease in fair value from 25 basis points ("bps") adverse change | $ (285) | $ (265) |
Decrease in fair value from 50 bps adverse change | (566) | (524) |
Discount Rate | ||
Decrease in fair value from 25 bps adverse change | (292) | (250) |
Decrease in fair value from 50 bps adverse change | $ (577) | $ (495) |
Premises and Equipment (Details
Premises and Equipment (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premises and Equipment | |||
Cost | $ 440,216 | $ 435,752 | |
Accumulated Depreciation and Amortization | (329,017) | (325,898) | |
Net Book Value | 111,199 | 109,854 | |
Depreciation and amortization (including capital lease amortization) included in noninterest expense | 12,800 | 12,400 | $ 12,100 |
Premises | |||
Premises and Equipment | |||
Cost | 322,552 | 322,536 | |
Accumulated Depreciation and Amortization | (238,912) | (235,464) | |
Net Book Value | 83,640 | 87,072 | |
Impairment charge | 0 | 0 | $ 0 |
Equipment | |||
Premises and Equipment | |||
Cost | 111,071 | 106,623 | |
Accumulated Depreciation and Amortization | (86,176) | (86,577) | |
Net Book Value | 24,895 | 20,046 | |
Capital leases | |||
Premises and Equipment | |||
Cost | 6,593 | 6,593 | |
Accumulated Depreciation and Amortization | (3,929) | (3,857) | |
Net Book Value | $ 2,664 | $ 2,736 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Other Assets | ||
Federal Home Loan Bank and Federal Reserve Bank Stock | $ 38,836 | $ 66,374 |
Derivative Financial Instruments | 13,967 | 16,515 |
Low-Income Housing and Other Equity Investments | 79,033 | 77,495 |
Deferred Compensation Plan Assets | 20,262 | 18,794 |
Prepaid Expenses | 8,262 | 7,787 |
Accounts Receivable | 12,539 | 13,405 |
Other | 26,493 | 25,518 |
Total | $ 199,392 | $ 225,888 |
Time Deposits (Details 1)
Time Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Time deposits classified according to the contractual maturities | ||
2,016 | $ 933,273 | |
2,017 | 161,913 | |
2,018 | 34,467 | |
2,019 | 15,293 | |
2,020 | 17,667 | |
Thereafter | 15,038 | |
Total | 1,177,651 | $ 1,434,001 |
Time deposits with balances of $100,000 or more, classified according to the contractual maturities | ||
Three Months or Less | 422,466 | |
Over Three Months through Six Months | 202,100 | |
Over Six Months through Twelve Months | 164,806 | |
Over Twelve Months | 139,767 | |
Total | 929,139 | 1,200,000 |
Government entity deposits | $ 1,200,000 | $ 1,300,000 |
Borrowings (Short-term borrowin
Borrowings (Short-term borrowings) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $ 628,857 | $ 688,601 |
Funds Purchased | ||
Short-term Borrowings | ||
Amounts Outstanding | $ 7,333 | $ 8,459 |
Weighted Average Interest Rate (as a percent) | 0.14% | 0.14% |
Securities Sold Under Agreements to Repurchase | ||
Short-term Borrowings | ||
Amounts Outstanding | $ 3,992 | $ 7,700 |
Weighted Average Interest Rate (as a percent) | 0.06% | 0.10% |
Long-term Repurchase Agreements with Government Entities | ||
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $ 49,900 | $ 80,900 |
Long-term Repurchase Agreements with Private Institutions | ||
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $ 575,000 | $ 600,000 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details 2) $ in Thousands | Dec. 31, 2015USD ($)DY | Dec. 31, 2014USD ($) |
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | $ 628,857 | $ 688,601 |
Long-term Repurchase Agreements with Government Entities | ||
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | $ 49,900 | 80,900 |
Repurchase agreements, Weighted average interest rate (as a percent) | 0.37% | |
Repurchase agreements, Weighted average maturity period (in days or years) | D | 56 | |
Long-term Repurchase Agreements with Private Institutions | ||
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | $ 575,000 | $ 600,000 |
Repurchase agreements, Weighted average interest rate (as a percent) | 4.22% | |
Repurchase agreements, Weighted average maturity period (in days or years) | Y | 3.6 | |
Repurchase agreements, Decreased weighted average maturity period if agreements terminated at earlier specified dates (in years) | Y | 1.5 |
Other Debt (Details 1)
Other Debt (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Long-Term Debt | ||
Federal Home Loan Bank, Advances, Weighted Average Interest Rate (as a percent) | 1.15% | |
Total | $ 245,786 | $ 173,912 |
Maximum percentage of the total assets that can be borrowed from the FHLB by the entity | 35.00% | |
Federal Home Loan Bank Advance | ||
Long-Term Debt | ||
Other Debt | $ 225,000 | 150,000 |
Undrawn line of credit with the FHLB or FRB | 1,100,000 | |
Non-Recourse Debt | ||
Long-Term Debt | ||
Other Debt | $ 9,938 | 13,005 |
Non-recourse Debt, Stated fixed interest rate (as a percent) | 6.30% | |
Capital Lease Obligations | ||
Long-Term Debt | ||
Capital Lease Obligations | $ 10,848 | $ 10,907 |
Lease term (in years) | 60 years | |
Fixed lease payments through December 2022 | $ 800 | |
Federal Reserve Bank Advance | ||
Long-Term Debt | ||
Undrawn line of credit with the FHLB or FRB | $ 560,800 |
Other Debt (Excluding capital l
Other Debt (Excluding capital lease obligation, annual maturities) (Details 2) - Non-Recourse Debt and Federal Home Loan Bank Advance $ in Thousands | Dec. 31, 2015USD ($) |
Annual maturities of long term debt exclusive of capital lease obligations | |
2,016 | $ 52,785 |
2,017 | 0 |
2,018 | 175,000 |
2,019 | 0 |
2,020 | 3,464 |
Thereafter | 3,689 |
Total | $ 234,938 |
Shareholders' Equity (Capital)
Shareholders' Equity (Capital) (Details 1) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended | 174 Months Ended | |||
Feb. 17, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)Y$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2012USD ($) | |
Minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts [Line Items] | ||||||
Shareholders' Equity | $ 1,116,260 | $ 1,055,086 | $ 1,011,976 | $ 1,116,260 | $ 1,021,665 | |
Common Equity Tier One Capital | 1,112,598 | 1,112,598 | ||||
Tier 1 Capital | 1,112,598 | 1,039,631 | 1,112,598 | |||
Total Capital | $ 1,212,245 | $ 1,128,416 | $ 1,212,245 | |||
Well Capitalized Minimum Common Equity Tier One Ratio (as a percent) | 6.50% | 6.50% | ||||
Common Equity Tier One Ratio | 13.97% | 13.97% | ||||
Well Capitalized Minimum Tier 1 Capital Ratio (as a percent) | 8.00% | 6.00% | 8.00% | |||
Tier 1 Capital Ratio (as a percent) | 13.97% | 14.69% | 13.97% | |||
Well Capitalized Minimum Total Capital Ratio (as a percent) | 10.00% | 10.00% | 10.00% | |||
Total Capital Ratio (as a percent) | 15.22% | 15.94% | 15.22% | |||
Well Capitalized Minimum Tier 1 Leverage Ratio (as a percent) | 5.00% | 5.00% | 5.00% | |||
Tier 1 Leverage Ratio (as a percent) | 7.26% | 7.13% | 7.26% | |||
Dividends | ||||||
Number of prior calendar years considered for payment of dividends in excess of the sum of net income | Y | 2 | |||||
Common Stock Repurchase Program | ||||||
Number of shares of common stock repurchased | shares | 802,255 | 52,800,000 | ||||
Amount returned to shareholders on stock repurchase | $ 52,981 | $ 64,046 | $ 39,655 | $ 2,000,000 | ||
Average cost of shares repurchased (in dollars per share) | $ / shares | $ 62.61 | $ 37.35 | ||||
Treasury Stock Value Acquired Cost Method Share Repurchase Program | $ 50,200 | |||||
Bank | ||||||
Minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts [Line Items] | ||||||
Shareholders' Equity | 1,036,355 | 975,723 | $ 1,036,355 | |||
Common Equity Tier One Capital | 1,043,070 | 1,043,070 | ||||
Tier 1 Capital | 1,043,070 | 974,397 | 1,043,070 | |||
Total Capital | $ 1,142,573 | $ 1,063,085 | $ 1,142,573 | |||
Common Equity Tier One Ratio | 13.12% | 13.12% | ||||
Tier 1 Capital Ratio (as a percent) | 13.12% | 13.78% | 13.12% | |||
Total Capital Ratio (as a percent) | 14.37% | 15.04% | 14.37% | |||
Tier 1 Leverage Ratio (as a percent) | 6.81% | 6.69% | 6.81% | |||
