Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FIRST MIDWEST BANCORP INC | ||
Entity Central Index Key | 702,325 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,422,176,518 | ||
Entity Common Stock, Shares Outstanding | 78,325,825 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and due from banks | $ 114,587 | $ 117,315 | |
Interest-bearing deposits in other banks | 266,615 | 488,947 | |
Trading securities, at fair value | 16,894 | 17,460 | |
Securities available-for-sale, at fair value | 1,306,636 | 1,187,009 | |
Securities held-to-maturity, at amortized cost (fair value 2015 – $20,054; 2014 – $27,670) | 23,152 | 26,555 | |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost | 39,306 | 37,558 | |
Loans, excluding covered loans | 7,130,940 | 6,657,418 | |
Covered loans | [1] | 30,775 | 79,435 |
Allowance for loan and covered loan losses | (73,630) | (72,694) | |
Net loans | 7,088,085 | 6,664,159 | |
Other real estate owned (OREO), excluding covered OREO | 27,349 | 26,898 | |
Covered OREO | 433 | 8,068 | |
Federal Deposit Insurance Corporation (FDIC) indemnification asset | 3,903 | 8,452 | |
Premises, furniture, and equipment, net | 122,278 | 131,109 | |
Investment in bank-owned life insurance (BOLI) | 209,601 | 206,498 | |
Goodwill and other intangible assets | 339,277 | 334,199 | |
Accrued interest receivable and other assets | 174,560 | 190,912 | |
Total assets | 9,732,676 | 9,445,139 | |
Liabilities | |||
Noninterest-bearing deposits | 2,414,454 | 2,301,757 | |
Interest-bearing deposits | 5,683,284 | 5,586,001 | |
Total deposits | 8,097,738 | 7,887,758 | |
Borrowed funds | 165,096 | 137,994 | |
Senior and subordinated debt | 201,208 | 200,869 | |
Accrued interest payable and other liabilities | 122,366 | 117,743 | |
Total liabilities | 8,586,408 | 8,344,364 | |
Stockholders' Equity | |||
Common stock | 882 | 882 | |
Additional paid-in capital | 446,672 | 449,798 | |
Retained earnings | 953,516 | 899,516 | |
Accumulated other comprehensive loss, net of tax | (28,389) | (15,855) | |
Treasury stock, at cost | (226,413) | (233,566) | |
Total stockholders' equity | 1,146,268 | 1,100,775 | |
Total liabilities and stockholders' equity | $ 9,732,676 | $ 9,445,139 | |
[1] | For information on covered loans, see Note 6, "Acquired and Covered Loans." |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity securities, fair value | $ 20,054 | $ 27,670 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares issued | 0 | 0 |
Preferred Stock, Shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 88,228,000 | 88,228,000 |
Common stock, shares outstanding | 77,952,000 | 77,695,000 |
Treasury stock, shares | 10,276,000 | 10,533,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | |||
Loans, excluding covered loans | $ 297,823 | $ 256,842 | $ 239,224 |
Covered loans | 2,480 | 8,659 | 13,804 |
Investment securities – taxable | 18,082 | 14,516 | 12,249 |
Investment securities – tax-exempt | 13,861 | 16,716 | 18,644 |
Other short-term investments | 3,738 | 3,131 | 3,326 |
Total interest income | 335,984 | 299,864 | 287,247 |
Interest Expense | |||
Deposits | 9,527 | 10,377 | 11,901 |
Borrowed funds | 2,314 | 573 | 1,607 |
Senior and subordinated debt | 12,545 | 12,062 | 13,607 |
Total interest expense | 24,386 | 23,012 | 27,115 |
Net interest income | 311,598 | 276,852 | 260,132 |
Provision for loan and covered loan losses | 21,152 | 19,168 | 16,257 |
Net interest income after provision for loan and covered loan losses | 290,446 | 257,684 | 243,875 |
Noninterest Income | |||
Service charges on deposit accounts | 39,979 | 36,910 | 36,526 |
Wealth management fees | 29,162 | 26,474 | 24,185 |
Card-based fees | 26,984 | 24,340 | 21,649 |
Merchant servicing fees | 11,739 | 11,260 | 10,953 |
Mortgage banking income | 5,741 | 4,011 | 5,306 |
Other service charges, commissions, and fees | 13,654 | 8,086 | 7,663 |
BOLI income (loss) | 4,185 | 2,873 | (11,844) |
Net securities gains | 2,373 | 8,097 | 34,164 |
Other income | 2,764 | 4,567 | 4,452 |
Gain on termination of FHLB forward commitments | 0 | 0 | 7,829 |
Total noninterest income | 136,581 | 126,618 | 140,883 |
Noninterest Expense | |||
Salaries and wages | 133,739 | 116,578 | 112,631 |
Retirement and other employee benefits | 31,852 | 27,245 | 26,119 |
Net occupancy and equipment expense | 38,720 | 35,181 | 31,832 |
Professional services | 22,720 | 23,436 | 21,922 |
Technology and related costs | 14,581 | 12,875 | 11,335 |
Merchant card expense | 9,886 | 9,195 | 8,780 |
Advertising and promotions | 7,606 | 8,159 | 7,754 |
FDIC premiums | 6,017 | 5,824 | 6,438 |
Net OREO expense | 5,281 | 7,075 | 8,547 |
Cardholder expense | 5,243 | 4,251 | 4,021 |
Other expenses | 21,601 | 20,135 | 17,358 |
Property valuation adjustments | 8,581 | 0 | 0 |
Acquisition and integration related expenses | 1,389 | 13,872 | 0 |
Total noninterest expense | 307,216 | 283,826 | 256,737 |
Income before income tax expense | 119,811 | 100,476 | 128,021 |
Income tax expense | 37,747 | 31,170 | 48,715 |
Net income | $ 82,064 | $ 69,306 | $ 79,306 |
Per Common Share Data | |||
Basic earnings per common share (in dollars per share) | $ 1.05 | $ 0.92 | $ 1.06 |
Diluted earnings per common share (in dollars per share) | $ 1.05 | $ 0.92 | $ 1.06 |
Weighted-average common shares outstanding (in shares) | 77,059 | 74,484 | 73,984 |
Weighted-average diluted common shares outstanding (in shares) | 77,072 | 74,496 | 73,994 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 82,064 | $ 69,306 | $ 79,306 |
Unrealized holding (losses) gains: | |||
Before tax | (9,824) | 37,173 | (2,054) |
Tax effect | 3,906 | (14,918) | 711 |
Net of tax | (5,918) | 22,255 | (1,343) |
Less: reclassification of net gains included in net income: | |||
Before tax | 2,373 | 8,097 | 34,164 |
Tax effect | (970) | (3,311) | (13,973) |
Net of tax | 1,403 | 4,786 | 20,191 |
Net unrealized holding (losses) gains | (7,321) | 17,469 | (21,534) |
Derivative instruments | |||
Before tax | (2,233) | (1,930) | 0 |
Tax effect | 903 | 792 | 0 |
Net of tax | (1,330) | (1,138) | 0 |
Unrealized holding (losses) gains: | |||
Before tax | (6,570) | (9,127) | 17,600 |
Tax effect | 2,687 | 3,733 | (7,198) |
Net of tax | (3,883) | (5,394) | 10,402 |
Total other comprehensive (loss) income | (12,534) | 10,937 | (11,132) |
Total comprehensive income | $ 69,530 | $ 80,243 | $ 68,174 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income - AOCI - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive (loss) Income, Beginning Balance | $ (15,855) | $ (26,792) | $ (15,660) |
Other comprehensive income (loss) | (12,534) | 10,937 | (11,132) |
Accumulated other comprehensive (loss) Income, Ending Balance | (28,389) | (15,855) | (26,792) |
Accumulated Unrealized Loss on Securities Available- for-Sale | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive (loss) Income, Beginning Balance | (2,950) | (20,419) | 1,115 |
Other comprehensive income (loss) | (7,321) | 17,469 | (21,534) |
Accumulated other comprehensive (loss) Income, Ending Balance | (10,271) | (2,950) | (20,419) |
Accumulated Unrealized Loss on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive (loss) Income, Beginning Balance | (1,138) | 0 | 0 |
Other comprehensive income (loss) | (1,330) | (1,138) | 0 |
Accumulated other comprehensive (loss) Income, Ending Balance | (2,468) | (1,138) | 0 |
Unrecognized Net Pension Costs | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive (loss) Income, Beginning Balance | (11,767) | (6,373) | (16,775) |
Other comprehensive income (loss) | (3,883) | (5,394) | 10,402 |
Accumulated other comprehensive (loss) Income, Ending Balance | $ (15,650) | $ (11,767) | $ (6,373) |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance Beginning at Dec. 31, 2012 | $ 940,893 | $ 858 | $ 418,318 | $ 786,453 | $ (15,660) | $ (249,076) |
Balance at Beginning (in shares) at Dec. 31, 2012 | 74,840,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 79,306 | 79,306 | ||||
Other comprehensive income (loss) | (11,132) | (11,132) | ||||
Common dividends declared ($0.16, $0.31 and $0.36) | (12,019) | (12,019) | ||||
Common stock issued, net of issuance costs | 0 | |||||
Share-based compensation expense | 5,903 | 5,903 | ||||
Restricted stock activity | (1,538) | (9,814) | 8,276 | |||
Restricted stock activity (in shares) | 234,000 | |||||
Treasury stock issued to benefit plans | 29 | (114) | 143 | |||
Treasury stock issued to benefit plans (in shares) | (3,000) | |||||
Balance Ending at Dec. 31, 2013 | 1,001,442 | $ 858 | 414,293 | 853,740 | (26,792) | (240,657) |
Balance Ending (in shares) at Dec. 31, 2013 | 75,071,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 69,306 | 69,306 | ||||
Other comprehensive income (loss) | 10,937 | 10,937 | ||||
Common dividends declared ($0.16, $0.31 and $0.36) | (23,530) | (23,530) | ||||
Common stock issued, net of issuance costs | 38,300 | $ 24 | 38,276 | |||
Common stock issued, net of issuance costs (in shares) | 2,441,000 | |||||
Share-based compensation expense | 5,926 | 5,926 | ||||
Restricted stock activity | (1,975) | (8,560) | 6,585 | |||
Restricted stock activity (in shares) | 176,000 | |||||
Treasury stock issued to benefit plans | 369 | (137) | 506 | |||
Treasury stock issued to benefit plans (in shares) | 7,000 | |||||
Balance Ending at Dec. 31, 2014 | $ 1,100,775 | $ 882 | 449,798 | 899,516 | (15,855) | (233,566) |
Balance Ending (in shares) at Dec. 31, 2014 | 77,695,000 | 77,695,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 82,064 | 82,064 | ||||
Other comprehensive income (loss) | (12,534) | (12,534) | ||||
Common dividends declared ($0.16, $0.31 and $0.36) | (28,064) | (28,064) | ||||
Purchase of treasury stock | (120) | (120) | ||||
Purchase of treasury stock (in shares) | (7,000) | |||||
Common stock issued, net of issuance costs | 0 | |||||
Share-based compensation expense | 7,242 | 7,242 | ||||
Restricted stock activity | (3,296) | (10,236) | 6,940 | |||
Restricted stock activity (in shares) | 267,000 | |||||
Treasury stock issued to benefit plans | 201 | (132) | 333 | |||
Treasury stock issued to benefit plans (in shares) | (3,000) | |||||
Balance Ending at Dec. 31, 2015 | $ 1,146,268 | $ 882 | $ 446,672 | $ 953,516 | $ (28,389) | $ (226,413) |
Balance Ending (in shares) at Dec. 31, 2015 | 77,952,000 | 77,952,000 |
Consolidated Statements Of Cha8
Consolidated Statements Of Changes In Stockholders’ Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock | |||
Common dividends declared per common share (in USD per share) | $ 0.36 | $ 0.31 | $ 0.16 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 82,064 | $ 69,306 | $ 79,306 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan and covered loan losses | 21,152 | 19,168 | 16,257 |
Depreciation of premises, furniture, and equipment | 13,367 | 12,224 | 11,038 |
Net amortization of premium on securities | 4,849 | 8,218 | 9,174 |
Net securities gains | (2,373) | (8,097) | (34,164) |
Gains on 1-4 family mortgage loan sales | (5,291) | (3,771) | (4,717) |
Gain on termination of FHLB forward commitments | 0 | 0 | (7,829) |
Net losses on early extinguishment of debt | 0 | 2,059 | 1,034 |
Net losses on sales and valuation adjustments of OREO | 2,631 | 3,325 | 3,908 |
Amortization of the FDIC indemnification asset | 1,461 | 3,315 | 2,984 |
Net losses (gains) on sales and valuation adjustments of premises, furniture, and equipment | 7,718 | (3,277) | (79) |
BOLI (income) loss | (4,185) | (2,873) | 11,844 |
Net pension cost (income) | 622 | (959) | 2,169 |
Share-based compensation expense | 7,242 | 5,926 | 5,903 |
Tax expense related to share-based compensation | (1,200) | (106) | (10) |
Provision for deferred income tax expense | 16,897 | 16,215 | 33,467 |
Amortization of other intangible assets | 3,920 | 2,889 | 3,278 |
Originations of mortgage loans held-for-sale | (158,699) | (97,535) | (40,681) |
Proceeds from sales of mortgage loans held-for-sale | 158,791 | 96,006 | 37,788 |
Net decrease (increase) in trading securities | 566 | (143) | (3,155) |
Net decrease (increase) in accrued interest receivable and other assets | 10,023 | (18,015) | 30,696 |
Net (decrease) increase in accrued interest payable and other liabilities | (1,042) | 22,367 | (21,859) |
Net cash provided by operating activities | 158,513 | 126,242 | 136,352 |
Investing Activities | |||
Proceeds from maturities, repayments, and calls of securities available-for-sale | 322,764 | 172,001 | 219,458 |
Proceeds from sales of securities available-for-sale | 93,909 | 27,805 | 78,636 |
Purchases of securities available-for-sale | (509,481) | (25,856) | (335,442) |
Proceeds from maturities, repayments, and calls of securities held-to-maturity | 4,645 | 4,675 | 7,043 |
Purchases of securities held-to-maturity | (1,242) | (2,638) | (17,070) |
Net (purchases) redemption of FHLB stock | (1,190) | (427) | 12,071 |
Net increase in loans | (401,363) | (279,952) | (354,600) |
Proceeds from claims on BOLI, net of premiums paid | 1,082 | (85) | 1,394 |
Proceeds from sales of OREO | 18,572 | 22,368 | 25,797 |
Proceeds from sales of premises, furniture, and equipment | 1,230 | 3,906 | 1,463 |
Purchases of premises, furniture, and equipment | (11,269) | (14,085) | (11,030) |
Net cash (paid for) received from acquisitions | (16,047) | 200,645 | 0 |
Net cash (used in) provided by investing activities | (498,390) | 108,357 | (372,280) |
Financing Activities | |||
Net increase (decrease) in deposit accounts | 118,167 | (73,244) | 93,846 |
Net increase (decrease) in borrowed funds | 25,902 | (1,288) | 38,358 |
Purchase of treasury stock | (120) | 0 | 0 |
Payments for the retirement of subordinated debt | 0 | 0 | (24,094) |
(Payment for) proceeds from the termination of FHLB advances and forward commitments | 0 | (116,609) | 7,829 |
Cash dividends paid | (27,036) | (22,568) | (7,508) |
Restricted stock activity | (2,890) | (2,781) | (1,607) |
Excess tax benefit related to share-based compensation | 794 | 912 | 79 |
Net cash provided by (used in) financing activities | 114,817 | (215,578) | 106,903 |
Net (decrease) increase in cash and cash equivalents | (225,060) | 19,021 | (129,025) |
Cash and cash equivalents at beginning of year | 606,262 | 587,241 | 716,266 |
Cash and cash equivalents at end of year | 381,202 | 606,262 | 587,241 |
Supplemental Disclosures of Cash Flow Information: | |||
Income taxes paid | 25,022 | 16,375 | 4,945 |
Interest paid to depositors and creditors | 24,535 | 23,088 | 27,599 |
Dividends declared, but unpaid | 7,250 | 6,222 | 5,260 |
Common stock issued for acquisitions, net of issuance costs | 0 | 38,300 | 0 |
Non-cash transfers of loans to OREO | 13,504 | 18,079 | 17,965 |
Non-cash transfers of loans held-for-investment to loans held-for-sale | 28,540 | 71,272 | 1,925 |
