Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-6887 | |
Entity Registrant Name | BANK OF HAWAII CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 99-0148992 | |
Entity Address, Address Line One | 130 Merchant Street | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 888 | |
Local Phone Number | 643-3888 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,010,741 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000046195 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | BOH | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest Income | ||
Interest and Fees on Loans and Leases | $ 108,210 | $ 108,511 |
Income on Investment Securities | ||
Available-for-Sale | 16,711 | 13,432 |
Held-to-Maturity | 19,252 | 21,921 |
Deposits | 9 | 15 |
Funds Sold | 546 | 1,444 |
Other | 218 | 319 |
Total Interest Income | 144,946 | 145,642 |
Interest Expense | ||
Deposits | 14,260 | 15,284 |
Securities Sold Under Agreements to Repurchase | 4,025 | 4,571 |
Funds Purchased | 72 | 157 |
Short-Term Borrowings | 39 | 36 |
Other Debt | 584 | 757 |
Total Interest Expense | 18,980 | 20,805 |
Net Interest Income | 125,966 | 124,837 |
Provision for Credit Losses | 33,600 | 3,000 |
Net Interest Income After Provision for Credit Losses | 92,366 | 121,837 |
Noninterest Income | ||
Trust and Asset Management | 10,915 | 10,761 |
Mortgage Banking | 2,695 | 2,287 |
Service Charges on Deposit Accounts | 7,451 | 7,364 |
Fees, Exchange, and Other Service Charges | 13,200 | 14,208 |
Investment Securities Gains (Losses), Net | (970) | (835) |
Annuity and Insurance | 928 | 2,578 |
Bank-Owned Life Insurance | 1,580 | 1,710 |
Other | 10,350 | 5,606 |
Total Noninterest Income | 46,149 | 43,679 |
Noninterest Expense | ||
Salaries and Benefits | 54,463 | 56,586 |
Net Occupancy | 8,955 | 7,594 |
Net Equipment | 8,456 | 6,833 |
Data Processing | 4,788 | 4,526 |
Professional Fees | 3,208 | 2,453 |
FDIC Insurance | 1,456 | 1,269 |
Other | 14,986 | 13,796 |
Total Noninterest Expense | 96,312 | 93,057 |
Income Before Provision for Income Taxes | 42,203 | 72,459 |
Provision for Income Taxes | 7,461 | 13,660 |
Net Income | $ 34,742 | $ 58,799 |
Basic Earnings Per Share (in dollars per share) | $ 0.88 | $ 1.44 |
Diluted Earnings Per Share (in dollars per share) | 0.87 | 1.43 |
Dividends Declared Per Share (in dollars per share) | $ 0.67 | $ 0.62 |
Basic Weighted Average Shares (in shares) | 39,681,611 | 40,938,318 |
Diluted Weighted Average Shares (in shares) | 39,916,986 | 41,213,453 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 34,742 | $ 58,799 |
Other Comprehensive Income (Loss), Net of Tax: | ||
Net Unrealized Gains (Losses) on Investment Securities | 41,559 | 6,919 |
Defined Benefit Plans | 374 | 246 |
Total Other Comprehensive Income (Loss) | 41,933 | 7,165 |
Comprehensive Income | $ 76,675 | $ 65,964 |
Consolidated Statements of Cond
Consolidated Statements of Condition (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Interest-Bearing Deposits in Other Banks | $ 6,346 | $ 4,979 |
Funds Sold | 96,898 | 254,574 |
Investment Securities | ||
Available-for-Sale | 2,681,049 | 2,619,003 |
Held-to-Maturity (Fair Value of $3,104,020 and $3,602,882) | 3,004,139 | 3,042,294 |
Loans Held for Sale | 20,789 | 39,062 |
Loans and Leases | 11,352,780 | 10,990,892 |
Allowance for Credit Losses | (138,150) | (110,027) |
Net Loans and Leases | 11,214,630 | 10,880,865 |
Total Earning Assets | 17,023,851 | 16,840,777 |
Cash and Due From Banks | 453,465 | 299,105 |
Premises and Equipment, Net | 196,228 | 188,388 |
Operating lease right-of-use assets | 98,695 | 100,838 |
Accrued Interest Receivable | 46,996 | 46,476 |
Foreclosed Real Estate | 2,506 | 2,737 |
Mortgage Servicing Rights | 22,537 | 25,022 |
Goodwill | 31,517 | 31,517 |
Bank-Owned Life Insurance | 289,536 | 287,962 |
Other Assets | 376,902 | 272,674 |
Total Assets | 18,542,233 | 18,095,496 |
Deposits | ||
Noninterest-Bearing Demand | 4,378,918 | 4,489,525 |
Interest-Bearing Demand | 3,261,101 | 3,127,205 |
Savings | 6,670,530 | 6,365,321 |
Time | 1,744,812 | 1,802,431 |
Total Deposits | 16,055,361 | 15,784,482 |
Funds Purchased | 75,000 | 0 |
Short-Term Borrowings | 75,000 | 0 |
Securities Sold Under Agreements to Repurchase | 603,206 | 604,306 |
Other Debt | 60,545 | 85,565 |
Operating lease liabilities | 106,180 | 108,210 |
Retirement Benefits Payable | 44,124 | 44,504 |
Accrued Interest Payable | 7,932 | 8,040 |
Taxes Payable and Deferred Taxes | 32,793 | 16,085 |
Other Liabilities | 154,163 | 157,472 |
Total Liabilities | 17,214,304 | 16,808,664 |
Shareholders’ Equity | ||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: March 31, 2020 - 58,251,725 / 39,996,510 December 31, 2019 - 58,166,910 / 40,039,695; and March 31, 2019 - 58,166,535 / 41,078,688) | 579 | 579 |
Capital Surplus | 584,392 | 582,566 |
Accumulated Other Comprehensive Income (Loss) | 10,821 | (31,112) |
Retained Earnings | 1,773,607 | 1,761,415 |
Treasury Stock, at Cost (Shares; March 31, 2020 - 18,255,215 December 31, 2019 - 18,127,215; and March 31, 2019 - 17,087,847) | (1,041,470) | (1,026,616) |
Total Shareholders’ Equity | 1,327,929 | 1,286,832 |
Total Liabilities and Shareholders’ Equity | $ 18,542,233 | $ 18,095,496 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Held-to-Maturity: Fair Value | $ 3,104,020 | $ 3,062,882 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, issued (in shares) | 58,251,725 | 58,166,910 |
Common Stock, outstanding (in shares) | 39,996,510 | 40,039,695 |
Treasury Stock (in shares) | 18,255,215 | 18,127,215 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Balance at Beginning of Period at Dec. 31, 2018 | $ 1,268,200 | $ 577 | $ 571,704 | $ (51,043) | $ 1,641,314 | $ (894,352) |
Beginning Balance (in shares) at Dec. 31, 2018 | 41,499,898 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 58,799 | 58,799 | ||||
Other Comprehensive Income | 7,165 | 7,165 | ||||
Share-Based Compensation | 2,274 | 2,274 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans | 2,087 | $ 1 | 616 | (203) | 1,673 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 131,529 | |||||
Common Stock Repurchased | (43,189) | (43,189) | ||||
Common Stock Repurchased (in shares) | (552,739) | |||||
Cash Dividends Declared (per share) | (25,646) | (25,646) | ||||
Balance at End of Period at Mar. 31, 2019 | 1,269,690 | $ 578 | 574,594 | (43,878) | 1,674,264 | (935,868) |
Ending Balance (in shares) at Mar. 31, 2019 | 41,078,688 | |||||
Balance at Beginning of Period at Dec. 31, 2019 | $ 1,286,832 | $ 579 | 582,566 | (31,112) | 1,761,415 | (1,026,616) |
Beginning Balance (in shares) at Dec. 31, 2019 | 40,039,695 | 40,039,695 | ||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | $ 34,742 | 34,742 | ||||
Other Comprehensive Income | 41,933 | 41,933 | ||||
Share-Based Compensation | 1,497 | 1,497 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans | 3,761 | $ 0 | 329 | 653 | 2,779 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 154,091 | |||||
Common Stock Repurchased | (17,633) | (17,633) | ||||
Common Stock Repurchased (in shares) | (197,276) | |||||
Cash Dividends Declared (per share) | (26,835) | (26,835) | ||||
Balance at End of Period at Mar. 31, 2020 | $ 1,327,929 | $ 579 | $ 584,392 | $ 10,821 | $ 1,773,607 | $ (1,041,470) |
Ending Balance (in shares) at Mar. 31, 2020 | 39,996,510 | 39,996,510 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends Declared Per Share (in dollars per share) | $ 0.67 | $ 0.62 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net Income | $ 34,742 | $ 58,799 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Credit Losses | 33,600 | 3,000 |
Depreciation and Amortization | 4,767 | 3,996 |
Amortization of Deferred Loan and Lease Fees | 462 | (381) |
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 5,164 | 5,290 |
Amortization of Operating Lease Right-of-Use Assets | 3,114 | 3,185 |
Share-Based Compensation | 1,497 | 2,274 |
Benefit Plan Contributions | (403) | (372) |
Deferred Income Taxes | (6,942) | (2,363) |
Gains on Sale of Premises and Equipment | 0 | (558) |
Net Gains on Sales of Loans and Leases | (1,956) | (1,065) |
Net Losses (Gains) on Sales of Investment Securities | 970 | 835 |
Proceeds from Sales of Loans Held for Sale | 129,913 | 56,453 |
Originations of Loans Held for Sale | (110,415) | (63,014) |
Net Tax Benefits from Share-Based Compensation | 524 | 530 |
Net Change in Other Assets and Other Liabilities | (99,892) | (49,491) |
Net Cash Provided by (Used in) Operating Activities | (4,855) | 17,118 |
Investment Securities Available-for-Sale: | ||
Proceeds from Sales, Prepayments and Maturities | 230,435 | 495,824 |
Purchases | (238,997) | (341,234) |
Investment Securities Held-to-Maturity: | ||
Proceeds from Prepayments and Maturities | 236,134 | 177,841 |
Purchases | (201,130) | (367,178) |
Net Change in Loans and Leases | (364,878) | (104,120) |
Purchases of Premises and Equipment | 12,607 | 11,583 |
Proceeds from Sale of Premises and Equipment | 0 | 639 |
Net Cash Used in Investing Activities | (351,043) | (149,811) |
Financing Activities | ||
Net Change in Deposits | 270,879 | 240,068 |
Net Change in Short-Term Borrowings | 148,900 | (196) |
Repayments of Long-Term Debt | (25,020) | (25,019) |
Proceeds from Issuance of Common Stock | 3,658 | 1,994 |
Repurchase of Common Stock | (17,633) | (43,189) |
Cash Dividends Paid | (26,835) | (25,646) |
Net Cash Provided by Financing Activities | 353,949 | 148,012 |
Net Change in Cash and Cash Equivalents | (1,949) | 15,319 |
Cash and Cash Equivalents at Beginning of Period | 558,658 | 525,969 |
Cash and Cash Equivalents at End of Period | 556,709 | 541,288 |
Supplemental Information | ||
Cash Paid for Interest | 19,088 | 20,583 |
Cash Paid for Income Taxes | 3,459 | 2,764 |
Non-Cash Investing and Financing Activities: | ||
Initial Recognition of Operating Lease Right-of-Use Assets | 98,695 | |
Initial Recognition of Operating Lease Liabilities | 106,180 | |
Transfer from Loans to Foreclosed Real Estate | $ 0 | $ 1,869 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 accompanying consolidated financial statements include the accounts of the Parent and its subsidiaries. The Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”). The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or for any future period. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . 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. 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 (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The Company participates in limited partnerships or limited liability companies that sponsor low-income housing projects. These entities provide funds for the construction and operation of apartment complexes that provide affordable housing to lower-income households. 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 for federal and 5 years for state. In order to continue receiving the tax credits each year over the life of the entity, 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. Unfunded commitments to fund these low-income housing entities were $32.7 million and $21.3 million as of March 31, 2020 , and December 31, 2019 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. See Note 6 Affordable Housing Projects Tax Credit Partnerships for more information. The Company also has limited partnership interests in solar energy tax credit partnership investments. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of these investments, the Company expects to 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. Tax benefits associated with these investments are generally recognized over 6 years . Although these entities meet the definition of a VIE, 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 investments in these entities are 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 $100.5 million and $84.6 million as of March 31, 2020 , and December 31, 2019 , respectively, and is included in other assets in the consolidated statements of condition. Allowance for Credit Losses - Loans and Leases The current expected credit loss (“CECL”) approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It replaces the incurred loss approach’s threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred. The estimate of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the historical period used. The Company considers future economic conditions and portfolio performance as part of a reasonable and supportable forecast period. Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses (“ACL”). The Company has designated two portfolio segments of loans and leases, commercial and consumer. These portfolio segments are further disaggregated into classes, which represent loans and leases of similar type, risk characteristics, and methods for monitoring and assessing credit risk. The commercial portfolio segment is disaggregated into four classes, commercial and industrial, commercial mortgage, construction, and lease financing. The consumer portfolio segment is also disaggregated into four classes, residential mortgage, home equity, auto, and other (which is comprised of revolving credit, installment, and consumer lease financing arrangements). Each commercial and consumer portfolio class is also segmented based on risk characteristics. Commercial portfolio segment The historical loss experience for the commercial portfolio segment is primarily determined using a Cohort method. This method pools loans into groups (“cohorts”) sharing similar risk characteristics and tracks each cohort’s historical net charge-offs to calculate a historical loss rate. The historical loss rates for each cohort are then averaged to calculate an overall historical loss rate which is applied to current loan balances to arrive at the quantitative baseline portion of the ACL for most of the commercial portfolio segment. The Company also considers qualitative adjustments to the quantitative baseline. For example, the Company considers the impact of current environmental factors at the reporting date that did not exist over the period from which historical experience was used. 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 criticized loans. The Company also incorporates a one-year reasonable and supportable (“R&S”) loss forecast period to account for the effect of forecasted economic conditions and other factors on the performance of the commercial portfolio, which could differ from historical loss experience. The Company performs a quarterly asset quality review which includes a review of forecasted gross charge-offs and recoveries, nonperforming assets, criticized loans and leases, and risk rating migration. The asset quality review is reviewed by management and the results are used to consider a qualitative overlay to the quantitative baseline. After the one-year R&S loss forecast period, this overlay adjustment assumes an immediate reversion to historical loss rates for the remaining loan life period. The Company establishes a specific reserve for individually evaluated loans which do not share similar risk characteristics with the loans included in the quantitative baseline. These individually evaluated loans are removed from the pooling approach discussed above for the quantitative baseline, and include non-accrual loans, troubled debt restructurings (“TDRs”), and other loans as deemed appropriate by management. In addition, the Company individually evaluates “reasonably expected” TDRs, which are identified by the Company as a commercial loan expected to be classified as a TDR within the next six months. Management judgment is utilized to make this determination. Consumer portfolio segment The historical loss experience for the consumer portfolio segment is primarily determined using a Vintage method. This method measures historical loss behavior in the form of a historical loss rate for homogenous loan pools that originate in the same period, known as a vintage. The historical loss rates are then applied to origination loan balances by vintage to determine the quantitative baseline portion of the ACL for most of the consumer portfolio segment. The homogenous loan pools are segmented according to similar risk characteristics (e.g., residential mortgage, home equity) and may be sub-segmented further (e.g., geography, lien position) depending on the product. After determining the ACL quantitative baseline, the Company also considers qualitative adjustments to the quantitative baseline. For example, the Company considers the impact of current environmental factors at the reporting date that did not exist over the period from which historical experience was used. The environmental factors considered for the consumer portfolio are similar to the aforementioned factors considered for the commercial portfolio. The Company also incorporates a one-year R&S loss forecast period to account for forecasted economic conditions and other factors on the performance of the consumer portfolio which could differ from historical loss experience. The Company performs a quarterly asset quality review designed to estimate gross charge-offs and recoveries for the forecast period. Management evaluates additional factors that may not be reflected in the net charge-off forecast to determine whether a qualitative overlay adjustment is warranted. As of January 1, 2020, implementation date, and following the one-year R&S loss forecast period, the Company chose a reversion back to average historical loss rates using a straight line method based on forecasted and relatively benign economic conditions at the measurement date, with the exception of the home equity portfolio. For the home equity portfolio, the Company elected to revert back to average historical loss rates using a straight line method over the halfway point of the average life of the portfolio. The halfway point is used for the home equity portfolio given the longer average life length compared to the other consumer portfolios. As of March 31, 2020, following the one-year R&S loss forecast period, the Company chose an immediate reversion back to average historical loss rates. The change in reversion method was due to the impact of COVID-19 which created a much more volatile and uncertain economic outlook. The Company is forecasting that losses will be lower than historical rates during the R&S loss forecast period due to the impact of unprecedented fiscal, monetary and regulatory programs to support the economy, as well as the assistance the Company is providing to borrowers through its various credit assistance programs. Given this forecast and the uncertainty of the impact of COVID-19 after the one-year R&S loss forecast period, the Company determined that a change to immediate reversion was appropriate for this measurement date. The Company establishes a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in the quantitative baseline. These individually evaluated loans include “reasonably expected” TDRs, identified by the Company as a consumer loan for which a borrower’s application of loan modification due to hardship has been approved by the Company. See Note 4 Loans and Leases and the Allowance for Credit Losses for more information. Allowance for Credit Losses - Held-to-Maturity (“HTM”) Debt Securities The Company’s HTM debt securities are also required to utilize the CECL approach to estimate expected credit losses. Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities. The Company also carries a limited portfolio of HTM municipal bonds. As of March 31, 2020, the entire portfolio consisted of State of Hawaii bonds carrying a Moody’s rating of Aa1, with a portion of these bonds escrowed to maturity. To estimate the expected credit losses, the Company utilized the probability of default (“PD”)/loss given default (“LGD”) methodology. The PD, which represents the percentage likelihood that a bond will default over a given time period, is primarily based upon the bond’s current credit rating and maturity and computed using Moody’s rating transition matrix, which provides the probability of a rating migrating to default within a one-year period (adjustments are made for longer maturities). The LGD, which represents the percentage of loss if a default occurs, is based on the median recovery rate for municipals according to Moody’s. The Company’s exposure at default, represented by the carrying value of the municipal bond portfolio, is multiplied with the PD and the LGD to arrive at the expected credit loss. Management may exercise discretion to make adjustments based on environmental factors. As of March 31, 2020, the Company determined that the expected credit loss on its municipal bond portfolio was de minimis, and therefore, an allowance for credit losses was not recorded. See Note 3 Investment Securities for more information. Allowance for Credit Losses - Available-for-Sale (“AFS”) Debt Securities The impairment model for available-for-sale (“AFS”) debt securities differs from the CECL approach utilized by HTM debt securities because AFS debt securities are measured at fair value rather than amortized cost. Although ASU No. 2016-13 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model. One notable change from the legacy OTTI model is when evaluating whether credit loss exists, an entity may no longer consider the length of time fair value has been less than amortized cost. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2020, the Company determined that the unrealized loss positions in AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. See Note 3 Investment Securities for more information. Accrued Interest Receivable Upon adoption of ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” and its related amendments on January 1, 2020, the Company made the following elections regarding accrued interest receivable: • Presenting accrued interest receivable balances separately within another statements of position line item. • Excluding accrued interest receivable that is included in the amortized cost of financing receivables from related disclosure requirements. • Continuing our policy to write off accrued interest receivable by reversing interest income. For commercial loans, the write off typically occurs upon becoming 90 days past due. For consumer loans, the write off typically occurs upon becoming 120 days past due. Historically, the Company has not experienced uncollectible accrued interest receivable on its investment securities. However, the Company would generally write off accrued interest receivable by reversing interest income if the Company does not reasonably expect to receive payments. Due to the timely manner in which accrued interest receivables are written off, the amounts of such write offs are immaterial. • Not measuring an allowance for credit losses for accrued interest receivable due to the Company’s policy of writing off uncollectible accrued interest receivable balances in a timely manner, as described above. Collateral-Dependent Loans A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans and leases deemed collateral-dependent, the Company elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral consists of various types of real estate including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Reserve for Unfunded Commitments The reserve for unfunded commitments (the “Unfunded Reserve”) represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The Unfunded Reserve is recognized as a liability (other liabilities in the consolidated statements of condition), with adjustments to the reserve recognized in other noninterest expense in the consolidated statements of income. The Unfunded Reserve is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). To estimate future draws on unfunded balances, current utilization rates are compared to historical utilization rates. If current utilization rates are below historical utilization rates, the rate difference is applied to the committed balance to estimate the future draw. Loss rates are estimated by utilizing the same loss rates calculated for the Allowance general reserves. For the commercial portfolio, the historical loss rates were calculated utilizing the Cohort methodology, while the consumer portfolio utilized the Vintage methodology. Operating, Accounting and Reporting Considerations related to COVID-19 The COVID-19 pandemic has negatively impacted the global economy, including Hawaii and the Pacific Islands. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Some of the provisions applicable to the Company include, but are not limited to: • Accounting for Loan Modifications - The CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. • Pay Protection Program - The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. • Mortgage Forbearance - Under the CARES Act, through the earlier of December 31, 2020, or the termination date of the COVID-19 national emergency, a borrower with a federally backed mortgage loan that is experiencing financial hardship due to COVID-19 may request a forbearance. A multifamily borrower with a federally backed multifamily mortgage loan that was current as of February 1, 2020, and is experiencing financial hardship due to COVID-19 may request forbearance on the loan for up to 30 days, with up to two additional 30-day periods at the borrower’s request. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: • Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. • Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. • Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. Accounting Standards Adopted in 2020 In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaces the “incurred loss” approach with an “expected loss” approach known as current expected credit loss (“CECL”). CECL applies to: (1) financial assets measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL approach does not apply to AFS debt securities. For AFS debt securities with unrealized losses, entities measure credit losses in a similar manner to legacy GAAP except that the credit losses are now recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time. ASU No. 2016-13 also changes the accounting for purchased credit-impaired debt securities and loans. ASU 2016-13 expanded or revised the disclosure requirements related to loans and debt securities. In addition, entities are required to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 was effective for interim and annual reporting periods beginning after December 15, 2019. The Company adopted the standard on January 1, 2020, and applied the standard’s provisions as a cumulative-effect adjustment to retained earnings, as of January 1, 2020 (i.e., modified retrospective approach). Upon adoption of the standard, the Company recorded a $5.1 million decrease to the reserve for credit losses, which resulted in a $3.6 million after-tax increase to retained earnings as of January 1, 2020. The tax effect resulted in an increase to deferred tax liabilities. This “Day 1” impact of CECL adoption is summarized below: (dollars in thousands) December 31, 2019 CECL Adoption Impact January 1, 2020 Allowance for Credit Losses: Commercial $ 73,801 $ (18,789 ) $ 55,012 Consumer 36,226 17,052 53,278 Total Allowance for Credit Losses 110,027 (1,737 ) 108,290 Reserve for Unfunded Commitments 6,822 (3,335 ) 3,487 Total Reserve for Credit Losses $ 116,849 $ (5,072 ) $ 111,777 Retained Earnings Total Pre-tax Impact $ 5,072 Tax Effect (1,440 ) Increase to Retained Earnings $ 3,632 The Company did not record an allowance for AFS or HTM securities on Day 1 as the investment portfolio consists primarily of debt securities explicitly or implicitly backed by the U.S. Government for which credit risk is deemed minimal. The impact going forward will depend on the composition, characteristics, and credit quality of the loan and securities portfolios as well as the economic conditions at future reporting periods. See Note 3 Investment Securities and Note 4 Loans and Leases and the Allowance for Credit Losses for more information. In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 was effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. As ASU No. 2018-13 only revises disclosure requirements, it did not have a material impact on the Company’s Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” With respect to Topic 326, ASU 2019-04 clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. The Company made the accounting policy elections not to measure an allowance for credit losses on accrued interest receivable, to write-off accrued interest amounts by reversing interest income, and to present accrued interest receivable separately from the related financial asset on the statements of financial condition. The amendments to Topic 326 were adopted concurrently with ASU 2016-13 on January 1, 2020. The financial statement impact in regards to the amendments to Topic 326 are incorporated within ASU 2016-13 mentioned above. With respect to Topic 825, on recognizing and measuring financial instruments, ASU 2019-04 addresses the scope of the guidance, the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. The amendments to Topic 825 were effective for interim and annual reporting periods beginning after December 15, 2019, and did not have a material impact on the Company’s Consolidated Financial Statements. The Company elected to early adopt the amendments to Topic 815 in June 2019. See Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, for more information. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief.” This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to HTM debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 was adopted concurrently with ASU 2016-13 on January 1, 2020. The Company did not elect the fair value option, and therefore, ASU 2019-05 did not impact the Company’s Consolidated Financial Statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses.” This ASU requires entities to include certain expected recoveries of the amortized cost basis previously written off, or expected to be w |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statements of condition that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (dollars in thousands) March 31, December 31, Interest-Bearing Deposits in Other Banks $ 6,346 $ 4,979 Funds Sold 96,898 254,574 Cash and Due From Banks 453,465 299,105 Total Cash and Cash Equivalents $ 556,709 $ 558,658 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of March 31, 2020 , and December 31, 2019, were as follows: (dollars in thousands) Amortized Cost Gross Gross Fair Value March 31, 2020 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 202,065 $ 262 $ (1,238 ) $ 201,089 Debt Securities Issued by States and Political Subdivisions 53,981 1,043 (1 ) 55,023 Debt Securities Issued by U.S. Government-Sponsored Enterprises 936 76 — 1,012 Debt Securities Issued by Corporations 274,353 1,969 (5,146 ) 271,176 Mortgage-Backed Securities: Residential - Government Agencies 1,159,266 41,360 (1,412 ) 1,199,214 Residential - U.S. Government-Sponsored Enterprises 635,161 26,178 (166 ) 661,173 Commercial - Government Agencies 287,441 5,790 (869 ) 292,362 Total Mortgage-Backed Securities 2,081,868 73,328 (2,447 ) 2,152,749 Total $ 2,613,203 $ 76,678 $ (8,832 ) $ 2,681,049 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 214,612 $ 2,111 $ — $ 216,723 Debt Securities Issued by States and Political Subdivisions 54,543 1,017 — 55,560 Debt Securities Issued by Corporations 14,243 104 — 14,347 Mortgage-Backed Securities: Residential - Government Agencies 994,405 38,678 (36 ) 1,033,047 Residential - U.S. Government-Sponsored Enterprises 1,648,144 57,554 — 1,705,698 Commercial - Government Agencies 78,192 763 (310 ) 78,645 Total Mortgage-Backed Securities 2,720,741 96,995 (346 ) 2,817,390 Total $ 3,004,139 $ 100,227 $ (346 ) $ 3,104,020 December 31, 2019 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 222,365 $ 213 $ (1,447 ) $ 221,131 Debt Securities Issued by States and Political Subdivisions 54,480 631 (14 ) 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises 22,128 19 — 22,147 Debt Securities Issued by Corporations 335,553 1,401 (633 ) 336,321 Mortgage-Backed Securities: Residential - Government Agencies 1,164,466 11,627 (3,267 ) 1,172,826 Residential - U.S. Government-Sponsored Enterprises 584,272 4,363 (1,874 ) 586,761 Commercial - Government Agencies 224,372 2,889 (2,541 ) 224,720 Total Mortgage-Backed Securities 1,973,110 18,879 (7,682 ) 1,984,307 Total $ 2,607,636 $ 21,143 $ (9,776 ) $ 2,619,003 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 274,375 $ 1,319 $ (31 ) $ 275,663 Debt Securities Issued by States and Political Subdivisions 54,811 1,236 — 56,047 Debt Securities Issued by Corporations 14,975 — (138 ) 14,837 Mortgage-Backed Securities: Residential - Government Agencies 1,067,416 13,247 (5,348 ) 1,075,315 Residential - U.S. Government-Sponsored Enterprises 1,546,479 13,871 (2,478 ) 1,557,872 Commercial - Government Agencies 84,238 317 (1,407 ) 83,148 Total Mortgage-Backed Securities 2,698,133 27,435 (9,233 ) 2,716,335 Total $ 3,042,294 $ 29,990 $ (9,402 ) $ 3,062,882 The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. For available-for-sale (“AFS”) debt securities, AIR totaled $7.1 million and $7.5 million as of March 31, 2020, and December 31, 2019, respectively. For held-to-maturity (“HTM”) debt securities, AIR to totaled $8.9 million and $8.1 million as of March 31, 2020, and December 31, 2019, respectively. AIR is included in the “accrued interest receivable” line item on the Company’s consolidated statements of condition. The table below presents an analysis of the contractual maturities of the Company’s investment securities as of March 31, 2020 . Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates. (dollars in thousands) Amortized Cost Fair Value Available-for-Sale: Due in One Year or Less $ 66,246 $ 66,355 Due After One Year Through Five Years 96,977 95,275 Due After Five Years Through Ten Years 167,141 166,707 Due After Ten Years 50 51 330,414 328,388 Debt Securities Issued by Government Agencies 200,921 199,912 Mortgage-Backed Securities: Residential - Government Agencies 1,159,266 1,199,214 Residential - U.S. Government-Sponsored Enterprises 635,161 661,173 Commercial - Government Agencies 287,441 292,362 Total Mortgage-Backed Securities 2,081,868 2,152,749 Total $ 2,613,203 $ 2,681,049 Held-to-Maturity: Due in One Year or Less $ 234,892 $ 237,171 Due After One Year Through Five Years 48,506 49,459 283,398 286,630 Mortgage-Backed Securities: Residential - Government Agencies 994,405 1,033,047 Residential - U.S. Government-Sponsored Enterprises 1,648,144 1,705,698 Commercial - Government Agencies 78,192 78,645 Total Mortgage-Backed Securities 2,720,741 2,817,390 Total $ 3,004,139 $ 3,104,020 Investment securities with carrying values of $3.4 billion and $2.6 billion as of March 31, 2020 , and December 31, 2019 , respectively, were pledged to secure deposits of governmental entities, securities sold under agreements to repurchase, and FRB discount window borrowing. The table below presents the gains and losses from the sales of investment securities for the three months ended March 31, 2020 , and March 31, 2019 : Three Months Ended (dollars in thousands) 2020 2019 Gross Gains on Sales of Investment Securities $ 77 $ 2,030 Gross Losses on Sales of Investment Securities (1,047 ) (2,865 ) Net Gains (Losses) on Sales of Investment Securities $ (970 ) $ (835 ) The losses on sales of investment securities during the three months ended March 31, 2020 , and March 31, 2019 , were due to fees paid to the counterparties of the Company’s prior Visa Class B share sale transactions, which are expensed as incurred. In addition, the gross losses on sales of investment securities during the three months ended March 31, 2019, included losses on sales of municipal debt securities and mortgage-backed securities as part of a portfolio repositioning. The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2020 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 97,978 $ (1,126 ) $ 53,511 $ (112 ) $ 151,489 $ (1,238 ) Debt Securities Issued by States and Political Subdivisions — — 355 (1 ) 355 (1 ) Debt Securities Issued by Corporations 50,000 (644 ) 100,866 (4,502 ) 150,866 (5,146 ) Mortgage-Backed Securities: Residential - Government Agencies 54,491 (1,072 ) 65,155 (340 ) 119,646 (1,412 ) Residential - U.S. Government-Sponsored Enterprises — — 10,994 (166 ) 10,994 (166 ) Commercial - Government Agencies 51,105 (869 ) — — 51,105 (869 ) Total Mortgage-Backed Securities 105,596 (1,941 ) 76,149 (506 ) 181,745 (2,447 ) Total $ 253,574 $ (3,711 ) $ 230,881 $ (5,121 ) $ 484,455 $ (8,832 ) December 31, 2019 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 65,479 $ (188 ) $ 101,761 $ (1,259 ) $ 167,240 $ (1,447 ) Debt Securities Issued by States and Political Subdivisions 6,788 (14 ) 440 — 7,228 (14 ) Debt Securities Issued by Corporations 25,892 (326 ) 74,693 (307 ) 100,585 (633 ) Mortgage-Backed Securities: Residential - Government Agencies 119,271 (526 ) 170,805 (2,741 ) 290,076 (3,267 ) Residential - U.S. Government-Sponsored Enterprises 187,861 (816 ) 73,720 (1,058 ) 261,581 (1,874 ) Commercial - Government Agencies 59,826 (319 ) 52,965 (2,222 ) 112,791 (2,541 ) Total Mortgage-Backed Securities 366,958 (1,661 ) 297,490 (6,021 ) 664,448 (7,682 ) Total $ 465,117 $ (2,189 ) $ 474,384 $ (7,587 ) $ 939,501 $ (9,776 ) The Company does not believe that the AFS debt securities that were in an unrealized loss position as of March 31, 2020 , which were comprised of 97 individual securities, represent a credit loss impairment. The gross unrealized losses in our corporate bond portfolio were related to debt securities issued by large multinational banks. The unrealized losses primarily resulted from an increase in credit spreads due to the economic uncertainty related to COVID-19. However, as of March 31, 2020, such credit spreads have tightened significantly from their widest levels earlier in the quarter. In addition, such banks have built up substantial capital buffers since the financial crisis of 2008 which mitigates the likelihood of credit losses. As of March 31, 2020, there have been no payment defaults nor do we currently expect any future payment defaults. Furthermore, the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. The remainder of the AFS debt securities in an unrealized loss position as of March 31, 2020, consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. 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. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2020 . The Company also carries a limited portfolio of HTM municipal bonds. As of March 31, 2020, the entire portfolio consisted of State of Hawaii bonds carrying a Moody’s rating of Aa1, with a portion of these bonds escrowed to maturity. Utilizing the CECL approach, the Company determined that the expected credit loss on its municipal bond portfolio was de minimis, and therefore, an allowance for credit losses was not recorded as of March 31, 2020 . Interest income from taxable and non-taxable investment securities for the three months ended March 31, 2020 , and March 31, 2019 , were as follows: Three Months Ended (dollars in thousands) 2020 2019 Taxable $ 35,393 $ 31,992 Non-Taxable 570 3,361 Total Interest Income from Investment Securities $ 35,963 $ 35,353 As of March 31, 2020 , and December 31, 2019 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows: (dollars in thousands) March 31, December 31, Federal Home Loan Bank Stock $ 15,000 $ 13,000 Federal Reserve Bank Stock 21,198 21,093 Total $ 36,198 $ 34,093 These securities can only be redeemed or sold at their par value and only to the respective issuing institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and periodically evaluates these securities for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. 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 will be 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 be insufficient 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 March 31, 2020 , the conversion ratio was 1.6228 . See Note 12 Derivative Financial Instruments for more information. The Company occasionally sells these Visa Class B shares to other financial institutions. Concurrent with every sale the Company enters 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 80,214 Class B shares ( 130,171 Class A equivalents) that the Company owns as of March 31, 2020 |
Loans and Leases and the Allowa
Loans and Leases and the Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Loans and Leases and the Allowance for Loan and Lease Losses | Loans and Leases and the Allowance for Credit Losses Loans and Leases The Company’s loan and lease portfolio was comprised of the following as of March 31, 2020 , and December 31, 2019 : (dollars in thousands) March 31, December 31, Commercial Commercial and Industrial $ 1,558,232 $ 1,379,152 Commercial Mortgage 2,616,243 2,518,051 Construction 245,390 194,170 Lease Financing 110,704 122,454 Total Commercial 4,530,569 4,213,827 Consumer Residential Mortgage 3,928,183 3,891,100 Home Equity 1,692,154 1,676,073 Automobile 716,214 720,286 Other 1 485,660 489,606 Total Consumer 6,822,211 6,777,065 Total Loans and Leases $ 11,352,780 $ 10,990,892 1 Comprised of other revolving credit, installment, and lease financing. The majority of the Company’s lending activity is with customers located in the State of Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate in Hawaii. Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income were $3.2 million and $0.5 million for the three months ended March 31, 2020 , and March 31, 2019 , respectively. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of loans disclosed throughout this footnote. As of March 31, 2020, and December 31, 2019, AIR for loans totaled $30.9 million and $30.7 million , respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated statements of condition. Allowance for Credit Losses (the “Allowance”) As previously mentioned in Note 1 Summary of Significant Accounting Policies , the Company’s January 1, 2020, adoption of ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” resulted in a significant change to our methodology for estimating the Allowance since December 31, 2019. As a result of this adoption, the Company recorded a $1.7 million decrease to the Allowance as a cumulative-effect adjustment on January 1, 2020. The following presents by portfolio segment, the activity in the Allowance for the three months ended March 31, 2020 , and March 31, 2019 . (dollars in thousands) Commercial Consumer Total Three Months Ended March 31, 2020 Allowance for Credit Losses: Balance at Beginning of Period (December 31, 2019) $ 73,801 $ 36,226 $ 110,027 CECL Adoption (Day 1) Impact (18,789 ) 17,052 (1,737 ) Balance at Beginning of Period (January 1, 2020) 55,012 53,278 108,290 Loans and Leases Charged-Off (693 ) (6,484 ) (7,177 ) Recoveries on Loans and Leases Previously Charged-Off 329 3,108 3,437 Net Loans and Leases Recovered (Charged-Off) (364 ) (3,376 ) (3,740 ) Provision for Credit Losses 13,339 20,261 33,600 Balance at End of Period $ 67,987 $ 70,163 $ 138,150 Three Months Ended March 31, 2019 Allowance for Credit Losses: Balance at Beginning of Period $ 66,874 $ 39,819 $ 106,693 Loans and Leases Charged-Off (1,986 ) (4,842 ) (6,828 ) Recoveries on Loans and Leases Previously Charged-Off 501 2,657 3,158 Net Loans and Leases Recovered (Charged-Off) (1,485 ) (2,185 ) (3,670 ) Provision for Credit Losses 2,138 862 3,000 Balance at End of Period $ 67,527 $ 38,496 $ 106,023 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 all 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. Management believes that there is a moderate likelihood of some loss related to those loans and leases that are considered Special Mention. The Special Mention credit quality indicator is not used for the consumer portfolio segment. 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 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 first mortgage is with the Company and the current combined loan-to-value ratio is 60% or less. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered Classified for a period of generally up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from Classified status. Management believes that there is a distinct possibility that the Company will sustain some loss if the deficiencies related to Classified loans and leases are not corrected in a timely manner. For pass rated credits, risk ratings are certified at a minimum annually. For special mention or classified credits, risk ratings are reviewed for appropriateness on an ongoing basis monthly or at a minimum quarterly. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of March 31, 2020 . Term Loans by Origination Year (dollars in thousands) YTD 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total Loans and Leases March 31, 2020 Commercial Commercial and Industrial Pass $ 160,663 $ 253,285 $ 212,901 $ 93,614 $ 87,982 $ 108,952 $ 557,732 $ 1,122 $ 1,476,251 Special Mention 62 508 2,087 700 116 152 19,345 — 22,970 Classified 605 22,117 1,678 1,455 440 20,479 12,069 168 59,011 Total Commercial and Industrial $ 161,330 $ 275,910 $ 216,666 $ 95,769 $ 88,538 $ 129,583 $ 589,146 $ 1,290 $ 1,558,232 Commercial Mortgage Pass $ 209,933 $ 591,055 $ 396,239 $ 302,711 $ 329,045 $ 602,337 $ 81,036 $ — $ 2,512,356 Special Mention 3,961 820 19,919 13,176 7,359 7,884 — — 53,119 Classified 11,464 5,413 8,453 1,405 704 23,329 — — 50,768 Total Commercial Mortgage $ 225,358 $ 597,288 $ 424,611 $ 317,292 $ 337,108 $ 633,550 $ 81,036 $ — $ 2,616,243 Construction Pass $ 54,220 $ 81,985 $ 45,600 $ 20,336 $ — $ 1,936 $ 40,152 $ — $ 244,229 Classified — — — — — 1,161 — — 1,161 Total Construction $ 54,220 $ 81,985 $ 45,600 $ 20,336 $ — $ 3,097 $ 40,152 $ — $ 245,390 Lease Financing Pass $ 2,785 $ 23,324 $ 16,762 $ 5,767 $ 12,007 $ 48,527 $ — $ — $ 109,172 Special Mention — — — 2 34 — — — 36 Classified 38 80 1,206 59 113 — — — 1,496 Total Lease Financing $ 2,823 $ 23,404 $ 17,968 $ 5,828 $ 12,154 $ 48,527 $ — $ — $ 110,704 Total Commercial $ 443,731 $ 978,587 $ 704,845 $ 439,225 $ 437,800 $ 814,757 $ 710,334 $ 1,290 $ 4,530,569 Consumer Residential Mortgage Pass $ 212,313 $ 704,271 $ 445,511 $ 625,159 $ 678,049 $ 1,258,545 $ — $ — $ 3,923,848 Classified — — — 932 — 3,403 — — 4,335 Total Residential Mortgage $ 212,313 $ 704,271 $ 445,511 $ 626,091 $ 678,049 $ 1,261,948 $ — $ — $ 3,928,183 Home Equity Pass $ — $ — $ — $ — $ — $ 6,245 $ 1,637,082 $ 43,589 $ 1,686,916 Classified — — — — — 103 3,973 1,162 5,238 Total Home Equity $ — $ — $ — $ — $ — $ 6,348 $ 1,641,055 $ 44,751 $ 1,692,154 Automobile Pass $ 63,914 $ 265,516 $ 208,273 $ 98,987 $ 51,746 $ 26,912 $ — $ — $ 715,348 Classified — 182 166 257 179 82 — — 866 Total Automobile $ 63,914 $ 265,698 $ 208,439 $ 99,244 $ 51,925 $ 26,994 $ — $ — $ 716,214 Other 1 Pass $ 45,414 $ 181,911 $ 123,803 $ 68,751 $ 17,783 $ 6,098 $ 39,053 $ 1,643 $ 484,456 Classified — 326 326 302 119 44 79 8 1,204 Total Other $ 45,414 $ 182,237 $ 124,129 $ 69,053 $ 17,902 $ 6,142 $ 39,132 $ 1,651 $ 485,660 Total Consumer $ 321,641 $ 1,152,206 $ 778,079 $ 794,388 $ 747,876 $ 1,301,432 $ 1,680,187 $ 46,402 $ 6,822,211 Total Loans and Leases $ 765,372 $ 2,130,793 $ 1,482,924 $ 1,233,613 $ 1,185,676 $ 2,116,189 $ 2,390,521 $ 47,692 $ 11,352,780 1 Comprised of other revolving credit, installment, and lease financing. For the three months ended March 31, 2020, $0.6 million revolving loans were converted to term loans. The following presents by loan class and credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2019 . December 31, 2019 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,306,040 $ 2,463,858 $ 188,832 $ 120,933 $ 4,079,663 Special Mention 37,722 16,453 4,148 — 58,323 Classified 35,390 37,740 1,190 1,521 75,841 Total $ 1,379,152 $ 2,518,051 $ 194,170 $ 122,454 $ 4,213,827 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 3,886,389 $ 1,671,468 $ 719,337 $ 488,113 $ 6,765,307 Classified 4,711 4,605 949 1,493 11,758 Total $ 3,891,100 $ 1,676,073 $ 720,286 $ 489,606 $ 6,777,065 Total Recorded Investment in Loans and Leases $ 10,990,892 1 Comprised of other revolving credit, installment, and lease financing. Aging Analysis Loans and leases are considered to be past due once becoming 30 days delinquent. For the consumer portfolio, this generally represents two missed monthly payments. The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of March 31, 2020 , and December 31, 2019 . (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Past Due 90 Days or More Non-Accrual Total Past Due and Non-Accrual Current Total Loans and Leases Non-Accrual Loans and Leases that are Current 2 As of March 31, 2020 Commercial Commercial and Industrial $ 3,596 $ 255 $ — $ 634 $ 4,485 $ 1,553,747 $ 1,558,232 $ 429 Commercial Mortgage 4,637 — — 9,048 13,685 2,602,558 2,616,243 9,048 Construction 720 — — — 720 244,670 245,390 — Lease Financing 23 — — — 23 110,681 110,704 — Total Commercial 8,976 255 — 9,682 18,913 4,511,656 4,530,569 9,477 Consumer Residential Mortgage 3,935 2,342 3,024 4,330 13,631 3,914,552 3,928,183 1,104 Home Equity 4,367 2,819 3,426 4,086 14,698 1,677,456 1,692,154 839 Automobile 14,590 4,096 866 — 19,552 696,662 716,214 — Other 1 3,648 1,905 1,205 — 6,758 478,902 485,660 — Total Consumer 26,540 11,162 8,521 8,416 54,639 6,767,572 6,822,211 1,943 Total $ 35,516 $ 11,417 $ 8,521 $ 18,098 $ 73,552 $ 11,279,228 $ 11,352,780 $ 11,420 As of December 31, 2019 Commercial Commercial and Industrial $ 12,534 $ 148 $ — $ 830 $ 13,512 $ 1,365,640 $ 1,379,152 $ 421 Commercial Mortgage 2,998 — — 9,244 12,242 2,505,809 2,518,051 9,244 Construction 101 51 — — 152 194,018 194,170 — Lease Financing 720 — — — 720 121,734 122,454 — Total Commercial 16,353 199 — 10,074 26,626 4,187,201 4,213,827 9,665 Consumer Residential Mortgage 6,097 2,070 1,839 4,125 14,131 3,876,969 3,891,100 1,429 Home Equity 3,949 2,280 4,125 3,181 13,535 1,662,538 1,676,073 412 Automobile 16,067 4,154 949 — 21,170 699,116 720,286 — Other 1 3,498 2,074 1,493 — 7,065 482,541 489,606 — Total Consumer 29,611 10,578 8,406 7,306 55,901 6,721,164 6,777,065 1,841 Total $ 45,964 $ 10,777 $ 8,406 $ 17,380 $ 82,527 $ 10,908,365 $ 10,990,892 $ 11,506 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. Non-Accrual Loans and Leases The following presents the non-accrual loans and leases as of March 31, 2020, and December 31, 2019. March 31, 2020 December 31, 2019 (dollars in thousands) Nonaccrual loans with a related ACL Nonaccrual loans without a related ACL Total Nonaccrual loans Total Nonaccrual loans Commercial Commercial and Industrial $ 634 $ — $ 634 $ 830 Commercial Mortgage 3,543 5,505 9,048 9,244 Total Commercial 4,177 5,505 9,682 10,074 Consumer Residential Mortgage 3,399 931 4,330 4,125 Home Equity 4,086 — 4,086 3,181 Total Consumer 7,485 931 8,416 7,306 Total $ 11,662 $ 6,436 $ 18,098 $ 17,380 All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status. Modifications A modification of a loan constitutes a 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 $67.1 million as of March 31, 2020 , and $69.1 million as of December 31, 2019 . There were $0.2 million and $0.3 million commitments to lend additional funds on loans modified in a TDR as of March 31, 2020 , and December 31, 2019 , respectively. 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 fully amortizing the loan 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 monthly payments up to an additional five years with a balloon payment due at maturity, or re-amortizing the remaining balance over a period up to 360 months . Interest rates are not changed for land loan modifications. Home equity modifications are made infrequently and uniquely designed to meet the specific needs of each borrower. Automobile loans modified in a TDR are primarily comprised of loans where the Company has lowered monthly payments by extending the term. Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific Allowance associated with the loan. An Allowance for impaired 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 three months ended March 31, 2020 , and March 31, 2019 . Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 2 $ 99 $ 2 3 $ 111 $ 5 Commercial Mortgage — — — 1 3,907 — Total Commercial 2 99 2 4 4,018 5 Consumer Automobile 52 893 14 117 2,240 34 Other 2 31 240 10 39 229 6 Total Consumer 83 1,133 24 156 2,469 40 Total 85 $ 1,232 $ 26 160 $ 6,487 $ 45 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. The following presents by class, all loans modified in a TDR that defaulted during the three months ended March 31, 2020 , and March 31, 2019 , and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification. Three Months Ended Three Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Consumer Automobile 18 $ 176 14 $ 266 Other 2 5 50 19 125 Total Consumer 23 226 33 391 Total 23 $ 226 33 $ 391 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. Commercial and consumer loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The specific Allowance associated with the loan may be increased, adjustments may be made in the allocation of the Allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Modifications in response to COVID-19 The Company began offering short-term loan modifications to assist borrowers during the COVID-19 national emergency. The CARES Act along with a joint agency statement issued by banking agencies, provides that short-term modifications made in response to COVID-19 does not need to be accounted for as a TDR. Accordingly, the Company does not account for such loan modifications as TDRs. See Note 1 Summary of Significant Accounting Policies for more information. Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $1.9 million as of March 31, 2020 . |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2020 | |