Subsequent Event | ||||||
Common Stock Repurchase Program | ||||||
Number of shares of common stock repurchased | shares | 149,500 | |||||
Amount returned to shareholders on stock repurchase | $ 8,900 | |||||
Average cost of shares repurchased (in dollars per share) | $ / shares | $ 59.50 |
Shareholders' Equity (AOCI tax
Shareholders' Equity (AOCI tax effect) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income, Before Tax: | |||
Net Unrealized Gains (Losses) Arising During the Period | $ (5,448) | $ 28,609 | $ (105,842) |
(Gain) Loss on Sale, before Tax | (190) | (64) | |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 2,136 | (703) | (8,386) |
Net Unrealized Gains (Losses) on Investment Securities | (3,502) | 27,842 | (114,228) |
Net Actuarial Gains (Losses) Arising During the Period | 7,335 | (20,286) | 12,132 |
Amortization of Net Actuarial Losses (Gains) | 1,624 | 1,256 | 1,688 |
Amortization of Prior Service Credit, before tax | (322) | (322) | (322) |
Defined Benefit Plans, Net | 8,637 | (19,352) | 13,498 |
Other Comprehensive Income (Loss) | 5,135 | 8,490 | (100,730) |
Other Comprehensive Income, Tax Effect: | |||
Net Unrealized Gains Arising During the Period | (2,138) | 11,286 | (41,715) |
(Gain) Loss on Sale, Tax | (75) | (25) | |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 836 | (277) | (3,307) |
Net Unrealized Gains (Losses) on Investment Securities | (1,377) | 10,984 | (45,022) |
Net Actuarial Gains (Losses) Arising During the Period | 2,869 | (8,000) | 4,785 |
Amortization of Net Actuarial Losses (Gains) | 641 | 496 | 665 |
Amortization of Prior Service Credit | (127) | (127) | (127) |
Defined Benefit Plans, Net | 3,383 | (7,631) | 5,323 |
Other Comprehensive Income (Loss) | 2,006 | 3,353 | (39,699) |
Other Comprehensive Income, Net of Tax: | |||
Net Unrealized Gains (Losses) Arising During the Period | (3,310) | 17,323 | (64,127) |
(Gain) Loss on Sale, Net of Tax | (115) | (39) | |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities after Tax | 1,300 | (426) | (5,079) |
Net Unrealized Gains (Losses) on Investment Securities | (2,125) | 16,858 | (69,206) |
Net Actuarial Losses Arising During the Period | 4,466 | (12,286) | 7,347 |
Amortization of Net Actuarial Losses (Gains) | 983 | 760 | 1,023 |
Amortization of Prior Service Credit | (195) | (195) | (195) |
Defined Benefit Plans, Net | 5,254 | (11,721) | 8,175 |
Other Comprehensive Income (Loss) | $ 3,129 | $ 5,137 | $ (61,031) |
Shareholders' Equity (AOCI roll
Shareholders' Equity (AOCI rollforward) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at Beginning of Period | $ 1,055,086 | $ 1,011,976 | $ 1,021,665 |
Other Comprehensive Income (Loss) | 3,129 | 5,137 | (61,031) |
Balance at End of Period | 1,116,260 | 1,055,086 | 1,011,976 |
Defined Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at Beginning of Period | (34,115) | (22,394) | (30,569) |
Other Comprehensive Income (Loss) Before Reclassification | 4,466 | (12,286) | 7,347 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 788 | 565 | 828 |
Other Comprehensive Income (Loss) | 5,254 | (11,721) | 8,175 |
Balance at End of Period | (28,861) | (34,115) | (22,394) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at Beginning of Period | (26,686) | (31,823) | 29,208 |
Other Comprehensive Income (Loss) Before Reclassification | 1,156 | 5,037 | (56,780) |
Amounts Reclassified from Accumulated Other Comprehensive Income | 1,973 | 100 | (4,251) |
Other Comprehensive Income (Loss) | 3,129 | 5,137 | (61,031) |
Balance at End of Period | (23,557) | (26,686) | (31,823) |
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 | 15,984 | (1,300) | 45,996 |
Other Comprehensive Income (Loss) Before Reclassification | (3,310) | 17,323 | (47,296) |
Amounts Reclassified from Accumulated Other Comprehensive Income | (115) | (39) | 0 |
Other Comprehensive Income (Loss) | (3,425) | 17,284 | (47,296) |
Balance at End of Period | 12,559 | 15,984 | (1,300) |
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 | (8,555) | (8,129) | 13,781 |
Other Comprehensive Income (Loss) Before Reclassification | 0 | 0 | (16,831) |
Amounts Reclassified from Accumulated Other Comprehensive Income | 1,300 | (426) | (5,079) |
Other Comprehensive Income (Loss) | 1,300 | (426) | (21,910) |
Balance at End of Period | $ (7,255) | $ (8,555) | $ (8,129) |
Shareholders' Equity (Income st
Shareholders' Equity (Income statement reclass) (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | $ (70,498) | $ (74,596) | $ (63,659) |
Salaries and Benefits | (191,963) | (183,028) | (184,211) |
Net Income | 160,704 | 163,042 | 150,502 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income | (1,973) | (100) | 4,251 |
Amortization of Unrealized Gains(Losses) of Investment Securities Transferred from AFS to HTM [Member] | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment Income, Interest | (2,136) | 703 | 8,386 |
Provision for Income Taxes | 836 | (277) | (3,307) |
Net Income | (1,300) | 426 | 5,079 |
Sale of Investment Securities Available-for-Sale | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | (75) | (25) | 0 |
Available-for-sale Securities, Gross Realized Gain (Loss) | 190 | 64 | 0 |
Net Income | 115 | 39 | 0 |
Amortization of Defined Benefit Pension Items | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | 514 | 369 | 538 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (1,302) | (934) | (1,366) |
Net Income | (788) | (565) | (828) |
Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and Benefits | 322 | 322 | 322 |
Net Actuarial Losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and Benefits | $ (1,624) | $ (1,256) | $ (1,688) |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Denominator for Basic Earnings Per Share (in shares) | 43,217,818 | 43,899,208 | 44,380,948 |
Dilutive Effect of Equity Based Awards (in shares) | 237,059 | 226,248 | 191,777 |
Denominator for Diluted Earnings Per Share (in shares) | 43,454,877 | 44,125,456 | 44,572,725 |
Antidilutive Stock Options and Restricted Stock Outstanding (in shares) | 0 | 0 | 25,101 |
Business Segments (Details 1)
Business Segments (Details 1) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)atmbranch | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Business segment financial information | |||
Federal and State Effective Tax Rate used for Segment Reporting | 37.00% | ||
Net Interest Income | $ 394,087 | $ 379,656 | $ 358,907 |
Provision for Credit Losses | 1,000 | (4,864) | 0 |
Net Interest Income After Provision for Credit Losses | 393,087 | 384,520 | 358,907 |
Noninterest Income | 186,219 | 180,017 | 186,223 |
Noninterest Expense | (348,104) | (326,899) | (330,969) |
Income Before Provision for Income Taxes | 231,202 | 237,638 | 214,161 |
Provision for Income Taxes | (70,498) | (74,596) | (63,659) |
Net Income | 160,704 | 163,042 | 150,502 |
Total Assets | $ 15,455,016 | 14,787,208 | 14,084,280 |
Retail Banking | |||
Business segment financial information | |||
Number of branch locations through which products and services are delivered to customers | branch | 70 | ||
Number of ATM's through which products and services are delivered to customers | atm | 456 | ||
Net Interest Income | $ 202,259 | 178,480 | 160,869 |
Provision for Credit Losses | 8,033 | 4,783 | 8,565 |
Net Interest Income After Provision for Credit Losses | 194,226 | 173,697 | 152,304 |
Noninterest Income | 82,391 | 79,562 | 87,493 |
Noninterest Expense | (199,572) | (196,254) | (199,222) |
Income Before Provision for Income Taxes | 77,045 | 57,005 | 40,575 |
Provision for Income Taxes | (27,330) | (21,079) | (15,496) |
Net Income | 49,715 | 35,926 | 25,079 |
Total Assets | 4,680,888 | 4,088,878 | 3,627,700 |
Commercial Banking | |||
Business segment financial information | |||
Net Interest Income | 143,944 | 119,655 | 99,733 |