Non-cash transfer of an investment from other assets to securities available-for-sale | $ 0 | $ 0 | $ 2,787 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations – First Midwest Bancorp, Inc. (the "Company") is a bank holding company that was incorporated in Delaware in 1982 and began operations on March 31, 1983. The Company is headquartered in Itasca, Illinois and has operations located primarily throughout the Chicago metropolitan area, as well as northwest Indiana, central and western Illinois, and eastern Iowa. The Company operates three wholly owned subsidiaries: First Midwest Bank (the "Bank"), Catalyst Asset Holdings, LLC ("Catalyst"), and Parasol Investment Management, LLC ("Parasol"). The Bank conducts the majority of the Company's operations. Catalyst manages certain non-performing assets of the Company. Parasol serves in an advisory capacity to certain wealth management accounts with the Bank. The Company is engaged in commercial and retail banking and offers a broad range of banking, treasury, and wealth management products and services, tailored to the needs of its commercial and industrial, commercial real estate, municipal, and consumer customers. Basis of Presentation – The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. The Company uses the accrual basis of accounting for financial reporting purposes. Certain reclassifications were made to prior year amounts to conform to the current year presentation. For the year ended December 31, 2014, the Bank acquired assets and assumed liabilities of Great Lakes Bank, National Association. The fair values assigned to these assets and liabilities were preliminary and subject to refinement after the acquisition date as new information related to acquisition date fair values became available. During the year ended December 31, 2015, the Bank obtained specific information relating to the acquisition date fair values of certain assets, which required measurement period adjustments. These adjustments were recognized in the current period in accordance with the early adoption of accounting guidance applicable to business combinations. See Note 3 , " Acquisitions " for additional discussion related to these fair value adjustments. Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. Principles of Consolidation – The accompanying consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. Segment Disclosures – The Company has one reportable segment. The Company's chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segment disclosures are not required. The following is a summary of the Company's significant accounting policies. Business Combinations – Business combinations are accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed are recorded at their estimated fair values as of the date of acquisition, with any excess of the purchase price of the acquisition over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Alternatively, a gain is recorded if the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid. The results of operations of the acquired business are included in the Consolidated Statements of Income from the effective date of the acquisition. Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management defines cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, if any, such as federal funds sold and securities purchased under agreements to resell. Securities – Securities are classified as held-to-maturity, trading, or available-for-sale at the time of purchase. Securities Held-to-Maturity – Securities classified as held-to-maturity are securities for which management has the intent and ability to hold to maturity. These securities are stated at cost and adjusted for amortization of premiums and accretion of discounts over the estimated lives of the securities using the effective interest method. Trading Securities – The Company's trading securities consist of diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock. The accounts of the grantor trust are consolidated with the accounts of the Company in its consolidated financial statements. Trading securities are reported at fair value. Other than the securities held in the grantor trust, the Company does not carry any securities for trading purposes. Securities Available-for-Sale – All other securities are classified as available-for-sale. Securities available-for-sale are carried at fair value with unrealized gains and losses, net of related deferred income taxes, recorded in stockholders' equity as a separate component of accumulated other comprehensive loss. The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security using the effective interest method. Amortization of premiums and accretion of discounts are included in interest income. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in net securities gains in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company individually assesses securities with unrealized losses to determine whether there were any events or circumstances indicating that an other-than-temporary impairment ("OTTI") has occurred. In evaluating OTTI, the Company considers many factors, including (i) the severity and duration of the impairment, (ii) the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades for debt securities, (iii) its intent to hold the security until its value recovers, and (iv) the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. If management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery, an OTTI charge will be recognized through income as a realized loss and included in net securities gains in the Consolidated Statements of Income. If management does not expect to sell the security or believes it is not more likely than not that it will be required to sell the security prior to full recovery, the OTTI is separated into the amount related to credit deterioration, which is recognized through income as a realized loss, and the amount resulting from other factors, which is recognized in other comprehensive (loss) income. FHLB and FRB Stock – The Company, as a member of the FHLB and FRB, is required to maintain an investment in the capital stock of the FHLB and FRB. No ready market exists for these stocks, and they have no quoted market values. The stock is redeemable at par by the FRB and FHLB and is, therefore, carried at cost and periodically evaluated for impairment. Loans – Loans held-for-investment are loans that the Company intends to hold until they are paid in full and are carried at the principal amount outstanding, including certain net deferred loan origination fees. Interest income on loans is accrued based on principal amounts outstanding. Loan origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized as a yield adjustment over the contractual life of the related loans or commitments and included in interest income. Fees related to standby letters of credit are amortized into fee income over the contractual life of the commitment. Other credit-related fees are recognized as fee income when earned. Loans held-for-sale are carried at the lower of aggregate cost or fair value and included in other assets in the Consolidated Statements of Financial Condition. Acquired and Covered Loans – Covered loans consist of loans acquired by the Company in FDIC-assisted transactions, the majority of which are covered by loss share agreements with the FDIC (the "FDIC Agreements"), under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets during the coverage period. Acquired loans consist of all other loans that were acquired in business combinations that are not covered by FDIC Agreements. Covered loans are reported separately in the financial statements and acquired loans are included within loans held-for-investment. Acquired and covered loans are separated into (i) non-purchased credit impaired ("Non-PCI") and (ii) purchased credit impaired ("PCI") loans. Non-PCI loans include loans that did not have evidence of credit deterioration since origination at the acquisition date. PCI loans include loans that had evidence of credit deterioration since origination and for which it was probable at acquisition that the Company would not collect all contractually required principal and interest payments. Evidence of credit deterioration was evaluated using various indicators, such as past due and non-accrual status. Leases and revolving loans do not qualify to be accounted for as PCI loans and are accounted for as Non-PCI loans. The acquisition adjustment related to Non-PCI loans is amortized into interest income over the contractual life of the related loans. If an acquired non-PCI loan is renewed subsequent to the acquisition date, any remaining acquisition adjustment is accreted into interest income and the loan is considered a new loan that is no longer classified as an acquired loan. PCI loans are accounted for based on estimates of expected future cash flows. To estimate the fair value, the Company generally aggregates purchased consumer loans and certain smaller balance commercial loans into pools of loans with common risk characteristics, such as delinquency status, credit score, and internal risk ratings. The fair values of larger balance commercial loans are estimated on an individual basis. Expected future cash flows in excess of the fair value of loans at the purchase date ("accretable yield") are recorded as interest income over the life of the loans if the timing and amount of the expected future cash flows can be reasonably estimated. The non-accretable yield represents the difference between contractually required payments and the expected future cash flows determined at acquisition. Subsequent increases in expected future cash flows are offset against the allowance for credit losses to the extent an allowance has been established or otherwise recognized as interest income prospectively. The present value of any decreases in expected future cash flows is recognized by recording a charge-off through the allowance for loan and covered loan losses or providing an allowance for loan and covered loan losses. 90-Days Past Due Loans – The Company’s accrual of interest on loans is generally discontinued at the time the loan is 90 days past due unless the credit is sufficiently collateralized and in the process of renewal or collection. Non-accrual Loans – Generally, corporate loans are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due unless the credit is sufficiently collateralized and in the process of renewal or collection or (ii) when an individual analysis of a borrower’s creditworthiness warrants a downgrade to non-accrual regardless of past due status. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed, and unpaid interest accrued in prior years is charged against the allowance for loan losses. After the loan is placed on non-accrual, all debt service payments are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate that the Company will collect all principal and interest. Commercial loans and loans secured by real estate are charged-off when deemed uncollectible. A loss is recorded if the net realizable value of the underlying collateral is less than the outstanding principal and interest. Consumer loans that are not secured by real estate are subject to mandatory charge-off at a specified delinquency date and are usually not classified as non-accrual prior to being charged-off. Closed-end consumer loans, which include installment, automobile, and single payment loans, are usually charged-off no later than the end of the month in which the loan becomes 120 days past due. PCI loans are generally considered accruing loans unless reasonable estimates of the timing and amount of expected future cash flows cannot be determined. Loans without reasonable future cash flow estimates are classified as non-accrual loans, and interest income is not recognized on those loans until the timing and amount of the expected future cash flows can be reasonably determined. Troubled Debt Restructurings ("TDRs") – A restructuring is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity date. Loans are not classified as TDRs when the modification is short-term or results in an insignificant delay in payments. The Company’s TDRs are determined on a case-by-case basis. The Company does not accrue interest on a TDR unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate some level of past performance and the future capacity to perform under the modified terms. Generally, six months of consecutive payment performance under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess the borrower’s capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected future cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. If the loan was restructured at below market rates and terms, it continues to be separately reported as a TDR until it is paid in full or charged-off. Impaired Loans – Impaired loans consist of corporate non-accrual loans and TDRs. A loan is considered impaired when it is probable that the Company will not collect all contractual principal and interest. With the exception of accruing TDRs, impaired loans are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. Impaired loans with balances under a specified threshold are not individually evaluated for impairment. For all other impaired loans, impairment is measured by comparing the estimated value of the loan to the recorded book value. The value of collateral-dependent loans is based on the fair value of the underlying collateral, less costs to sell. The value of other loans is measured using the present value of expected future cash flows discounted at the loan’s initial effective interest rate. Allowance for Credit Losses – The allowance for credit losses is comprised of the allowance for loan losses, the allowance for covered loan losses, and the reserve for unfunded commitments, and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans, consideration of current economic trends, and other factors. Loans deemed to be uncollectible are charged-off against the allowance for loan and covered loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan and covered loan losses. Additions to the allowance for loan and covered loan losses are charged to expense through the provision for loan and covered loan losses. The amount of provision depends on a number of factors, including net charge-off levels, loan growth, changes in the composition of the loan portfolio, and the Company’s assessment of the allowance for loan and covered loan losses based on the methodology discussed below. Allowance for Loan Losses – The allowance for loan losses consists of (i) specific reserves for individual loans where the recorded investment exceeds the value, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) an allowance based on other internal and external qualitative factors. The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount. If the value of an impaired loan is less than the recorded book value, the Company either establishes a valuation allowance (i.e., a specific reserve) equal to the excess of the book value over the value of the loan as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss. The general reserve component is based on a loss migration analysis, which examines actual loss experience by loan category for a rolling 8-quarter period and the related internal risk rating for corporate loans. The loss migration analysis is updated quarterly primarily using actual loss experience. This component is then adjusted based on management’s consideration of many internal and external qualitative factors, including: • Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that historical trends do not reflect current conditions. • Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. • Changes in the experience, ability, and depth of credit management and other relevant staff. • Changes in the quality of the Company’s loan review system and Board of Directors oversight. • The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating. • Changes in the value of the underlying collateral for collateral-dependent loans. • Changes in the national and local economy that affect the collectability of various segments of the portfolio. • The effect of other external factors, such as competition and legal and regulatory requirements, on the Company’s loan portfolio. The allowance for loan losses also consists of an allowance on acquired Non-PCI and PCI loans. No allowance for loan losses is recorded on acquired loans at the acquisition date. An allowance for credit losses is established as necessary to reflect credit deterioration since the acquisition date. The acquired Non-PCI allowance is based on management's evaluation of the acquired Non-PCI loan portfolio giving consideration to the current portfolio balance including the remaining acquisition adjustments, maturity dates, and overall credit quality. The allowance on acquired PCI loans is determined in the same manner as the allowance for covered loan losses, which is discussed below. Acquired Non-PCI loans that have renewed subsequent to the respective acquisition dates are no longer classified as acquired loans. Instead, they are included with our general loan population and allocated an allowance based on a loss migration analysis. Allowance for Covered Loan Losses – The allowance for covered loan losses consists of an allowance on covered Non-PCI and PCI loans. The allowance for covered Non-PCI loans is calculated in the same manner as the general reserve component based on a loss migration analysis as discussed above. The covered PCI allowance reflects the difference between the carrying value and the discounted expected future cash flows of the covered PCI loans. On a periodic basis, the adequacy of this allowance is determined through a re-estimation of expected future cash flows on all outstanding covered PCI loans using either a probability of default/loss given default ("PD/LGD") methodology or a specific review methodology. The PD/LGD model is a loss model that estimates expected future cash flows using a probability of default curve and loss given default estimates. Reserve for Unfunded Commitments – The Company also maintains a reserve for unfunded commitments, including letters of credit, for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is estimated using the loss migration analysis from the allowance for loan losses, adjusted for probabilities of future funding requirements. The reserve for unfunded commitments is included in other liabilities in the Consolidated Statements of Financial Condition. The establishment of the allowance for credit losses involves a high degree of judgment given the difficulty of assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the adequacy of the allowance for credit losses depends on a variety of factors beyond the Company’s control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. OREO – OREO consists of properties acquired through foreclosure in partial or total satisfaction of defaulted loans. At initial transfer into OREO, properties are recorded at fair value, less estimated selling costs. Subsequently, OREO is carried at the lower of the cost basis or fair value, less estimated selling costs. OREO write-downs occurring at the transfer date are charged against the allowance for loan and covered loan losses, establishing a new cost basis. Subsequent to the initial transfer, the carrying values of OREO may be adjusted through a valuation allowance to reflect reductions in value resulting from new appraisals, new list prices, changes in market conditions, or changes in disposition strategies. Increases in value can be recognized through a reduction in the valuation allowance, but may not exceed the established cost basis. These valuation adjustments, along with expenses related to maintenance of the properties, are included in net OREO expense in the Consolidated Statements of Income. FDIC Indemnification Asset – The majority of loans and OREO acquired through FDIC-assisted transactions are covered by the FDIC Agreements, under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets during the indemnification period. The FDIC indemnification asset represents the present value of expected future reimbursements from the FDIC. Since the indemnified items are covered loans and covered OREO, which are initially measured at fair value, the FDIC indemnification asset is also initially measured at fair value by discounting the expected future cash flows to be received from the FDIC. These expected future cash flows are estimated by multiplying estimated losses on covered PCI loans and covered OREO by the reimbursement rates in the FDIC Agreements. The balance of the FDIC indemnification asset is adjusted periodically to reflect changes in expected future cash flows. Decreases in estimated reimbursements from the FDIC are recorded prospectively through amortization and increases in estimated reimbursements from the FDIC are recognized by an increase in the carrying value of the indemnification asset. Payments from the FDIC for reimbursement of losses result in a reduction of the FDIC indemnification asset. Depreciable Assets – Premises, furniture, and equipment are stated at cost, less accumulated depreciation. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Useful lives range from 3 to 10 years for furniture and equipment and 25 to 40 years for premises. Leasehold improvements are amortized over the shorter of the life of the asset or the lease term. Gains on dispositions are included in other noninterest income and losses on dispositions are included in other noninterest expense in the Consolidated Statements of Income. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. Certain assets, such as buildings and land, that the Company intends to sell and meets held-for-sale criteria are transferred into the held-for-sale category at the lower of their fair value, as determined by a current appraisal, or their recorded investment. Long-lived depreciable assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the undiscounted expected future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in other noninterest expense in the Consolidated Statements of Income. BOLI – BOLI represents life insurance policies on the lives of certain Company directors and officers for which the Company is the sole owner and beneficiary. These policies are recorded as an asset in the Consolidated Statements of Financial Condition at their cash surrender value ("CSV") or the current amount that could be realized if settled. The change in CSV and insurance proceeds received are included as a component of noninterest income in the Consolidated Statements of Income. Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price of the acquisition over the fair value of the net tangible and intangible assets acquired using the acquisition method of accounting. Goodwill is not amortized. Instead, impairment testing is conducted annually as of October 1 or more often if events or circumstances between annual tests indicate that there may be impairment. Impairment testing is performed using either a qualitative or quantitative approach at the reporting unit level. All of the Company's goodwill is allocated to First Midwest Bancorp, Inc., which is the Company's only applicable reporting unit for purposes of testing goodwill for impairment. The Company performs impairment testing using a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Qualitative factors include, but are not limited to, macroeconomic conditions, industry and market specific conditions and trends, the Company's financial performance, market capitalization, stock price, and Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise, the Company would proceed with a quantitative two-step goodwill impairment test. In the first step, the Company compares its estimate of the fair value of the reporting unit, which is based on a discounted cash flow analysis, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step is not required. If necessary, the second step compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by assigning the value of the reporting unit to all of the assets and liabilities of that unit, including any other identifiable intangible assets. An impairment loss is recognized if the carrying amount of the reporting unit goodwill exceeds the implied fair value of goodwill. Other intangible assets represent purchased assets that lack physical substance, but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Identified intangible assets that have a finite useful life are amortized over that life in a manner that reflects the estimated decline in the economic value of the identified intangible asset. All of the Company's other intangible assets have finite lives and are amortized over varying periods not exceeding 13 years. Intangible assets are reviewed for impairment annually or more frequently when events or circumstances indicate that its carrying amount may not be recoverable. Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is recognized on an accrual basis and is included as a component of noninterest income in the Consolidated Statements of Income. Derivative Financial Instruments – To provide derivative products to customers and in the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy to minimize significant unplanned fluctuations in earnings and expected future cash flows caused by interest rate volatility. All derivative instruments are recorded at fair value as either other assets or other liabilities in the Consolidated Statements of Financial Condition. Subsequent changes in a derivative’s fair value are recognized in earnings unless specific hedge accounting criteria are met. On the date the Company enters into a derivative contract, the derivative is designated as a fair value hedge, a cash flow hedge, or a non-hedge derivative instrument. Fair value hedges are designed to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk. Cash flow hedges are designed to mitigate exposure to variability in expected future cash flows to be received or paid related to an asset, liability, or other type of forecasted transaction. The Company formally documents all relationships between hedging instruments and hedged items, including its risk management objective and strategy at inception. At the hedge’s inception and quarterly thereafter, a formal assessment is performed to determine the effectiveness of the derivative in offsetting changes in the fair values or expected future cash flows of the hedged items in the current period and prospectively. If a derivative instrument designated as a hedge is terminated or ceases to be highly effective, hedge accounting is discontinued prospectively, and the gain or loss is amortized into earnings. For fair value hedges, the gain or loss is amortized over the remaining life of the hedge |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Recent Events | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Adopted Accounting Pronouncements Receivables - Troubled Debt Restructurings by Creditors: In January of 2014, the Financial Accounting Standards Board ("FASB") issued guidance to clarify when an in substance repossession or foreclosure occurs and an entity is considered to have received physical possession of the residential real estate property such that a loan receivable should be derecognized and the real estate property recognized. Additionally, the guidance requires interim and annual disclosure of the amount of foreclosed residential real estate property held by the entity and the recorded investment in consumer mortgage loans collateralized by residential real estate property that is in the process of foreclosure according to local requirements of the applicable jurisdiction. The guidance is effective for annual and interim periods beginning after December 15, 2014. The adoption of this guidance on January 1, 2015 did not materially impact the Company's financial condition, results of operations, or liquidity. Receivables - Troubled Debt Restructurings by Creditors: In August of 2014, the FASB issued guidance that requires an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if (i) the loan has a government guarantee that is not separable from the loan before foreclosure, (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The guidance is effective for annual and interim reporting periods beginning after December 15, 2014. The adoption of this guidance on January 1, 2015 did not materially impact the Company's financial condition, results of operations, or liquidity. Simplifying the Accounting for Measurement-Period Adjustments: In September of 2015, the FASB issued guidance to simplify the recognition of measurement-period adjustments related to a business combination. This guidance eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the reporting period in which the adjustment amounts are determined. In addition, the effect of the adjustments on the income statement must be calculated as if the accounting had been completed at the acquisition date. The guidance is effective for annual and interim periods beginning after December 15, 2015 and early adoption of this guidance is permitted. The Company elected to early adopt this guidance during the fourth quarter of 2015, which did not materially impact the Company's financial condition, results of operations, or liquidity. Accounting Pronouncements Pending Adoption Amendments to Consolidation Analysis: In February of 2015, the FASB issued guidance that updates current accounting for the consolidation of certain legal entities. This guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, and provides certain exceptions from consolidation guidance for certain reporting entities. This guidance is effective for annual and interim periods beginning after December 15, 2015. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Revenue from Contracts with Customers: In May of 2014, the FASB issued guidance that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance was initially effective for annual and interim reporting periods beginning on or after December 15, 2016. In August of 2015, the FASB issued guidance that defers the effective date by one year. The deferral causes the guidance to be effective for annual and interim reporting periods beginning on or after December 15, 2017, and must be applied either retrospectively or using the modified retrospective approach. Early adoption is permitted, but not before the original effective date. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern: In August of 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. The guidance is effective for annual and interim periods beginning after December 15, 2016. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Simplifying the Presentation of Debt Issuance Costs: In April of 2015, the FASB issued guidance to clarify the presentation of debt issuance costs within the balance sheet. Additionally, the guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. The guidance is effective for annual and interim periods beginning after December 15, 2015. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Amendments to Guidance on Classifying and Measuring Financial Instruments: In January of 2016, the FASB issued guidance that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value. Any changes in fair value will be recognized in net income unless the investments qualify for a new practicability exception. This guidance also requires entities to recognize changes in instrument-specific credit risk related to financial liabilities measured under the fair value option in other comprehensive income. No changes were made to the guidance for classifying and measuring investments in debt securities and loans. This guidance is effective for annual and interim periods beginning after December 15, 2017. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Pending Acquisitions The National Bank & Trust Company of Sycamore On November 12, 2015, the Company entered into a definitive agreement to acquire NI Bancshares Corporation ("NI Bancshares"), the holding company for The National Bank & Trust Company of Sycamore. As part of the acquisition, the Company will acquire ten banking offices in northern Illinois, $415 million in loans, $600 million in deposits, and over $700 million in trust assets under management. The merger consideration will be a combination of Company common stock and cash, with an overall transaction value of $70 million . The Company received approval for this acquisition from the Federal Reserve on January 5, 2016 and the Illinois Department of Financial and Professional Regulation on January 15, 2016. The acquisition is expected to close and operating systems converted late in the first quarter of 2016, subject to approval by the stockholders of NI Bancshares and customary closing conditions. Completed Acquisitions The Peoples' Bank of Arlington Heights On December 3, 2015 , the Company completed the acquisition of Peoples Bancorp, Inc. ("Peoples") and its wholly owned banking subsidiary, The Peoples' Bank of Arlington Heights. With the acquisition, the Company acquired all assets and assumed all liabilities of Peoples, which included two banking offices in Arlington Heights, Illinois, at a purchase price of $16.8 million paid in cash. The Company recorded goodwill of $7.5 million associated with the acquisition. The Company is finalizing the fair values of the assets and liabilities acquired. As a result, the fair value adjustments associated with these accounts and goodwill are preliminary and may change. Popular Community Bank On August 8, 2014 , the Bank completed the acquisition of the Chicago area banking operations of Banco Popular North America ("Popular"), doing business as Popular Community Bank, which is a subsidiary of Popular, Inc. The acquisition included Popular's twelve full-service retail banking offices and its small business and middle market commercial lending activities in the Chicago metropolitan area at a purchase price of $19.0 million paid in cash. The Company recorded goodwill of $32.2 million associated with the acquisition. The fair value adjustments associated with this transaction were finalized during the second quarter of 2015 and there were no measurement period adjustments during 2015. Great Lakes Financial Resources, Inc. On December 2, 2014 , the Company completed the acquisition of the south suburban Chicago-based Great Lakes Financial Resources, Inc. ("Great Lakes"), the holding company for Great Lakes Bank, National Association. The Company acquired all assets and assumed all liabilities of Great Lakes, which included seven full-service retail banking offices and one drive-up location, at a purchase price of $55.8 million . Consideration consisted of $38.3 million in Company common stock and $17.5 million in cash. The Company recorded goodwill of $10.3 million associated with the acquisition. During the fourth quarter of 2015, the Company finalized the fair value adjustments associated with the Great Lakes transaction, which required a measurement period adjustment of $933,000 and $523,000 to decrease loans and premises, furniture, and equipment, respectively, $582,000 to increase accrued interest receivable and other assets for the related deferred tax asset, and $874,000 to increase goodwill. These adjustments were recognized in the current period in accordance with the early adoption of revised accounting guidance applicable to business combinations. The following table presents the assets acquired and liabilities assumed, net of the fair value adjustments, in the Peoples, Popular, and Great Lakes transactions as of the acquisition date. The assets acquired and liabilities assumed, both intangible and tangible, were recorded at their estimated fair values as of the acquisition date and have been accounted for under the acquisition method of accounting. Acquisition Activity (Dollar amounts in thousands) Peoples Popular Great Lakes December 3, 2015 August 8, 2014 December 2, 2014 Assets Cash and due from banks and interest-bearing deposits in other banks $ 781 $ 161,276 $ 78,609 Securities available-for-sale 41,492 — 219,279 FHLB and FRB stock 558 — 1,970 Loans 53,917 549,386 223,169 OREO 515 — 1,244 Investment in BOLI — — 10,373 Goodwill 7,544 32,181 10,339 Other intangible assets 580 8,003 6,192 Premises, furniture, and equipment 2,215 4,647 5,011 Accrued interest receivable and other assets 2,911 6,574 10,059 Total assets $ 110,513 $ 762,067 $ 566,245 Liabilities Noninterest-bearing deposits $ 15,869 $ 163,299 $ 110,885 Interest-bearing deposits 75,944 568,573 353,424 Total deposits 91,813 731,872 464,309 Intangible liabilities — 10,631 — Borrowed funds 1,200 — 29,490 Senior and subordinated debt — — 9,809 Accrued interest payable and other liabilities 672 564 6,887 Total liabilities 93,685 743,067 510,495 Consideration Paid Common stock (2014 - 2,440,754 shares issued at $15.737 per share), net of $110,000 in issuance costs — — 38,300 Cash paid 16,828 19,000 17,450 Total consideration paid 16,828 19,000 55,750 $ 110,513 $ 762,067 $ 566,245 National Machine Tool Financial Corporation On September 26, 2014, the Bank completed the acquisition of National Machine Tool Financial Corporation, now known as First Midwest Equipment Finance Co. ("FMEF"), which provides equipment leasing and commercial financing alternatives to traditional bank financing. On the date of acquisition, the Bank acquired approximately $5.9 million in assets, excluding goodwill, which primarily consisted of direct financing leases, lease loans, and other assets, at a purchase price of $3.1 million paid in cash. Goodwill recorded as a result of the acquisition totaled $4.0 million . The assets acquired and liabilities assumed, both intangible and tangible, were recorded at their estimated fair values as of the September 26, 2014 acquisition date and have been accounted for under the acquisition method of accounting. The fair value adjustments associated with this transaction were finalized during the third quarter of 2015 and required no measurement period adjustments during 2015. Expenses related to the acquisition and integration of the transactions above totaled $1.4 million and $13.9 million during the years ended December 31, 2015 and 2014 , respectively, and are reported as a separate component within noninterest expense in the Consolidated Statements of Income. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES A summary of the Company's securities portfolio by category and maturity is presented in the following tables. Securities Portfolio (Dollar amounts in thousands) As of December 31, 2015 2014 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 17,000 $ 15 $ (35 ) $ 16,980 $ — $ — $ — $ — U.S. agency securities 86,461 351 (169 ) 86,643 30,297 144 (10 ) 30,431 Collateralized mortgage 695,198 1,072 (9,085 ) 687,185 538,882 2,256 (6,982 ) 534,156 Other mortgage-backed 152,481 1,920 (871 ) 153,530 155,443 4,632 (310 ) 159,765 Municipal securities 321,437 6,443 (310 ) 327,570 414,255 10,583 (1,018 ) 423,820 Trust preferred collateralized debt obligations ("CDOs") 48,287 34 (16,792 ) 31,529 48,502 152 (14,880 ) 33,774 Corporate debt securities — — — — 1,719 83 — 1,802 Equity securities 3,282 86 (169 ) 3,199 3,224 72 (35 ) 3,261 Total securities available-for-sale $ 1,324,146 $ 9,921 $ (27,431 ) $ 1,306,636 $ 1,192,322 $ 17,922 $ (23,235 ) $ 1,187,009 Securities Held-to-Maturity Municipal securities $ 23,152 $ — $ (3,098 ) $ 20,054 $ 26,555 $ 1,115 $ — $ 27,670 Trading Securities $ 16,894 $ 17,460 Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of December 31, 2015 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 95,201 $ 93,096 $ 2,092 $ 1,812 After one year to five years 272,169 266,151 8,809 7,630 After five years to ten years 57,528 56,256 4,184 3,624 After ten years 48,287 47,219 8,067 6,988 Securities that do not have a single contractual maturity date 850,961 843,914 — — Total $ 1,324,146 $ 1,306,636 $ 23,152 $ 20,054 The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $856.9 million as of December 31, 2015 and $779.4 million as of December 31, 2014 . No securities held-to-maturity were pledged as of December 31, 2015 or 2014 . Excluding securities issued or backed by the U.S. government and its agencies and U.S. government-sponsored enterprises, there were no investments in securities from one issuer that exceeded 10% of total stockholders' equity as of December 31, 2015 or 2014 . During the years ended December 31, 2015, 2014, and 2013 there were no material gross trading gains (losses). The following table presents net realized gains on securities available-for-sale. Securities Available-for-Sale Gains (Losses) (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Gains (losses) on sales of securities: Gross realized gains $ 2,519 $ 8,188 $ 34,572 Gross realized losses (146 ) (63 ) — Net realized gains on sales of securities 2,373 8,125 34,572 Non-cash impairment charges: OTTI — (28 ) (408 ) Net realized gains $ 2,373 $ 8,097 $ 34,164 During 2015, net securities gains primarily consisted of sales of MBSs at gains of $1.9 million and sales of CMOs, municipal securities, and other investments at net gains of $521,000 . Net securities gains consisted of the sale of a non-accrual CDO at a gain of $3.5 million and other investments at gains totaling $4.6 million during 2014. The Company sold its investment in an equity security during 2013, which resulted in a $34.0 million gain. Accounting guidance requires that the credit portion of an OTTI charge be recognized through income. If a decline in fair value below carrying value is not attributable to credit deterioration and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the non-credit related portion of the decline in fair value in other comprehensive (loss) income. The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all securities available-for-sale held by the Company for the years ended December 31, 2015 , 2014 , and 2013 . The majority of the beginning and ending balance of OTTI relates to CDOs currently held by the Company. Changes in OTTI Recognized in Earnings (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 23,880 $ 32,422 $ 38,803 OTTI included in earnings (1) : Losses on securities that previously had OTTI — 28 — Losses on securities that did not previously have OTTI — — 408 Reduction for securities sales (2) (171 ) (8,570 ) (6,789 ) Ending balance $ 23,709 $ 23,880 $ 32,422 (1) Included in net securities gains in the Consolidated Statements of Income. (2) These reductions were driven by the sale of one CMO with a carrying value of $1.3 million during the year ended December 31, 2015, one CDO with a carrying value of $1.3 million during the year ended December 31, 2014, and one CDO with a carrying value of zero during the year ended December 31, 2013. The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of December 31, 2015 and 2014 . Securities in an Unrealized Loss Position (Dollar amounts in thousands) Less Than 12 Months Greater Than 12 Months Total Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2015 Securities Available-for-Sale: U.S. treasury securities 4 $ 7,946 $ 35 $ — $ — $ 7,946 $ 35 U.S. agency securities 10 30,620 169 — — 30,620 169 CMOs 133 309,787 3,110 257,362 5,975 567,149 9,085 MBSs 27 63,028 427 31,980 444 95,008 871 Municipal securities 68 8,135 65 24,227 245 32,362 310 CDOs 8 8,034 971 21,642 15,821 29,676 16,792 Equity securities 2 485 120 2,305 49 2,790 169 Total 252 $ 428,035 $ 4,897 $ 337,516 $ 22,534 $ 765,551 $ 27,431 Securities Held-to-Maturity: Municipal securities 19 $ 20,054 $ 3,098 $ — $ — $ 20,054 $ 3,098 As of December 31, 2014 Securities Available-for-Sale: U.S. agency securities 1 $ 1,943 $ 10 $ — $ — $ 1,943 $ 10 CMOs 87 61,321 559 284,327 6,423 345,648 6,982 MBSs 11 1,113 1 39,043 309 40,156 310 Municipal securities 91 1,317 9 53,987 1,009 55,304 1,018 CDOs 4 — — 22,791 14,880 22,791 14,880 Equity securities 1 — — 2,270 35 2,270 35 Total 195 $ 65,694 $ 579 $ 402,418 $ 22,656 $ 468,112 $ 23,235 Substantially all of the Company's CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority are supported by third party insurance or some other form of credit enhancement. Management does not believe any of these securities with unrealized losses as of December 31, 2015 represent OTTI related to credit deterioration. These unrealized losses are attributed to changes in interest rates and temporary market movements. 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 them before recovery of their amortized cost basis, which may be at maturity. The unrealized losses on CDOs as of December 31, 2015 reflect changes in market activity for these securities. Management does not believe these unrealized losses represent OTTI related to credit deterioration. In addition, the Company does not intend to sell the CDOs with unrealized losses within a short period of time, and the Company does not believe it is more likely than not that it will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Significant judgment is required to calculate the fair value of the CDOs, all of which are pooled. For a detailed discussion of the CDO valuation methodology, see Note 22 , " Fair Value ." |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans | LOANS Loans Held-for-Investment The following table presents the Company's loans held-for-investment by class. Loan Portfolio (Dollar amounts in thousands) As of December 31, 2015 2014 Commercial and industrial $ 2,524,726 $ 2,253,556 Agricultural 387,440 358,249 Commercial real estate: Office, retail, and industrial 1,395,454 1,478,379 Multi-family 528,324 564,421 Construction 216,882 204,236 Other commercial real estate 931,190 887,897 Total commercial real estate 3,071,850 3,134,933 Total corporate loans 5,984,016 5,746,738 Home equity 653,468 543,185 1-4 family mortgages 355,854 291,463 Installment 137,602 76,032 Total consumer loans 1,146,924 910,680 Total loans, excluding covered loans 7,130,940 6,657,418 Covered loans (1) 30,775 79,435 Total loans $ 7,161,715 $ 6,736,853 Deferred loan fees included in total loans $ 5,191 $ 3,922 Overdrawn demand deposits included in total loans 2,810 3,438 (1) For information on covered loans, see Note 6 , " Acquired and Covered Loans ." The Company primarily lends to community-based and mid-sized businesses, commercial real estate customers, and consumers in its markets. Within these areas, the Company diversifies its loan portfolio by loan type, industry, and borrower. Commercial and industrial loans are underwritten after evaluating and understanding the borrower's ability to operate its business. As part of the underwriting process, the Company examines current and expected future cash flows to determine the ability of the borrower to repay its obligation. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrower may not be as expected, and the collateral securing these loans may fluctuate in value due to economic or other factors. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may incorporate a personal guarantee. Some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans substantially depend on the ability of the borrower to collect amounts due from its customers. Agricultural loans are generally provided to meet seasonal production, equipment, and farm real estate borrowing needs of individual and corporate crop and livestock producers. As part of the underwriting process, the Company examines projected future cash flows, financial statement stability, and the value of the underlying collateral. Seasonal crop production loans are repaid by the liquidation of the financed crop that is typically covered by crop insurance. Equipment and real estate term loans are repaid through cash flows of the farming operation. Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. The repayment of commercial real estate loans depends on the successful operation of the property securing the loan or the business conducted on the property securing the loan. This category of loans may be more adversely affected by conditions in the real estate market. Management monitors and evaluates commercial real estate loans based on cash flow, collateral, geography, and risk rating criteria. The mix of properties securing the loans in our commercial real estate portfolio are balanced between owner-occupied and investor categories and are diverse in terms of type and geographic location, generally within the Company's markets. Construction loans are generally based on estimates of costs and values associated with the completed project and are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analyses of absorption and lease rates, and financial analyses of the developers and property owners. Sources of repayment may be permanent loans from long-term lenders, sales of developed property, or an interim loan commitment until permanent financing is obtained. Generally, construction loans have a higher risk profile than other real estate loans since repayment is impacted by real estate values, interest rate changes, governmental regulation of real property, demand and supply of alternative real estate, the availability of long-term financing, and changes in general economic conditions. Consumer loans are centrally underwritten using a credit scoring model developed by the Fair Isaac Corporation ("FICO"), which employs a risk-based system to determine the probability that a borrower may default. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. The home equity category consists mainly of revolving lines of credit secured by junior liens on owner-occupied real estate. Loan-to-value ratios on home equity loans and 1-4 family mortgages are based on the current appraised value of the collateral. The carrying value of loans that were pledged to secure liabilities as of December 31, 2015 and 2014 are presented below. Carrying Value of Loans Pledged (Dollar amounts in thousands) As of December 31 2015 2014 Loans pledged to secure: FHLB advances $ 3,057,421 $ 1,952,736 FRB's Discount Window Primary Credit Program 841,808 845,974 Total $ 3,899,229 $ 2,798,710 1-4 Family Mortgage Loan Sales The following table presents 1-4 family mortgage loan sales for the years ended December 31, 2015 , 2014 , and 2013 . 1-4 Family Mortgage Loan Sales (Dollar amounts in thousands) Proceeds Book Value Net Gains (1) Year Ended December 31, 2015 Loans originated with intent to sell $ 157,499 $ 153,130 $ 4,369 Loans held-for-investment 27,809 26,887 922 Total $ 185,308 $ 180,017 $ 5,291 Year Ended December 31, 2014 Loans originated with intent to sell $ 95,422 $ 92,525 $ 2,897 Loans held-for-investment 53,258 52,384 874 Total $ 148,680 $ 144,909 $ 3,771 Year Ended December 31, 2013 Loans originated with intent to sell $ 37,788 $ 36,592 $ 1,196 Loans held-for-investment 114,342 110,821 3,521 Total $ 152,130 $ 147,413 $ 4,717 (1) Net gains on mortgage loan sales are included in mortgage banking income in the Consolidated Statements of Income. The Company retained servicing responsibilities for a portion of the 1-4 family mortgage loans sold and collects servicing fees equal to a percentage of the outstanding principal balance. The Company also retained limited recourse for credit losses on the sold loans. A description of the recourse obligation is presented in Note 21 , " Commitments, Guarantees, and Contingent Liabilities ." |
Acquired and Covered Loans
Acquired and Covered Loans | 12 Months Ended |
Dec. 31, 2015 | |
Acquired Loans [Abstract] | |