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 $3.1 billion as of March 31, 2020 , and December 31, 2019 , respectively. 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 14 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 $3.7 million and $1.8 million for the three months ended March 31, 2020 , and March 31, 2019 , 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 three months ended March 31, 2020 , and March 31, 2019 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: Three Months Ended (dollars in thousands) 2020 2019 Balance at Beginning of Period $ 1,126 $ 1,290 Change in Fair Value: Due to Payoffs (25 ) (22 ) Total Changes in Fair Value of Mortgage Servicing Rights (25 ) (22 ) Balance at End of Period $ 1,101 $ 1,268 For the three months ended March 31, 2020 , and March 31, 2019 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows: Three Months Ended (dollars in thousands) 2020 2019 Balance at Beginning of Period $ 23,896 $ 23,020 Servicing Rights that Resulted From Asset Transfers 1,165 551 Amortization (1,112 ) (690 ) Valuation Allowance Provision (2,513 ) — Balance at End of Period $ 21,436 $ 22,881 Valuation Allowance: Balance at Beginning of Period $ — $ — Valuation Allowance Provision (2,513 ) — Balance at End of Period $ (2,513 ) $ — Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method Beginning of Period $ 25,714 $ 29,218 End of Period $ 21,436 $ 26,814 The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of March 31, 2020 , and December 31, 2019 , were as follows: March 31, December 31, 2019 Weighted-Average Constant Prepayment Rate 1 14.93 % 10.76 % Weighted-Average Life (in years) 4.88 6.20 Weighted-Average Note Rate 3.96 % 3.99 % Weighted-Average Discount Rate 2 5.90 % 7.33 % 1 Represents annualized loan prepayment rate assumption. 2 Derived from multiple interest rate scenarios that incorporate a spread to a market yield 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 March 31, 2020 , and December 31, 2019 , is presented in the following table. (dollars in thousands) March 31, December 31, Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (228 ) $ (296 ) Decrease in fair value from 50 bps adverse change (452 ) (586 ) Discount Rate Decrease in fair value from 25 bps adverse change (204 ) (264 ) Decrease in fair value from 50 bps adverse change (403 ) (522 ) This analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company’s mortgage servicing rights usually is not linear. Also, the effect of changing one key assumption without changing other assumptions is not realistic. |
Low Income Housing Tax Credit P
Low Income Housing Tax Credit Partnerships | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Low Income Housing Tax Credit Partnerships | Affordable Housing Projects Tax Credit Partnerships The Company makes equity investments in various limited partnerships or limited liability companies 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 these entities 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 or non-managing member in each LIHTC limited partnership or limited liability company, respectively. Each of these entities is managed by an unrelated third-party general partner or managing member who exercises significant control over the affairs of the entity. The general partner or managing member has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership or managing member of a limited liability company. Duties entrusted to the general partner or managing member 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 the limited partner(s) or non-managing member(s) relating to the approval of certain transactions, the limited partner(s) and non-managing member(s) may not participate in the operation, management, or control of the entity’s business, transact any business in the entity’s name or have any power to sign documents for or otherwise bind the entity. In addition, the general partner or managing member may only be removed by the limited partner(s) or managing member(s) in the event of a failure to comply with the terms of the agreement or negligence in performing its duties. The general partner or managing member of each entity has both the power to direct the activities which most significantly affect the performance of each entity 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 entity. 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 are recognized using the proportional amortization method. The Company’s net affordable housing tax credit investments and related unfunded commitments were $92.9 million and $76.3 million as of March 31, 2020 , and December 31, 2019 , respectively, and are included in other assets in the consolidated statements of condition. Unfunded Commitments As of March 31, 2020 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2020 $ 25,423 2021 5,310 2022 79 2023 55 2024 55 Thereafter 1,754 Total Unfunded Commitments $ 32,676 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three months ended March 31, 2020 , and March 31, 2019 . Three Months Ended (dollars in thousands) 2020 2019 Effective Yield Method Tax credits and other tax benefits recognized $ 2,938 $ 2,930 Amortization Expense in Provision for Income Taxes 2,147 1,891 Proportional Amortization Method Tax credits and other tax benefits recognized $ 1,523 $ 753 Amortization Expense in Provision for Income Taxes 1,318 645 There were no impairment losses related to LIHTC investments during the three months ended March 31, 2020 , and March 31, 2019 |
Balance Sheet Offsetting
Balance Sheet Offsetting | 3 Months Ended |
Mar. 31, 2020 | |
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 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 cash or marketable securities, is posted by the party (i.e., the Company or the financial institution counterparty) with net liability positions in accordance with contract thresholds. The Company had net liability positions with its financial institution counterparties totaling $18.9 million and $5.1 million as of March 31, 2020 , and December 31, 2019 , respectively. See Note 12 Derivative Financial Instruments for more information. Parties to a centrally cleared over-the-counter derivative exchange daily payments that reflect the daily change in value of the derivative. Effective 2017, these payments, commonly referred to as variation margin, are recorded as settlements of the derivatives’ mark-to-market exposure rather than collateral against the exposures. This rule change effectively results in any centrally cleared derivative having a fair value that approximates zero on a daily basis, and therefore, these swap agreements were not included in the offsetting table at the end of this section. See Note 12 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., fail 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 March 31, 2020 , and December 31, 2019 , 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 March 31, 2020 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 199,173 $ 38,065 $ 237,238 Debt Securities Issued by States and Political Subdivisions — 1,200 — 490 1,690 Mortgage-Backed Securities: Residential - Government Agencies — 1,516 25,827 88,391 115,734 Residential - U.S. Government-Sponsored Enterprises — — — 248,544 248,544 Total $ — $ 2,716 $ 225,000 $ 375,490 $ 603,206 December 31, 2019 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 199,173 $ 38,065 $ 237,238 Debt Securities Issued by States and Political Subdivisions 1,200 1,100 — 490 2,790 Mortgage-Backed Securities: Residential - Government Agencies — 1,516 25,827 88,391 115,734 Residential - U.S. Government-Sponsored Enterprises — — — 248,544 248,544 Total $ 1,200 $ 2,616 $ 225,000 $ 375,490 $ 604,306 The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of March 31, 2020 , and December 31, 2019 . The swap agreements the Company has with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. As previously mentioned, centrally cleared swap agreements between the Company and institutional counterparties are also 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/Received 1 Net Amount March 31, 2020 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 36 $ — $ 36 $ 36 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 18,947 — 18,947 36 8,955 9,956 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 3,206 — 3,206 — 3,206 — $ 603,206 $ — $ 603,206 $ — $ 603,206 $ — December 31, 2019 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 584 $ — $ 584 $ 584 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 5,361 — 5,361 584 3,818 959 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 4,306 — 4,306 — 4,306 — $ 604,306 $ — $ 604,306 $ — $ 604,306 $ — 1 The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For repurchase agreements with private institutions, the fair value of investment securities pledged was $646.4 million and $645.3 million as of March 31, 2020 , and December 31, 2019 , respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $5.4 million and $5.5 million as of March 31, 2020 , and December 31, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss) for the three months ended March 31, 2020 , and March 31, 2019 : (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2020 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 56,556 $ 14,989 $ 41,567 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (77 ) (21 ) $ (56 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 65 17 48 Net Unrealized Gains (Losses) on Investment Securities 56,544 14,985 41,559 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 570 152 418 Amortization of Prior Service Credit (61 ) (17 ) (44 ) Defined Benefit Plans, Net 509 135 374 Other Comprehensive Income (Loss) $ 57,053 $ 15,120 $ 41,933 Three Months Ended March 31, 2019 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 8,952 $ 2,371 $ 6,581 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale 64 17 $ 47 Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 396 105 291 Net Unrealized Gains (Losses) on Investment Securities 9,412 2,493 6,919 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 406 107 299 Amortization of Prior Service Credit (72 ) (19 ) (53 ) Defined Benefit Plans, Net 334 88 246 Other Comprehensive Income (Loss) $ 9,746 $ 2,581 $ 7,165 1 The amount relates to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield. The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2020 , and March 31, 2019 : (dollars in thousands) Investment Securities-Available-for-Sale Investment Securities-Held-to-Maturity Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2020 Balance at Beginning of Period $ 8,359 $ (715 ) $ (38,756 ) $ (31,112 ) Other Comprehensive Income (Loss) Before Reclassifications 41,567 — — 41,567 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (56 ) 48 374 366 Total Other Comprehensive Income (Loss) 41,511 48 374 41,933 Balance at End of Period $ 49,870 $ (667 ) $ (38,382 ) $ 10,821 Three Months Ended March 31, 2019 Balance at Beginning of Period $ (10,447 ) $ (4,586 ) $ (36,010 ) $ (51,043 ) Other Comprehensive Income (Loss) Before Reclassifications 6,581 — — 6,581 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 47 291 246 584 Total Other Comprehensive Income (Loss) 6,628 291 246 7,165 Balance at End of Period $ (3,819 ) $ (4,295 ) $ (35,764 ) $ (43,878 ) The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three months ended March 31, 2020 , and March 31, 2019 : Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented Three Months Ended March 31, (dollars in thousands) 2020 2019 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (65 ) $ (396 ) Interest Income 17 105 Provision for Income Tax (48 ) (291 ) Net of Tax Sale of Investment Securities Available-for-Sale 77 (64 ) Investment Securities Gains (Losses), Net (21 ) 17 Provision for Income Tax 56 (47 ) Net of tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 61 72 Net Actuarial Losses 2 (570 ) (406 ) (509 ) (334 ) Total Before Tax 135 88 Provision for Income Tax (374 ) (246 ) Net of Tax Total Reclassifications for the Period $ (366 ) $ (584 ) 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 Other Noninterest Expense on the consolidated statements of income (see Note 11 Pension Plans and Postretirement Benefit Plan for additional details). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share There were no adjustments to net income, the numerator, for purposes of computing earnings per share. The following is a reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding for the three months ended March 31, 2020 , and March 31, 2019 : Three Months Ended 2020 2019 Denominator for Basic Earnings Per Share 39,681,611 40,938,318 Dilutive Effect of Equity Based Awards 235,375 275,135 Denominator for Diluted Earnings Per Share 39,916,986 41,213,453 Antidilutive Stock Options and Restricted Stock Outstanding 106,602 102,394 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Effective January 1, 2020, the Company changed segments based on management structure and strategic focus which is placing a greater emphasis on customer segment vs. product type. The Company’s business segments are defined as Consumer Banking, Commercial Banking, 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 the process used by 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 26% effective income 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 Consumer Banking segment) are assigned their actual effective income 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. Consumer Banking Consumer Banking offers a broad range of financial products and services, including loan, deposit and insurance products; private banking and international client banking services; trust services; investment management; and institutional investment advisory services. Consumer Banking also provides a full service brokerage offering equities, mutual funds, life insurance, and annuity products. 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. Private banking and personal trust groups assist 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. Also within Consumer Banking, institutional client services offer investment advice to corporations, government entities, and foundations. Products and services from Consumer Banking are delivered to customers through 67 branch locations and 382 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. In addition, Commercial Banking offers deposit products to government entities in Hawaii. 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 customers. 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, and short and long-term borrowings. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, and foreign exchange income related to customer-driven currency requests from merchants and island visitors. The net residual effect of the transfer pricing of assets and liabilities is included in Treasury, along with the elimination of intercompany transactions. Other organizational units (Technology, Operations, Marketing, Human Resources, Finance, Credit and Risk Management, and Corporate and Regulatory Administration) provide a wide-range of support to the Company’s other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process. Selected business segment financial information as of and for the three months ended March 31, 2020 , and March 31, 2019 , were as follows: (dollars in thousands) Consumer Commercial Treasury Consolidated Total Three Months Ended March 31, 2020 Net Interest Income $ 73,661 $ 45,986 $ 6,319 $ 125,966 Provision for Credit Losses 3,545 290 29,765 33,600 Net Interest Income After Provision for Credit Losses 70,116 45,696 (23,446 ) 92,366 Noninterest Income 32,590 11,735 1,824 46,149 Noninterest Expense (70,900 ) (17,298 ) (8,114 ) (96,312 ) Income Before Provision for Income Taxes 31,806 40,133 (29,736 ) 42,203 Provision for Income Taxes (7,984 ) (9,760 ) 10,283 (7,461 ) Net Income $ 23,822 $ 30,373 $ (19,453 ) $ 34,742 Total Assets as of March 31, 2020 $ 7,385,185 $ 4,584,040 $ 6,573,008 $ 18,542,233 Three Months Ended March 31, 2019 1 Net Interest Income $ 76,352 $ 47,290 $ 1,195 $ 124,837 Provision for Credit Losses 2,224 1,446 (670 ) 3,000 Net Interest Income After Provision for Credit Losses 74,128 45,844 1,865 121,837 Noninterest Income 34,478 7,061 2,140 43,679 Noninterest Expense (69,427 ) (20,955 ) (2,675 ) (93,057 ) Income Before Provision for Income Taxes 39,179 31,950 1,330 72,459 Provision for Income Taxes (9,834 ) (6,002 ) 2,176 (13,660 ) Net Income $ 29,345 $ 25,948 $ 3,506 $ 58,799 Total Assets as of March 31, 2019 1 $ 6,796,106 $ 4,004,176 $ 6,646,131 $ 17,446,413 1 Certain prior period information has been reclassified to conform to current presentation. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , and December 31, 2019 , were as follows: March 31, 2020 December 31, 2019 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 82,433 $ 3,930 $ 48,677 $ 1,280 Forward Commitments 75,861 (1,247 ) 82,735 (182 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 1,035,227 95,661 802,389 26,070 Pay Fixed/Receive Variable Swaps 1,035,227 (18,911 ) 802,389 (4,777 ) Foreign Exchange Contracts 88,211 107 85,499 163 Conversion Rate Swap Agreement 98,180 — 114,499 — The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of March 31, 2020 , and December 31, 2019 : Derivative Financial Instruments March 31, 2020 December 31, 2019 Not Designated as Hedging Instruments 1 Asset Liability Asset Liability (dollars in thousands) Derivatives Derivatives Derivatives Derivatives Interest Rate Lock Commitments $ 3,930 $ — $ 1,280 $ — Forward Commitments 52 1,299 23 205 Interest Rate Swap Agreements 95,918 19,168 27,344 6,051 Foreign Exchange Contracts 691 584 284 121 Total $ 100,591 $ 21,051 $ 28,931 $ 6,377 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 three months ended March 31, 2020 , and March 31, 2019 : Location of Derivative Financial Instruments Net Gains (Losses) Three Months Ended Not Designated as Hedging Instruments Recognized in the March 31, (dollars in thousands) Statements of Income 2020 2019 Interest Rate Lock Commitments Mortgage Banking $ 6,303 $ 1,725 Forward Commitments Mortgage Banking (2,184 ) (592 ) Interest Rate Swap Agreements Other Noninterest Income 6,438 1,136 Foreign Exchange Contracts Other Noninterest Income 714 914 Total $ 11,271 $ 3,183 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 March 31, 2020 , and December 31, 2019 , 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, 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 Swap Agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the interest rate risk of entering into these agreements by entering into equal and offsetting interest rate swap agreements with 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 cash or marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. See Note 7 Balance Sheet Offsetting for more information. The Company’s interest rate swap agreements with financial institution counterparties may contain credit-risk-related contingent features tied to a specified credit rating of the Company. Under these provisions, should the Company’s specified rating fall below a particular level (e.g., investment grade), or if the Company no longer obtains the specified rating, the counterparty may require the Company to pledge collateral on an immediate and ongoing basis (subject to the requirement that such swaps are in a net liability position beyond the level specified in the contract), or require immediate settlement of the swap agreement. Other credit-risk-related contingent features may also allow the counterparty to require immediate settlement of the swap agreement if the Company fails to maintain a specified minimum level of capitalization. With regard to derivative contracts not centrally cleared through a clearinghouse, regulations require collateral to be posted by the party with a net liability position (i.e., the threshold for posting collateral was reduced to zero, subject to certain minimum transfer amounts). The requirements generally applied to new derivative contracts entered into by the Company after March 1, 2017, although certain counterparties may elect to apply lower thresholds to existing contracts. Parties to a centrally cleared over-the-counter derivative exchange daily payments that reflect the daily change in value of the derivative. These payments are commonly referred to as variation margin. Historically, variation margin payments have typically been treated as collateral against the derivative position. Effective 2017, the Chicago Mercantile Exchange and LCH.Clearnet Limited (collectively, the “clearinghouses”) amended their rulebooks to legally characterize variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ mark-to-market exposure rather than collateral against the exposures. This rule change effectively causes any derivative cleared through one of the clearinghouses to have a fair value that approximates zero on a daily basis. The majority of the Company’s swap agreements executed with third-party financial institutions are now required to be cleared through one of the clearinghouses. The uncleared swap agreements executed with third-party financial institutions will remain subject to the collateral requirements and credit-risk-related contingent features described in the previous paragraphs, and therefore, are not subject to the variation margin rule change. Likewise, the swap agreements executed with the Company’s commercial banking customers will remain uncleared and will also not be subject to the variation margin rule change. 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. The conversion rate swap agreement was valued at zero (i.e., no contingent liability recorded) as further reductions to the conversion ratio were deemed neither probable nor reasonably estimable by management. See Note 3 Investment Securities for more information. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefit Plan | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plans and Postretirement Benefit Plan | Pension Plans and Postretirement Benefit Plan Components of net periodic benefit cost for the Company’s pension plans and the postretirement benefit plan are presented in the following table for the three months ended March 31, 2020 , and March 31, 2019 . Pension Benefits Postretirement Benefits (dollars in thousands) 2020 2019 2020 2019 Three Months Ended March 31, Service Cost $ — $ — $ 151 $ 118 Interest Cost 900 1,094 231 258 Expected Return on Plan Assets (1,258 ) (1,249 ) — — Amortization of: Prior Service Credit — — (61 ) (72 ) Net Actuarial Losses (Gains) 570 484 — (78 ) Net Periodic Benefit Cost $ 212 $ 329 $ 321 $ 226 The service cost component of net periodic benefit cost are included in salaries and benefits and all other components of net periodic benefit cost are included in other noninterest expense in the consolidated statements of income for the Company’s pension plans and postretirement benefit plan. For the three months ended March 31, 2020 , the Company contributed $0.1 million to the pension plans and $0.3 million to the postretirement benefit plan. The Company expects to contribute a total of $0.4 million to the pension plans and $1.0 million to the postretirement benefit plan for the year ending December 31, 2020 . |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | Commitments, Contingencies, and Guarantees The Company’s credit commitments as of March 31, 2020 , and December 31, 2019 , were as follows: (dollars in thousands) March 31, December 31, Unfunded Commitments to Extend Credit $ 2,579,748 $ 2,713,937 Standby Letters of Credit 83,175 81,000 Commercial Letters of Credit 15,870 16,981 Total Credit Commitments $ 2,678,793 $ 2,811,918 Unfunded Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. Standby and Commercial Letters of Credit Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third-party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. The Company has recourse against the customer for any amount it is required to pay to a third-party under a standby letter of credit, and generally holds cash or deposits as collateral on those standby letters of credit for which collateral is deemed necessary. Contingencies On September 9, 2016, a purported class action lawsuit was filed by a Bank customer primarily alleging Bank of Hawaii’s practice of determining whether consumer deposit accounts were overdrawn based on “available balance” (which deducts debit card transactions that have taken place but which have not yet been posted) was not properly applied or disclosed to customers. On October 16, 2019, the Bank reached a tentative settlement with the named plaintiff, subject to documentation and court approvals. The settlement provides for forgiveness of certain related and previously charged off overdraft fees, and a payment by the Company of $8.0 million into a class settlement fund the proceeds of which will be used to refund class members, and to pay attorneys’ fees, administrative and other costs, in exchange for a complete release of all claims asserted against the Company. The Company had an $8.0 million reserve relating to this claim, as of March 31, 2020. On March 12, 2020, the court granted preliminary approval of the settlement. A court hearing for final approval of the settlement is set for July 6, 2020. 