Provision for Credit Losses | (1,165) | (2,369) | 4,918 |
Net Interest Income After Provision for Credit Losses | 145,109 | 122,024 | 94,815 |
Noninterest Income | 21,804 | 23,635 | 27,488 |
Noninterest Expense | (76,891) | (66,760) | (65,189) |
Income Before Provision for Income Taxes | 90,022 | 78,899 | 57,114 |
Provision for Income Taxes | (31,457) | (26,952) | (18,877) |
Net Income | 58,565 | 51,947 | 38,237 |
Total Assets | 3,099,132 | 2,787,537 | 2,458,001 |
Investment Services | |||
Business segment financial information | |||
Net Interest Income | 18,494 | 15,238 | 14,199 |
Provision for Credit Losses | (43) | (313) | (71) |
Net Interest Income After Provision for Credit Losses | 18,537 | 15,551 | 14,270 |
Noninterest Income | 58,835 | 57,618 | 59,336 |
Noninterest Expense | (57,852) | (54,571) | (55,002) |
Income Before Provision for Income Taxes | 19,520 | 18,598 | 18,604 |
Provision for Income Taxes | (7,222) | (6,894) | (6,883) |
Net Income | 12,298 | 11,704 | 11,721 |
Total Assets | 274,469 | 202,645 | 189,421 |
Treasury and Other | |||
Business segment financial information | |||
Net Interest Income | 29,390 | 66,283 | 84,106 |
Provision for Credit Losses | (5,825) | (6,965) | (13,412) |
Net Interest Income After Provision for Credit Losses | 35,215 | 73,248 | 97,518 |
Noninterest Income | 23,189 | 19,202 | 11,906 |
Noninterest Expense | (13,789) | (9,314) | (11,556) |
Income Before Provision for Income Taxes | 44,615 | 83,136 | 97,868 |
Provision for Income Taxes | (4,489) | (19,671) | (22,403) |
Net Income | 40,126 | 63,465 | 75,465 |
Total Assets | $ 7,400,527 | $ 7,708,148 | $ 7,809,158 |
Employee Benefits (Defined cont
Employee Benefits (Defined contribution plans) (Details1 ) | 12 Months Ended | ||
Dec. 31, 2015USD ($)components | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Contribution Plans | |||
Number of company contribution components, Retirement Savings Plan | components | 3 | ||
Fixed percentage of employer's contribution based on eligible compensation | 3.00% | ||
Employee contribution limit per calendar year (as a percent of compensation) | 50.00% | ||
Employee's contribution matched by employer (in dollars) | $ 1 | ||
Employer match of employee contributions upto 2% of eligible compensation | $ 1.25 | ||
Percentage of eligible compensation, matched $1.25 for by employer for each dollar amount contributed by participants | 2.00% | ||
Employer match of employee contributions over 2% upto 5% of eligible compensation | $ 0.50 | ||
Percentage of eligible compensation, matched $0.50 for by employer for each dollar amount contributed by participants, low end of range | 2.00% | ||
Percentage of eligible compensation, matched $0.50 for by employer for each dollar amount contributed by participants, high end of range | 5.00% | ||
Total expense for all components of the company's defined contribution plans | $ 12,000,000 | $ 12,100,000 | $ 11,200,000 |
Employee Benefits (Defined bene
Employee Benefits (Defined benefit and postretirement benefit plans) (Details 2) | 12 Months Ended | ||
Dec. 31, 2015USD ($)planY | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Pension Benefits | |||
Employee benefits | |||
Number of defined benefit plans | plan | 2 | ||
Reconciliation of changes in benefit obligations | |||
Benefit Obligation at Beginning of Year | $ 114,707,000 | $ 98,085,000 | |
Service Cost | 0 | 0 | $ 0 |
Interest Cost | 4,655,000 | 4,975,000 | 4,514,000 |
Actuarial Losses (Gains) | (7,647,000) | 16,954,000 | |
Benefit Obligation at End of Year | 105,993,000 | 114,707,000 | 98,085,000 |
Reconciliation of changes in fair value of plan assets | |||
Fair Value of Plan Assets at Beginning of Year | 90,154,000 | 90,535,000 | |
Actual Return on Plan Assets | (1,058,000) | 4,442,000 | |
Employer Contributions | 484,000 | 484,000 | |
Employer Benefits Paid | (5,722,000) | (5,307,000) | |
Fair Value of Plan Assets at End of Year | 83,858,000 | 90,154,000 | 90,535,000 |
Funded Status at End of Year | (22,135,000) | (24,553,000) | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Net Actuarial Gains (Losses) | 33,239,000 | 35,254,000 | |
Prior Service Credit | 0 | 0 | |
Total Amounts Recognized in Accumulated Other Comprehensive Income, Net of Tax | $ (33,239,000) | (35,254,000) | |
Postretirement Benefits | |||
Employee benefits | |||
Retirees' age and above which Medicare supplemental plan subsidy is provided (in years) | Y | 65 | ||
Limit on annual credit provided in HRA to eligible employees | $ 1,200 | ||
Reconciliation of changes in benefit obligations | |||
Benefit Obligation at Beginning of Year | 30,804,000 | 27,296,000 | |
Service Cost | 621,000 | 586,000 | 670,000 |
Interest Cost | 1,155,000 | 1,325,000 | 1,188,000 |
Actuarial Losses (Gains) | (5,783,000) | 2,674,000 | |
Benefit Obligation at End of Year | 25,307,000 | 30,804,000 | 27,296,000 |
Reconciliation of changes in fair value of plan assets | |||
Fair Value of Plan Assets at Beginning of Year | 0 | 0 | |
Actual Return on Plan Assets | 0 | 0 | |
Employer Contributions | 1,490,000 | 1,077,000 | |
Employer Benefits Paid | (1,490,000) | (1,077,000) | |
Fair Value of Plan Assets at End of Year | 0 | 0 | $ 0 |
Funded Status at End of Year | (25,307,000) | (30,804,000) | |
Participants contributions | 600,000 | 700,000 | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Net Actuarial Gains (Losses) | (3,768,000) | (333,000) | |
Prior Service Credit | 610,000 | 806,000 | |
Total Amounts Recognized in Accumulated Other Comprehensive Income, Net of Tax | 4,378,000 | 1,139,000 | |
Excess retirement Plan | Pension Benefits | |||
Employee benefits | |||
Accumulated benefit obligation | $ 4,100,000 | $ 4,800,000 |
Employee Benefits (Components f
Employee Benefits (Components fo net Periodic benefit cost) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | |||
Net periodic benefit cost for pension plans and the postretirement benefit plan | |||
Service Cost | $ 0 | $ 0 | $ 0 |
Interest Cost | 4,655 | 4,975 | 4,514 |
Expected Return on Plan Assets | (5,222) | (5,100) | (5,250) |
Amortization of Prior Service Credit | 0 | 0 | 0 |
Amortization of Net Actuarial Losses (Gains) | 1,713 | 1,408 | 1,688 |
Net Periodic Benefit Cost | 1,146 | $ 1,283 | $ 952 |
Estimated amount expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year | |||
Net actuarial loss | $ 1,600 | ||
Weighted average assumptions used to determine the benefit obligations | |||
Discount Rate (as a percent) | 4.70% | 4.25% | |
Weighted average assumptions used to determine the net periodic benefit cost | |||
Discount rate (as a percent) | 4.25% | 5.22% | 4.29% |
Expected Long-Term Rate of Return on Plan Assets (as a percent) | 6.00% | 6.00% | 6.00% |
Health Care Cost Trend Rate (as a percent) | 0.00% | 0.00% | 0.00% |
Expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | |||
2,015 | $ 6,139 | ||
2,016 | 6,345 | ||
2,017 | 6,494 | ||
2,018 | 6,752 | ||
2,019 | 6,918 | ||
Years 2020-2024 | 35,744 | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 500 | ||
Postretirement Benefits | |||
Net periodic benefit cost for pension plans and the postretirement benefit plan | |||
Service Cost | 621 | $ 586 | $ 670 |
Interest Cost | 1,155 | 1,325 | 1,188 |
Expected Return on Plan Assets | 0 | 0 | 0 |
Amortization of Prior Service Credit | (322) | (322) | (322) |
Amortization of Net Actuarial Losses (Gains) | (89) | (152) | 0 |
Net Periodic Benefit Cost | 1,365 | $ 1,437 | $ 1,536 |
Estimated amount expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in next fiscal year | |||
Net gain and prior service credit | $ 600 | ||
Weighted average assumptions used to determine the benefit obligations | |||
Discount Rate (as a percent) | 4.74% | 4.28% | |
Health Care Cost Trend Rate Assumed For Next Year (as a percent) | 6.70% | 7.00% | |
Ultimate health care cost trend rate (as a percent) | 4.50% | ||