Acquired and Covered Loans | ACQUIRED AND COVERED LOANS Acquired loans consist primarily of loans that were acquired in business combinations that are not covered by the FDIC Agreements. These loans are included in loans, excluding covered loans, in the Consolidated Statements of Financial Condition. Covered loans consist of loans acquired by the Company in multiple FDIC-assisted transactions. Most loans and OREO acquired in those transactions are covered by the FDIC Agreements. The significant accounting policies related to acquired and covered loans, which are classified as PCI and Non-PCI, and the related FDIC indemnification asset are presented in Note 1 , " Summary of Significant Accounting Policies ." During 2015, non-residential mortgage loans and OREO related to three FDIC-assisted transactions were no longer covered under the FDIC Agreements. These non-residential loans and OREO, which totaled $21.0 million as of December 31, 2015, are included in acquired loans and no longer classified as covered loans. The losses on residential mortgage loans and OREO will continue to be covered under the FDIC Agreements through various dates between December 31, 2019 and September 30, 2020. The following table presents acquired and covered PCI and Non-PCI loans as of December 31, 2015 and 2014 . Acquired and Covered Loans (Dollar amounts in thousands) As of December 31, 2015 2014 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 50,286 $ 534,506 $ 584,792 $ 28,712 $ 714,836 $ 743,548 Covered loans 9,919 20,856 30,775 54,682 24,753 79,435 Total acquired and covered loans $ 60,205 $ 555,362 $ 615,567 $ 83,394 $ 739,589 $ 822,983 Acquired Non-PCI loans that are renewed are no longer classified as acquired loans. These loans totaled $61.6 million as of December 31, 2015 . In connection with the FDIC Agreements, the Company recorded an indemnification asset. To maintain eligibility for the loss share reimbursement, the Company is required to follow certain servicing procedures as specified in the FDIC Agreements. The Company was in compliance with those requirements as of December 31, 2015 , 2014 , and 2013 . Rollforwards of the carrying value of the FDIC indemnification asset for the three years ended December 31, 2015 is presented in the following table. Changes in the FDIC Indemnification Asset (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 8,452 $ 16,585 $ 37,051 Amortization (1,461 ) (3,315 ) (2,984 ) Change in expected reimbursements from the FDIC for changes in expected credit losses 1,313 (481 ) (1,242 ) Payments received from the FDIC (4,401 ) (4,337 ) (16,240 ) Ending balance $ 3,903 $ 8,452 $ 16,585 Changes in the accretable yield for acquired and covered PCI loans were as follows. Changes in Accretable Yield (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 28,244 $ 36,792 $ 51,498 Additions 1,168 3,517 — Accretion (11,311 ) (12,535 ) (15,016 ) Other (1) 6,811 470 310 Ending balance $ 24,912 $ 28,244 $ 36,792 (1) Represents a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio. |
Past Due Loans, Allowance For C
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs | PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, IMPAIRED LOANS, AND TDRS Past Due and Non-accrual Loans The following table presents an aging analysis of the Company's past due loans as of December 31, 2015 and 2014 . The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date. Aging Analysis of Past Due Loans and Non-Performing Loans by Class (Dollar amounts in thousands) Aging Analysis (Accruing and Non-accrual) Non-performing Loans Current 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Non-accrual Loans 90 Days Past Due Loans, Still Accruing Interest As of December 31, 2015 Commercial and industrial $ 2,516,197 $ 4,956 $ 3,573 $ 8,529 $ 2,524,726 $ 5,587 $ 857 Agricultural 387,109 245 86 331 387,440 355 — Commercial real estate: Office, retail, and industrial 1,386,383 2,647 6,424 9,071 1,395,454 6,875 4 Multi-family 526,625 541 1,158 1,699 528,324 796 548 Construction 216,377 — 505 505 216,882 905 — Other commercial real estate 922,531 3,575 5,084 8,659 931,190 5,611 661 Total commercial real estate 3,051,916 6,763 13,171 19,934 3,071,850 14,187 1,213 Total corporate loans 5,955,222 11,964 16,830 28,794 5,984,016 20,129 2,070 Home equity 647,175 3,247 3,046 6,293 653,468 5,310 216 1-4 family mortgages 350,980 2,680 2,194 4,874 355,854 3,416 528 Installment 136,780 753 69 822 137,602 20 69 Total consumer loans 1,134,935 6,680 5,309 11,989 1,146,924 8,746 813 Total loans, excluding 7,090,157 18,644 22,139 40,783 7,130,940 28,875 2,883 Covered loans 29,808 405 562 967 30,775 555 174 Total loans $ 7,119,965 $ 19,049 $ 22,701 $ 41,750 $ 7,161,715 $ 29,430 $ 3,057 As of December 31, 2014 Commercial and industrial $ 2,230,947 $ 19,505 $ 3,104 $ 22,609 $ 2,253,556 $ 22,693 $ 205 Agricultural 355,982 1,934 333 2,267 358,249 360 — Commercial real estate: Office, retail, and industrial 1,463,724 2,340 12,315 14,655 1,478,379 12,939 76 Multi-family 562,625 1,261 535 1,796 564,421 754 83 Construction 197,255 — 6,981 6,981 204,236 6,981 — Other commercial real estate 876,609 5,412 5,876 11,288 887,897 6,970 438 Total commercial real estate 3,100,213 9,013 25,707 34,720 3,134,933 27,644 597 Total corporate loans 5,687,142 30,452 29,144 59,596 5,746,738 50,697 802 Home equity 535,587 3,216 4,382 7,598 543,185 6,290 145 1-4 family mortgages 287,892 2,246 1,325 3,571 291,463 2,941 166 Installment 75,428 506 98 604 76,032 43 60 Total consumer loans 898,907 5,968 5,805 11,773 910,680 9,274 371 Total loans, excluding 6,586,049 36,420 34,949 71,369 6,657,418 59,971 1,173 Covered loans 66,331 2,714 10,390 13,104 79,435 6,186 5,002 Total loans $ 6,652,380 $ 39,134 $ 45,339 $ 84,473 $ 6,736,853 $ 66,157 $ 6,175 Allowance for Credit Losses The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb probable losses inherent in the loan portfolio. See Note 1 , " Summary of Significant Accounting Policies ," for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the years ended December 31, 2015 , 2014 , and 2013 is presented in the table below. Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Commercial, Industrial, and Agricultural Office, Retail, and Industrial Multi-family Construction Other Commercial Real Estate Consumer Covered Loans Reserve for Unfunded Commitments Total Allowance As of December 31, 2015 Beginning balance $ 29,458 $ 10,992 $ 2,249 $ 2,297 $ 8,327 $ 12,145 $ 7,226 $ 1,816 $ 74,510 Charge-offs (15,885 ) (2,887 ) (545 ) (136 ) (2,643 ) (4,187 ) (634 ) — (26,917 ) Recoveries 2,573 467 15 350 1,993 1,183 120 — 6,701 Net charge-offs (13,312 ) (2,420 ) (530 ) 214 (650 ) (3,004 ) (514 ) — (20,216 ) Provision for loan 20,928 4,544 743 (1,071 ) (1,589 ) 2,671 (5,074 ) (591 ) 20,561 Ending Balance $ 37,074 $ 13,116 $ 2,462 $ 1,440 $ 6,088 $ 11,812 $ 1,638 $ 1,225 $ 74,855 As of December 31, 2014 Beginning balance $ 30,381 $ 10,405 $ 2,017 $ 6,316 $ 10,817 $ 13,010 $ 12,559 $ 1,616 $ 87,121 Charge-offs (17,424 ) (7,345 ) (943 ) (1,052 ) (4,834 ) (7,574 ) (1,012 ) — (40,184 ) Recoveries 3,800 497 87 166 1,727 729 1,199 — 8,205 Net charge-offs (13,624 ) (6,848 ) (856 ) (886 ) (3,107 ) (6,845 ) 187 — (31,979 ) Provision for loan 12,701 7,435 1,088 (3,133 ) 617 5,980 (5,520 ) 200 19,368 Ending balance $ 29,458 $ 10,992 $ 2,249 $ 2,297 $ 8,327 $ 12,145 $ 7,226 $ 1,816 $ 74,510 As of December 31, 2013 Beginning balance $ 36,761 $ 11,432 $ 3,575 $ 9,223 $ 13,531 $ 12,862 $ 12,062 $ 3,366 $ 102,812 Charge-offs (12,094 ) (4,744 ) (1,029 ) (1,916 ) (4,784 ) (9,414 ) (4,599 ) — (38,580 ) Recoveries 3,797 228 584 1,032 1,646 1,071 24 — 8,382 Net charge-offs (8,297 ) (4,516 ) (445 ) (884 ) (3,138 ) (8,343 ) (4,575 ) — (30,198 ) Provision for loan 1,917 3,489 (1,113 ) (2,023 ) 424 8,491 5,072 (1,750 ) 14,507 Ending balance $ 30,381 $ 10,405 $ 2,017 $ 6,316 $ 10,817 $ 13,010 $ 12,559 $ 1,616 $ 87,121 The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of December 31, 2015 and 2014 . Loans and Related Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Loans Allowance for Credit Losses Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total As of December 31, 2015 Commercial, industrial, and $ 2,871 $ 2,902,361 $ 6,934 $ 2,912,166 $ 883 $ 35,378 $ 813 $ 37,074 Commercial real estate: Office, retail, and industrial 6,162 1,376,789 12,503 1,395,454 715 10,833 1,568 13,116 Multi-family 800 526,037 1,487 528,324 — 2,367 95 2,462 Construction 178 212,671 4,033 216,882 — 1,160 280 1,440 Other commercial real estate 3,665 913,161 14,364 931,190 — 5,367 721 6,088 Total commercial 10,805 3,028,658 32,387 3,071,850 715 19,727 2,664 23,106 Total corporate loans 13,676 5,931,019 39,321 5,984,016 1,598 55,105 3,477 60,180 Consumer — 1,135,959 10,965 1,146,924 — 11,425 387 11,812 Total loans, excluding 13,676 7,066,978 50,286 7,130,940 1,598 66,530 3,864 71,992 Covered loans — 20,856 9,919 30,775 — 248 1,390 1,638 Reserve for unfunded — — — — — 1,225 — 1,225 Total loans $ 13,676 $ 7,087,834 $ 60,205 $ 7,161,715 $ 1,598 $ 68,003 $ 5,254 $ 74,855 As of December 31, 2014 Commercial, industrial, and $ 19,796 $ 2,588,141 $ 3,868 $ 2,611,805 $ 2,249 $ 27,209 $ — $ 29,458 Commercial real estate: Office, retail, and industrial 12,332 1,458,918 7,129 1,478,379 271 10,721 — 10,992 Multi-family 939 561,400 2,082 564,421 — 2,249 — 2,249 Construction 6,671 195,094 2,471 204,236 — 2,297 — 2,297 Other commercial real estate 3,266 880,087 4,544 887,897 11 8,316 — 8,327 Total commercial 23,208 3,095,499 16,226 3,134,933 282 23,583 — 23,865 Total corporate loans 43,004 5,683,640 20,094 5,746,738 2,531 50,792 — 53,323 Consumer — 902,062 8,618 910,680 — 11,822 323 12,145 Total loans, excluding 43,004 6,585,702 28,712 6,657,418 2,531 62,614 323 65,468 Covered loans — 24,753 54,682 79,435 — 488 6,738 7,226 Reserve for unfunded — — — — — 1,816 — 1,816 Total loans $ 43,004 $ 6,610,455 $ 83,394 $ 6,736,853 $ 2,531 $ 64,918 $ 7,061 $ 74,510 Loans Individually Evaluated for Impairment The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2015 and 2014 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of December 31, 2015 2014 Recorded Investment In Recorded Investment In Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Commercial and industrial $ 1,673 $ 1,198 $ 4,592 $ 883 $ 666 $ 19,130 $ 35,457 $ 2,249 Agricultural — — — — — — — — Commercial real estate: Office, retail, and industrial 4,654 1,508 12,083 715 9,623 2,709 18,340 271 Multi-family 800 — 941 — 939 — 1,024 — Construction 178 — 299 — 6,671 — 7,731 — Other commercial real estate 3,665 — 4,403 — 2,752 514 4,490 11 Total commercial real 9,297 1,508 17,726 715 19,985 3,223 31,585 282 Total impaired loans $ 10,970 $ 2,706 $ 22,318 $ 1,598 $ 20,651 $ 22,353 $ 67,042 $ 2,531 The following table presents the average recorded investment and interest income recognized on impaired loans by class for the years ended December 31, 2015 , 2014 , and 2013 . PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Average Recorded Balance Interest Income Recognized (1) Average Recorded Balance Interest Income Recognized (1) Average Interest (1) Commercial and industrial $ 8,940 $ 163 $ 16,137 $ 371 $ 20,925 $ 205 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial 9,359 52 19,003 245 24,802 18 Multi-family 855 13 1,245 5 1,116 8 Construction 3,902 118 5,764 — 5,932 — Other commercial real estate 3,310 44 6,014 138 13,141 31 Total commercial real estate 17,426 227 32,026 388 44,991 57 Total impaired loans $ 26,366 $ 390 $ 48,163 $ 759 $ 65,916 $ 262 (1) Recorded using the cash basis of accounting. Credit Quality Indicators Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed periodically. The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of December 31, 2015 and 2014 . Corporate Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Pass Special (1)(4) Substandard (2)(4) Non-Accrual (3) Total As of December 31, 2015 Commercial and industrial $ 2,379,992 $ 86,263 $ 52,884 $ 5,587 $ 2,524,726 Agricultural 381,523 — 5,562 355 387,440 Commercial real estate: Office, retail, and industrial 1,320,164 32,627 35,788 6,875 1,395,454 Multi-family 517,412 6,146 3,970 796 528,324 Construction 201,496 4,678 9,803 905 216,882 Other commercial real estate 898,746 13,179 13,654 5,611 931,190 Total commercial real estate 2,937,818 56,630 63,215 14,187 3,071,850 Total corporate loans $ 5,699,333 $ 142,893 $ 121,661 $ 20,129 $ 5,984,016 As of December 31, 2014 Commercial and industrial $ 2,115,170 $ 84,615 $ 31,078 $ 22,693 $ 2,253,556 Agricultural 357,595 294 — 360 358,249 Commercial real estate: Office, retail, and industrial 1,393,885 38,891 32,664 12,939 1,478,379 Multi-family 553,255 6,363 4,049 754 564,421 Construction 178,992 5,776 12,487 6,981 204,236 Other commercial real estate 829,003 32,517 19,407 6,970 887,897 Total commercial real estate 2,955,135 83,547 68,607 27,644 3,134,933 Total corporate loans $ 5,427,900 $ 168,456 $ 99,685 $ 50,697 $ 5,746,738 (1) Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future. (2) Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. (3) Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. (4) Total special mention and substandard loans includes accruing TDRs of $862,000 as of December 31, 2015 and $1.8 million as of December 31, 2014 . Consumer Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Performing Non-accrual Total As of December 31, 2015 Home equity $ 648,158 $ 5,310 $ 653,468 1-4 family mortgages 352,438 3,416 355,854 Installment 137,582 20 137,602 Total consumer loans $ 1,138,178 $ 8,746 $ 1,146,924 As of December 31, 2014 Home equity $ 536,895 $ 6,290 $ 543,185 1-4 family mortgages 288,522 2,941 291,463 Installment 75,989 43 76,032 Total consumer loans $ 901,406 $ 9,274 $ 910,680 TDRs TDRs are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDRs by class as of December 31, 2015 and 2014 . See Note 1 , " Summary of Significant Accounting Policies ," for the accounting policy for TDRs. TDRs by Class (Dollar amounts in thousands) As of December 31, 2015 2014 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 294 $ 1,050 $ 1,344 $ 269 $ 18,799 $ 19,068 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial 164 — 164 586 — 586 Multi-family 598 186 784 887 232 1,119 Construction — — — — — — Other commercial real estate 340 — 340 433 183 616 Total commercial real estate 1,102 186 1,288 1,906 415 2,321 Total corporate loans 1,396 1,236 2,632 2,175 19,214 21,389 Home equity 494 667 1,161 651 506 1,157 1-4 family mortgages 853 421 1,274 878 184 1,062 Installment — — — — — — Total consumer loans 1,347 1,088 2,435 1,529 690 2,219 Total loans $ 2,743 $ 2,324 $ 5,067 $ 3,704 $ 19,904 $ 23,608 (1) These TDRs are included in non-accrual loans in the preceding tables. TDRs are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were $758,000 in specific reserves related to TDRs as of December 31, 2015 , and there were $1.8 million in specific reserves related to TDRs as of December 31, 2014 . The following table presents a summary of loans that were restructured during the years ended December 31, 2015 , 2014 , and 2013 . Loans Restructured During the Period (Dollar amounts in thousands) Number of Loans Pre-Modification Recorded Investment Funds Disbursed Interest and Escrow Capitalized Charge-offs Post-Modification Recorded Investment Year Ended December 31, 2015 Home equity 1 $ 120 $ — $ — $ — $ 120 1-4 family mortgages 2 325 — — — 325 Total loans restructured during the period 3 $ 445 $ — $ — $ — $ 445 Year Ended December 31, 2014 Commercial and industrial 7 $ 23,852 $ — $ — $ — $ 23,852 Office, retail, and industrial 1 417 — — — 417 Multi-family 1 275 — — — 275 Home equity 1 75 — — — 75 Total loans restructured during the period 10 $ 24,619 $ — $ — $ — $ 24,619 Year Ended December 31, 2013 Commercial and industrial 7 $ 14,439 $ — $ 2 $ — $ 14,441 Office, retail, and industrial 6 2,275 30 — — 2,305 Multi-family 5 1,274 — 57 — 1,331 Construction 2 508 — — — 508 Other commercial real estate 5 526 — — — 526 Home equity 13 1,189 — — — 1,189 1-4 family mortgages 1 132 — 4 — 136 Total loans restructured during the period 39 $ 20,343 $ 30 $ 63 $ — $ 20,436 Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. The following table presents TDRs that had payment defaults during the years ended December 31, 2015 , 2014 , and 2013 where the default occurred within twelve months of the restructure date. TDRs That Defaulted Within Twelve Months of the Restructured Date (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — 2 $ 125 1 $ 350 Other commercial real estate — — — — 3 354 Home equity — — 1 77 — — Total — $ — 3 $ 202 4 $ 704 A rollforward of the carrying value of TDRs for the years ended December 31, 2015 , 2014 , and 2013 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Accruing Beginning balance $ 3,704 $ 23,770 $ 6,867 Additions 120 804 4,847 Net payments (774 ) (1,440 ) (723 ) Returned to performing status — (20,656 ) (5,529 ) Net transfers (to) from non-accrual (307 ) 1,226 18,308 Ending balance 2,743 3,704 23,770 Non-accrual Beginning balance 19,904 4,083 10,924 Additions 325 23,815 15,589 Net (payments) advances (15,525 ) 1,991 (1,359 ) Charge-offs (2,687 ) (8,457 ) (1,880 ) Transfers to OREO — (302 ) (77 ) Loans sold — — (806 ) Net transfers from (to) accruing 307 (1,226 ) (18,308 ) Ending balance 2,324 19,904 4,083 Total TDRs $ 5,067 $ 23,608 $ 27,853 For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. Loans that were not restructured at market rates and terms, that are not in compliance with the modified terms, or for which there is a concern about the future ability of the borrower to meet its obligations under the modified terms, continue to be separately reported as restructured until paid in full or charged-off. There were no material commitments to lend additional funds to borrowers with TDRs as of December 31, 2015 and there were $666,000 in commitments as of December 31, 2014 . |
Premises, Furniture, and Equipm