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 using 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 claims 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 these 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 March 31, 2020 , the unpaid principal balance of residential mortgage loans sold by the Company was $2.8 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. During the three months ended March 31, 2020 , there were no residential mortgage loans repurchased as a result of the representation and warranty provisions contained in the applicable contract. As of March 31, 2020 , there was 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 three months ended March 31, 2020 , there were no loans repurchased related to loan servicing activities. As of March 31, 2020 , there were no pending repurchase requests related to loan servicing activities. Although to date repurchase requests related to representation and warranty provisions and servicing activities have been limited, it is possible that requests to repurchase mortgage loans may increase in frequency as investors more aggressively pursue all means of recovering losses on their purchased loans. However, as of March 31, 2020 , 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 March 31, 2020 , 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 | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair Value Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed. In some instances, an instrument may fall into multiple levels of the fair value hierarchy. In such instances, the instrument’s level within the fair value hierarchy is based on the lowest of the three levels (with Level 3 being the lowest) that is significant to the fair value measurement. Our assessment of the significance of an input requires judgment and considers factors specific to the instrument. 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 a second source. The Company’s third-party pricing service has also established processes for us to submit inquiries regarding quoted prices. Periodically, based on these reviews, the Company will challenge the quoted prices provided by the Company’s 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. Generally, we do not adjust the price from the third-party service provider. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review the significant assumptions and valuation methodologies used by the service. The information provided is comprised of market reference data, which may include reported trades; bids, offers, or broker-dealer dealer quotes; benchmark yields and spreads; as well as other reference data as appropriate. 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. 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 the Company believes 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 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 held for sale, 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 a market yield 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 March 31, 2020 , and December 31, 2019 , the conversion rate swap agreements were valued at zero as reductions to the conversion ratio were neither probable nor reasonably estimable by management. See Note 12 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 March 31, 2020 , and December 31, 2019 : Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) (Level 1) (Level 2) (Level 3) Total March 31, 2020 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,176 $ 199,913 $ — $ 201,089 Debt Securities Issued by States and Political Subdivisions — 55,023 — 55,023 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 1,012 — 1,012 Debt Securities Issued by Corporations — 271,176 — 271,176 Mortgage-Backed Securities: Residential - Government Agencies — 1,199,214 — 1,199,214 Residential - U.S. Government-Sponsored Enterprises — 661,173 — 661,173 Commercial - Government Agencies — 292,362 — 292,362 Total Mortgage-Backed Securities — 2,152,749 — 2,152,749 Total Investment Securities Available-for-Sale 1,176 2,679,873 — 2,681,049 Loans Held for Sale — 20,789 — 20,789 Mortgage Servicing Rights — — 1,101 1,101 Other Assets 42,844 — — 42,844 Derivatives 1 — 743 99,848 100,591 Total Assets Measured at Fair Value on a $ 44,020 $ 2,701,405 $ 100,949 $ 2,846,374 Liabilities: Derivatives 1 $ — $ 1,883 $ 19,168 $ 21,051 Total Liabilities Measured at Fair Value on a $ — $ 1,883 $ 19,168 $ 21,051 December 31, 2019 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,155 $ 219,976 $ — $ 221,131 Debt Securities Issued by States and Political Subdivisions — 55,097 — 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 22,147 — 22,147 Debt Securities Issued by Corporations — 336,321 — 336,321 Mortgage-Backed Securities: Residential - Government Agencies — 1,172,826 — 1,172,826 Residential - U.S. Government-Sponsored Enterprises — 586,761 — 586,761 Commercial - Government Agencies — 224,720 — 224,720 Total Mortgage-Backed Securities — 1,984,307 — 1,984,307 Total Investment Securities Available-for-Sale 1,155 2,617,848 — 2,619,003 Loans Held for Sale — 39,062 — 39,062 Mortgage Servicing Rights — — 1,126 1,126 Other Assets 41,464 — — 41,464 Derivatives 1 — 308 28,623 28,931 Total Assets Measured at Fair Value on a $ 42,619 $ 2,657,218 $ 29,749 $ 2,729,586 Liabilities: Derivatives 1 $ — $ 327 $ 6,050 $ 6,377 Total Liabilities Measured at Fair Value on a $ — $ 327 $ 6,050 $ 6,377 1 The fair value of each class of derivatives is shown in Note 12 Derivative Financial Instruments . For the three months ended March 31, 2020 , and March 31, 2019 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage Servicing Rights 1 Net Derivative Assets and Liabilities 2 Three Months Ended March 31, 2020 Balance as of January 1, 2020 $ 1,126 $ 22,573 Realized and Unrealized Net Gains (Losses): Included in Net Income (25 ) 6,172 Transfers to Loans Held for Sale — (3,653 ) Variation Margin Payments — 55,588 Balance as of March 31, 2020 $ 1,101 $ 80,680 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 80,680 Three Months Ended March 31, 2019 Balance as of January 1, 2019 $ 1,290 $ 4,416 Realized and Unrealized Net Gains (Losses): Included in Net Income (22 ) 1,715 Transfers to Loans Held for Sale — (1,498 ) Variation Margin Payments — 4,542 Balance as of March 31, 2019 $ 1,268 $ 9,175 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 9,175 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 March 31, 2020 , and December 31, 2019 , the significant unobservable inputs used in the fair value measurements were as follows: March 31, 2020 December 31, 2019 (dollars in thousands) Valuation Technique Description Range Weighted Average 1 Fair Value Weighted Average 1 Fair Value Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 9.57 % - 16.76 % 14.93 % $ 22,537 10.76 % $ 26,840 Discount Rate 5.88 % - 6.44 % 5.90 % 7.33 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 75.40 % - 99.00 % 87.46 % $ 3,930 92.24 % $ 1,280 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.02 % - 0.61 % 0.19 % $ 76,750 0.20 % $ 21,293 1 Unobservable inputs for mortgage servicing rights and interest rate lock commitments were weighted by loan amount. Unobservable inputs for interest rate swap agreements were weighted by fair value. 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 comparing the model’s results to historical prepayment data. 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 the Company’s secondary marketing system using historical data and the ratio is periodically reviewed by the Company for reasonableness. The unobservable input used in the fair value measurement of the Company’s interest rate swap agreements is the credit spread. 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 spread could result in a significantly lower (higher) fair value measurement. The credit spread is based upon the creditworthiness of the borrower and is input into a proprietary model that calculates fair value using probability of default, loss given default, and exposure at default. 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 March 31, 2020 . There were no assets measured at fair value on a nonrecurring basis as of December 31, 2019 . (dollars in thousands) Fair Value Hierarchy Net Carrying Amount Valuation Allowance March 31, 2020 Mortgage Servicing Rights - amortization method Level 3 $ 21,436 $ (2,513 ) 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. Fair Value Option The Company elects the fair value option for all residential mortgage loans held for sale. 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 March 31, 2020 , and December 31, 2019 . (dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Unpaid Principal March 31, 2020 Loans Held for Sale $ 20,789 $ 13,848 $ 6,941 December 31, 2019 Loans Held for Sale $ 39,062 $ 38,293 $ 769 Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of mortgage banking income in the Company’s consolidated statements of income. For the three months ended March 31, 2020 , and March 31, 2019 , 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 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 March 31, 2020 , and December 31, 2019 . This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair Value Measurements Carrying Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2020 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,004,139 $ 3,104,020 $ 216,723 $ 2,887,297 $ — Loans 1 11,013,610 11,548,639 — — 11,548,639 Financial Instruments - Liabilities Time Deposits 1,744,812 1,754,741 — 1,754,741 — Securities Sold Under Agreements to Repurchase 603,206 651,276 — 651,276 — Other Debt 2 50,000 50,800 — 50,800 — December 31, 2019 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,042,294 $ 3,062,882 $ 275,663 $ 2,787,219 $ — Loans 1 10,664,885 10,873,208 — — 10,873,208 Financial Instruments - Liabilities Time Deposits 1,802,431 1,800,773 — 1,800,773 — Securities Sold Under Agreements to Repurchase 604,306 627,780 — 627,780 — Other Debt 2 75,000 75,581 — 75,581 — 1 Carrying amount is net of unearned income and the Allowance. 2 Excludes finance lease obligations. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. 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. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities, which comprise the majority of the Company’s revenue. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not within the scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these covered revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Trust and Asset Management Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transaction based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange, and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit card income, ATM fees, merchant services income, and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Annuity and Insurance Annuity and insurance income primarily consists of commissions received on annuity product sales. The Company acts as an intermediary between the Company’s customer and the insurance carrier. The Company’s performance obligation is generally satisfied upon the issuance of the annuity policy. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company does not earn a significant amount of trailer fees on annuity sales. The majority of the trailer fees relates to variable annuity products and are calculated based on a percentage of market value at period end. Revenue is not recognized until the annuity’s market value can be determined. Other Other noninterest income consists of other recurring revenue streams such as commissions from sales of mutual funds and other investments, investment advisor fees from the Company’s Managed Account Platform Services (MAPS) wealth management product, safety deposit box rental fees, and other miscellaneous revenue streams. Commissions from the sale of mutual funds and other investments are recognized on trade date, which is when the Company has satisfied its performance obligation. The Company also receives periodic service fees (i.e., trailers) from mutual fund companies typically based on a percentage of net asset value. Trailer revenue is recorded over time, usually monthly or quarterly, as net asset value is determined. Investment advisor fees from the MAPS wealth management product is earned over time and based on an annual percentage rate of the net asset value. The investment advisor fees are charged to the customer’s account in advance on the first month of the quarter, and the revenue is recognized over the following three-month period. Safety deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2020 , and March 31, 2019 . Three Months Ended (dollars in thousands) 2020 2019 Noninterest Income In-scope of Topic 606: Trust and Asset Management $ 10,915 $ 10,761 Service Charges on Deposit Accounts 3,053 3,349 Fees, Exchange, and Other Service Charges 10,518 11,552 Annuity and Insurance 895 2,544 Other 2,302 2,471 Noninterest Income (in-scope of Topic 606) 27,683 30,677 Noninterest Income (out-of-scope of Topic 606) 18,466 13,002 Total Noninterest Income $ 46,149 $ 43,679 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2020 , and December 31, 2019 , the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 accompanying consolidated financial statements include the accounts of the Parent and its subsidiaries. The Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”). The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or for any future period. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. |
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 (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The Company participates in limited partnerships or limited liability companies that sponsor low-income housing projects. These entities provide funds for the construction and operation of apartment complexes that provide affordable housing to lower-income households. 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 for federal and 5 years for state. In order to continue receiving the tax credits each year over the life of the entity, 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. Unfunded commitments to fund these low-income housing entities were $32.7 million and $21.3 million as of March 31, 2020 , and December 31, 2019 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. See Note 6 Affordable Housing Projects Tax Credit Partnerships for more information. The Company also has limited partnership interests in solar energy tax credit partnership investments. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of these investments, the Company expects to 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. Tax benefits associated with these investments are generally recognized over 6 years . Although these entities meet the definition of a VIE, 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 investments in these entities are 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 $100.5 million and $84.6 million as of March 31, 2020 , and December 31, 2019 , respectively, and is included in other assets in the consolidated statements of condition. |
Accounting Standards Adopted in the Current Year | Accounting Standards Adopted in 2020 In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaces the “incurred loss” approach with an “expected loss” approach known as current expected credit loss (“CECL”). CECL applies to: (1) financial assets measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL approach does not apply to AFS debt securities. For AFS debt securities with unrealized losses, entities measure credit losses in a similar manner to legacy GAAP except that the credit losses are now recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time. ASU No. 2016-13 also changes the accounting for purchased credit-impaired debt securities and loans. ASU 2016-13 expanded or revised the disclosure requirements related to loans and debt securities. In addition, entities are required to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 was effective for interim and annual reporting periods beginning after December 15, 2019. The Company adopted the standard on January 1, 2020, and applied the standard’s provisions as a cumulative-effect adjustment to retained earnings, as of January 1, 2020 (i.e., modified retrospective approach). Upon adoption of the standard, the Company recorded a $5.1 million decrease to the reserve for credit losses, which resulted in a $3.6 million after-tax increase to retained earnings as of January 1, 2020. The tax effect resulted in an increase to deferred tax liabilities. This “Day 1” impact of CECL adoption is summarized below: (dollars in thousands) December 31, 2019 CECL Adoption Impact January 1, 2020 Allowance for Credit Losses: Commercial $ 73,801 $ (18,789 ) $ 55,012 Consumer 36,226 17,052 53,278 Total Allowance for Credit Losses 110,027 (1,737 ) 108,290 Reserve for Unfunded Commitments 6,822 (3,335 ) 3,487 Total Reserve for Credit Losses $ 116,849 $ (5,072 ) $ 111,777 Retained Earnings Total Pre-tax Impact $ 5,072 Tax Effect (1,440 ) Increase to Retained Earnings $ 3,632 The Company did not record an allowance for AFS or HTM securities on Day 1 as the investment portfolio consists primarily of debt securities explicitly or implicitly backed by the U.S. Government for which credit risk is deemed minimal. The impact going forward will depend on the composition, characteristics, and credit quality of the loan and securities portfolios as well as the economic conditions at future reporting periods. See Note 3 Investment Securities and Note 4 Loans and Leases and the Allowance for Credit Losses for more information. In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 was effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. As ASU No. 2018-13 only revises disclosure requirements, it did not have a material impact on the Company’s Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” With respect to Topic 326, ASU 2019-04 clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. The Company made the accounting policy elections not to measure an allowance for credit losses on accrued interest receivable, to write-off accrued interest amounts by reversing interest income, and to present accrued interest receivable separately from the related financial asset on the statements of financial condition. The amendments to Topic 326 were adopted concurrently with ASU 2016-13 on January 1, 2020. The financial statement impact in regards to the amendments to Topic 326 are incorporated within ASU 2016-13 mentioned above. With respect to Topic 825, on recognizing and measuring financial instruments, ASU 2019-04 addresses the scope of the guidance, the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. The amendments to Topic 825 were effective for interim and annual reporting periods beginning after December 15, 2019, and did not have a material impact on the Company’s Consolidated Financial Statements. The Company elected to early adopt the amendments to Topic 815 in June 2019. See Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, for more information. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief.” This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to HTM debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 was adopted concurrently with ASU 2016-13 on January 1, 2020. The Company did not elect the fair value option, and therefore, ASU 2019-05 did not impact the Company’s Consolidated Financial Statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses.” This ASU requires entities to include certain expected recoveries of the amortized cost basis previously written off, or expected to be written off, in the allowance for credit losses for purchased credit-deteriorated (“PCD”) financial assets. It also provides transition relief related to TDRs, allows entities to exclude accrued interest amounts from certain required disclosures and clarifies the requirements for applying the collateral maintenance practical expedient. ASU 2019-11 was adopted concurrently with ASU 2016-13 on January 1, 2020, and did not have a material impact to the Company’s Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | is “Day 1” impact of CECL adoption is summarized below: (dollars in thousands) December 31, 2019 CECL Adoption Impact January 1, 2020 Allowance for Credit Losses: Commercial $ 73,801 $ (18,789 ) $ 55,012 Consumer 36,226 17,052 53,278 Total Allowance for Credit Losses 110,027 (1,737 ) 108,290 Reserve for Unfunded Commitments 6,822 (3,335 ) 3,487 Total Reserve for Credit Losses $ 116,849 $ (5,072 ) $ 111,777 Retained Earnings Total Pre-tax Impact $ 5,072 Tax Effect (1,440 ) Increase to Retained Earnings $ 3,632 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statements of condition that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (dollars in thousands) March 31, December 31, Interest-Bearing Deposits in Other Banks $ 6,346 $ 4,979 Funds Sold 96,898 254,574 Cash and Due From Banks 453,465 299,105 Total Cash and Cash Equivalents $ 556,709 $ 558,658 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , and December 31, 2019, were as follows: (dollars in thousands) Amortized Cost Gross Gross Fair Value March 31, 2020 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 202,065 $ 262 $ (1,238 ) $ 201,089 Debt Securities Issued by States and Political Subdivisions 53,981 1,043 (1 ) 55,023 Debt Securities Issued by U.S. Government-Sponsored Enterprises 936 76 — 1,012 Debt Securities Issued by Corporations 274,353 1,969 (5,146 ) 271,176 Mortgage-Backed Securities: Residential - Government Agencies 1,159,266 41,360 (1,412 ) 1,199,214 Residential - U.S. Government-Sponsored Enterprises 635,161 26,178 (166 ) 661,173 Commercial - Government Agencies 287,441 5,790 (869 ) 292,362 Total Mortgage-Backed Securities 2,081,868 73,328 (2,447 ) 2,152,749 Total $ 2,613,203 $ 76,678 $ (8,832 ) $ 2,681,049 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 214,612 $ 2,111 $ — $ 216,723 Debt Securities Issued by States and Political Subdivisions 54,543 1,017 — 55,560 Debt Securities Issued by Corporations 14,243 104 — 14,347 Mortgage-Backed Securities: Residential - Government Agencies 994,405 38,678 (36 ) 1,033,047 Residential - U.S. Government-Sponsored Enterprises 1,648,144 57,554 — 1,705,698 Commercial - Government Agencies 78,192 763 (310 ) 78,645 Total Mortgage-Backed Securities 2,720,741 96,995 (346 ) 2,817,390 Total $ 3,004,139 $ 100,227 $ (346 ) $ 3,104,020 December 31, 2019 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 222,365 $ 213 $ (1,447 ) $ 221,131 Debt Securities Issued by States and Political Subdivisions 54,480 631 (14 ) 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises 22,128 19 — 22,147 Debt Securities Issued by Corporations 335,553 1,401 (633 ) 336,321 Mortgage-Backed Securities: Residential - Government Agencies 1,164,466 11,627 (3,267 ) 1,172,826 Residential - U.S. Government-Sponsored Enterprises 584,272 4,363 (1,874 ) 586,761 Commercial - Government Agencies 224,372 2,889 (2,541 ) 224,720 Total Mortgage-Backed Securities 1,973,110 18,879 (7,682 ) 1,984,307 Total $ 2,607,636 $ 21,143 $ (9,776 ) $ 2,619,003 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 274,375 $ 1,319 $ (31 ) $ 275,663 Debt Securities Issued by States and Political Subdivisions 54,811 1,236 — 56,047 Debt Securities Issued by Corporations 14,975 — (138 ) 14,837 Mortgage-Backed Securities: Residential - Government Agencies 1,067,416 13,247 (5,348 ) 1,075,315 Residential - U.S. Government-Sponsored Enterprises 1,546,479 13,871 (2,478 ) 1,557,872 Commercial - Government Agencies 84,238 317 (1,407 ) 83,148 Total Mortgage-Backed Securities 2,698,133 27,435 (9,233 ) 2,716,335 Total $ 3,042,294 $ 29,990 $ (9,402 ) $ 3,062,882 |
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 March 31, 2020 . Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates. (dollars in thousands) Amortized Cost Fair Value Available-for-Sale: Due in One Year or Less $ 66,246 $ 66,355 Due After One Year Through Five Years 96,977 95,275 Due After Five Years Through Ten Years 167,141 166,707 Due After Ten Years 50 51 330,414 328,388 Debt Securities Issued by Government Agencies 200,921 199,912 Mortgage-Backed Securities: Residential - Government Agencies 1,159,266 1,199,214 Residential - U.S. Government-Sponsored Enterprises 635,161 661,173 Commercial - Government Agencies 287,441 292,362 Total Mortgage-Backed Securities 2,081,868 2,152,749 Total $ 2,613,203 $ 2,681,049 Held-to-Maturity: Due in One Year or Less $ 234,892 $ 237,171 Due After One Year Through Five Years 48,506 49,459 283,398 286,630 Mortgage-Backed Securities: Residential - Government Agencies 994,405 1,033,047 Residential - U.S. Government-Sponsored Enterprises 1,648,144 1,705,698 Commercial - Government Agencies 78,192 78,645 Total Mortgage-Backed Securities 2,720,741 2,817,390 Total $ 3,004,139 $ 3,104,020 |