Year that reaches the ultimate health care cost trend rate | 2,027 | ||
Weighted average assumptions used to determine the net periodic benefit cost | |||
Discount rate (as a percent) | 4.28% | 5.22% | 4.29% |
Expected Long-Term Rate of Return on Plan Assets (as a percent) | 0.00% | 0.00% | 0.00% |
Health Care Cost Trend Rate (as a percent) | 7.00% | 7.20% | 7.70% |
A one percent change in the health care cost trend rate assumption impact on cost | |||
Effect of one percentage increase on the total of service and interest cost components of net periodic postretirement benefit cost | $ 147 | ||
Effect of one percentage increase on the postretirement benefit obligation | 2,004 | ||
Effect of one percentage decrease on the total of service and interest cost components of net periodic postretirement benefit cost | (152) | ||
Effect of one percentage decrease on the postretirement benefit obligation | (1,756) | ||
Expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | |||
2,015 | 1,001 | ||
2,016 | 1,004 | ||
2,017 | 988 | ||
2,018 | 1,016 | ||
2,019 | 1,081 | ||
Years 2020-2024 | 6,992 | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 1,000 |
Employee Benefits (Retirement p
Employee Benefits (Retirement plan assets) (Details 4) | 12 Months Ended |
Dec. 31, 2015D | |
Asset allocation guidelines | |
Fixed income securities, percentage of variable component in strategic targets (as a percent) | 20.00% |
Effect of market fluctuations in cash flow on target allocation limits (as a percent) | 5.00% |
Period during which asset allocation is expected to conform to range limits (in days) | 90 |
S&P 500 Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 35.00% |
MSCI EAFE Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 25.00% |
Barclays Capital Aggregate Bond Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 40.00% |
Equity Securities | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 60.00% |
Equity Securities, Domestic | Maximum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 100.00% |
Equity Securities, Domestic | Minimum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 50.00% |
Equity Securities, International | Maximum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 50.00% |
Equity Securities, International | Minimum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 0.00% |
Fixed Income Securities | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 40.00% |
Cash | Maximum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 20.00% |
Cash | Minimum | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 0.00% |
Employee Benefits (Fair values
Employee Benefits (Fair values of retirement plan assets) (Details 5) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined benefit pension plan disclosure | |||
Fair value of plan assets | $ 83,858 | $ 90,154 | $ 90,535 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 83,858 | ||
Cash | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,313 | 1,385 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,313 | ||
Equity Security - Mutual Funds: Mixed-Cap | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 30,949 | 33,648 | |
Equity Security - Mutual Funds: Mixed-Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 30,949 | ||
Equity Security - Mutual Funds: International | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 17,917 | 18,882 | |
Equity Security - Mutual Funds: International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 17,917 | ||
Equity Security - Mutual Funds: Emerging Market | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,982 | 2,053 | |
Equity Security - Mutual Funds: Emerging Market | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,982 | ||
Fixed Income - Mutual Funds | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 31,697 | $ 34,186 | |
Fixed Income - Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | $ 31,697 |
Share-Based Compensation (Detai
Share-Based Compensation (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation [Line Items] | |||
Total shares authorized | 1,300,000 | ||
Shares available for future grants of stock options or restricted stock | 1,100,000 | ||
Compensation Expense | $ 7,689 | $ 7,870 | $ 5,546 |
Income Tax Benefit | $ 3,036 | $ 3,104 | 2,188 |
Stock Options [Roll Forward] | |||
Outstanding at the beginning of the period (in shares) | 755,343 | ||
Exercised (in shares) | (197,927) | ||
Forfeited (in shares) | (2,057) | ||
Outstanding at the end of the period (in shares) | 555,359 | 755,343 | |
Vested and Exercisable at the end of the period (in shares) | 555,359 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 46.29 | ||
Exercised (in dollars per share) | 49.03 | ||
Forfeited (in dollars per share) | 47.35 | ||
Outstanding at the end of the period (in dollars per share) | 45.31 | $ 46.29 | |
Vested and Exercisable at the end of period (in dollars per share) | $ 45.31 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at the end of the period (in years) | 5 years 9 months | ||
Vested and Exercisable at the end of period (in years) | 5 years 9 months | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | $ 9,770 | ||
Vested and Exercisable at the end of the period | 9,770 | ||
Stock options activity | |||
Intrinsic Value of Stock Options Exercised | 2,754 | $ 1,209 | 3,262 |
Cash Received from Stock Options Exercised | 9,704 | 4,083 | 8,369 |
Tax Benefits Realized from Stock Options Exercised | 330 | 34 | 690 |
Total Fair Value of Stock Options that Vested | $ 0 | $ 0 | $ 3,731 |
Stock Options | |||
Share-based Compensation [Line Items] | |||
Expiration period | 10 years | ||
Restricted Stock | |||
Restricted Stock | |||
Unrecognized compensation cost related to unvested restricted stock | $ 8,300 | ||
Weighted average period during which unrecognized compensation cost is expected to be recognized (in years) | 1 year 10 months | ||
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 263,446 | 239,775 | 211,526 |
Granted (in shares) | 116,331 | 155,447 | 170,991 |
Vested (in shares) | (108,949) | (130,238) | (133,245) |
Forfeited (in shares) | (2,015) | (1,538) | (9,497) |
Unvested at the end of the period (in shares) | 268,813 | 263,446 | 239,775 |
Weighted Average Grant Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 53.04 | $ 47.50 | $ 47.91 |
Granted (in dollars per share) | 57.31 | 58.45 | 47.69 |
Vested (in dollars per share) | 52.47 | 47.32 | 48.39 |
Forfeited (in dollars per share) | 54.17 | 51.19 | 47.54 |
Unvested at the end of the period (in dollars per share) | $ 55.92 | $ 53.04 | $ 47.50 |
Grant Date Fair Value of Restricted Stock that Vested During the Year | |||
Vested (in dollars) | $ 5,759 | $ 6,163 | $ 6,448 |
Service-Based Restricted Stock | |||
Number of Shares | |||
Unvested at the end of the period (in shares) | 26,281 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation [Line Items] | |||
Compensation Expense | $ 3,300 | $ 1,600 | |
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 105,405 | 0 | |
Granted (in shares) | 61,751 | 105,405 | |
Vested (in shares) | (31,651) | ||
Unvested at the end of the period (in shares) | 135,505 | 105,405 | 0 |
Weighted Average Grant Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 55.17 | $ 0 | |
Granted (in dollars per share) | 56.68 | 55.17 | |
Vested (in dollars per share) | 55.17 | ||
Unvested at the end of the period (in dollars per share) | $ 55.86 | $ 55.17 | $ 0 |
Grant Date Fair Value of Restricted Stock that Vested During the Year | |||
Vested (in dollars) | $ 1,940 | ||
Minimum | Restricted Stock | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 1 year | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 3 years | ||
Maximum | Restricted Stock | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 5 years | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 4 years |
Income Taxes (Deferred tax liab