Premises, Furniture, and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises, Furniture, and Equipment | PREMISES, FURNITURE, AND EQUIPMENT The following table summarizes the Company's premises, furniture, and equipment by category. Premises, Furniture, and Equipment (Dollar amounts in thousands) As of December 31, 2015 2014 Land $ 43,442 $ 51,104 Premises 152,444 148,963 Furniture and equipment 90,672 85,489 Total cost 286,558 285,556 Accumulated depreciation (171,708 ) (156,473 ) Net book value of premises, furniture, and equipment 114,850 129,083 Assets held-for-sale 7,428 2,026 Total premises, furniture, and equipment $ 122,278 $ 131,109 As of December 31, 2015, assets held-for-sale consisted of twelve closed branches and seven parcels of land previously purchased for expansion. These properties were transferred from land and premises to assets held-for-sale due to the Company's intent to sell these properties over the next twelve months as a result of its strategic branch initiatives. As a result, property valuation adjustments of $8.6 million were recognized and included as a separate component in noninterest expense on the Consolidated Statements of Income. Depreciation on premises, furniture, and equipment totaled $13.4 million in 2015 , $12.2 million in 2014 , and $11.0 million in 2013 . Operating Leases As of December 31, 2015 , the Company was obligated to utilize certain premises and equipment under certain non-cancelable operating leases, which expire at various dates through the year ending December 31, 2030 . Many of these leases contain renewal options and certain leases provide options to purchase the leased property during or at the expiration of the lease period at specific prices. Some leases contain escalation clauses calling for rentals to be adjusted for increased real estate taxes and other operating expenses or proportionately adjusted for increases in consumer or other price indices. The following summary reflects the future minimum payments by year required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2015 . Future Minimum Operating Lease Payments (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 5,119 2017 4,832 2018 4,115 2019 2,327 2020 1,893 2021 and thereafter 11,287 Total minimum lease payments $ 29,573 As part of the Popular acquisition completed in 2014, the Company assumed certain operating leases related to various branches. On the date of acquisition, an intangible liability of $10.6 million was recorded as the cash flows of the leases exceeded the fair market value. This intangible liability will be accreted into income as a reduction to net occupancy and equipment expense using the straight-line method over the initial term of each lease, which expire between 2018 to 2030. The intangible liability is included in accrued interest and other liabilities in the Consolidated Statements of Financial Condition. The following table presents the remaining scheduled accretion of the intangible liability by year. Scheduled Accretion of Operating Lease Intangible (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 1,144 2017 1,144 2018 900 2019 651 2020 613 2021 and thereafter 4,582 Total accretion $ 9,034 The following table presents net operating lease expense for the years ended December 31, 2015 , 2014 , and 2013 . Net Operating Lease Expense (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Lease expense charged to operations (1) $ 5,706 $ 4,216 $ 3,123 Rental income from premises leased to others (2) 606 541 531 Net operating lease expense $ 5,100 $ 3,675 $ 2,592 (1) Includes amounts paid under short-term cancelable leases and included in net occupancy and equipment expense in the Consolidated Statements of Income. As of December 31, 2015 and 2014, lease expense is net of accretion related to the intangible liability of $1.1 million and $453,000 , respectively. (2) Included as a reduction to net occupancy and equipment expense in the Consolidated Statements of Income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The Company's annual goodwill impairment test was performed as of October 1, 2015 . It was determined that no impairment existed as of that date or as of December 31, 2015 . For a discussion of the accounting policies for goodwill and other intangible assets, see Note 1 , " Summary of Significant Accounting Policies ." The following table presents changes in the carrying amount of goodwill for the years ended December 31, 2015 , 2014 , and 2013 . Changes in the Carrying Amount of Goodwill (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 310,589 $ 264,062 $ 265,477 Acquisitions 8,418 46,527 — Sale of equity method investment — — (1,415 ) Ending balance $ 319,007 $ 310,589 $ 264,062 The increase in goodwill for the year ended December 31, 2015 resulted from the Peoples acquisition and a measurement period adjustment related to finalizing the fair values of the assets acquired and liabilities assumed in the Great Lakes acquisition. During the year ended December 31, 2014, the increase in goodwill resulted from the Popular, Great Lakes, and National Machine Tool acquisitions. See Note 3 , " Acquisitions ," for additional detail regarding these transactions. The Company's other intangible assets are core deposit intangibles, which are being amortized over their estimated useful lives. Other intangible assets is subject to impairment testing when events or circumstances indicate that its carrying amount may not be recoverable. During 2015, there were no events or circumstances to indicate impairment. Other Intangible Assets (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Gross Accumulated Amortization Net Beginning balance $ 47,970 $ 24,360 $ 23,610 $ 33,775 $ 21,471 $ 12,304 $ 33,775 $ 18,193 $ 15,582 Additions 580 — 580 14,195 — 14,195 — — — Amortization expense — 3,920 (3,920 ) — 2,889 (2,889 ) — 3,278 (3,278 ) Ending balance $ 48,550 $ 28,280 $ 20,270 $ 47,970 $ 24,360 $ 23,610 $ 33,775 $ 21,471 $ 12,304 Weighted-average remaining life (in years) 7.4 8.0 5.9 Estimated remaining useful lives (in years) 0.8 to 10.0 0.3 to 10.3 0.2 to 11.3 Scheduled Amortization of Other Intangible Assets (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 3,901 2017 3,121 2018 2,196 2019 2,131 2020 2,080 2021 and thereafter 6,841 Total $ 20,270 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | DEPOSITS The following table presents the Company's deposits by type. Summary of Deposits (Dollar amounts in thousands) As of December 31, 2015 2014 Demand deposits $ 2,414,454 $ 2,301,757 Savings deposits 1,547,587 1,391,444 NOW accounts 1,456,175 1,413,973 Money market deposits 1,526,056 1,509,026 Time deposits less than $100,000 754,576 859,441 Time deposits greater than $100,000 398,890 412,117 Total deposits $ 8,097,738 $ 7,887,758 The following table provides maturity information related to the Company's time deposits. Scheduled Maturities of Time Deposits (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 754,417 2017 162,138 2018 71,235 2019 70,948 2020 94,472 2021 and thereafter 256 Total $ 1,153,466 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | BORROWED FUNDS The following table summarizes the Company's borrowed funds by funding source. Summary of Borrowed Funds (Dollar amounts in thousands) As of December 31, 2015 2014 Securities sold under agreements to repurchase $ 155,196 $ 137,994 FHLB advances 9,900 — Total borrowed funds $ 165,096 $ 137,994 Securities sold under agreements to repurchase are treated as financings and the obligations to repurchase securities sold are included as a liability in the Consolidated Statements of Financial Condition. Repurchase agreements are secured by U.S. treasury and agency securities which are held in third party pledge accounts, if required. The securities underlying the agreements remain in the respective asset accounts. As of December 31, 2015 , the Company did not have amounts at risk under repurchase agreements with any individual counterparty or group of counterparties that exceeded 10% of stockholders' equity. The Bank is a member of the FHLB and has access to term financing from the FHLB. These advances are secured by designated assets that may include qualifying residential and multi-family mortgages, home equity loans, and municipal and mortgage-backed securities. As of December 31, 2015 , the Company held one $9.9 million 3-month FHLB advance with a fixed interest rate of 0.4% that matures on March 1, 2016 . During 2014, the Company prepaid $114.6 million of FHLB advances which resulted in a $2.1 million pre-tax loss on the early extinguishment of debt and is included in other noninterest income in the Consolidated Statements of Income. The following table presents short-term credit lines available for use, for which the Company did not have an outstanding balance as of December 31, 2015 and 2014 . Short-Term Credit Lines Available for Use (Dollar amounts in thousands) As of December 31, 2015 2014 FRBs Discount Window Primary Credit Program $ 655,745 $ 675,507 Available federal funds lines 659,000 685,500 Correspondent bank line of credit — 35,000 None of the Company's borrowings have any related compensating balance requirements that restrict the use of Company assets. As of December 31, 2014, the Company had a $35.0 million short-term, unsecured revolving line of credit with a correspondent bank that it allowed to expire on January 20, 2015. |
Senior and Subordinated Debt
Senior and Subordinated Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Senior and Subordinated Debt | SENIOR AND SUBORDINATED DEBT The following table presents the Company's senior and subordinated debt by issuance. Senior and Subordinated Debt (Dollar amounts in thousands) As of December 31, Issuance Date Maturity Date Interest Rate 2015 2014 Senior notes March 2006 November 2016 5.875% $ 114,891 $ 114,768 Subordinated notes September 2009 April 2016 5.850% 38,499 38,495 Junior subordinated debentures: First Midwest Capital Trust I ("FMCT") November 2003 December 2033 6.950% 37,799 37,797 Great Lakes Statutory Trust II ("GLST II") (1) December 2005 December 2035 L+1.400% (2) 4,296 4,202 Great Lakes Statutory Trust III ("GLST III") (1) June 2007 September 2037 L+1.700% (2) 5,723 5,607 Total junior subordinated debentures 47,818 47,606 Total senior and subordinated debt $ 201,208 $ 200,869 (1) The junior subordinated debentures related to GLST II and GLST III were assumed by the Company through the Great Lakes acquisition. As of December 31, 2015, these amounts include acquisition adjustments which resulted in a discount of $1.9 million to GLST II and $2.5 million to GLST III. The acquisition adjustments totaled $2.0 million and $2.6 million to GLST II and GLST III, respectively, as of December 31, 2014. (2) The interest rates are a variable rate based on the three-month LIBOR plus 1.400% and 1.700% for GLST II and GLST III, respectively. Junior Subordinated Debentures FMCT is a Delaware statutory business trust that was formed in 2003. During 2014, the Company acquired two Delaware statutory business trusts, GLST II and GLST III, in the Great Lakes transaction. These trusts were established for the purpose of issuing trust-preferred securities and lending the proceeds to the Company in return for junior subordinated debentures of the Company. The junior subordinated debentures are the sole assets of each trust. Therefore, each trust's ability to pay amounts due on the trust-preferred securities is solely dependent on the Company making payments on the related junior subordinated debentures. The trust-preferred securities are subject to mandatory redemption, in whole or in part, on repayment of the junior subordinated debentures at the stated maturity date or on redemption. The Company guarantees payments of distributions on the trust-preferred securities and payments on redemption of the trust-preferred securities on a limited basis. Trust-preferred securities are included in Tier 1 capital of the Company for regulatory capital purposes. The statutory trusts qualify as VIEs for which the Company is not the primary beneficiary. Consequently, the accounts of those entities are not consolidated in the Company's financial statements. |
Material Transactions Affecting
Material Transactions Affecting Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Material Transactions Affecting Stockholders' Equity | MATERIAL TRANSACTIONS AFFECTING STOCKHOLDERS' EQUITY Issued Common Stock On December 2, 2014, the Company issued 2,440,754 shares of its $0.01 par value common stock at a price of $15.737 as part of the consideration in the Great Lakes acquisition. Additional information regarding the acquisition is presented in Note 3 , " Acquisitions ." Authorized Common Stock On May 21, 2014 , the stockholders of the Company approved an amendment to the Company's Restated Certificate of Incorporation. The amendment increased the Company's authorized common stock by 50,000,000 shares. Following this amendment, the Company is now authorized to issue a total of 151,000,000 shares, including 1,000,000 shares of Preferred Stock, without a par value, and 150,000,000 shares of Common Stock, $0.01 par value per share. Quarterly Dividend on Common Shares The Company's Board of Directors ("the Board") declared stock dividends of $0.01 per share for the first quarter of 2013 and $0.04 per share for the second quarter of 2013 and the third quarter of 2013. The Company increased the quarterly dividend to $0.07 per share for the fourth quarter of 2013 and the first quarter of 2014, and to $0.08 per share for each of the quarters from the second quarter of 2014 through the fourth quarter of 2014. The Company increased the quarterly dividend to $0.09 per share for each of the quarters from the first quarter of 2015 through the fourth quarter of 2015. Other than share-based compensation which is disclosed in Note 17, "Share-Based Compensation", there were no additional material transactions that affected stockholders' equity during the three years ended December 31, 2015 . STOCKHOLDER RIGHTS PLAN On February 15, 1989, the Board adopted a Stockholder Rights Plan and entered into a corresponding Rights Agreement. Pursuant to that plan, the Company attached one right ("Right") to each outstanding share of Company common stock. As subsequently amended, under certain circumstances, each Right entitled the registered holder to purchase from the Company 1 / 100 of a share of Series A Preferred Stock for a price of $150 , subject to adjustment. The Rights Agreement expired in accordance with its terms on November 15, 2015. As a result, the Rights Agreement and the Stockholder Rights Plan are no longer effective. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The table below displays the calculation of basic and diluted earnings per share. Basic and Diluted Earnings per Common Share (Amounts in thousands, except per share data) Years Ended December 31, 2015 2014 2013 Net income $ 82,064 $ 69,306 $ 79,306 Net income applicable to non-vested restricted shares (882 ) (836 ) (1,107 ) Net income applicable to common shares $ 81,182 $ 68,470 $ 78,199 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 77,059 74,484 73,984 Dilutive effect of common stock equivalents 13 12 10 Weighted-average diluted common shares outstanding 77,072 74,496 73,994 Basic earnings per common share $ 1.05 $ 0.92 $ 1.06 Diluted earnings per common share 1.05 0.92 1.06 Anti-dilutive shares not included in the computation of diluted earnings per common share (1) 800 1,198 1,462 (1) This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Components of Income Tax Expense (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Current income tax expense (benefit): Federal $ 18,524 $ 16,343 $ 4,744 State 2,326 (1,388 ) 10,504 Total 20,850 14,955 15,248 Deferred income tax expense: Federal 12,048 7,901 31,572 State 4,849 8,314 1,895 Total 16,897 16,215 33,467 Total income tax expense $ 37,747 $ 31,170 $ 48,715 Federal income tax expense and the related effective income tax rate are influenced by the amount of tax-exempt income derived from investment securities and BOLI in relation to pre-tax income as well as state income taxes. State income tax expense and the related effective income tax rate are driven by both the amount of state tax-exempt income in relation to pre-tax income and state tax rules for consolidated/combined reporting and sourcing of income and expense. Components of Effective Tax Rate (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Statutory federal income tax $ 41,934 35.0 % $ 35,167 35.0 % $ 44,807 35.0 % (Decrease) increase in income taxes resulting from: Tax-exempt income, net of interest expense disallowance (6,752 ) (5.6 ) (7,520 ) (7.5 ) (7,877 ) (6.2 ) State income tax, net of federal income tax effect 4,665 3.9 4,503 4.5 8,142 6.4 Other (2,100 ) (1.8 ) (980 ) (1.0 ) 3,643 2.9 Total $ 37,747 31.5 % $ 31,170 31.0 % $ 48,715 38.1 % The increase in income tax expense and the effective tax rate from the years ended December 31, 2014 to 2015 was due primarily to a rise in income subject to tax at statutory rates, partially offset by decreases in state statutory rates. A decrease in income subject to tax at statutory rates drove the decline in income tax expense and effective tax rate from the years ended December 31, 2013 to 2014 . As of December 31, 2015 , 2014 , and 2013 , the Company's retained earnings included an appropriation for an acquired thrift's tax bad debt reserves of approximately $2.5 million for