Schedule of gains (losses) on sale of investment securities | The table below presents the gains and losses from the sales of investment securities for the three months ended March 31, 2020 , and March 31, 2019 : Three Months Ended (dollars in thousands) 2020 2019 Gross Gains on Sales of Investment Securities $ 77 $ 2,030 Gross Losses on Sales of Investment Securities (1,047 ) (2,865 ) Net Gains (Losses) on Sales of Investment Securities $ (970 ) $ (835 ) |
Schedule of investment securities in an unrealized loss position | The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2020 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 97,978 $ (1,126 ) $ 53,511 $ (112 ) $ 151,489 $ (1,238 ) Debt Securities Issued by States and Political Subdivisions — — 355 (1 ) 355 (1 ) Debt Securities Issued by Corporations 50,000 (644 ) 100,866 (4,502 ) 150,866 (5,146 ) Mortgage-Backed Securities: Residential - Government Agencies 54,491 (1,072 ) 65,155 (340 ) 119,646 (1,412 ) Residential - U.S. Government-Sponsored Enterprises — — 10,994 (166 ) 10,994 (166 ) Commercial - Government Agencies 51,105 (869 ) — — 51,105 (869 ) Total Mortgage-Backed Securities 105,596 (1,941 ) 76,149 (506 ) 181,745 (2,447 ) Total $ 253,574 $ (3,711 ) $ 230,881 $ (5,121 ) $ 484,455 $ (8,832 ) December 31, 2019 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 65,479 $ (188 ) $ 101,761 $ (1,259 ) $ 167,240 $ (1,447 ) Debt Securities Issued by States and Political Subdivisions 6,788 (14 ) 440 — 7,228 (14 ) Debt Securities Issued by Corporations 25,892 (326 ) 74,693 (307 ) 100,585 (633 ) Mortgage-Backed Securities: Residential - Government Agencies 119,271 (526 ) 170,805 (2,741 ) 290,076 (3,267 ) Residential - U.S. Government-Sponsored Enterprises 187,861 (816 ) 73,720 (1,058 ) 261,581 (1,874 ) Commercial - Government Agencies 59,826 (319 ) 52,965 (2,222 ) 112,791 (2,541 ) Total Mortgage-Backed Securities 366,958 (1,661 ) 297,490 (6,021 ) 664,448 (7,682 ) Total $ 465,117 $ (2,189 ) $ 474,384 $ (7,587 ) $ 939,501 $ (9,776 ) |
Schedule of interest income from taxable and non-taxable investment securities | Interest income from taxable and non-taxable investment securities for the three months ended March 31, 2020 , and March 31, 2019 , were as follows: Three Months Ended (dollars in thousands) 2020 2019 Taxable $ 35,393 $ 31,992 Non-Taxable 570 3,361 Total Interest Income from Investment Securities $ 35,963 $ 35,353 |
Schedule of carrying value of company's Federal Home Loan Bank and Federal Reserve Bank | As of March 31, 2020 , and December 31, 2019 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows: (dollars in thousands) March 31, December 31, Federal Home Loan Bank Stock $ 15,000 $ 13,000 Federal Reserve Bank Stock 21,198 21,093 Total $ 36,198 $ 34,093 |
Loans and Leases and the Allo_2
Loans and Leases and the Allowance for Loan and Lease Losses (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
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 March 31, 2020 , and December 31, 2019 : (dollars in thousands) March 31, December 31, Commercial Commercial and Industrial $ 1,558,232 $ 1,379,152 Commercial Mortgage 2,616,243 2,518,051 Construction 245,390 194,170 Lease Financing 110,704 122,454 Total Commercial 4,530,569 4,213,827 Consumer Residential Mortgage 3,928,183 3,891,100 Home Equity 1,692,154 1,676,073 Automobile 716,214 720,286 Other 1 485,660 489,606 Total Consumer 6,822,211 6,777,065 Total Loans and Leases $ 11,352,780 $ 10,990,892 1 Comprised of other revolving credit, installment, and lease financing. | |
Schedule of Portfolio Segment and Balance in Allowance Disaggregated on the Basis of Impairment Measurement Method | The following presents by portfolio segment, the activity in the Allowance for the three months ended March 31, 2020 , and March 31, 2019 . (dollars in thousands) Commercial Consumer Total Three Months Ended March 31, 2020 Allowance for Credit Losses: Balance at Beginning of Period (December 31, 2019) $ 73,801 $ 36,226 $ 110,027 CECL Adoption (Day 1) Impact (18,789 ) 17,052 (1,737 ) Balance at Beginning of Period (January 1, 2020) 55,012 53,278 108,290 Loans and Leases Charged-Off (693 ) (6,484 ) (7,177 ) Recoveries on Loans and Leases Previously Charged-Off 329 3,108 3,437 Net Loans and Leases Recovered (Charged-Off) (364 ) (3,376 ) (3,740 ) Provision for Credit Losses 13,339 20,261 33,600 Balance at End of Period $ 67,987 $ 70,163 $ 138,150 Three Months Ended March 31, 2019 Allowance for Credit Losses: Balance at Beginning of Period $ 66,874 $ 39,819 $ 106,693 Loans and Leases Charged-Off (1,986 ) (4,842 ) (6,828 ) Recoveries on Loans and Leases Previously Charged-Off 501 2,657 3,158 Net Loans and Leases Recovered (Charged-Off) (1,485 ) (2,185 ) (3,670 ) Provision for Credit Losses 2,138 862 3,000 Balance at End of Period $ 67,527 $ 38,496 $ 106,023 | |
Schedule of Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of March 31, 2020 . Term Loans by Origination Year (dollars in thousands) YTD 2019 2018 2017 2016 Prior Revolving Revolving Loans Converted to Term Loans Total Loans and Leases March 31, 2020 Commercial Commercial and Industrial Pass $ 160,663 $ 253,285 $ 212,901 $ 93,614 $ 87,982 $ 108,952 $ 557,732 $ 1,122 $ 1,476,251 Special Mention 62 508 2,087 700 116 152 19,345 — 22,970 Classified 605 22,117 1,678 1,455 440 20,479 12,069 168 59,011 Total Commercial and Industrial $ 161,330 $ 275,910 $ 216,666 $ 95,769 $ 88,538 $ 129,583 $ 589,146 $ 1,290 $ 1,558,232 Commercial Mortgage Pass $ 209,933 $ 591,055 $ 396,239 $ 302,711 $ 329,045 $ 602,337 $ 81,036 $ — $ 2,512,356 Special Mention 3,961 820 19,919 13,176 7,359 7,884 — — 53,119 Classified 11,464 5,413 8,453 1,405 704 23,329 — — 50,768 Total Commercial Mortgage $ 225,358 $ 597,288 $ 424,611 $ 317,292 $ 337,108 $ 633,550 $ 81,036 $ — $ 2,616,243 Construction Pass $ 54,220 $ 81,985 $ 45,600 $ 20,336 $ — $ 1,936 $ 40,152 $ — $ 244,229 Classified — — — — — 1,161 — — 1,161 Total Construction $ 54,220 $ 81,985 $ 45,600 $ 20,336 $ — $ 3,097 $ 40,152 $ — $ 245,390 Lease Financing Pass $ 2,785 $ 23,324 $ 16,762 $ 5,767 $ 12,007 $ 48,527 $ — $ — $ 109,172 Special Mention — — — 2 34 — — — 36 Classified 38 80 1,206 59 113 — — — 1,496 Total Lease Financing $ 2,823 $ 23,404 $ 17,968 $ 5,828 $ 12,154 $ 48,527 $ — $ — $ 110,704 Total Commercial $ 443,731 $ 978,587 $ 704,845 $ 439,225 $ 437,800 $ 814,757 $ 710,334 $ 1,290 $ 4,530,569 Consumer Residential Mortgage Pass $ 212,313 $ 704,271 $ 445,511 $ 625,159 $ 678,049 $ 1,258,545 $ — $ — $ 3,923,848 Classified — — — 932 — 3,403 — — 4,335 Total Residential Mortgage $ 212,313 $ 704,271 $ 445,511 $ 626,091 $ 678,049 $ 1,261,948 $ — $ — $ 3,928,183 Home Equity Pass $ — $ — $ — $ — $ — $ 6,245 $ 1,637,082 $ 43,589 $ 1,686,916 Classified — — — — — 103 3,973 1,162 5,238 Total Home Equity $ — $ — $ — $ — $ — $ 6,348 $ 1,641,055 $ 44,751 $ 1,692,154 Automobile Pass $ 63,914 $ 265,516 $ 208,273 $ 98,987 $ 51,746 $ 26,912 $ — $ — $ 715,348 Classified — 182 166 257 179 82 — — 866 Total Automobile $ 63,914 $ 265,698 $ 208,439 $ 99,244 $ 51,925 $ 26,994 $ — $ — $ 716,214 Other 1 Pass $ 45,414 $ 181,911 $ 123,803 $ 68,751 $ 17,783 $ 6,098 $ 39,053 $ 1,643 $ 484,456 Classified — 326 326 302 119 44 79 8 1,204 Total Other $ 45,414 $ 182,237 $ 124,129 $ 69,053 $ 17,902 $ 6,142 $ 39,132 $ 1,651 $ 485,660 Total Consumer $ 321,641 $ 1,152,206 $ 778,079 $ 794,388 $ 747,876 $ 1,301,432 $ 1,680,187 $ 46,402 $ 6,822,211 Total Loans and Leases $ 765,372 $ 2,130,793 $ 1,482,924 $ 1,233,613 $ 1,185,676 $ 2,116,189 $ 2,390,521 $ 47,692 $ 11,352,780 1 Comprised of other revolving credit, installment, and lease financing. | The following presents by loan class and credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2019 . December 31, 2019 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,306,040 $ 2,463,858 $ 188,832 $ 120,933 $ 4,079,663 Special Mention 37,722 16,453 4,148 — 58,323 Classified 35,390 37,740 1,190 1,521 75,841 Total $ 1,379,152 $ 2,518,051 $ 194,170 $ 122,454 $ 4,213,827 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 3,886,389 $ 1,671,468 $ 719,337 $ 488,113 $ 6,765,307 Classified 4,711 4,605 949 1,493 11,758 Total $ 3,891,100 $ 1,676,073 $ 720,286 $ 489,606 $ 6,777,065 Total Recorded Investment in Loans and Leases $ 10,990,892 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 March 31, 2020 , and December 31, 2019 . (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Past Due 90 Days or More Non-Accrual Total Past Due and Non-Accrual Current Total Loans and Leases Non-Accrual Loans and Leases that are Current 2 As of March 31, 2020 Commercial Commercial and Industrial $ 3,596 $ 255 $ — $ 634 $ 4,485 $ 1,553,747 $ 1,558,232 $ 429 Commercial Mortgage 4,637 — — 9,048 13,685 2,602,558 2,616,243 9,048 Construction 720 — — — 720 244,670 245,390 — Lease Financing 23 — — — 23 110,681 110,704 — Total Commercial 8,976 255 — 9,682 18,913 4,511,656 4,530,569 9,477 Consumer Residential Mortgage 3,935 2,342 3,024 4,330 13,631 3,914,552 3,928,183 1,104 Home Equity 4,367 2,819 3,426 4,086 14,698 1,677,456 1,692,154 839 Automobile 14,590 4,096 866 — 19,552 696,662 716,214 — Other 1 3,648 1,905 1,205 — 6,758 478,902 485,660 — Total Consumer 26,540 11,162 8,521 8,416 54,639 6,767,572 6,822,211 1,943 Total $ 35,516 $ 11,417 $ 8,521 $ 18,098 $ 73,552 $ 11,279,228 $ 11,352,780 $ 11,420 As of December 31, 2019 Commercial Commercial and Industrial $ 12,534 $ 148 $ — $ 830 $ 13,512 $ 1,365,640 $ 1,379,152 $ 421 Commercial Mortgage 2,998 — — 9,244 12,242 2,505,809 2,518,051 9,244 Construction 101 51 — — 152 194,018 194,170 — Lease Financing 720 — — — 720 121,734 122,454 — Total Commercial 16,353 199 — 10,074 26,626 4,187,201 4,213,827 9,665 Consumer Residential Mortgage 6,097 2,070 1,839 4,125 14,131 3,876,969 3,891,100 1,429 Home Equity 3,949 2,280 4,125 3,181 13,535 1,662,538 1,676,073 412 Automobile 16,067 4,154 949 — 21,170 699,116 720,286 — Other 1 3,498 2,074 1,493 — 7,065 482,541 489,606 — Total Consumer 29,611 10,578 8,406 7,306 55,901 6,721,164 6,777,065 1,841 Total $ 45,964 $ 10,777 $ 8,406 $ 17,380 $ 82,527 $ 10,908,365 $ 10,990,892 $ 11,506 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 Non-Accrual Loans and Leases | The following presents the non-accrual loans and leases as of March 31, 2020, and December 31, 2019. March 31, 2020 December 31, 2019 (dollars in thousands) Nonaccrual loans with a related ACL Nonaccrual loans without a related ACL Total Nonaccrual loans Total Nonaccrual loans Commercial Commercial and Industrial $ 634 $ — $ 634 $ 830 Commercial Mortgage 3,543 5,505 9,048 9,244 Total Commercial 4,177 5,505 9,682 10,074 Consumer Residential Mortgage 3,399 931 4,330 4,125 Home Equity 4,086 — 4,086 3,181 Total Consumer 7,485 931 8,416 7,306 Total $ 11,662 $ 6,436 $ 18,098 $ 17,380 All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status. | |
Schedule of Loans Modified in a TDR and TDRs that Defaulted During the Period Within 12 mos of Modification Date | The following presents by class, information related to loans modified in a TDR during the three months ended March 31, 2020 , and March 31, 2019 . Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 2 $ 99 $ 2 3 $ 111 $ 5 Commercial Mortgage — — — 1 3,907 — Total Commercial 2 99 2 4 4,018 5 Consumer Automobile 52 893 14 117 2,240 34 Other 2 31 240 10 39 229 6 Total Consumer 83 1,133 24 156 2,469 40 Total 85 $ 1,232 $ 26 160 $ 6,487 $ 45 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. The following presents by class, all loans modified in a TDR that defaulted during the three months ended March 31, 2020 , and March 31, 2019 , and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification. Three Months Ended Three Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Consumer Automobile 18 $ 176 14 $ 266 Other 2 5 50 19 125 Total Consumer 23 226 33 391 Total 23 $ 226 33 $ 391 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Analysis of mortgage servicing rights accounted for under the fair value measurement method | For the three months ended March 31, 2020 , and March 31, 2019 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: Three Months Ended (dollars in thousands) 2020 2019 Balance at Beginning of Period $ 1,126 $ 1,290 Change in Fair Value: Due to Payoffs (25 ) (22 ) Total Changes in Fair Value of Mortgage Servicing Rights (25 ) (22 ) Balance at End of Period $ 1,101 $ 1,268 |
Analysis of mortgage servicing rights accounted for under the amortization method | For the three months ended March 31, 2020 , and March 31, 2019 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows: Three Months Ended (dollars in thousands) 2020 2019 Balance at Beginning of Period $ 23,896 $ 23,020 Servicing Rights that Resulted From Asset Transfers 1,165 551 Amortization (1,112 ) (690 ) Valuation Allowance Provision (2,513 ) — Balance at End of Period $ 21,436 $ 22,881 Valuation Allowance: Balance at Beginning of Period $ — $ — Valuation Allowance Provision (2,513 ) — Balance at End of Period $ (2,513 ) $ — Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method Beginning of Period $ 25,714 $ 29,218 End of Period $ 21,436 $ 26,814 |
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 March 31, 2020 , and December 31, 2019 , were as follows: March 31, December 31, 2019 Weighted-Average Constant Prepayment Rate 1 14.93 % 10.76 % Weighted-Average Life (in years) 4.88 6.20 Weighted-Average Note Rate 3.96 % 3.99 % Weighted-Average Discount Rate 2 5.90 % 7.33 % 1 Represents annualized loan prepayment rate assumption. 2 Derived from multiple interest rate scenarios that incorporate a spread to a market yield 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 March 31, 2020 , and December 31, 2019 , is presented in the following table. (dollars in thousands) March 31, December 31, Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (228 ) $ (296 ) Decrease in fair value from 50 bps adverse change (452 ) (586 ) Discount Rate Decrease in fair value from 25 bps adverse change (204 ) (264 ) Decrease in fair value from 50 bps adverse change (403 ) (522 ) |
Low Income Housing Tax Credit_2
Low Income Housing Tax Credit Partnerships (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | As of March 31, 2020 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2020 $ 25,423 2021 5,310 2022 79 2023 55 2024 55 Thereafter 1,754 Total Unfunded Commitments $ 32,676 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three months ended March 31, 2020 , and March 31, 2019 . Three Months Ended (dollars in thousands) 2020 2019 Effective Yield Method Tax credits and other tax benefits recognized $ 2,938 $ 2,930 Amortization Expense in Provision for Income Taxes 2,147 1,891 Proportional Amortization Method Tax credits and other tax benefits recognized $ 1,523 $ 753 Amortization Expense in Provision for Income Taxes 1,318 645 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , and December 31, 2019 , 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 March 31, 2020 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 199,173 $ 38,065 $ 237,238 Debt Securities Issued by States and Political Subdivisions — 1,200 — 490 1,690 Mortgage-Backed Securities: Residential - Government Agencies — 1,516 25,827 88,391 115,734 Residential - U.S. Government-Sponsored Enterprises — — — 248,544 248,544 Total $ — $ 2,716 $ 225,000 $ 375,490 $ 603,206 December 31, 2019 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 199,173 $ 38,065 $ 237,238 Debt Securities Issued by States and Political Subdivisions 1,200 1,100 — 490 2,790 Mortgage-Backed Securities: Residential - Government Agencies — 1,516 25,827 88,391 115,734 Residential - U.S. Government-Sponsored Enterprises — — — 248,544 248,544 Total $ 1,200 $ 2,616 $ 225,000 $ 375,490 $ 604,306 |
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 March 31, 2020 , and December 31, 2019 . The swap agreements the Company has with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. As previously mentioned, centrally cleared swap agreements between the Company and institutional counterparties are also 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/Received 1 Net Amount March 31, 2020 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 36 $ — $ 36 $ 36 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 18,947 — 18,947 36 8,955 9,956 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 3,206 — 3,206 — 3,206 — $ 603,206 $ — $ 603,206 $ — $ 603,206 $ — December 31, 2019 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 584 $ — $ 584 $ 584 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 5,361 — 5,361 584 3,818 959 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 4,306 — 4,306 — 4,306 — $ 604,306 $ — $ 604,306 $ — $ 604,306 $ — 1 The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For repurchase agreements with private institutions, the fair value of investment securities pledged was $646.4 million and $645.3 million as of March 31, 2020 , and December 31, 2019 , respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $5.4 million and $5.5 million as of March 31, 2020 , and December 31, 2019 , respectively. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of other comprehensive income | The following table presents the components of other comprehensive income (loss) for the three months ended March 31, 2020 , and March 31, 2019 : (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2020 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 56,556 $ 14,989 $ 41,567 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (77 ) (21 ) $ (56 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 65 17 48 Net Unrealized Gains (Losses) on Investment Securities 56,544 14,985 41,559 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 570 152 418 Amortization of Prior Service Credit (61 ) (17 ) (44 ) Defined Benefit Plans, Net 509 135 374 Other Comprehensive Income (Loss) $ 57,053 $ 15,120 $ 41,933 Three Months Ended March 31, 2019 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 8,952 $ 2,371 $ 6,581 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale 64 17 $ 47 Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 396 105 291 Net Unrealized Gains (Losses) on Investment Securities 9,412 2,493 6,919 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 406 107 299 Amortization of Prior Service Credit (72 ) (19 ) (53 ) Defined Benefit Plans, Net 334 88 246 Other Comprehensive Income (Loss) $ 9,746 $ 2,581 $ 7,165 1 The amount relates to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield. |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2020 , and March 31, 2019 : (dollars in thousands) Investment Securities-Available-for-Sale Investment Securities-Held-to-Maturity Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2020 Balance at Beginning of Period $ 8,359 $ (715 ) $ (38,756 ) $ (31,112 ) Other Comprehensive Income (Loss) Before Reclassifications 41,567 — — 41,567 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (56 ) 48 374 366 Total Other Comprehensive Income (Loss) 41,511 48 374 41,933 Balance at End of Period $ 49,870 $ (667 ) $ (38,382 ) $ 10,821 Three Months Ended March 31, 2019 Balance at Beginning of Period $ (10,447 ) $ (4,586 ) $ (36,010 ) $ (51,043 ) Other Comprehensive Income (Loss) Before Reclassifications 6,581 — — 6,581 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 47 291 246 584 Total Other Comprehensive Income (Loss) 6,628 291 246 7,165 Balance at End of Period $ (3,819 ) $ (4,295 ) $ (35,764 ) $ (43,878 ) |
Reclassification out of accumulated other comprehensive income | The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three months ended March 31, 2020 , and March 31, 2019 : Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented Three Months Ended March 31, (dollars in thousands) 2020 2019 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (65 ) $ (396 ) Interest Income 17 105 Provision for Income Tax (48 ) (291 ) Net of Tax Sale of Investment Securities Available-for-Sale 77 (64 ) Investment Securities Gains (Losses), Net (21 ) 17 Provision for Income Tax 56 (47 ) Net of tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 61 72 Net Actuarial Losses 2 (570 ) (406 ) (509 ) (334 ) Total Before Tax 135 88 Provision for Income Tax (374 ) (246 ) Net of Tax Total Reclassifications for the Period $ (366 ) $ (584 ) 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 Other Noninterest Expense on the consolidated statements of income (see Note 11 Pension Plans and Postretirement Benefit Plan for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding | The following is a reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding for the three months ended March 31, 2020 , and March 31, 2019 : Three Months Ended 2020 2019 Denominator for Basic Earnings Per Share 39,681,611 40,938,318 Dilutive Effect of Equity Based Awards 235,375 275,135 Denominator for Diluted Earnings Per Share 39,916,986 41,213,453 Antidilutive Stock Options and Restricted Stock Outstanding 106,602 102,394 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Selected Business Segment Financial Information | Selected business segment financial information as of and for the three months ended March 31, 2020 , and March 31, 2019 , were as follows: (dollars in thousands) Consumer Commercial Treasury Consolidated Total Three Months Ended March 31, 2020 Net Interest Income $ 73,661 $ 45,986 $ 6,319 $ 125,966 Provision for Credit Losses 3,545 290 29,765 33,600 Net Interest Income After Provision for Credit Losses 70,116 45,696 (23,446 ) 92,366 Noninterest Income 32,590 11,735 1,824 46,149 Noninterest Expense (70,900 ) (17,298 ) (8,114 ) (96,312 ) Income Before Provision for Income Taxes 31,806 40,133 (29,736 ) 42,203 Provision for Income Taxes (7,984 ) (9,760 ) 10,283 (7,461 ) Net Income $ 23,822 $ 30,373 $ (19,453 ) $ 34,742 Total Assets as of March 31, 2020 $ 7,385,185 $ 4,584,040 $ 6,573,008 $ 18,542,233 Three Months Ended March 31, 2019 1 Net Interest Income $ 76,352 $ 47,290 $ 1,195 $ 124,837 Provision for Credit Losses 2,224 1,446 (670 ) 3,000 Net Interest Income After Provision for Credit Losses 74,128 45,844 1,865 121,837 Noninterest Income 34,478 7,061 2,140 43,679 Noninterest Expense (69,427 ) (20,955 ) (2,675 ) (93,057 ) Income Before Provision for Income Taxes 39,179 31,950 1,330 72,459 Provision for Income Taxes (9,834 ) (6,002 ) 2,176 (13,660 ) Net Income $ 29,345 $ 25,948 $ 3,506 $ 58,799 Total Assets as of March 31, 2019 1 $ 6,796,106 $ 4,004,176 $ 6,646,131 $ 17,446,413 1 Certain prior period information has been reclassified to conform to current presentation. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , and December 31, 2019 , were as follows: March 31, 2020 December 31, 2019 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 82,433 $ 3,930 $ 48,677 $ 1,280 Forward Commitments 75,861 (1,247 ) 82,735 (182 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 1,035,227 95,661 802,389 26,070 Pay Fixed/Receive Variable Swaps 1,035,227 (18,911 ) 802,389 (4,777 ) Foreign Exchange Contracts 88,211 107 85,499 163 Conversion Rate Swap Agreement 98,180 — 114,499 — |
Derivative financial instruments, their fair values, and balance sheet location | The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of March 31, 2020 , and December 31, 2019 : Derivative Financial Instruments March 31, 2020 December 31, 2019 Not Designated as Hedging Instruments 1 Asset Liability Asset Liability (dollars in thousands) Derivatives Derivatives Derivatives Derivatives Interest Rate Lock Commitments $ 3,930 $ — $ 1,280 $ — Forward Commitments 52 1,299 23 205 Interest Rate Swap Agreements 95,918 19,168 27,344 6,051 Foreign Exchange Contracts 691 584 284 121 Total $ 100,591 $ 21,051 $ 28,931 $ 6,377 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 three months ended March 31, 2020 , and March 31, 2019 : Location of Derivative Financial Instruments Net Gains (Losses) Three Months Ended Not Designated as Hedging Instruments Recognized in the March 31, (dollars in thousands) Statements of Income 2020 2019 Interest Rate Lock Commitments Mortgage Banking $ 6,303 $ 1,725 Forward Commitments Mortgage Banking (2,184 ) (592 ) Interest Rate Swap Agreements Other Noninterest Income 6,438 1,136 Foreign Exchange Contracts Other Noninterest Income 714 914 Total $ 11,271 $ 3,183 |
Pension Plans and Postretirem_2