Income Taxes (Deferred tax liabilities & assets and reconciliation of statutory federal income taxes to the company's effective tax rate) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 73,278 | $ 76,789 | $ 63,731 |
State | 3,737 | 3,018 | (575) |
Total Current | 77,015 | 79,807 | 63,156 |
Deferred: | |||
Federal | (6,801) | (5,603) | (231) |
State | 284 | 392 | 734 |
Total Deferred | (6,517) | (5,211) | 503 |
Provision for Income Taxes | 70,498 | 74,596 | 63,659 |
Net tax charge/(benefit) recorded directly to consolidated shareholders' equity | 1,000 | 2,700 | $ (40,600) |
Deferred Tax Liabilities: | |||
Accrued Pension Cost | (13,707) | (14,014) | |
Federal Home Loan Bank Stock | (5,088) | (6,658) | |
Lease Transactions | (85,874) | (97,864) | |
Energy Tax Credits | (8,054) | (5,716) | |
Net Unrealized Gains on Investments Securities | (3,453) | (4,830) | |
Deferred Loan Fees | (7,744) | (5,982) | |
Originated Mortgage Servicing Rights | (9,104) | (9,777) | |
Other | (657) | (599) | |
Gross Deferred Tax Liabilities | (133,681) | (145,440) | |
Deferred Tax Assets: | |||
Accelerated Depreciation | 7,775 | 9,419 | |
Allowance for Loan Losses | 42,890 | 44,877 | |
Minimum Pension Liability | 18,831 | 22,214 | |
Accrued Expenses | 16,738 | 15,622 | |
Postretirement Benefit Obligations | 12,849 | 12,884 | |
Capital Lease Expenses | 3,231 | 3,222 | |
Restricted Stock | 6,262 | 5,288 | |
Investment in Unincorporated Entities | 1,951 | 3,084 | |
Deductible State and Local Taxes | 4,166 | 5,598 | |
Other | 7,225 | 6,898 | |
Gross Deferred Tax Assets Before Valuation Allowance | 121,918 | 129,106 | |
Valuation Allowance | (3,932) | (4,656) | |
Gross Deferred Tax Assets After Valuation Allowance | 117,986 | 124,450 | |
Net Deferred Tax Liabilities | (15,695) | $ (20,990) | |
Base year reserves included in retained earnings | 18,200 | ||
Unrecognized deferred federal income tax liability | $ 7,200 | ||
Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate | |||
Statutory Federal Income Tax Rate (as a percent) | 35.00% | 35.00% | 35.00% |
Increase (Decrease) in Income Tax Rate Resulting From: | |||
State Taxes, Net of Federal Income Tax (as a percent) | 1.23% | 0.59% | 0.11% |
Tax Reserve Adjustments (as a percent) | 0.38% | 0.88% | (0.44%) |
Leveraged Leases (as a percent) | 0.06% | 0.01% | 0.02% |
Low-Income Housing Investments (as a percent) | (0.78%) | (0.10%) | (0.51%) |
Investment Tax Credits (as a percent) | (0.89%) | (0.68%) | (0.80%) |
Bank-Owned Life Insurance (as a percent) | (1.06%) | (0.97%) | (0.96%) |
Tax-Exempt Income (as a percent) | (3.03%) | (2.83%) | (2.78%) |
Other (as a percent) | (0.42%) | (0.51%) | 0.09% |
Effective Tax Rate (as a percent) | 30.49% | 31.39% | 29.73% |
Income Taxes (Unrecognized tax
Income Taxes (Unrecognized tax benefits) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of liability for Unrecognized Tax Benefits | |||
Unrecognized Tax Benefits at the Beginning of Year | $ 12,229 | $ 11,846 | $ 15,433 |
Gross Increases, Related to Tax Positions Taken in a Prior Period | 398 | 1,074 | 1,587 |
Gross Decreases, Related to Tax Positions Taken in a Prior Period | (98) | (314) | (194) |
Gross Increases, Related to Current Period Tax Positions | 573 | 498 | 1,557 |
Lapse of Statute of Limitations | (1,500) | (875) | (6,537) |
Unrecognized Tax Benefits at the End of Year | 11,602 | 12,229 | 11,846 |
Amount related to unrecognized tax benefits that if reversed would impact effective tax rate | 10,800 | 11,300 | |
Interest and penalties expense/(benefit) related to the liability for unrecognized tax benefits | 100 | 200 | $ (1,200) |
Accrued interest and penalties related to the liability for unrecognized tax benefits | $ 2,200 | $ 2,200 |
Derivative Financial Instrume98
Derivative Financial Instruments (Notional and fair value amounts) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Interest Rate Lock Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | $ 4,375 | $ 2,354 |
Fair Value | 270 | 152 |
Forward Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 5,862 | 5,404 |
Fair Value | 4 | (13) |
Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 203,667 | 183,283 |
Fair Value | 13,021 | 16,206 |
Interest Rate Swap Agreements Pay Fixed/Receive Variable Swaps | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 203,667 | 183,283 |
Fair Value | (13,051) | (16,240) |
Foreign Exchange Contracts | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Notional Amount | 42,777 | 44,240 |
Fair Value | $ 104 | $ (345) |
Derivative Financial Instrume99
Derivative Financial Instruments (Assets and liabilities) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | $ 13,967 | $ 16,515 |
Liability Derivatives | 13,619 | 16,755 |
Interest Rate Lock Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 270 | 152 |
Liability Derivatives | 0 | 0 |
Forward Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 5 | 0 |
Liability Derivatives | 1 | 13 |
Interest Rate Swap Agreements | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 13,543 | 16,262 |
Liability Derivatives | 13,573 | 16,296 |
Foreign Exchange Contracts | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 149 | 101 |
Liability Derivatives | $ 45 | $ 446 |
Derivative Financial Instrum100
Derivative Financial Instruments (Net gains or losses) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | $ 6,674 | $ 5,782 | $ 17,651 |
Interest Rate Lock Commitments | Mortgage Banking Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 2,779 | 3,072 | 6,092 |
Forward Commitments | Mortgage Banking Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 27 | (527) | 8,085 |
Interest Rate Swap Agreements | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 1,085 | 130 | 292 |
Foreign Exchange Contracts | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | $ 2,783 | $ 3,107 | $ 3,182 |
Derivative Financial Instrum101
Derivative Financial Instruments (Conversion rate swap agreement narrative) (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Derivative [Line Items] | |||
Liability Derivatives | $ 13,619 | $ 16,755 | |
Visa Conversion Rate Swap Agreement | |||
Derivative [Line Items] | |||
Liability Derivatives | $ 100 |
Affordable Housing Projects 102
Affordable Housing Projects Tax Credit Partnerships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Net affordable housing tax credit investments and related unfunded commitments | $ 68,800 | $ 68,500 | |
Affordable Housing Tax Credit Investments, Unfunded Commitments [Abstract] | |||
2,016 | 16,305 | ||
2,017 | 8,778 | ||
2,018 | 28 | ||
2,019 | 75 | ||
2,020 | 3 | ||
Thereafter | 65 | ||
Total Unfunded Commitments | 25,254 | ||
Investments in Affordable Housing Projects [Abstract] | |||
Tax Credits and Other Tax Benefits recognized | 13,448 | 10,946 | $ 9,416 |
Amortization expense in provision for income taxes | $ 7,735 | $ 5,881 | $ 4,673 |
Balance Sheet Offsetting (Repos
Balance Sheet Offsetting (Repos - by maturity date and collateral type) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | $ 628,857 | $ 688,601 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 310,313 | |
Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 52,707 | |
Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 155,238 | |
Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 110,599 | |
Maturity Up To 90 Days [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 49,065 | |
Maturity Up To 90 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity Up To 90 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 47,915 | |
Maturity Up To 90 Days [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 1,150 | |
Maturity Up To 90 Days [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity 91 To 365 Days [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 79,692 | |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 4,692 | |