which no provision for federal or state income taxes has been made. If, in the future, this portion of retained earnings were distributed as a result of the liquidation of the Company or its subsidiaries, federal and state income taxes would be imposed at the then applicable rates. Differences between the amounts reported in the consolidated financial statements and the tax basis of assets and liabilities result in temporary differences for which deferred tax assets and liabilities were recorded. Deferred Tax Assets and Liabilities (Dollar amounts in thousands) As of December 31, 2015 2014 Deferred tax assets: Allowance for credit losses $ 26,131 $ 26,078 Unrealized losses on securities 18,328 18,527 Alternative minimum tax ("AMT") and other credit carryforwards 17,739 29,007 State net operating loss ("NOL") carryforwards 7,679 11,917 Equity based compensation 5,469 6,875 Non-equity based compensation 3,739 3,477 Property valuation adjustments 3,003 — OREO 2,597 3,480 Other 8,693 7,754 Total deferred tax assets 93,378 107,115 Deferred tax liabilities: Acquisition adjustments (10,097 ) (10,960 ) Accrued retirement benefits (6,065 ) (6,447 ) Cancellation of indebtedness income (3,204 ) (4,272 ) Deferred loan fees and costs (2,432 ) — Other (4,631 ) (5,045 ) Total deferred tax liabilities (26,429 ) (26,724 ) Deferred tax valuation allowance — — Net deferred tax assets 66,949 80,391 Tax effect of adjustments related to other comprehensive (loss) income 19,744 11,294 Net deferred tax assets including adjustments $ 86,693 $ 91,685 Net operating loss carryforwards available to offset future taxable income: Federal gross NOL carryforwards, begin to expire in 2035 $ 922 $ — Illinois gross NOL carryforwards, begin to expire in 2023 160,016 232,834 Indiana gross NOL carryforwards, begin to expire in 2023 11,796 17,192 Alternative minimum tax credits 17,739 25,739 Other credits, begin to expire in 2028 — 3,268 During the year ended December 31, 2015, the Company recorded net deferred tax assets of $3.5 million related to the Peoples acquisition and a measurement period adjustment related to finalizing the fair values of the assets acquired and liabilities assumed in the Great Lakes acquisition. Net deferred tax assets for the year ended December 31, 2014 includes $7.4 million of net deferred tax assets acquired from the Popular, National Machine Tool, and Great Lakes transactions. During the years ended December 31, 2015 and 2014, the Company transferred certain loans into Real Estate Mortgage Investment Conduit trusts which are classified as loans in the financial statements and as securities for tax purposes. Net deferred tax assets are included in other assets in the accompanying Consolidated Statements of Financial Condition. Management believes that it is more likely than not that net deferred tax assets will be fully realized and no valuation allowance is required. Uncertainty in Income Taxes The Company files a U.S. federal income tax return and state income tax returns in various states. Income tax returns filed by the Company are no longer subject to examination by federal and state income tax authorities for years prior to 2012 . Rollforward of Unrecognized Tax Benefits (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 912 $ 279 $ — Additions for tax positions relating to the current year 480 635 279 Additions for tax positions relating to prior years 37 — — Reductions for tax positions relating to prior years (21 ) (2 ) — Ending balance $ 1,408 $ 912 $ 279 Interest and penalties not included above (1) : Interest expense, net of tax effect, and penalties $ 20 $ 4 $ — Accrued interest and penalties, net of tax effect, at end of year 24 4 — (1) Included in income tax expense in the Consolidated Statements of Income. The Company does not anticipate that the amount of uncertain tax positions will significantly increase or decrease in the next 12 months. Included in the balance as of December 31, 2015 , 2014 , and 2013 are tax positions totaling $936,000 , $597,000 and $181,000 , respectively, which would favorably affect the Company's effective tax rate if recognized in future periods. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Profit Sharing Plan The Company has a defined contribution retirement savings plan (the "Profit Sharing Plan") that covers qualified employees who meet certain eligibility requirements. During 2014, the Profit Sharing Plan was amended to give qualified employees the option to increase contributions from 45% ( 15% for certain highly compensated employees) to 100% (including certain highly compensated employees) of their pre-tax base salary through salary deductions under Section 401(k) of the Internal Revenue Code. At the employees' direction, employee contributions are invested among a variety of investment alternatives. The amendment also increased the Company's matching contribution from a maximum of 2% to 4% of the eligible employee's compensation. In addition, pursuant to the amendment, the Company makes certain automatic and transition contributions. On an annual basis, the Company automatically contributes 2% of the employee's eligible compensation regardless of voluntary contributions made by the employee. Transition contributions of up to 4% were made through December 31, 2015 for certain employees who were active participants in the defined benefit retirement plan (the "Pension Plan"), which was frozen in 2013. The amendment did not change the discretionary profit sharing component of the Profit Sharing Plan, which permits the Company to distribute up to 15% of the employee's compensation. The Company's matching and transition contributions vest immediately, while the automatic and discretionary components vest over six years. Profit Sharing Plan (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Profit sharing expense (1) $ 6,919 $ 6,354 $ 2,914 Company dividends received by the Profit Sharing Plan $ 466 $ 428 $ 159 Company shares held by the Profit Sharing Plan at the end of the year: Number of shares 1,277,567 1,364,558 1,426,708 Fair value $ 23,546 $ 23,348 $ 25,010 (1) Included in retirement and other employee benefits in the Consolidated Statements of Income. Pension Plan The Company sponsors the Pension Plan which provides for retirement benefits based on years of service and compensation levels of the participants. The Pension Plan covers employees who met certain eligibility requirements and were hired before April 1, 2007, the date it was amended to eliminate new enrollment of new participants. During 2013, the Board approved an amendment to freeze benefit accruals under the Pension Plan effective on January 1, 2014. Actuarially determined pension costs are charged to current operations and included in retirement and other employee benefits in the Consolidated Statements of Income. The Company's funding policy is to contribute amounts to the Pension Plan that are sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 plus additional amounts as the Company deems appropriate. Pension Plan Cost and Obligations (Dollar amounts in thousands) As of December 31, 2015 2014 Accumulated benefit obligation $ 67,185 $ 67,283 Change in projected benefit obligation: Beginning balance $ 67,283 $ 61,292 Service cost — — Interest cost 2,334 2,346 Settlements (7,320 ) (6,502 ) Actuarial loss 5,336 10,508 Benefits paid (448 ) (361 ) Ending balance $ 67,185 $ 67,283 Change in fair value of plan assets: Beginning balance $ 72,193 $ 74,370 Actual return on plan assets 478 4,686 Benefits paid (448 ) (361 ) Settlements (7,320 ) (6,502 ) Ending balance $ 64,903 $ 72,193 Funded status recognized in the Consolidated Statements of Financial Condition: Noncurrent (liability) asset $ (2,282 ) $ 4,910 Amounts recognized in accumulated other comprehensive loss: Prior service cost $ — $ — Net loss 26,481 19,911 Net amount recognized $ 26,481 $ 19,911 Actuarial losses included in accumulated other comprehensive loss as a percent of: Accumulated benefit obligation 39.4 % 29.6 % Fair value of plan assets 40.8 % 27.6 % Amounts expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost in the next fiscal year: Prior service cost $ — $ — Net loss 516 401 Net amount expected to be recognized $ 516 $ 401 Weighted-average assumptions at the end of the year used to determine the actuarial present value of the projected benefit obligation: Discount rate 3.99 % 3.60 % On December 31, 2015, the Company refined the calculation of the interest component of net periodic benefit expense for its pension plan. Previously, the Company estimated the interest cost component utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the end of the period. Under the refined method, the Company utilized a full yield curve approach to estimate the component by applying specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to more closely match the projected benefit cash flows and the corresponding yield curve spot rates, and to provide a more precise measurement of interest costs. This change had no impact on the measurement of the Company's total benefit obligations recorded as of December 31, 2015, or any other previous period. The Company will account for this change as a change in estimate that is inseparable from a change in accounting principle, and, accordingly, will recognize its effect prospectively beginning in 2016. To the extent the cumulative actuarial losses included in accumulated other comprehensive loss exceed 10% of the greater of the accumulated benefit obligation or the market-related value of the Pension Plan assets, it is the Company's policy to amortize the Pension Plan's net actuarial losses into income over the future working life of the Pension Plan participants. In connection with the freeze of benefit accruals under the Pension Plan in 2013, the Company changed its policy to amortize net actuarial losses into income over the average remaining life expectancy of the Pension Plan participants. Actuarial losses included in accumulated other comprehensive loss as of December 31, 2015 exceeded 10% of the accumulated benefit obligation and the fair value of Pension Plan assets. The amortization of net actuarial losses is a component of the net periodic benefit cost. Amortization of the net actuarial losses and prior service cost included in other comprehensive (loss) income is not expected to have a material impact on the Company's future results of operations, financial position, or liquidity. Net Periodic Benefit Pension Cost (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Components of net periodic benefit cost: Service cost $ — $ — $ 2,600 Interest cost 2,334 2,346 2,414 Expected return on plan assets (4,333 ) (4,931 ) (4,299 ) Recognized net actuarial loss 367 249 1,453 Amortization of prior service cost — — 1 Recognized settlement loss 2,254 1,377 — Net periodic cost (income) 622 (959 ) 2,169 Other changes in plan assets and benefit obligations recognized as a charge to other comprehensive (loss) income: Net (loss) gain for the period (9,191 ) (10,752 ) 16,146 Amortization of prior service cost — — 1 Amortization of net loss 2,621 1,625 1,453 Total unrealized (loss) gain (6,570 ) (9,127 ) 17,600 Total recognized in net periodic pension cost and other comprehensive (loss) income $ (7,192 ) $ (8,168 ) $ 15,431 Weighted-average assumptions used to determine the net periodic cost: Discount rate 3.60 % 4.30 % 3.40 % Expected return on plan assets 6.50 % 7.25 % 7.25 % Rate of compensation increase N/A (1) N/A (1) 2.50 % N/A – Not applicable. (1) The rate of compensation increase is no longer applicable in determining the net periodic cost due to the amendment to freeze benefit accruals, which is discussed above. Pension Plan Asset Allocation (Dollar amounts in thousands) Percentage of Plan Assets as of December 31, Target Allocation Fair Value of Plan Assets (1) 2015 2014 Asset Category: Equity securities 50 - 60% $ 38,314 59 % 59 % Fixed income 30 - 48% 22,457 35 % 36 % Cash equivalents 2 - 10% 4,132 6 % 5 % Total $ 64,903 100 % 100 % (1) Additional information regarding the fair value of Pension Plan assets as of December 31, 2015 can be found in Note 22 , " Fair Value ." The expected long-term rate of return on Pension Plan assets represents the average rate of return expected to be earned over the period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, the Company considers long-term returns based on historical market data and projections of future returns for each asset category, as well as historical actual returns on the Pension Plan assets with the assistance of its independent actuarial consultant. Using this reference data, the Company develops a forward-looking return expectation for each asset category and a weighted-average expected long-term rate of return based on the target asset allocation. The investment objective of the Pension Plan is to maximize the return on Pension Plan assets over a long-term horizon to satisfy the Pension Plan obligations. In establishing its investment policies and asset allocation strategies, the Company considers expected returns and the volatility associated with different strategies. The policy established by the Company's Retirement Plan Committee provides for growth of capital with a moderate level of volatility by investing assets according to the target allocations stated above and reallocating those assets as needed to stay within those allocations. Investments are weighted toward publicly traded securities. Investment strategies that include alternative asset classes, such as private equity hedge funds and real estate, are generally avoided. Under the advisement of a certified investment advisor, the Committee reviews the investment policy on a quarterly basis to determine if any adjustments to the policy or investment strategy are necessary. Estimated future pension benefit payments for fiscal years ending December 31, 2016 through 2025 are as follows. Estimated Future Pension Benefit Payments (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 11,175 2017 7,052 2018 5,755 2019 5,241 2020 4,538 2021-2025 19,363 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Share-Based Plans Omnibus Stock and Incentive Plan (the "Omnibus Plan") – In 1989, the Board adopted the Omnibus Plan, which allows for the grant of both incentive and non-statutory ("nonqualified") stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, and performance shares to certain key employees. From the inception of the Omnibus Plan through the end of 2008, certain key employees were granted nonqualified stock options. The option exercise price is the average of the high and low price of the Company's common stock on the grant date. All options have a term of 10 years from the grant date, include reload features, and are non-transferable except to immediate family members, family trusts, or partnerships. Since 2008, the Company has granted restricted stock and restricted stock unit awards instead of nonqualified stock options to certain key employees. Both restricted stock and restricted stock unit awards vest over three years, with 50% vesting on the second anniversary of the grant date and the remaining 50% vesting on the third anniversary of the grant date, provided the employee remains employed by the Company during this period (subject to accelerated vesting in the event of a change-in-control or upon certain terminations of employment, as set forth in the applicable award agreement). The fair value of the awards is determined based on the average of the high and low price of the Company's common stock on the grant date. Since 2013, the Company has also granted performance shares to certain key employees. Recipients will earn performance shares totaling between 0% and 200% of the number of performance shares granted based on achieving certain performance metrics. Performance shares may be earned based on achieving an internal metric (core return on average tangible common equity) and an external metric (relative total shareholder return) over a three year period. Each metric is weighted at 50% of the total award opportunity. If earned, and assuming continued employment, the performance shares vest one-third at the completion of the three-year performance period and one-third at the end of the first and second years thereafter. The fair value of the performance shares that are dependent on the internal metric is determined based on the average of the high and low stock price on the grant date. An estimate is made as to the number of shares expected to vest as a result of actual performance against the internal metric to determine the amount of compensation expense to be recognized, which is re-evaluated quarterly. The fair value of the performance shares that are dependent on the external metric is determined using a Monte Carlo simulation model on the grant date assuming 100% of the shares are earned and issued. Nonemployee Directors Stock Plan (the "Directors Plan") – In 1997, the