Pension Plans and Postretirement Benefit Plan (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost | Components of net periodic benefit cost for the Company’s pension plans and the postretirement benefit plan are presented in the following table for the three months ended March 31, 2020 , and March 31, 2019 . Pension Benefits Postretirement Benefits (dollars in thousands) 2020 2019 2020 2019 Three Months Ended March 31, Service Cost $ — $ — $ 151 $ 118 Interest Cost 900 1,094 231 258 Expected Return on Plan Assets (1,258 ) (1,249 ) — — Amortization of: Prior Service Credit — — (61 ) (72 ) Net Actuarial Losses (Gains) 570 484 — (78 ) Net Periodic Benefit Cost $ 212 $ 329 $ 321 $ 226 |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Credit commitments | The Company’s credit commitments as of March 31, 2020 , and December 31, 2019 , were as follows: (dollars in thousands) March 31, December 31, Unfunded Commitments to Extend Credit $ 2,579,748 $ 2,713,937 Standby Letters of Credit 83,175 81,000 Commercial Letters of Credit 15,870 16,981 Total Credit Commitments $ 2,678,793 $ 2,811,918 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , and December 31, 2019 : Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) (Level 1) (Level 2) (Level 3) Total March 31, 2020 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,176 $ 199,913 $ — $ 201,089 Debt Securities Issued by States and Political Subdivisions — 55,023 — 55,023 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 1,012 — 1,012 Debt Securities Issued by Corporations — 271,176 — 271,176 Mortgage-Backed Securities: Residential - Government Agencies — 1,199,214 — 1,199,214 Residential - U.S. Government-Sponsored Enterprises — 661,173 — 661,173 Commercial - Government Agencies — 292,362 — 292,362 Total Mortgage-Backed Securities — 2,152,749 — 2,152,749 Total Investment Securities Available-for-Sale 1,176 2,679,873 — 2,681,049 Loans Held for Sale — 20,789 — 20,789 Mortgage Servicing Rights — — 1,101 1,101 Other Assets 42,844 — — 42,844 Derivatives 1 — 743 99,848 100,591 Total Assets Measured at Fair Value on a $ 44,020 $ 2,701,405 $ 100,949 $ 2,846,374 Liabilities: Derivatives 1 $ — $ 1,883 $ 19,168 $ 21,051 Total Liabilities Measured at Fair Value on a $ — $ 1,883 $ 19,168 $ 21,051 December 31, 2019 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,155 $ 219,976 $ — $ 221,131 Debt Securities Issued by States and Political Subdivisions — 55,097 — 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 22,147 — 22,147 Debt Securities Issued by Corporations — 336,321 — 336,321 Mortgage-Backed Securities: Residential - Government Agencies — 1,172,826 — 1,172,826 Residential - U.S. Government-Sponsored Enterprises — 586,761 — 586,761 Commercial - Government Agencies — 224,720 — 224,720 Total Mortgage-Backed Securities — 1,984,307 — 1,984,307 Total Investment Securities Available-for-Sale 1,155 2,617,848 — 2,619,003 Loans Held for Sale — 39,062 — 39,062 Mortgage Servicing Rights — — 1,126 1,126 Other Assets 41,464 — — 41,464 Derivatives 1 — 308 28,623 28,931 Total Assets Measured at Fair Value on a $ 42,619 $ 2,657,218 $ 29,749 $ 2,729,586 Liabilities: Derivatives 1 $ — $ 327 $ 6,050 $ 6,377 Total Liabilities Measured at Fair Value on a $ — $ 327 $ 6,050 $ 6,377 1 The fair value of each class of derivatives is shown in Note 12 Derivative Financial Instruments . |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the three months ended March 31, 2020 , and March 31, 2019 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage Servicing Rights 1 Net Derivative Assets and Liabilities 2 Three Months Ended March 31, 2020 Balance as of January 1, 2020 $ 1,126 $ 22,573 Realized and Unrealized Net Gains (Losses): Included in Net Income (25 ) 6,172 Transfers to Loans Held for Sale — (3,653 ) Variation Margin Payments — 55,588 Balance as of March 31, 2020 $ 1,101 $ 80,680 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 80,680 Three Months Ended March 31, 2019 Balance as of January 1, 2019 $ 1,290 $ 4,416 Realized and Unrealized Net Gains (Losses): Included in Net Income (22 ) 1,715 Transfers to Loans Held for Sale — (1,498 ) Variation Margin Payments — 4,542 Balance as of March 31, 2019 $ 1,268 $ 9,175 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 9,175 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 March 31, 2020 , and December 31, 2019 , the significant unobservable inputs used in the fair value measurements were as follows: March 31, 2020 December 31, 2019 (dollars in thousands) Valuation Technique Description Range Weighted Average 1 Fair Value Weighted Average 1 Fair Value Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 9.57 % - 16.76 % 14.93 % $ 22,537 10.76 % $ 26,840 Discount Rate 5.88 % - 6.44 % 5.90 % 7.33 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 75.40 % - 99.00 % 87.46 % $ 3,930 92.24 % $ 1,280 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.02 % - 0.61 % 0.19 % $ 76,750 0.20 % $ 21,293 1 Unobservable inputs for mortgage servicing rights and interest rate lock commitments were weighted by loan amount. Unobservable inputs for interest rate swap agreements were weighted by fair value. |
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 March 31, 2020 . There were no assets measured at fair value on a nonrecurring basis as of December 31, 2019 . (dollars in thousands) Fair Value Hierarchy Net Carrying Amount Valuation Allowance March 31, 2020 Mortgage Servicing Rights - amortization method Level 3 $ 21,436 $ (2,513 ) |
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 March 31, 2020 , and December 31, 2019 . (dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Unpaid Principal March 31, 2020 Loans Held for Sale $ 20,789 $ 13,848 $ 6,941 December 31, 2019 Loans Held for Sale $ 39,062 $ 38,293 $ 769 |
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 March 31, 2020 , and December 31, 2019 . This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair Value Measurements Carrying Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2020 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,004,139 $ 3,104,020 $ 216,723 $ 2,887,297 $ — Loans 1 11,013,610 11,548,639 — — 11,548,639 Financial Instruments - Liabilities Time Deposits 1,744,812 1,754,741 — 1,754,741 — Securities Sold Under Agreements to Repurchase 603,206 651,276 — 651,276 — Other Debt 2 50,000 50,800 — 50,800 — December 31, 2019 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,042,294 $ 3,062,882 $ 275,663 $ 2,787,219 $ — Loans 1 10,664,885 10,873,208 — — 10,873,208 Financial Instruments - Liabilities Time Deposits 1,802,431 1,800,773 — 1,800,773 — Securities Sold Under Agreements to Repurchase 604,306 627,780 — 627,780 — Other Debt 2 75,000 75,581 — 75,581 — 1 Carrying amount is net of unearned income and the Allowance. 2 Excludes finance lease obligations. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2020 , and March 31, 2019 . Three Months Ended (dollars in thousands) 2020 2019 Noninterest Income In-scope of Topic 606: Trust and Asset Management $ 10,915 $ 10,761 Service Charges on Deposit Accounts 3,053 3,349 Fees, Exchange, and Other Service Charges 10,518 11,552 Annuity and Insurance 895 2,544 Other 2,302 2,471 Noninterest Income (in-scope of Topic 606) 27,683 30,677 Noninterest Income (out-of-scope of Topic 606) 18,466 13,002 Total Noninterest Income $ 46,149 $ 43,679 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Variable Interest Entities) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Unfunded commitments to fund low-income housing partnerships | $ 32,676 | |
Other Assets | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 100,500 | $ 84,600 |
Other Liabilities | ||
Variable Interest Entity [Line Items] | ||
Unfunded commitments to fund low-income housing partnerships | $ 32,700 | $ 21,300 |
Low-income housing partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which Federal tax credits or benefits are generally recognized (in years) | 10 years | |
Period over which State tax credits or benefits are generally recognized (in years) | 5 years | |
Solar energy partnerships [Member] | ||
Variable Interest Entity [Line Items] | ||
Period over which Federal tax credits or benefits are generally recognized (in years) | 6 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | $ 138,150 | $ 106,023 | $ 106,693 | ||
Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | $ 110,027 | ||||
Reserve for Unfunded Commitments | 6,822 | ||||
Total Reserve for Credit Losses | 116,849 | ||||
Accounting Standards Update 2016-13 | CECL Adoption Impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | $ (1,737) | ||||
Reserve for Unfunded Commitments | (3,335) | ||||
Total Reserve for Credit Losses | (5,072) | ||||
Retained Earnings | |||||
Total Pre-tax Impact | 5,072 | ||||
Tax Effect | (1,440) | ||||
Increase to Retained Earnings | 3,632 | ||||
Accounting Standards Update 2016-13 | January 1, 2020 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | 108,290 | ||||
Reserve for Unfunded Commitments | 3,487 | ||||
Total Reserve for Credit Losses | 111,777 | ||||
Commercial Loan | Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | 73,801 | ||||
Commercial Loan | Accounting Standards Update 2016-13 | CECL Adoption Impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | (18,789) | ||||
Commercial Loan | Accounting Standards Update 2016-13 | January 1, 2020 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | 55,012 | ||||
Consumer Loan | Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | $ 36,226 | ||||
Consumer Loan | Accounting Standards Update 2016-13 | CECL Adoption Impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | 17,052 | ||||
Consumer Loan | Accounting Standards Update 2016-13 | January 1, 2020 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total Allowance for Credit Losses | $ 53,278 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||
Interest-Bearing Deposits in Other Banks | $ 6,346 | $ 4,979 |
Funds Sold | 96,898 | 254,574 |
Cash and Due From Banks | 453,465 | 299,105 |
Total Cash and Cash Equivalents | $ 556,709 | $ 558,658 |
Investment Securities (Amortiza
Investment Securities (Amortization Cost, Gross Unrealized Gains/Losses, and Fair Value) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | $ 2,613,203 | $ 2,607,636 |
Available-for-Sale: Gross Unrealized Gains | 76,678 | 21,143 |
Available-for-Sale: Gross Unrealized Losses | (8,832) | (9,776) |
Available-for-Sale | 2,681,049 | 2,619,003 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 3,004,139 | 3,042,294 |
Held-to-Maturity: Gross Unrealized Gains | 100,227 | 29,990 |
Held-to-Maturity: Gross Unrealized Losses | (346) | (9,402) |
Held-to-Maturity: Fair Value | 3,104,020 | 3,062,882 |
Debt Securities Issued by Government-Sponsored Enterprises | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 936 | 22,128 |
Available-for-Sale: Gross Unrealized Gains | 76 | 19 |
Available-for-Sale: Gross Unrealized Losses | 0 | 0 |
Available-for-Sale | 1,012 | 22,147 |
Residential - Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 1,159,266 | 1,164,466 |
Available-for-Sale: Gross Unrealized Gains | 41,360 | 11,627 |
Available-for-Sale: Gross Unrealized Losses | (1,412) | (3,267) |
Available-for-Sale | 1,199,214 | 1,172,826 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 994,405 | 1,067,416 |
Held-to-Maturity: Gross Unrealized Gains | 38,678 | 13,247 |
Held-to-Maturity: Gross Unrealized Losses | (36) | (5,348) |
Held-to-Maturity: Fair Value | 1,033,047 | 1,075,315 |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 635,161 | 584,272 |
Available-for-Sale: Gross Unrealized Gains | 26,178 | 4,363 |
Available-for-Sale: Gross Unrealized Losses | (166) | (1,874) |
Available-for-Sale | 661,173 | 586,761 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 1,648,144 | 1,546,479 |
Held-to-Maturity: Gross Unrealized Gains | 57,554 | 13,871 |
Held-to-Maturity: Gross Unrealized Losses | 0 | (2,478) |
Held-to-Maturity: Fair Value | 1,705,698 | 1,557,872 |
Commercial - Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 287,441 | 224,372 |
Available-for-Sale: Gross Unrealized Gains | 5,790 | 2,889 |
Available-for-Sale: Gross Unrealized Losses | (869) | (2,541) |
Available-for-Sale | 292,362 | 224,720 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 78,192 | 84,238 |
Held-to-Maturity: Gross Unrealized Gains | 763 | 317 |
Held-to-Maturity: Gross Unrealized Losses | (310) | (1,407) |
Held-to-Maturity: Fair Value | 78,645 | 83,148 |
Mortgage-Backed Securities | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 2,081,868 | 1,973,110 |
Available-for-Sale: Gross Unrealized Gains | 73,328 | 18,879 |
Available-for-Sale: Gross Unrealized Losses | (2,447) | (7,682) |
Available-for-Sale | 2,152,749 | 1,984,307 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 2,720,741 | 2,698,133 |
Held-to-Maturity: Gross Unrealized Gains | 96,995 | 27,435 |
Held-to-Maturity: Gross Unrealized Losses | (346) | (9,233) |
Held-to-Maturity: Fair Value | 2,817,390 | 2,716,335 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 202,065 | 222,365 |
Available-for-Sale: Gross Unrealized Gains | 262 | 213 |
Available-for-Sale: Gross Unrealized Losses | (1,238) | (1,447) |
Available-for-Sale | 201,089 | 221,131 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 214,612 | 274,375 |
Held-to-Maturity: Gross Unrealized Gains | 2,111 | 1,319 |
Held-to-Maturity: Gross Unrealized Losses | 0 | (31) |
Held-to-Maturity: Fair Value | 216,723 | 275,663 |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 53,981 | 54,480 |
Available-for-Sale: Gross Unrealized Gains | 1,043 | 631 |
Available-for-Sale: Gross Unrealized Losses | (1) | (14) |
Available-for-Sale | 55,023 | 55,097 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 54,543 | 54,811 |
Held-to-Maturity: Gross Unrealized Gains | 1,017 | 1,236 |
Held-to-Maturity: Gross Unrealized Losses | 0 | 0 |
Held-to-Maturity: Fair Value | 55,560 | 56,047 |
Debt Securities Issued by Corporations | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 274,353 | 335,553 |
Available-for-Sale: Gross Unrealized Gains | 1,969 | 1,401 |
Available-for-Sale: Gross Unrealized Losses | (5,146) | (633) |
Available-for-Sale | 271,176 | 336,321 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 14,243 | 14,975 |
Held-to-Maturity: Gross Unrealized Gains | 104 | 0 |
Held-to-Maturity: Gross Unrealized Losses | 0 | (138) |
Held-to-Maturity: Fair Value | $ 14,347 | $ 14,837 |
Loans and Leases and the Allo_3
Loans and Leases and the Allowance for Loan and Lease Losses (Loans and Leases Portfolio and Narrative) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
Loan and lease portfolio | ||||
Loans and Leases | $ 11,352,780 | $ 10,990,892 | ||
Net gains related to sales of residential mortgage loans | 3,200 | $ 500 | ||
Commercial | ||||
Loan and lease portfolio | ||||
Loans and Leases | 4,530,569 | 4,213,827 | ||
Commercial | Commercial and Industrial | ||||
Loan and lease portfolio | ||||
Loans and Leases | 1,558,232 | 1,379,152 | ||
Commercial | Commercial Mortgage | ||||
Loan and lease portfolio | ||||
Loans and Leases | 2,616,243 | 2,518,051 | ||
Commercial | Construction | ||||
Loan and lease portfolio | ||||
Loans and Leases | 245,390 | 194,170 | ||
Commercial | Lease Financing | ||||
Loan and lease portfolio | ||||
Loans and Leases | 110,704 | 122,454 | ||
Consumer | ||||
Loan and lease portfolio | ||||
Loans and Leases | 6,822,211 | 6,777,065 | ||
Consumer | Residential Mortgage | ||||
Loan and lease portfolio | ||||
Loans and Leases | 3,928,183 | 3,891,100 | ||
Consumer | Home Equity | ||||
Loan and lease portfolio | ||||
Loans and Leases | 1,692,154 | 1,676,073 | ||
Consumer | Automobile | ||||
Loan and lease portfolio | ||||
Loans and Leases | 716,214 | 720,286 | ||
Consumer | Other | ||||
Loan and lease portfolio | ||||
Loans and Leases | 485,660 | 489,606 | ||
Accrued Interest Receivable | ||||
Loan and lease portfolio | ||||
Accrued interest receivable | $ 30,900 | $ 30,700 | ||
Accounting Standards Update 2016-13 | CECL Adoption Impact | ||||
Loan and lease portfolio | ||||
Additional decrease in cumulative adjustment | $ 1,700 |
Investment Securities (Contract
Investment Securities (Contractual Maturities and Narrative) (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis Rolling Maturity[Abstract] | ||
Due in One Year or Less | $ 66,246 | |
Due After One Year Through Five Years | 96,977 | |
Due After Five Years Through Ten Years | 167,141 | |
Due After Ten Years | 50 | |
Amortized Cost, Total | 330,414 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Due in One Year or Less | 66,355 | |
Due After One Year Through Five Years | 95,275 | |
Due After Five Years Through Ten Years | 166,707 | |
Due After Ten Years | 51 | |
Fair Value, Total | 328,388 | |
Available-for-Sale: Amortized Cost | 2,613,203 | $ 2,607,636 |
Available-for-Sale: Fair Value | 2,681,049 | 2,619,003 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Rolling Maturities (Abstract] | ||
Due in One Year or Less | 234,892 | |
Due After One Year Through Five Years | 48,506 | |
Amortized Cost, Total | 283,398 | |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Due in One Year or Less | 237,171 | |
Due After One Year Through Five Years | 49,459 | |
Fair Value, Total | 286,630 | |
Held-to-Maturity: Amortized Cost | 3,004,139 | |
Held-to-Maturity: Fair Value | 3,104,020 | 3,062,882 |
Carrying value of investment securities which were pledged to secure deposits of gov't entities and repos | 3,400,000 | 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 | 200,921 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 199,912 | |
Debt Securities Issued by Government-Sponsored Enterprises | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-Sale: Amortized Cost | 936 | 22,128 |
Available-for-Sale: Fair Value | 1,012 | 22,147 |
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 | 1,159,266 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 1,199,214 | |
Available-for-Sale: Amortized Cost | 1,159,266 | 1,164,466 |
Available-for-Sale: Fair Value | 1,199,214 | 1,172,826 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 994,405 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 1,033,047 | |
Held-to-Maturity: Fair Value | 1,033,047 | 1,075,315 |
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 | 635,161 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 661,173 | |
Available-for-Sale: Amortized Cost | 635,161 | 584,272 |
Available-for-Sale: Fair Value | 661,173 | 586,761 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 1,648,144 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 1,705,698 | |
Held-to-Maturity: Fair Value | 1,705,698 | 1,557,872 |
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 | 287,441 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 292,362 | |
Available-for-Sale: Amortized Cost | 287,441 | 224,372 |
Available-for-Sale: Fair Value | 292,362 | 224,720 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 78,192 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 78,645 | |
Held-to-Maturity: Fair Value | 78,645 | 83,148 |
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 | 2,081,868 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 2,152,749 | |
Available-for-Sale: Amortized Cost | 2,081,868 | 1,973,110 |
Available-for-Sale: Fair Value | 2,152,749 | 1,984,307 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 2,720,741 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 2,817,390 | |
Held-to-Maturity: Fair Value | $ 2,817,390 | $ 2,716,335 |
Loans and Leases and the Allo_4
Loans and Leases and the Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Loan and Lease Losses: | ||
Balance at Beginning of Period | $ 106,693 | |
Loans and Leases Charged-Off | $ (7,177) | (6,828) |
Recoveries on Loans and Leases Previously Charged-Off | 3,437 | 3,158 |
Net Loans and Leases Recovered (Charged-Off) | (3,740) | (3,670) |
Provision for Credit Losses | 33,600 | 3,000 |
Balance at End of Period | 138,150 | 106,023 |
Commercial | ||
Allowance for Loan and Lease Losses: | ||
Balance at Beginning of Period | 66,874 | |
Loans and Leases Charged-Off | (693) | (1,986) |
Recoveries on Loans and Leases Previously Charged-Off | 329 | 501 |
Net Loans and Leases Recovered (Charged-Off) | (364) | (1,485) |
Provision for Credit Losses | 13,339 | 2,138 |
Balance at End of Period | 67,987 | 67,527 |
Consumer | ||
Allowance for Loan and Lease Losses: | ||
Balance at Beginning of Period | 39,819 | |
Loans and Leases Charged-Off | (6,484) | (4,842) |
Recoveries on Loans and Leases Previously Charged-Off | 3,108 | 2,657 |
Net Loans and Leases Recovered (Charged-Off) | (3,376) | (2,185) |
Provision for Credit Losses | 20,261 | 862 |
Balance at End of Period | 70,163 | $ 38,496 |
Accounting Standards Update 2016-13 | ||
Allowance for Loan and Lease Losses: | ||
Balance at Beginning of Period | 110,027 | |
Accounting Standards Update 2016-13 | Commercial | ||
Allowance for Loan and Lease Losses: | ||
Balance at Beginning of Period | 73,801 | |
Accounting Standards Update 2016-13 | Consumer | ||
Allowance for Loan and Lease Losses: | ||
Balance at Beginning of Period | $ 36,226 |
Investment Securities (Gains an
Investment Securities (Gains and Losses on Sales) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gain on Sale of Investments | $ 77 | $ 2,030 |
Gain (Loss) on Sale of Investments | (970) | (835) |
Loss on Sale of Investments | $ (1,047) | $ (2,865) |
Loans and Leases and the Allo_5
Loans and Leases and the Allowance for Loan and Lease Losses (Credit Quality Indicators by Year of Origination) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | $ 765,372 |
2019 | 2,130,793 |
2018 | 1,482,924 |
2017 | 1,233,613 |
2016 | 1,185,676 |
Prior | 2,116,189 |
Revolving Loans | 2,390,521 |
Revolving Loans Converted to Term Loans | 47,692 |
Total Loans and Leases | 11,352,780 |
Revolving loans, converted to term loan during the period | 600 |
Commercial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 443,731 |
2019 | 978,587 |
2018 | 704,845 |
2017 | 439,225 |
2016 | 437,800 |
Prior | 814,757 |
Revolving Loans | 710,334 |
Revolving Loans Converted to Term Loans | 1,290 |
Total Loans and Leases | 4,530,569 |
Commercial | Commercial and Industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 161,330 |
2019 | 275,910 |
2018 | 216,666 |
2017 | 95,769 |
2016 | 88,538 |
Prior | 129,583 |
Revolving Loans | 589,146 |
Revolving Loans Converted to Term Loans | 1,290 |
Total Loans and Leases | 1,558,232 |
Commercial | Commercial and Industrial | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 160,663 |
2019 | 253,285 |
2018 | 212,901 |
2017 | 93,614 |
2016 | 87,982 |
Prior | 108,952 |
Revolving Loans | 557,732 |
Revolving Loans Converted to Term Loans | 1,122 |
Total Loans and Leases | 1,476,251 |
Commercial | Commercial and Industrial | Special Mention | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 62 |
2019 | 508 |
2018 | 2,087 |
2017 | 700 |
2016 | 116 |
Prior | 152 |
Revolving Loans | 19,345 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 22,970 |
Commercial | Commercial and Industrial | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 605 |
2019 | 22,117 |
2018 | 1,678 |
2017 | 1,455 |
2016 | 440 |
Prior | 20,479 |
Revolving Loans | 12,069 |
Revolving Loans Converted to Term Loans | 168 |
Total Loans and Leases | 59,011 |
Commercial | Commercial Mortgage | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 225,358 |
2019 | 597,288 |
2018 | 424,611 |
2017 | 317,292 |
2016 | 337,108 |
Prior | 633,550 |
Revolving Loans | 81,036 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 2,616,243 |
Commercial | Commercial Mortgage | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 209,933 |
2019 | 591,055 |
2018 | 396,239 |
2017 | 302,711 |
2016 | 329,045 |
Prior | 602,337 |
Revolving Loans | 81,036 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 2,512,356 |
Commercial | Commercial Mortgage | Special Mention | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 3,961 |
2019 | 820 |
2018 | 19,919 |
2017 | 13,176 |
2016 | 7,359 |
Prior | 7,884 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 53,119 |
Commercial | Commercial Mortgage | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 11,464 |
2019 | 5,413 |
2018 | 8,453 |
2017 | 1,405 |
2016 | 704 |
Prior | 23,329 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 50,768 |
Commercial | Construction | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 54,220 |
2019 | 81,985 |
2018 | 45,600 |
2017 | 20,336 |
2016 | 0 |
Prior | 3,097 |
Revolving Loans | 40,152 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 245,390 |
Commercial | Construction | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 54,220 |
2019 | 81,985 |
2018 | 45,600 |
2017 | 20,336 |
2016 | 0 |
Prior | 1,936 |
Revolving Loans | 40,152 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 244,229 |
Commercial | Construction | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 1,161 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 1,161 |
Commercial | Lease Financing | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 2,823 |
2019 | 23,404 |
2018 | 17,968 |
2017 | 5,828 |
2016 | 12,154 |
Prior | 48,527 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 110,704 |
Commercial | Lease Financing | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 2,785 |
2019 | 23,324 |
2018 | 16,762 |
2017 | 5,767 |
2016 | 12,007 |
Prior | 48,527 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 109,172 |
Commercial | Lease Financing | Special Mention | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 2 |
2016 | 34 |
Prior | 0 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 36 |
Commercial | Lease Financing | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 38 |
2019 | 80 |
2018 | 1,206 |
2017 | 59 |
2016 | 113 |
Prior | 0 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 1,496 |
Consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 321,641 |
2019 | 1,152,206 |
2018 | 778,079 |
2017 | 794,388 |
2016 | 747,876 |
Prior | 1,301,432 |
Revolving Loans | 1,680,187 |
Revolving Loans Converted to Term Loans | 46,402 |
Total Loans and Leases | 6,822,211 |
Consumer | Residential Mortgage | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 212,313 |
2019 | 704,271 |
2018 | 445,511 |
2017 | 626,091 |
2016 | 678,049 |
Prior | 1,261,948 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 3,928,183 |
Consumer | Residential Mortgage | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 212,313 |
2019 | 704,271 |
2018 | 445,511 |
2017 | 625,159 |
2016 | 678,049 |
Prior | 1,258,545 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 3,923,848 |
Consumer | Residential Mortgage | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 932 |
2016 | 0 |
Prior | 3,403 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 4,335 |
Consumer | Home Equity Loan [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 6,348 |
Revolving Loans | 1,641,055 |
Revolving Loans Converted to Term Loans | 44,751 |
Total Loans and Leases | 1,692,154 |
Consumer | Home Equity Loan [Member] | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 6,245 |
Revolving Loans | 1,637,082 |
Revolving Loans Converted to Term Loans | 43,589 |
Total Loans and Leases | 1,686,916 |
Consumer | Home Equity Loan [Member] | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 103 |
Revolving Loans | 3,973 |
Revolving Loans Converted to Term Loans | 1,162 |
Total Loans and Leases | 5,238 |
Consumer | Automobile | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 63,914 |
2019 | 265,698 |
2018 | 208,439 |
2017 | 99,244 |
2016 | 51,925 |
Prior | 26,994 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 716,214 |
Consumer | Automobile | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 63,914 |
2019 | 265,516 |
2018 | 208,273 |
2017 | 98,987 |
2016 | 51,746 |