Maturity 91 To 365 Days [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 51,169 | |
Maturity 91 To 365 Days [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 23,831 | |
Maturity 1 To 3 Years [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 200,100 | |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 200,000 | |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 100 | |
Maturity 1 To 3 Years [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity 1 To 3 Years [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity After 3 Years [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 300,000 | |
Maturity After 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 110,313 | |
Maturity After 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | |
Maturity After 3 Years [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 102,919 | |
Maturity After 3 Years [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | $ 86,768 |
Balance Sheet Offsetting (Asset
Balance Sheet Offsetting (Assets and liabilities subject to MNA, or repurchase agreements) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | $ 628,857 | $ 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 | 628,857 | 688,601 |
Repurchase Agreements, Fair Value of Collateral Pledged | 628,857 | 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 | 13,100 | 16,200 |
Institutional Counterparties | Interest Rate Swap Agreements | ||
Assets: | ||
Gross Amounts of Recognized Assets | 261 | 28 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 261 | 28 |
Derivative Asset, Not Offset, Policy Election Deduction | 261 | 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 | 13,312 | 16,268 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 13,312 | 16,268 |
Derivative Liability, Not Offset, Policy Election Deduction | 261 | 28 |
Derivative, Collateral, Right to Reclaim Securities | 0 | 0 |
Derivative Liabilities, Net Amount | 13,051 | 16,240 |
Private Institutions | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 663,200 | 694,700 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 575,000 | 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 | 575,000 | 600,000 |
Repurchase Agreements, Fair Value of Collateral Pledged | 575,000 | 600,000 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | 0 | 0 |
Government Entities | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 66,900 | |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 53,857 | 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 | 53,857 | 88,601 |
Repurchase Agreements, Fair Value of Collateral Pledged | 53,857 | 88,601 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | $ 0 | $ 0 |
Commitments, Contingencies, 105
Commitments, Contingencies, and Guarantees (Credit commitments) (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Credit Commitments | |
Credit Commitments | $ 2,668,449 |
Unfunded Commitments to Extend Credit | |
Credit Commitments | |
Credit Commitments | 2,604,429 |
Standby Letters of Credit | |
Credit Commitments | |
Credit Commitments | 48,153 |
Assets secured for standby letters of credit | 33,500 |
Commercial Letters of Credit | |
Credit Commitments | |
Credit Commitments | $ 15,867 |
Standby and Commercial Letters of Credit | Minimum | |
Credit Commitments | |
Standby and commercial letters of credit, remaining term (in months) | 1 month |
Standby and Commercial Letters of Credit | Maximum | |
Credit Commitments | |
Standby and commercial letters of credit, remaining term (in months) | 27 months |
Commitments, Contingencies, 106
Commitments, Contingencies, and Guarantees (Rental expense and future minimum payments) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Rental expense | |||
Minimum Rentals | $ 18,826 | $ 18,411 | $ 19,258 |
Sublease Rental Income | (6,212) | (6,647) | (6,806) |
Total | 12,614 | $ 11,764 | $ 12,452 |
Future minimum payments for capital leases | |||
2,016 | 825 | ||
2,017 | 825 | ||
2,018 | 825 | ||
2,019 | 825 | ||
2,020 | 825 | ||
Thereafter | 26,405 | ||
Total Future Minimum Lease Payments | 30,530 | ||
Amounts Representing Interest | (19,682) | ||
Present Value of Net Future Minimum Lease Payments | 10,848 | ||
Future minimum payments for operating leases | |||
2,016 | 13,752 | ||
2,017 | 11,289 | ||
2,018 | 9,974 | ||
2,019 | 8,253 | ||
2,020 | 7,993 | ||
Thereafter | 99,276 | ||
Total Future Minimum Lease Payments | 150,537 | ||
Minimum future rental income receivable under subleases from non-cancelable operating leases | $ 13,500 |
Commitments, Contingencies, 107
Commitments, Contingencies, and Guarantees (Representations and warranties) (Details 3) - Residential Mortgage $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)Loan | |
Representations and Warranties | |
Unpaid principal balance of mortgage loans sold | $ | $ 2,500 |
Number of mortgage loans repurchased | 4 |
Unpaid principal balance of repurchased mortgage loan | $ | $ 1.2 |
Number of mortgage loans repurchased, delinquent | 3 |
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 investors as percentage of total | 99.00% |
Fair Value of Assets and Lia108
Fair Value of Assets and Liabilities (Fair value on recurring basis) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | |||
Available-for-Sale: Fair Value | $ 2,256,818 | $ 2,289,190 | $ 2,243,697 |
Loans Held for Sale | 4,808 | 5,136 | |
Derivative Assets | 13,967 | 16,515 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Available-for-Sale: Fair Value | 2,256,818 | 2,289,190 | |
Loans Held for Sale | 4,808 | 5,136 | |
Mortgage Servicing Rights | 1,970 | 2,604 | |
Other Assets | 20,262 | 18,794 | |
Derivative Assets | 13,967 | 16,515 | |
Total Assets Measured at Fair Value on a Recurring Basis | 2,297,825 | 2,332,239 | |
Liabilities: | |||
Derivative Liabilities | 13,619 | 16,755 | |
Total Liabilities Measured at Fair Value on a Recurring Basis | 13,619 | 16,755 | |
Fair Value, Measurements, Recurring [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | |||
Assets: | |||
Available-for-Sale: Fair Value | 358,894 | 331,258 | |
Fair Value, Measurements, Recurring [Member] | Debt Securities Issued by States and Political Subdivisions | |||
Assets: | |||
Available-for-Sale: Fair Value | 731,918 | 743,970 | |
Fair Value, Measurements, Recurring [Member] | Debt Securities Issued by Corporations | |||
Assets: | |||
Available-for-Sale: Fair Value | 308,870 | 294,833 | |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities | |||
Assets: | |||
Available-for-Sale: Fair Value | 857,136 | 919,129 | |
Fair Value, Measurements, Recurring [Member] | Residential - Government Agencies | |||
Assets: | |||
Available-for-Sale: Fair Value | 316,245 | 462,436 | |
Fair Value, Measurements, Recurring [Member] | Residential - U.S. Government Sponsored Enterprises | |||
Assets: | |||
Available-for-Sale: Fair Value | 441,864 | 278,461 | |
Fair Value, Measurements, Recurring [Member] | Commercial - Government Agencies | |||
Assets: | |||
Available-for-Sale: Fair Value | 99,027 | 178,232 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Available-for-Sale: Fair Value | 545 | 61,271 | |
Loans Held for Sale | 0 | 0 | |
Mortgage Servicing Rights | 0 | 0 | |
Other Assets | 20,262 | 18,794 | |
Derivative Assets | 0 | 0 | |
Total Assets Measured at Fair Value on a Recurring Basis | 20,807 | 80,065 | |
Liabilities: | |||
Derivative Liabilities | 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 (Level 1) | Debt Securities Issued by the U.S. Treasury and Government Agencies | |||
Assets: | |||
Available-for-Sale: Fair Value | 545 | 61,271 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (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 (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 (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 (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 (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 (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 | 2,256,273 | 2,227,919 | |