Prior | 26,912 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 715,348 |
Consumer | Automobile | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 182 |
2018 | 166 |
2017 | 257 |
2016 | 179 |
Prior | 82 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total Loans and Leases | 866 |
Consumer | Other Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 45,414 |
2019 | 182,237 |
2018 | 124,129 |
2017 | 69,053 |
2016 | 17,902 |
Prior | 6,142 |
Revolving Loans | 39,132 |
Revolving Loans Converted to Term Loans | 1,651 |
Total Loans and Leases | 485,660 |
Consumer | Other Loans | Pass | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 45,414 |
2019 | 181,911 |
2018 | 123,803 |
2017 | 68,751 |
2016 | 17,783 |
Prior | 6,098 |
Revolving Loans | 39,053 |
Revolving Loans Converted to Term Loans | 1,643 |
Total Loans and Leases | 484,456 |
Consumer | Other Loans | Classified | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD March 31, 2020 | 0 |
2019 | 326 |
2018 | 326 |
2017 | 302 |
2016 | 119 |
Prior | 44 |
Revolving Loans | 79 |
Revolving Loans Converted to Term Loans | 8 |
Total Loans and Leases | $ 1,204 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Position - Less than 12 Mos., 12 Mos. or Longer) (Details 4) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($) |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | $ 253,574 | $ 465,117 |
Less Than 12 Months, Gross Unrealized Losses | (3,711) | (2,189) |
12 Months or Longer, Fair Value | 230,881 | 474,384 |
12 Months or Longer, Gross Unrealized Losses | (5,121) | (7,587) |
Total Fair Value | 484,455 | 939,501 |
Total Gross Unrealized Losses | $ (8,832) | (9,776) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Number of available for sale securities in unrealized loss positions | security | 97 | |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | $ 97,978 | 65,479 |
Less Than 12 Months, Gross Unrealized Losses | (1,126) | (188) |
12 Months or Longer, Fair Value | 53,511 | 101,761 |
12 Months or Longer, Gross Unrealized Losses | (112) | (1,259) |
Total Fair Value | 151,489 | 167,240 |
Total Gross Unrealized Losses | (1,238) | (1,447) |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | 0 | 6,788 |
Less Than 12 Months, Gross Unrealized Losses | 0 | (14) |
12 Months or Longer, Fair Value | 355 | 440 |
12 Months or Longer, Gross Unrealized Losses | (1) | 0 |
Total Fair Value | 355 | 7,228 |
Total Gross Unrealized Losses | (1) | (14) |
Debt Securities Issued by Corporations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | 50,000 | 25,892 |
Less Than 12 Months, Gross Unrealized Losses | (644) | (326) |
12 Months or Longer, Fair Value | 100,866 | 74,693 |
12 Months or Longer, Gross Unrealized Losses | (4,502) | (307) |
Total Fair Value | 150,866 | 100,585 |
Total Gross Unrealized Losses | (5,146) | (633) |
Residential - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | 54,491 | 119,271 |
Less Than 12 Months, Gross Unrealized Losses | (1,072) | (526) |
12 Months or Longer, Fair Value | 65,155 | 170,805 |
12 Months or Longer, Gross Unrealized Losses | (340) | (2,741) |
Total Fair Value | 119,646 | 290,076 |
Total Gross Unrealized Losses | (1,412) | (3,267) |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | 0 | 187,861 |
Less Than 12 Months, Gross Unrealized Losses | 0 | (816) |
12 Months or Longer, Fair Value | 10,994 | 73,720 |
12 Months or Longer, Gross Unrealized Losses | (166) | (1,058) |
Total Fair Value | 10,994 | 261,581 |
Total Gross Unrealized Losses | (166) | (1,874) |
Commercial - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | 51,105 | 59,826 |
Less Than 12 Months, Gross Unrealized Losses | (869) | (319) |
12 Months or Longer, Fair Value | 0 | 52,965 |
12 Months or Longer, Gross Unrealized Losses | 0 | (2,222) |
Total Fair Value | 51,105 | 112,791 |
Total Gross Unrealized Losses | (869) | (2,541) |
Mortgage-Backed Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] (Deprecated 2019-01-31) | ||
Less Than 12 Months, Fair Value | 105,596 | 366,958 |
Less Than 12 Months, Gross Unrealized Losses | (1,941) | (1,661) |
12 Months or Longer, Fair Value | 76,149 | 297,490 |
12 Months or Longer, Gross Unrealized Losses | (506) | (6,021) |
Total Fair Value | 181,745 | 664,448 |
Total Gross Unrealized Losses | $ (2,447) | $ (7,682) |
Loans and Leases and the Allo_6
Loans and Leases and the Allowance for Loan and Lease Losses (Credit Quality Indicators & Narrative) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | $ 11,352,780 | $ 10,990,892 |
Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of months up to which residential and home equity loans may be considered classified, even if they are current as to principal and interest | 6 months | |
Residential Mortgage | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | |
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | |
Home Equity | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | |
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | $ 4,530,569 | 4,213,827 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 4,079,663 | |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 58,323 | |
Commercial | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 75,841 | |
Commercial | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 1,558,232 | 1,379,152 |
Commercial | Commercial and Industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 1,306,040 | |
Commercial | Commercial and Industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 37,722 | |
Commercial | Commercial and Industrial | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 35,390 | |
Commercial | Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 2,616,243 | 2,518,051 |
Commercial | Commercial Mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 2,463,858 | |
Commercial | Commercial Mortgage | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 16,453 | |
Commercial | Commercial Mortgage | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 37,740 | |
Commercial | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 245,390 | 194,170 |
Commercial | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 188,832 | |
Commercial | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 4,148 | |
Commercial | Construction | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 1,190 | |
Commercial | Lease Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 110,704 | 122,454 |
Commercial | Lease Financing | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 120,933 | |
Commercial | Lease Financing | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 0 | |
Commercial | Lease Financing | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 1,521 | |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | $ 6,822,211 | 6,777,065 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 6,765,307 | |
Consumer | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | |
Total Recorded Investment in Loans and Leases | 11,758 | |
Consumer | Residential Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | $ 3,928,183 | 3,891,100 |
Consumer | Residential Mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 3,886,389 | |
Consumer | Residential Mortgage | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 4,711 | |
Consumer | Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 1,692,154 | 1,676,073 |
Consumer | Home Equity | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 1,671,468 | |
Consumer | Home Equity | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 4,605 | |
Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 716,214 | 720,286 |
Consumer | Automobile | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 719,337 | |
Consumer | Automobile | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 949 | |
Consumer | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | $ 485,660 | 489,606 |
Consumer | Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | 488,113 | |
Consumer | Other | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Recorded Investment in Loans and Leases | $ 1,493 |
(Interest Income - Taxable_Non-
(Interest Income - Taxable/Non-Taxable Invest. Sec.) (Details 5) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Interest Income from Investment Securities, Taxable | $ 35,393 | $ 31,992 |
Interest Income from Investment Securities, Non-Taxable | 570 | 3,361 |
Total Interest Income from Investment Securities | $ 35,963 | $ 35,353 |
Loans and Leases and the Allo_7
Loans and Leases and the Allowance for Loan and Lease Losses (Aging Analysis) (Details 4) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | $ 18,098 | $ 17,380 |
Total Past Due and Non-Accrual | 73,552 | 82,527 |
Current | 11,279,228 | 10,908,365 |
Total Loans and Leases | 11,352,780 | 10,990,892 |
Non-Accrual Loans and Leases that are Current | $ 11,420 | 11,506 |
Number of days non-accrual loans are not past due | 30 days | |
30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | $ 35,516 | 45,964 |
60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 11,417 | 10,777 |
Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 8,521 | 8,406 |
Commercial | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | 9,682 | 10,074 |
Total Past Due and Non-Accrual | 18,913 | 26,626 |
Current | 4,511,656 | 4,187,201 |
Total Loans and Leases | 4,530,569 | 4,213,827 |
Non-Accrual Loans and Leases that are Current | 9,477 | 9,665 |
Commercial | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 8,976 | 16,353 |
Commercial | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 255 | 199 |
Commercial | Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 0 | 0 |
Commercial | Commercial and Industrial | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | 634 | 830 |
Total Past Due and Non-Accrual | 4,485 | 13,512 |
Current | 1,553,747 | 1,365,640 |
Total Loans and Leases | 1,558,232 | 1,379,152 |
Non-Accrual Loans and Leases that are Current | 429 | 421 |
Commercial | Commercial and Industrial | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 3,596 | 12,534 |
Commercial | Commercial and Industrial | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 255 | 148 |
Commercial | Commercial and Industrial | Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 0 | 0 |
Commercial | Commercial Mortgage | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | 9,048 | 9,244 |
Total Past Due and Non-Accrual | 13,685 | 12,242 |
Current | 2,602,558 | 2,505,809 |
Total Loans and Leases | 2,616,243 | 2,518,051 |
Non-Accrual Loans and Leases that are Current | 9,048 | 9,244 |
Commercial | Commercial Mortgage | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 4,637 | 2,998 |
Commercial | Commercial Mortgage | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 0 | 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 | 720 | 152 |
Current | 244,670 | 194,018 |
Total Loans and Leases | 245,390 | 194,170 |
Non-Accrual Loans and Leases that are Current | 0 | 0 |
Commercial | Construction | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 720 | 101 |
Commercial | Construction | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 0 | 51 |
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 | 23 | 720 |
Current | 110,681 | 121,734 |
Total Loans and Leases | 110,704 | 122,454 |
Non-Accrual Loans and Leases that are Current | 0 | 0 |
Commercial | Lease Financing | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 23 | 720 |
Commercial | Lease Financing | 60 - 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 | 8,416 | 7,306 |
Total Past Due and Non-Accrual | 54,639 | 55,901 |
Current | 6,767,572 | 6,721,164 |
Total Loans and Leases | 6,822,211 | 6,777,065 |
Non-Accrual Loans and Leases that are Current | 1,943 | 1,841 |
Consumer | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 26,540 | 29,611 |
Consumer | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 11,162 | 10,578 |
Consumer | Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 8,521 | 8,406 |
Consumer | Residential Mortgage | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | 4,330 | 4,125 |
Total Past Due and Non-Accrual | 13,631 | 14,131 |
Current | 3,914,552 | 3,876,969 |
Total Loans and Leases | 3,928,183 | 3,891,100 |
Non-Accrual Loans and Leases that are Current | 1,104 | 1,429 |
Consumer | Residential Mortgage | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 3,935 | 6,097 |
Consumer | Residential Mortgage | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 2,342 | 2,070 |
Consumer | Residential Mortgage | Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 3,024 | 1,839 |
Consumer | Home Equity | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | 4,086 | 3,181 |
Total Past Due and Non-Accrual | 14,698 | 13,535 |
Current | 1,677,456 | 1,662,538 |
Total Loans and Leases | 1,692,154 | 1,676,073 |
Non-Accrual Loans and Leases that are Current | 839 | 412 |
Consumer | Home Equity | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 4,367 | 3,949 |
Consumer | Home Equity | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 2,819 | 2,280 |
Consumer | Home Equity | Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 3,426 | 4,125 |
Consumer | Automobile | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | 0 | 0 |
Total Past Due and Non-Accrual | 19,552 | 21,170 |
Current | 696,662 | 699,116 |
Total Loans and Leases | 716,214 | 720,286 |
Non-Accrual Loans and Leases that are Current | 0 | 0 |
Consumer | Automobile | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 14,590 | 16,067 |
Consumer | Automobile | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 4,096 | 4,154 |
Consumer | Automobile | Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 866 | 949 |
Consumer | Other | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Non-Accrual | 0 | 0 |
Total Past Due and Non-Accrual | 6,758 | 7,065 |
Current | 478,902 | 482,541 |
Total Loans and Leases | 485,660 | 489,606 |
Non-Accrual Loans and Leases that are Current | 0 | 0 |
Consumer | Other | 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 3,648 | 3,498 |
Consumer | Other | 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | 1,905 | 2,074 |
Consumer | Other | Past Due 90 Days or More | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Days Past Due | $ 1,205 | $ 1,493 |
Loans and Leases and the Allo_8
Loans and Leases and the Allowance for Loan and Lease Losses (Non-Accrual Loans and Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | $ 11,662 | |
Nonaccrual loans without a related ACL | 6,436 | |
Total Nonaccrual Loans | 18,098 | $ 17,380 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 4,177 | |
Nonaccrual loans without a related ACL | 5,505 | |
Total Nonaccrual Loans | 9,682 | 10,074 |
Commercial | Commercial and Industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 634 | |
Nonaccrual loans without a related ACL | 0 | |
Total Nonaccrual Loans | 634 | 830 |
Commercial | Commercial Mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 3,543 | |
Nonaccrual loans without a related ACL | 5,505 | |
Total Nonaccrual Loans | 9,048 | 9,244 |
Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 7,485 | |
Nonaccrual loans without a related ACL | 931 | |
Total Nonaccrual Loans | 8,416 | 7,306 |
Consumer | Residential Mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 3,399 | |
Nonaccrual loans without a related ACL | 931 | |
Total Nonaccrual Loans | 4,330 | 4,125 |
Consumer | Home Equity | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 4,086 | |
Nonaccrual loans without a related ACL | 0 | |
Total Nonaccrual Loans | $ 4,086 | $ 3,181 |
(FHLB and FRB Stocks) (Details
(FHLB and FRB Stocks) (Details 7) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $ 15,000 | $ 13,000 |
Federal Reserve Bank Stock | 21,198 | 21,093 |
Total | $ 36,198 | $ 34,093 |
Loans and Leases and the Allo_9
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring & Narrative) (Details 6) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($)contract | Dec. 31, 2019USD ($) | |
Information related to loans modified as a TDR | |||
Recorded Investment | $ 67,100 | $ 69,100 | |
Available Commitments to Lend Additional Funds on Loans Modified as TDR | $ 200 | $ 300 | |
Number of Contracts | contract | 85 | 160 | |
Recorded Investment (as of period end) | $ 1,232 | $ 6,487 | |
Increase in Allowance (as of period end) | $ 26 | $ 45 | |
Residential Mortgage | Maximum | |||
Information related to loans modified as a TDR | |||
Period of Time Loan Being Fully Amortized | 40 years | ||
Land Loan | Maximum | |||
Information related to loans modified as a TDR | |||
Period of Time Loan Being Fully Amortized | 360 months | ||
Extending Balloon Payments | 5 years | ||
Commercial | |||
Information related to loans modified as a TDR | |||
Number of Contracts | contract | 2 | 4 | |
Recorded Investment (as of period end) | $ 99 | $ 4,018 | |
Increase in Allowance (as of period end) | $ 2 | $ 5 | |
Commercial | Commercial and Industrial | |||
Information related to loans modified as a TDR | |||
Number of Contracts | contract | 2 | 3 | |
Recorded Investment (as of period end) | $ 99 | $ 111 | |
Increase in Allowance (as of period end) | $ 2 | $ 5 | |
Commercial | Commercial Mortgage | |||
Information related to loans modified as a TDR | |||
Number of Contracts | contract | 0 | 1 | |
Recorded Investment (as of period end) | $ 0 | $ 3,907 | |
Increase in Allowance (as of period end) | $ 0 | $ 0 | |
Consumer | |||
Information related to loans modified as a TDR | |||
Number of Contracts | contract | 83 | 156 | |
Recorded Investment (as of period end) | $ 1,133 | $ 2,469 | |
Increase in Allowance (as of period end) | $ 24 | $ 40 | |
Consumer | Automobile | |||
Information related to loans modified as a TDR | |||
Number of Contracts | contract | 52 | 117 | |
Recorded Investment (as of period end) | $ 893 | $ 2,240 | |
Increase in Allowance (as of period end) | $ 14 | $ 34 | |
Consumer | Other | |||
Information related to loans modified as a TDR | |||
Number of Contracts | contract | 31 | 39 | |
Recorded Investment (as of period end) | $ 240 | $ 229 | |
Increase in Allowance (as of period end) | $ 10 | $ 6 |
Investment Securities (Visa Cla
Investment Securities (Visa Class B Restricted Shares Narrative) (Details 8) | 3 Months Ended |
Mar. 31, 2020shares | |
Visa Conversion Rate Swap Agreement | |
Net Investment Income [Line Items] | |
Conversion ratio | 1.6228 |
Equity securities remaining, shares | 80,214 |
Visa Class A Unrestricted Securities | |
Net Investment Income [Line Items] | |
Equity securities remaining, shares | 130,171 |
Loans and Leases and the All_10
Loans and Leases and the Allowance for Loan and Lease Losses (Foreclosure Proceedings Narrative) (Details 8) $ in Millions | Mar. 31, 2020USD ($) |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure | $ 1.9 |
Investment Securities (Accrued
Investment Securities (Accrued Interest Receivable Excluded from Other Values - Narrative) (Details) - Accrued Interest Receivable - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Accrued interest receivable | $ 30.9 | $ 30.7 |
Available-for-sale Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Accrued interest receivable | 7.1 | 7.5 |
Held-to-maturity Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Accrued interest receivable | $ 8.9 | $ 8.1 |
Loans and Leases and the All_11
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring's that Defaulted During the Period) (Details 7) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($)contract | |
Information related to loans modified as a TDR | ||
Number of Contracts, TDRs that Defaulted | contract | 23 | 33 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 226 | $ 391 |
Minimum | ||
Information related to loans modified as a TDR | ||
Default Period Past Due Following Modification of Loans in TDR (in days) | 60 days | |
Consumer | ||
Information related to loans modified as a TDR | ||
Number of Contracts, TDRs that Defaulted | contract | 23 | 33 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 226 | $ 391 |
Consumer | Automobile | ||
Information related to loans modified as a TDR | ||
Number of Contracts, TDRs that Defaulted | contract | 18 | 14 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 176 | $ 266 |
Consumer | Other | ||
Information related to loans modified as a TDR | ||
Number of Contracts, TDRs that Defaulted | contract | 5 | 19 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 50 | $ 125 |
Mortgage Servicing Rights (Narr
Mortgage Servicing Rights (Narrative) (Details 1) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Residential mortgage loans serviced for third parties | $ 3,100 | $ 3,100 | |
Servicing income, including late and ancillary fees | $ 3.7 | $ 1.8 |
Mortgage Servicing Rights (Fair
Mortgage Servicing Rights (Fair value method rollforward) (Details 2) - Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Mortgage servicing rights accounted for under the fair value measurement method [Rollforward] | ||
Balance at Beginning of Period | $ 1,126 | $ 1,290 |
Due to Payoffs | (25) | (22) |
Total Changes in Fair Value of Mortgage Servicing Rights | (25) | (22) |
Balance at End of Period | $ 1,101 | $ 1,268 |
Mortgage Servicing Rights (Amor
Mortgage Servicing Rights (Amortization method rollforward) (Details 3) - Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Asset at Amortized Cost [Line Items] | ||||
Valuation Allowance | $ 2,513 | $ 0 | $ 0 | $ 0 |
Mortgage Servicing Rights Accounted for Under the Amortization Method {Rollforward) | ||||
Balance at Beginning of Period | 23,896 | 23,020 | ||
Servicing Rights that Resulted From Asset Transfers | 1,165 | 551 | ||
Amortization | (1,112) | (690) | ||
Valuation Allowance for Impairment of Recognized Servicing Assets, Additions (Deductions) for Expenses (Recoveries) | (2,513) | 0 | ||
Balance at End of Period | 21,436 | 22,881 | ||
Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method | ||||
Beginning of Period | 25,714 | 29,218 | ||
End of Period | $ 21,436 | $ 26,814 |
Mortgage Servicing Rights (Key
Mortgage Servicing Rights (Key assumptions) (Details 4) - Mortgage Servicing Rights | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Key data and assumptions used in estimating the fair value of mortgage servicing rights | ||
Weighted-Average Constant Prepayment Rate (as a percent) | 14.93% | 10.76% |
Weighted-Average Life (in years) | 4 years 10 months 17 days | 6 years 2 months 12 days |
Weighted-Average Note Rate (as a percent) | 3.96% | 3.99% |
Weighted-Average Discount Rate (as a percent) | 5.90% | 7.33% |
Mortgage Servicing Rights (Sens
Mortgage Servicing Rights (Sensitivity analysis) (Details 5) - Mortgage Servicing Rights - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Constant Prepayment Rate | ||
Decrease in fair value from 25 basis points (“bps”) adverse change | $ (228) | $ (296) |
Decrease in fair value from 50 bps adverse change | (452) | (586) |
Discount Rate | ||
Decrease in fair value from 25 bps adverse change | (204) | (264) |
Decrease in fair value from 50 bps adverse change | $ (403) | $ (522) |
Low Income Housing Tax Credit_3
Low Income Housing Tax Credit Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Affordable Housing Tax Credit Investments, Unfunded Commitment [Abstract] | |||
2019 | $ 25,423 | ||
2020 | 5,310 | ||
2021 | 79 | ||
2022 | 55 | ||
2023 | 55 | ||
Thereafter | 1,754 | ||
Total Unfunded Commitments | 32,676 | ||
Effective Yield Method | |||
Tax credits and other tax benefits recognized | 2,938 | $ 2,930 | |
Amortization Expense in Provision for Income Taxes | 2,147 | 1,891 | |
Proportional Amortization Method | |||
Tax credits and other tax benefits recognized | 1,523 | 753 | |
Amortization Expense in Provision for Income Taxes | 1,318 | 645 | |
Net affordable housing tax credit investments and related unfunded commitments | 92,900 | $ 76,300 | |
Write down from impairment of LIHTC Investments | $ 0 | $ 0 |
Balance Sheet Offsetting (Repos
Balance Sheet Offsetting (Repos - by maturity date and collateral type) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | $ 603,206 | $ 604,306 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 237,238 | 237,238 |
Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 1,690 | 2,790 |
Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 115,734 | 115,734 |
Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 248,544 | 248,544 |
Maturity Up To 90 Days [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 1,200 |
Maturity Up To 90 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity Up To 90 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 1,200 |
Maturity Up To 90 Days [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity Up To 90 Days [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 91 To 365 Days [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 2,716 | 2,616 |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 1,200 | 1,100 |
Maturity 91 To 365 Days [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 1,516 | 1,516 |
Maturity 91 To 365 Days [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 1 To 3 Years [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 225,000 | 225,000 |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 199,173 | 199,173 |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 1 To 3 Years [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 25,827 | 25,827 |
Maturity 1 To 3 Years [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity After 3 Years [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 375,490 | 375,490 |
Maturity After 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 38,065 | 38,065 |
Maturity After 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 490 | 490 |
Maturity After 3 Years [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 88,391 | 88,391 |
Maturity After 3 Years [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | $ 248,544 | $ 248,544 |
Balance Sheet Offsetting (Asset
Balance Sheet Offsetting (Assets and liabilities subject to MNA, or repurchase agreements) (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | $ 603,206 | $ 604,306 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 603,206 | 604,306 |