Loans Held for Sale | 4,808 | 5,136 | |
Mortgage Servicing Rights | 0 | 0 | |
Other Assets | 0 | 0 | |
Derivative Assets | 154 | 101 | |
Total Assets Measured at Fair Value on a Recurring Basis | 2,261,235 | 2,233,156 | |
Liabilities: | |||
Derivative Liabilities | 46 | 459 | |
Total Liabilities Measured at Fair Value on a Recurring Basis | 46 | 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 | 358,349 | 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 | 731,918 | 743,970 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Corporations | |||
Assets: | |||
Available-for-Sale: Fair Value | 308,870 | 294,833 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Mortgage-Backed Securities | |||
Assets: | |||
Available-for-Sale: Fair Value | 857,136 | 919,129 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Residential - Government Agencies | |||
Assets: | |||
Available-for-Sale: Fair Value | 316,245 | 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 | 441,864 | 278,461 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Commercial - Government Agencies | |||
Assets: | |||
Available-for-Sale: Fair Value | 99,027 | 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 | 1,970 | 2,604 | |
Other Assets | 0 | 0 | |
Derivative Assets | 13,813 | 16,414 | |
Total Assets Measured at Fair Value on a Recurring Basis | 15,783 | 19,018 | |
Liabilities: | |||
Derivative Liabilities | 13,573 | 16,296 | |
Total Liabilities Measured at Fair Value on a Recurring Basis | 13,573 | 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 Lia109
Fair Value of Assets and Liabilities (FV on recurring basis-Level 3 rollforward) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Mortgage Servicing Rights Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Mortgage Servicing Rights, Beginning Balance | $ 2,604 | $ 3,826 |
Fair Value, Mortgage Servicing Rights, Realized and Unrealized Net Gains (Losses) Included in Net Income | (634) | (1,222) |
Fair Value, Mortgage Servicing Rights, Ending Balance | 1,970 | 2,604 |
Fair Value, Mortgage Service Rights, Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | (251) | (868) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Net Derivative Assets and Liabilities, Beginning Balance | 118 | 379 |
Fair Value, Net Derivative Assets and Liabilities, Realized and Unrealized Net Gains (Losses) Included in Net Income | 2,783 | 3,195 |
Fair Value, Net Derivative Assets and Liabilities, Transfers to Loans Held for Sale | (2,661) | (3,456) |
Fair Value, Net Derivative Assets and Liabilities, Ending Balance | 240 | 118 |
Fair Value, Net Derivative Assets and Liabilities,Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | $ 240 | $ 118 |
Fair Value of Assets and Lia110
Fair Value of Assets and Liabilities (FV on recurring or nonrecurring basis-level 3 inputs) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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) | 94.70% | 93.85% |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 270 | $ 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 | $ (30) | $ (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) | 9.10% | 11.62% |
Weighted Average Discount Rate (as a percent) | 9.38% | 10.61% |
Mortgage Servicing Rights, at Fair Value | $ 26,774 | $ 25,441 |
Fair Value of Assets and Lia111
Fair Value of Assets and Liabilities (FV on nonrecurring basis) (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)aircraft | Dec. 31, 2014USD ($)property | |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Mortgage Servicing Rights accounted for under the amortization method, valuation allowance | $ 21 | $ 57 |
Foreclosed Real Estate | 824 | 2,311 |
Foreclosed Real Estate, Valuation Allowance | 0 | $ 89 |
Other Assets, Equipment Held for Sale, Valuation Allowance | $ 9,453 | |
Number of Impaired Foreclosed Real Estate | property | 1 | |
Number of Impaired Aircraft | aircraft | 6 | |
Other Asset Impairment Charges | $ 9,500 | |
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Unobservable Inputs (Level 3) | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||
Mortgage Servicing Rights accounted for under the amortization method | 21,032 | $ 22,091 |
Foreclosed Real Estate | 824 | $ 2,311 |
Other Assets, Equipment Held for Sale | $ 4,657 |
Fair Value of Assets and Lia112
Fair Value of Assets and Liabilities (FV option) (Details 5) - Residential Mortgage Loans Held For Sale - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Option | ||
Aggregate Fair Value | $ 4,808 | $ 5,136 |
Aggregate Unpaid Principal | 4,575 | 4,740 |
Aggregate Fair Value less Aggregate Unpaid Principal | $ 233 | $ 396 |
Fair Value of Assets and Lia113
Fair Value of Assets and Liabilities (Financial instruments not recorded at FV on recurring basis) (Details 6) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | $ 4,006,412 | $ 4,504,495 | $ 4,697,587 |
Carrying Amount | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 3,982,736 | 4,466,679 | |
Loans | 7,538,454 | 6,542,719 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,177,651 | 1,434,001 | |
Securities Sold Under Agreements to Repurchase | 628,857 | 688,601 | |
Long-Term Debt | 234,938 | 163,005 | |
Fair value | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 4,006,412 | 4,504,495 | |
Loans | 7,967,385 | 7,048,757 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,178,837 | 1,437,064 | |
Securities Sold Under Agreements to Repurchase | 686,853 | 758,781 | |
Long-Term Debt | 235,668 | 163,911 | |
Fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 489,967 | 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 | 3,516,445 | 4,004,879 | |
Loans | 0 | 0 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,178,837 | 1,437,064 | |
Securities Sold Under Agreements to Repurchase | 686,853 | 758,781 | |
Long-Term Debt | 235,668 | 163,911 | |
Fair value | Significant Other Unobservable Inputs (Level 3) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 0 | 0 | |
Loans | 7,967,385 | 7,048,757 | |
Financial Instruments - Liabilities | |||
Time Deposits | 0 | 0 | |
Securities Sold Under Agreements to Repurchase | 0 | 0 | |
Long-Term Debt | $ 0 | $ 0 |
Bank of Hawaii Corporation F114
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Comprehensive Income) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income | |||
Investment Securities Gains (Losses), Net | $ 10,160 | $ 8,063 | $ 0 |
Noninterest Expense | |||
Total Noninterest Expense | 348,104 | 326,899 | 330,969 |
Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries | 231,202 | 237,638 | 214,161 |
Income Tax Benefit (Expense) | (70,498) | (74,596) | (63,659) |
Comprehensive Income | 163,833 | 168,179 | 89,471 |
Parent | |||
Income | |||
Dividends and Interest from Bank of Hawaii | 115,000 | 136,000 | 133,000 |
Investment Securities Gains (Losses), Net | 9,870 | 7,810 | 0 |
Other Income | 973 | 690 | 727 |
Total Income | 125,843 | 144,500 | 133,727 |
Noninterest Expense | |||
Intercompany Salaries and Services | 651 | 839 | 852 |
Other Expenses | 2,325 | 2,067 | 2,942 |
Total Noninterest Expense | 2,976 | 2,906 | 3,794 |
Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries | 122,867 | 141,594 | 129,933 |
Income Tax Benefit (Expense) | (1,670) | 225 | 2,211 |
Equity in Undistributed Income of Subsidiaries | 39,507 | 21,223 | 18,358 |
Net Income | 160,704 | 163,042 | 150,502 |
Comprehensive Income | $ 163,833 | $ 168,179 | $ 89,471 |
Bank of Hawaii Corporation F115
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Condition) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Investment Securities Held-to-Maturity | $ 3,982,736 | $ 4,466,679 | $ 4,744,519 | |
Goodwill | 31,517 | 31,517 | ||
Other Assets | 199,392 | 225,888 | ||
Total Assets | 15,455,016 | 14,787,208 | 14,084,280 | |
Liabilities | ||||
Other Liabilities | 135,534 | 139,659 | ||
Total Liabilities | 14,338,756 | 13,732,122 | ||
Shareholders' Equity | 1,116,260 | 1,055,086 | $ 1,011,976 | $ 1,021,665 |
Total Liabilities and Shareholders' Equity | 15,455,016 | 14,787,208 | ||
Parent | ||||
Assets | ||||
Cash with Bank of Hawaii | 63,755 | 68,563 | ||
Investment Securities Held-to-Maturity | 4,960 | 4,947 | ||
Goodwill | 14,129 | 14,129 | ||
Income Taxes Receivable and Deferred Tax Assets | 2,445 | 2,868 | ||
Other Assets | 7,842 | 7,825 | ||
Equity in Net Assets of Subsidiaries | 1,036,977 | 976,354 | ||
Total Assets | 1,130,108 | 1,074,686 | ||
Liabilities | ||||
Income Taxes Payable | 5,072 | 6,269 | ||
Other Liabilities | 8,776 | 13,331 | ||
Total Liabilities | 13,848 | 19,600 | ||
Shareholders' Equity | 1,116,260 | 1,055,086 | ||
Total Liabilities and Shareholders' Equity | $ 1,130,108 | $ 1,074,686 |
Bank of Hawaii Corporation F116
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Cash Flows) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Share-Based Compensation | $ 7,689 | $ 7,870 | $ 5,546 |
Net Losses (Gains) on Investment Securities | (10,160) | (8,063) | 0 |
Net Change in Other Assets and Other Liabilities | 13,331 | (2,915) | 9,162 |
Net Cash Provided by Operating Activities | 234,012 | 209,480 | 241,963 |
Investing Activities | |||
Proceeds from Sales of Investment Securities | 67,985 | 16,574 | 0 |
Purchase of Investment Securities Held-to-Maturity Securities | (518,664) | (525,070) | (1,661,874) |
Net Cash Provided by (Used in) Investing Activities | (531,103) | (640,071) | (471,294) |
Financing Activities | |||
Proceeds from Issuance of Common Stock | 15,364 | 9,995 | 14,495 |
Repurchase of Common Stock | (52,981) | (64,046) | (39,655) |
Cash Dividends Paid | (78,367) | (79,660) | (80,534) |
Net Cash Provided by (Used in) Financing Activities | 517,236 | 502,421 | 340,216 |
Cash and Cash Equivalents at Beginning of Period | 535,576 | 463,746 | 352,861 |
Cash and Cash Equivalents at End of Period | 755,721 | 535,576 | 463,746 |
Parent | |||
Operating Activities | |||
Net Income | 160,704 | 163,042 | 150,502 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Share-Based Compensation | 639 | 656 | 616 |
Net Losses (Gains) on Investment Securities | (9,870) | (7,810) | 0 |
Equity in Undistributed Income of Subsidiaries | (39,507) | (21,223) | (18,358) |
Net Change in Other Assets and Other Liabilities | (481) | 78 | 1,980 |
Net Cash Provided by Operating Activities | 111,485 | 134,743 | 134,740 |
Investing Activities | |||
Capital Contributions to the Bank | (10,179) | 0 | 0 |
Proceeds from Sales of Investment Securities | 9,870 | 7,810 | 0 |
Purchase of Investment Securities Held-to-Maturity Securities | 0 | (4,936) | 0 |
Net Cash Provided by (Used in) Investing Activities | (309) | 2,874 | 0 |
Financing Activities | |||
Proceeds from Issuance of Common Stock | 15,364 | 9,995 | 14,495 |
Repurchase of Common Stock | (52,981) | (64,046) | (39,655) |
Cash Dividends Paid | (78,367) | (79,660) | (80,534) |
Net Cash Provided by (Used in) Financing Activities | (115,984) | (133,711) | (105,694) |
Net Change in Cash and Cash Equivalents | (4,808) | 3,906 | 29,046 |
Cash and Cash Equivalents at Beginning of Period | 68,563 | 64,657 | 35,611 |
Cash and Cash Equivalents at End of Period | $ 63,755 | $ 68,563 | $ 64,657 |
Uncategorized Items - boh-20151
Label | Element | Value |
Commercial Mortgage-Backed Securities Issued by Government Agencies [Member] | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | $ 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 10,206,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 8,581,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 4,200,000 |
Residential Mortgage-Backed Securities issued by U.S. government agencies [Member] | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 13,816,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 10,986,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 6,546,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 1,849,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 1,043,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 1,267,000 |
Residential Mortgage-Backed Securities Issued by U.S. Government Sponsored Enterprises [Member] | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 1,403,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 2,262,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedGainBeforeTax | 1,368,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 191,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | us-gaap_AvailableForSaleSecuritiesAccumulatedGrossUnrealizedLossBeforeTax | 2,264,000 |
Commercial Mortgage-Backed Securities Issued by Government Agencies [Member] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 295,685,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 126,247,000 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateFairValue | 256,957,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 171,091,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 52,207,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 124,594,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 74,040,000 |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | us-gaap_HeldToMaturitySecuritiesAmortizedCostBeforeOtherThanTemporaryImpairment | 322,367,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 179,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 958,000 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateNetCarryingAmount | 256,808,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 3,612,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 1,274,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 3,791,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 2,232,000 |
Residential Mortgage-Backed Securities issued by U.S. government agencies [Member] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 1,126,878,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 976,709,000 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateFairValue | 2,199,964,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 845,911,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 414,207,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 280,967,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 562,502,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 1,207,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 5,828,000 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateNetCarryingAmount | 2,191,138,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 19,429,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 13,239,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 20,636,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 19,067,000 |
Residential Mortgage-Backed Securities Issued by U.S. Government Sponsored Enterprises [Member] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 45,754,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 450,147,000 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Fair Value | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateFairValue | 646,802,000 |
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, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 45,754,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 450,147,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 15,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 2,616,000 |
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | us-gaap_HeldToMaturitySecuritiesDebtMaturitiesWithoutSingleMaturityDateNetCarryingAmount | 647,762,000 |
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, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 15,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | $ 2,616,000 |