Repurchase Agreements, Fair Value of Collateral Pledged | 603,206 | 604,306 |
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 | 18,900 | 5,100 |
Institutional Counterparties | Interest Rate Swap Agreements | ||
Assets: | ||
Gross Amounts of Recognized Assets | 36 | 584 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 36 | 584 |
Netting Adjustments per Master Netting Arrangements | 36 | 584 |
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 | 18,947 | 5,361 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 18,947 | 5,361 |
Derivative Liability, Netting Adjustments per Master Netting Arrangements | 36 | 584 |
Derivative, Collateral, Right to Reclaim Securities | 8,955 | 3,818 |
Derivative Liabilities, Net Amount | 9,956 | 959 |
Private Institutions | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 646,400 | 645,300 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 600,000 | 600,000 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 600,000 | 600,000 |
Repurchase Agreements, Fair Value of Collateral Pledged | 600,000 | 600,000 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | 0 | 0 |
Government Entities | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 5,400 | 5,500 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 3,206 | 4,306 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 3,206 | 4,306 |
Repurchase Agreements, Fair Value of Collateral Pledged | 3,206 | 4,306 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (AOCI Components Pre Post & Tax Effect) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Comprehensive Income (Loss), Before Tax: | ||
Net Unrealized Gains (Losses) Arising During the Period | $ 56,556 | $ 8,952 |
(Gain) Loss on sale, before tax | 77 | (64) |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 65 | 396 |
Net Unrealized Gains (Losses) on Investment Securities | 56,544 | 9,412 |
Amortization of Net Actuarial Losses (Gains) | 570 | 406 |
Amortization of Prior Service Credit | (61) | (72) |
Defined Benefit Plans, Net | 509 | 334 |
Other Comprehensive Income (Loss) | 57,053 | 9,746 |
Other Comprehensive Income (Loss), Tax Effect: | ||
Net Unrealized Gains (Losses) Arising During the Period | 14,989 | 2,371 |
(Gain) Loss on sale, Tax Effect | 21 | (17) |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 17 | 105 |
Net Unrealized Gains (Losses) on Investment Securities | 14,985 | 2,493 |
Amortization of Net Actuarial Losses (Gains) | 152 | 107 |
Amortization of Prior Service Credit | (17) | (19) |
Defined Benefit Plans, Net | 135 | 88 |
Other Comprehensive Income (Loss) | 15,120 | 2,581 |
Other Comprehensive Income (Loss), Net of Tax: | ||
Net Unrealized Gains (Losses) Arising During the Period | 41,567 | 6,581 |
(Gain) Loss on sale, Net of Tax | 56 | (47) |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 48 | 291 |
Net Unrealized Gains (Losses) on Investment Securities | 41,559 | 6,919 |
Amortization of Net Actuarial Losses (Gains) | 418 | 299 |
Amortization of Prior Service Credit | (44) | (53) |
Defined Benefit Plans, Net | 374 | 246 |
Total Other Comprehensive Income (Loss) | $ 41,933 | $ 7,165 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Change in AOCI Components net of tax) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | $ 1,286,832 | $ 1,268,200 |
Total Other Comprehensive Income (Loss) | 41,933 | 7,165 |
Balance at End of Period | 1,327,929 | 1,269,690 |
Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (38,756) | (36,010) |
Other Comprehensive Income (Loss) Before Reclassifications | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 374 | 246 |
Total Other Comprehensive Income (Loss) | 374 | 246 |
Balance at End of Period | (38,382) | (35,764) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (31,112) | (51,043) |
Other Comprehensive Income (Loss) Before Reclassifications | 41,567 | 6,581 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 366 | 584 |
Total Other Comprehensive Income (Loss) | 41,933 | 7,165 |
Balance at End of Period | 10,821 | (43,878) |
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 | 8,359 | (10,447) |
Other Comprehensive Income (Loss) Before Reclassifications | 41,567 | 6,581 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (56) | 47 |
Total Other Comprehensive Income (Loss) | 41,511 | 6,628 |
Balance at End of Period | 49,870 | (3,819) |
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 | (715) | (4,586) |
Other Comprehensive Income (Loss) Before Reclassifications | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 48 | 291 |
Total Other Comprehensive Income (Loss) | 48 | 291 |
Balance at End of Period | $ (667) | $ (4,295) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (AOCI Reclass to IS) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax Benefit (Expense) | $ (7,461) | $ (13,660) |
Net Income | 34,742 | 58,799 |
Salaries and Benefits | (54,463) | (56,586) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Net Income | (366) | (584) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Unrealized Gains(Losses) of Investment Securities Transferred from AFS to HTM | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest Income | (65) | (396) |
Tax Benefit (Expense) | 17 | 105 |
Net Income | (48) | (291) |
Reclassification out of Accumulated Other Comprehensive Income | Sale of Investment Securities Available-for-Sale | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax Benefit (Expense) | (21) | 17 |
Net Income | 56 | (47) |
Sale of Investment Securities Available-for-Sale | 77 | (64) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Defined Benefit Pension Items | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax Benefit (Expense) | 135 | 88 |
Net Income | (374) | (246) |
Salaries and Benefits | (509) | (334) |
Reclassification out of Accumulated Other Comprehensive Income | Prior Service Credit | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and Benefits | 61 | 72 |
Reclassification out of Accumulated Other Comprehensive Income | Net Actuarial Losses | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and Benefits | $ (570) | $ (406) |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of Diluted Shares | ||
Denominator for Basic Earnings Per Share (in shares) | 39,681,611 | 40,938,318 |
Dilutive Effect of Equity Based Awards (in shares) | 235,375 | 275,135 |
Denominator for Diluted Earnings Per Share (in shares) | 39,916,986 | 41,213,453 |
Antidilutive Stock Options and Restricted Stock Outstanding (in shares) | 106,602 | 102,394 |
Business Segments (Business Seg
Business Segments (Business Segments Financial Information and Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)atmbranch | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Business segment financial information | |||
Federal and State effective tax rate used for segment reporting | 26.00% | ||
Net Interest Income | $ 125,966 | $ 124,837 | |
Provision for Credit Losses | 33,600 | 3,000 | |
Net Interest Income After Provision for Credit Losses | 92,366 | 121,837 | |
Noninterest Income | 46,149 | 43,679 | |
Noninterest Expense | (96,312) | (93,057) | |
Income Before Provision for Income Taxes | 42,203 | 72,459 | |
Provision for Income Taxes | (7,461) | (13,660) | |
Net Income | 34,742 | 58,799 | |
Total Assets | $ 18,542,233 | 17,446,413 | $ 18,095,496 |
Consumer | |||
Business segment financial information | |||
Number of branch locations through which products and services are delivered to customers | branch | 67 | ||
Number of ATM's through which products and services are delivered to customers | atm | 382 | ||
Net Interest Income | $ 73,661 | 76,352 | |
Provision for Credit Losses | 3,545 | 2,224 | |
Net Interest Income After Provision for Credit Losses | 70,116 | 74,128 | |
Noninterest Income | 32,590 | 34,478 | |
Noninterest Expense | (70,900) | (69,427) | |
Income Before Provision for Income Taxes | 31,806 | 39,179 | |
Provision for Income Taxes | (7,984) | (9,834) | |
Net Income | 23,822 | 29,345 | |
Total Assets | 7,385,185 | 6,796,106 | |
Commercial | |||
Business segment financial information | |||
Net Interest Income | 45,986 | 47,290 | |
Provision for Credit Losses | 290 | 1,446 | |
Net Interest Income After Provision for Credit Losses | 45,696 | 45,844 | |
Noninterest Income | 11,735 | 7,061 | |
Noninterest Expense | (17,298) | (20,955) | |
Income Before Provision for Income Taxes | 40,133 | 31,950 | |
Provision for Income Taxes | (9,760) | (6,002) | |
Net Income | 30,373 | 25,948 | |
Total Assets | 4,584,040 | 4,004,176 | |
Treasury and Other | |||
Business segment financial information | |||
Net Interest Income | 6,319 | 1,195 | |
Provision for Credit Losses | 29,765 | (670) | |
Net Interest Income After Provision for Credit Losses | (23,446) | 1,865 | |
Noninterest Income | 1,824 | 2,140 | |
Noninterest Expense | (8,114) | (2,675) | |
Income Before Provision for Income Taxes | (29,736) | 1,330 | |
Provision for Income Taxes | 10,283 | 2,176 | |
Net Income | (19,453) | 3,506 | |
Total Assets | $ 6,573,008 | $ 6,646,131 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Notional Amounts) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 82,433 | $ 48,677 |
Fair Value | 3,930 | 1,280 |
Forward Commitments | ||
Derivative [Line Items] | ||
Notional Amount | 75,861 | 82,735 |
Fair Value | (1,247) | (182) |
Receive Fixed / Pay Variable Swap | ||
Derivative [Line Items] | ||
Notional Amount | 1,035,227 | 802,389 |
Fair Value | 95,661 | 26,070 |
Pay Fixed / Receive Variable Swap | ||
Derivative [Line Items] | ||
Notional Amount | 1,035,227 | 802,389 |
Fair Value | (18,911) | (4,777) |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Amount | 88,211 | 85,499 |
Fair Value | 107 | 163 |
Visa Conversion Rate Swap Agreement | ||
Derivative [Line Items] | ||
Notional Amount | 98,180 | 114,499 |
Fair Value | $ 0 | $ 0 |
Pension Plans and Postretirem_3
Pension Plans and Postretirement Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Net periodic benefit cost for pension plans and the postretirement benefit plan | ||
Service Cost | $ 0 | $ 0 |
Interest Cost | 900 | 1,094 |
Expected Return on Plan Assets | (1,258) | (1,249) |
Amortization of Prior Service Credit | 0 | 0 |
Amortization of Net Actuarial Losses (Gains) | 570 | 484 |
Net Periodic Benefit Cost | 212 | 329 |
Employer Contributions | 100 | |
Estimated Future Employer Contributions in Current Fiscal Year | 400 | |
Postretirement Benefits | ||
Net periodic benefit cost for pension plans and the postretirement benefit plan | ||
Service Cost | 151 | 118 |
Interest Cost | 231 | 258 |
Expected Return on Plan Assets | 0 | 0 |
Amortization of Prior Service Credit | (61) | (72) |
Amortization of Net Actuarial Losses (Gains) | 0 | (78) |
Net Periodic Benefit Cost | 321 | $ 226 |
Employer Contributions | 300 | |
Estimated Future Employer Contributions in Current Fiscal Year | $ 1,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Assets and liabilities) (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | $ 100,591 | $ 28,931 |
Liability Derivatives | 21,051 | 6,377 |
Interest Rate Lock Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 3,930 | 1,280 |
Liability Derivatives | 0 | 0 |
Forward Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 52 | 23 |
Liability Derivatives | 1,299 | 205 |
Interest Rate Swap Agreements | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 95,918 | 27,344 |
Liability Derivatives | 19,168 | 6,051 |
Foreign Exchange Contracts | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 691 | 284 |
Liability Derivatives | $ 584 | $ 121 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Net gains or losses) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recognized in the statements of income | $ 11,271 | $ 3,183 |
Interest Rate Lock Commitments | Mortgage Banking Income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recognized in the statements of income | 6,303 | 1,725 |
Forward Commitments | Mortgage Banking Income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recognized in the statements of income | (2,184) | (592) |
Interest Rate Swap Agreements | Other Noninterest Income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recognized in the statements of income | 6,438 | 1,136 |
Foreign Exchange Contracts | Other Noninterest Income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recognized in the statements of income | $ 714 | $ 914 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Narrative) (Details 4) | 3 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | ||
Liability Derivatives | $ 21,051,000 | $ 6,377,000 |
Visa Class B Restricted Securities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 0 | |
Visa Class B Restricted Securities | ||
Derivative [Line Items] | ||
Conversion ratio | 1.6228 |
Commitments, Contingencies, a_3
Commitments, Contingencies, and Guarantees (Credit Commitments) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Commitments [Line Items] | ||
Credit Commitments | $ 2,678,793 | $ 2,811,918 |
Unfunded Commitments to Extend Credit | ||
Credit Commitments [Line Items] | ||
Credit Commitments | 2,579,748 | 2,713,937 |
Standby Letters of Credit | ||
Credit Commitments [Line Items] | ||
Credit Commitments | 83,175 | 81,000 |
Commercial Letters of Credit | ||
Credit Commitments [Line Items] | ||
Credit Commitments | $ 15,870 | $ 16,981 |
Commitments, Contingencies, a_4
Commitments, Contingencies, and Guarantees (Narrative) (Details 2) $ in Millions | Oct. 16, 2019USD ($) | Mar. 31, 2020USD ($)Loan |
Residential Mortgage | ||
Representations and Warranties [Line Items] | ||
Continuing Involvement with Transferred Financial Assets, Principal Amount Outstanding | $ | $ 2,800 | |
Number of Mortgage Loans Repurchased | 0 | |
Number of Mortgage Loans Repurchased, Pending | 0 | |
Number of Mortgage Loans Repurchased due to Loan Servicing Activities | 0 | |
Number of Mortgage Loans Repurchased due to Loan Servicing Activities, Pending | 0 | |
Current Residential Mortgage Loans Serviced for Third Parties as Percentage of Total | 99.00% | |
Class Settlement | Settled Litigation | ||
Representations and Warranties [Line Items] | ||
Litigation settlement amount | $ | $ 8 | |
Loss contingency accrual amount | $ | $ 8 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Liability Derivatives | $ 21,051 | $ 6,377 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Fair value on recurring basis) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Available-for-Sale: Fair Value | $ 2,681,049 | $ 2,619,003 |
Loans Held for Sale | 20,789 | 39,062 |
Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 55,023 | 55,097 |
Debt Securities Issued by Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,012 | 22,147 |
Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 271,176 | 336,321 |
Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,152,749 | 1,984,307 |
Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,199,214 | 1,172,826 |
Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 661,173 | 586,761 |
Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 292,362 | 224,720 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,681,049 | 2,619,003 |
Loans Held for Sale | 20,789 | 39,062 |
Mortgage Servicing Rights | 1,101 | 1,126 |
Other Assets | 42,844 | 41,464 |
Derivatives | 100,591 | 28,931 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,846,374 | 2,729,586 |
Liabilites: | ||
Derivatives | 21,051 | 6,377 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 21,051 | 6,377 |
Fair Value, Measurements, Recurring | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 201,089 | 221,131 |
Fair Value, Measurements, Recurring | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 55,023 | 55,097 |
Fair Value, Measurements, Recurring | Debt Securities Issued by Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,012 | 22,147 |
Fair Value, Measurements, Recurring | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 271,176 | 336,321 |
Fair Value, Measurements, Recurring | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,152,749 | 1,984,307 |
Fair Value, Measurements, Recurring | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,199,214 | 1,172,826 |
Fair Value, Measurements, Recurring | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 661,173 | 586,761 |
Fair Value, Measurements, Recurring | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 292,362 | 224,720 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,176 | 1,155 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 42,844 | 41,464 |
Derivatives | 0 | 0 |
Total Assets Measured at Fair Value on a Recurring Basis | 44,020 | 42,619 |
Liabilites: | ||
Derivatives | 0 | 0 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,176 | 1,155 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,679,873 | 2,617,848 |
Loans Held for Sale | 20,789 | 39,062 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 0 | 0 |
Derivatives | 743 | 308 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,701,405 | 2,657,218 |
Liabilites: | ||
Derivatives | 1,883 | 327 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 1,883 | 327 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 199,913 | 219,976 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 55,023 | 55,097 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,012 | 22,147 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 271,176 | 336,321 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,152,749 | 1,984,307 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 1,199,214 | 1,172,826 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 661,173 | 586,761 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 292,362 | 224,720 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 1,101 | 1,126 |
Other Assets | 0 | 0 |
Derivatives | 99,848 | 28,623 |
Total Assets Measured at Fair Value on a Recurring Basis | 100,949 | 29,749 |
Liabilites: | ||
Derivatives | 19,168 | 6,050 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 19,168 | 6,050 |
Fair Value, Measurements, Recurring | 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 | 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 | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | $ 0 | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (FV on recurring basis-Level 3 rollforward) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Mortgage Servicing Rights Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Mortgage Servicing Rights, Beginning Balance | $ 1,126 | $ 1,290 |
Fair Value, Mortgage Servicing Rights, Realized and Unrealized Net Gains (Losses) Included in Net Income | (25) | (22) |
Fair Value, Mortgage Servicing Rights, Ending Balance | 1,101 | 1,268 |
Fair Value, Mortgage Service Rights, Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Net Derivative Assets and Liabilities, Beginning Balance | 22,573 | 4,416 |
Fair Value, Net Derivative Assets and Liabilities, Realized and Unrealized Net Gains (Losses) Included in Net Income | 6,172 | 1,715 |
Fair Value, Net Derivative Assets and Liabilities, Transfers to Loans Held for Sale | (3,653) | (1,498) |
Variation margin payments for swap liabilities | 55,588 | 4,542 |
Fair Value, Net Derivative Assets and Liabilities, Ending Balance | 80,680 | 9,175 |
Fair Value, Net Derivative Assets and Liabilities,Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | $ 80,680 | $ 9,175 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (FV on recurring or nonrecurring basis-level 3 inputs) (Details 3) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Interest Rate Lock Commitments | Pricing Model | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 3,930 | $ 1,280 |
Interest Rate Swap Agreements | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 76,750 | 21,293 |
Mortgage Servicing Rights | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, at Fair Value | $ 22,537 | $ 26,840 |
Significant Other Unobservable Inputs (Level 3) | Interest Rate Lock Commitments | Pricing Model | Weighted Average Closing Ratio (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.8746 | 0.9224 |
Significant Other Unobservable Inputs (Level 3) | Interest Rate Swap Agreements | Discounted Cash Flow | Weighted Average Credit Factor (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.0019 | 0.0020 |
Significant Other Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted Cash Flow | Weighted Average Constant Prepayment Rate (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, Fair Value Inputs | 0.1493 | 0.1076 |
Significant Other Unobservable Inputs (Level 3) | Weighted Average Discount Rate (as a percent) | Discounted Cash Flow | Weighted Average Discount Rate (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, Fair Value Inputs | 0.0590 | 0.0733 |
Minimum | Significant Other Unobservable Inputs (Level 3) | Discounted Cash Flow | Weighted Average Discount Rate (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, Fair Value Inputs | 0.0588 | |
Minimum | Significant Other Unobservable Inputs (Level 3) | Interest Rate Lock Commitments | Pricing Model | Weighted Average Closing Ratio (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.7540 | |
Minimum | Significant Other Unobservable Inputs (Level 3) | Interest Rate Swap Agreements | Discounted Cash Flow | Weighted Average Credit Factor (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.0002 | |
Minimum | Mortgage Servicing Rights [Member] | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Discount Rate | 9.57% | |
Maximum | Significant Other Unobservable Inputs (Level 3) | Discounted Cash Flow | Weighted Average Discount Rate (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, Fair Value Inputs | 0.0644 | |
Maximum | Significant Other Unobservable Inputs (Level 3) | Interest Rate Lock Commitments | Pricing Model | Weighted Average Closing Ratio (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.9900 | |
Maximum | Significant Other Unobservable Inputs (Level 3) | Interest Rate Swap Agreements | Discounted Cash Flow | Weighted Average Credit Factor (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.0061 | |
Maximum | Mortgage Servicing Rights [Member] | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Discount Rate | 16.76% |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (Fair value on a nonrecurring basis) (Details 4) - Significant Other Unobservable Inputs (Level 3) $ in Thousands | Mar. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Net Carrying Amount | $ 21,436 |
Valuation Allowance | $ (2,513) |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities (FV option) (Details 5) - Residential mortgage loans held for sale - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Option | ||
Aggregate Fair Value | $ 20,789 | $ 39,062 |
Aggregate Unpaid Principal | 13,848 | 38,293 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 6,941 | $ 769 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities (Financial instruments not recorded at FV on recurring basis) (Details 6) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | $ 3,104,020 | $ 3,062,882 |
Carrying Amount | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 3,004,139 | 3,042,294 |
Loans | 11,013,610 | 10,664,885 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,744,812 | 1,802,431 |
Securities Sold Under Agreements to Repurchase | 603,206 | 604,306 |
Other Debt | 50,000 | 75,000 |
Fair Value | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 3,104,020 | 3,062,882 |
Loans | 11,548,639 | 10,873,208 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,754,741 | 1,800,773 |
Securities Sold Under Agreements to Repurchase | 651,276 | 627,780 |
Other Debt | 50,800 | 75,581 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 216,723 | 275,663 |
Loans | 0 | 0 |
Financial Instruments - Liabilities | ||
Time Deposits | 0 | 0 |
Securities Sold Under Agreements to Repurchase | 0 | 0 |
Other Debt | 0 | 0 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 2,887,297 | 2,787,219 |
Loans | 0 | 0 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,754,741 | 1,800,773 |
Securities Sold Under Agreements to Repurchase | 651,276 | 627,780 |
Other Debt | 50,800 | 75,581 |
Fair Value | Significant Other Unobservable Inputs (Level 3) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 0 | 0 |
Loans | 11,548,639 | 10,873,208 |
Financial Instruments - Liabilities | ||
Time Deposits | 0 | 0 |
Securities Sold Under Agreements to Repurchase | 0 | 0 |
Other Debt | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Service Charges on Deposit Accounts | $ 7,451 | $ 7,364 |
Fees, Exchange, and Other Service Charges | 13,200 | 14,208 |
Annuity and Insurance | 928 | 2,578 |
Other | 10,350 | 5,606 |
Noninterest Income | 46,149 | 43,679 |
Accounting Standards Update 2014-09 | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest Income | 46,149 | 43,679 |
Accounting Standards Update 2014-09 | Noninterest Income In Scope of Topic 606 | ||
Disaggregation of Revenue [Line Items] | ||
Trust and Asset Management | 10,915 | 10,761 |
Service Charges on Deposit Accounts | 3,053 | 3,349 |
Fees, Exchange, and Other Service Charges | 10,518 | 11,552 |
Annuity and Insurance | 895 | 2,544 |
Other | 2,302 | 2,471 |
Noninterest Income | 27,683 | 30,677 |
Accounting Standards Update 2014-09 | Noninterest Income Out of Scope of Topic 606 | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest Income | $ 18,466 | $ 13,002 |
Uncategorized Items - boh202003
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,632,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,632,000 |
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period Of Adoption, Adjusted Balance [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | 53,278,000 |
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period Of Adoption, Adjusted Balance [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | 55,012,000 |
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | 17,052,000 |
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | $ (18,789,000) |