Board adopted the Directors Plan, which provides for the grant of equity awards to non-management Board members. Until 2008, only nonqualified stock options were issued under the Directors Plan. The exercise price of the options is equal to the average of the high and low price of the Company's common stock on the grant date. All options have a term of 10 years from the grant date. In 2008, the Company amended the Directors Plan to allow for the grant of restricted stock awards, among other items. The awards are restricted as to transfer, but are not restricted as to voting rights. Dividends accrue and are paid at the vesting date. Both the options and the restricted stock awards vest one year from the grant date subject to accelerated vesting in the event of retirement, death, disability, or change-in-control, as defined in the Directors Plan. Beginning in 2015, non-management members receive fully vested shares of the Company's common stock rather than restricted stock. Both the Omnibus Plan and the Directors Plan, and material amendments, were submitted to and approved by the stockholders of the Company. The Company issues treasury shares to satisfy stock option exercises and the vesting of restricted stock, restricted stock units, and performance share awards. Shares of Common Stock Available Under Share-Based Plans As of December 31, 2015 Shares Authorized Shares Available For Grant Omnibus Plan 8,631,641 2,105,921 Directors Plan 481,250 102,063 Salary Stock Awards – The Company also periodically issues salary stock awards to certain executive officers. This stock is fully vested as of the grant date. The issuance of salary stock awards is included in share-based compensation expense, but does not reduce the number of shares issued and outstanding under the Omnibus Plan as the issuance is not considered part of the share-based plans referenced above. Salary Stock Awards Granted Years ended December 31, 2015 2014 2013 Shares granted — — 8,693 Weighted-average price $ — $ — $ 14.30 Stock Options Nonqualified Stock Option Transactions (Amounts in thousands, except per share data) Year Ended December 31, 2015 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (1) Aggregate Intrinsic Value (2) Options outstanding beginning balance 1,153 $ 32.93 Expired (397 ) 33.66 Options outstanding ending balance 756 $ 32.55 1.32 $ 273 Exercisable at the end of the year 756 $ 32.55 1.32 $ 273 (1) Represents the average remaining contractual life in years. (2) Aggregate intrinsic value represents the total pre-tax intrinsic value that would have been received by the option holders if they had exercised their options on December 31, 2015 . Intrinsic value equals the difference between the Company's average of the high and low stock price on the last trading day of the year and the option exercise price, multiplied by the number of shares. This amount will fluctuate with changes in the fair value of the Company's common stock. Stock Option Valuation Assumptions – The Company estimates the fair value of stock options at the grant date using a Black-Scholes option-pricing model. No stock options were granted or exercised and no stock option award modifications were made during the three years ended December 31, 2015 . Restricted Stock, Restricted Stock Unit, and Performance Share Awards Restricted Stock, Restricted Stock Unit, and Performance Share Award Transactions (Amounts in thousands, except per share data) Year Ended December 31, 2015 Restricted Stock/Unit Awards Performance Shares Number of Shares/Units Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Non-vested awards beginning balance 997 $ 13.79 238 $ 14.36 Granted 453 16.95 112 16.95 Vested (483 ) 12.54 — — Forfeited (59 ) 15.07 (12 ) 15.07 Non-vested awards ending balance 908 $ 15.92 338 $ 15.19 In addition, non-management board members received 14,000 shares of common stock during the year ended December 31, 2015. Other Restricted Stock, Restricted Stock Unit, and Performance Share Award Information (Amounts in thousands, except per share data) Years Ended December 31, 2015 2014 2013 Weighted-average grant date fair value of restricted stock, restricted stock unit, and performance share awards granted during the year $ 16.95 $ 16.13 $ 13.01 Total fair value of restricted stock and restricted stock unit awards vested during the year 7,615 7,546 4,917 Income tax benefit realized from the vesting/release of restricted stock and restricted stock unit awards 2,368 2,939 1,966 There were no performance shares that vested during the periods presented. No restricted stock, restricted stock unit, and performance share award modifications were made during the periods presented. Compensation Expense The Company recognizes share-based compensation expense based on the estimated fair value of the option or award at the grant or modification date. Share-based compensation expense is included in salaries and wages in the Consolidated Statements of Income. Effect of Recording Share-Based Compensation Expense (Dollar amounts in thousands) Years ended December 31, 2015 2014 2013 Restricted stock, restricted unit, and performance share award expense $ 7,242 $ 5,926 $ 5,779 Salary stock award expense — — 124 Total share-based compensation expense 7,242 5,926 5,903 Income tax benefit 2,962 2,424 2,414 Share-based compensation expense, net of tax $ 4,280 $ 3,502 $ 3,489 Unrecognized compensation expense $ 8,644 $ 6,937 $ 6,327 Weighted-average amortization period remaining (in years) 1.4 1.3 1.2 |
Stockholder Rights Plan
Stockholder Rights Plan | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholder Rights Plan | MATERIAL TRANSACTIONS AFFECTING STOCKHOLDERS' EQUITY Issued Common Stock On December 2, 2014, the Company issued 2,440,754 shares of its $0.01 par value common stock at a price of $15.737 as part of the consideration in the Great Lakes acquisition. Additional information regarding the acquisition is presented in Note 3 , " Acquisitions ." Authorized Common Stock On May 21, 2014 , the stockholders of the Company approved an amendment to the Company's Restated Certificate of Incorporation. The amendment increased the Company's authorized common stock by 50,000,000 shares. Following this amendment, the Company is now authorized to issue a total of 151,000,000 shares, including 1,000,000 shares of Preferred Stock, without a par value, and 150,000,000 shares of Common Stock, $0.01 par value per share. Quarterly Dividend on Common Shares The Company's Board of Directors ("the Board") declared stock dividends of $0.01 per share for the first quarter of 2013 and $0.04 per share for the second quarter of 2013 and the third quarter of 2013. The Company increased the quarterly dividend to $0.07 per share for the fourth quarter of 2013 and the first quarter of 2014, and to $0.08 per share for each of the quarters from the second quarter of 2014 through the fourth quarter of 2014. The Company increased the quarterly dividend to $0.09 per share for each of the quarters from the first quarter of 2015 through the fourth quarter of 2015. Other than share-based compensation which is disclosed in Note 17, "Share-Based Compensation", there were no additional material transactions that affected stockholders' equity during the three years ended December 31, 2015 . STOCKHOLDER RIGHTS PLAN On February 15, 1989, the Board adopted a Stockholder Rights Plan and entered into a corresponding Rights Agreement. Pursuant to that plan, the Company attached one right ("Right") to each outstanding share of Company common stock. As subsequently amended, under certain circumstances, each Right entitled the registered holder to purchase from the Company 1 / 100 of a share of Series A Preferred Stock for a price of $150 , subject to adjustment. The Rights Agreement expired in accordance with its terms on November 15, 2015. As a result, the Rights Agreement and the Stockholder Rights Plan are no longer effective. |
Regulatory and Capital Matters
Regulatory and Capital Matters | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Regulatory and Capital Matters | REGULATORY AND CAPITAL MATTERS The Company and its subsidiaries are subject to various regulatory requirements that impose restrictions on cash, loans or advances, and dividends. The Bank is also required to maintain reserves against deposits. Reserves are held either in the form of vault cash or noninterest-bearing balances maintained with the FRB and are based on the average daily balances and statutory reserve ratios prescribed by the type of deposit account. Reserve balances totaling $66.9 million as of December 31, 2015 and $60.0 million as of December 31, 2014 were maintained in accordance with these requirements. Under current Federal Reserve regulations, the Bank is limited in the amount it may loan or advance to First Midwest Bancorp, Inc. on an unconsolidated basis (the "Parent Company") and its non-bank subsidiaries. Loans or advances to a single subsidiary may not exceed 10% , and loans to all subsidiaries may not exceed 20% of the Bank's capital stock and surplus, as defined. Loans from subsidiary banks to non-bank subsidiaries, including the Parent Company, are also required to be collateralized. The principal source of cash flow for the Parent Company is dividends from the Bank. Various federal and state banking regulations and capital guidelines limit the amount of dividends that the Bank may pay to the Parent Company. Without prior regulatory approval and while maintaining its well-capitalized status, the Bank can initiate aggregate dividend payments in 2016 of $8.2 million plus its net profits for 2016 , as defined by statute, up to the date of any such dividend declaration. Future payment of dividends by the Bank depends on individual regulatory capital requirements and levels of profitability. The Company and the Bank are also subject to various capital requirements set up and administered by federal banking agencies. Under capital adequacy guidelines, the Company and the Bank must meet specific guidelines that involve quantitative measures given the risk levels of assets and certain off-balance sheet items calculated under regulatory accounting practices ("risk-weighted assets"). The capital amounts and classification are also subject to qualitative judgments by the regulators regarding components of capital and assets, risk weightings, and other factors. The Federal Reserve, the primary regulator of the Company and the Bank, establishes minimum capital requirements that must be met by member institutions. As defined in the regulations, quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total capital to risk-weighted assets, Tier 1 capital to risk-weighted assets, Tier 1 common capital to risk-weighted assets, and Tier 1 capital to adjusted average assets. Failure to meet minimum capital requirements could result in actions by regulators that could have a material adverse effect on the Company's financial statements. As of December 31, 2015 , the Company and the Bank met all capital adequacy requirements. As of December 31, 2015 , the most recent regulatory notification classified the Bank as "well-capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes would change the Bank's classification. The following table outlines the Company's and the Bank's measures of capital as of the dates presented and the capital guidelines established by the Federal Reserve for the Company and the Bank to be categorized as adequately capitalized and the Bank to be categorized as "well-capitalized." Summary of Regulatory Capital Ratios (Dollar amounts in thousands) Actual Adequately Capitalized To Be Well-Capitalized Under Prompt Corrective Action Provisions Capital Ratio % Capital Ratio % Capital Ratio % As of December 31, 2015 (1) Total capital to risk-weighted assets: First Midwest Bancorp, Inc. $ 968,331 11.15 $ 695,029 8.00 N/A N/A First Midwest Bank 929,167 11.02 674,380 8.00 $ 842,974 10.00 Tier 1 capital to risk-weighted assets: First Midwest Bancorp, Inc. 893,476 10.28 521,272 6.00 N/A N/A First Midwest Bank 854,322 10.13 505,785 6.00 674,380 8.00 Tier 1 common capital to risk-weighted assets: First Midwest Bancorp, Inc. 845,640 9.73 390,954 4.50 N/A N/A First Midwest Bank 854,322 10.13 379,338 4.50 547,933 6.50 Tier 1 leverage to average assets: First Midwest Bancorp, Inc. 893,476 9.40 380,043 4.00 N/A N/A First Midwest Bank 854,322 9.09 375,950 4.00 469,937 5.00 As of December 31, 2014 (1) Total capital to risk-weighted assets: First Midwest Bancorp, Inc. $ 884,692 11.23 $ 630,140 8.00 N/A N/A First Midwest Bank 931,829 12.30 606,038 8.00 $ 757,547 10.00 Tier 1 capital to risk-weighted assets: First Midwest Bancorp, Inc. 802,483 10.19 315,070 4.00 N/A N/A First Midwest Bank 857,362 11.32 303,019 4.00 454,528 6.00 Tier 1 leverage to average assets: First Midwest Bancorp, Inc. 802,483 9.03 355,362 4.00 N/A N/A First Midwest Bank 857,362 9.76 351,222 4.00 439,028 5.00 N/A – Not applicable. (1) Basel III Capital Rules, which became effective for the Company on January 1, 2015, revised the risk-based capital requirements and introduced a new capital measure, Tier 1 common capital to risk-weighted assets. As a result, ratios as of December 31, 2015 are computed using the new rules and ratios as of December 31, 2014 are computed using the regulatory guidance applicable at that time. In July of 2013, the Federal Reserve published final rules (the "Basel III Capital Rules") that revise the regulatory capital rules to incorporate certain revisions by the Basel Committee on Banking Supervision. The phase-in period for the final rules began for the Company on January 1, 2015, with full compliance with the final rules entire requirement phased in on January 1, 2019. The Basel III Capital Rules (i) introduced a new capital measure called "Common Equity Tier 1" ("CET1"), (ii) specified that Tier 1 capital consists of CET1 and "Additional Tier 1 Capital" instruments meeting specified requirements, (iii) narrowly defined CET1 by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital, and (iv) expanded the scope of the deductions/adjustments compared to existing regulations. Bank holding companies with less than $15 billion in consolidated assets as of December 31, 2009, such as the Company, are permitted to include trust-preferred securities in Additional Tier 1 Capital on a permanent basis and without any phase-out. As of December 31, 2015 , the Company had $50.7 million of trust-preferred securities included in Tier 1 capital. When fully phased in on January 1, 2019, the Basel III Capital Rules will require the Company and the Bank to maintain the following: • A minimum ratio of CET1 to risk-weighted assets of at least 4.5% , plus a 2.5% "capital conservation buffer" (resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7% upon full implementation). • A minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0% , plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation). • A minimum ratio of total capital (Tier 1 capital plus Tier 2 capital) to risk-weighted assets of at least 8.0% , plus the capital conservation buffer (resulting in a minimum total capital ratio of 10.5% upon full implementation). • A minimum leverage ratio of 4% , calculated as the ratio of Tier 1 capital to average assets. The Basel III Capital Rules also provide for a number of deductions from and adjustments to CET1 to be phased-in over a four -year period through January 1, 2019 (beginning at 40% on January 1, 2015 and an additional 20% per year thereafter). Examples of these include the requirement that mortgage servicing rights, deferred tax assets depending on future taxable income, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such categories in the aggregate exceed 15% of CET1. Under current capital standards, the effects of accumulated other comprehensive income items included in capital are excluded for the purposes of determining regulatory capital ratios. Under the Basel III Capital Rules, the effects of certain accumulated other comprehensive items are not excluded; however, the Company and the Bank made a one-time permanent election to continue to exclude these items. Finally, the Basel III Capital Rules prescribe a standardized approach for risk weightings that expand the risk-weighting categories from the previous four Basel I-derived categories ( 0% , 20% , 50% , and 100% ) to a much larger and more risk-sensitive number of categories depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities to 600% for certain equity exposures, resulting in higher risk weights for a variety of asset categories. The Company and the Bank believe they would meet all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements were currently in effect as of December 31, 2015 . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy. The significant accounting policies related to derivative instruments and hedging activities are presented in Note 1 , " Summary of Significant Accounting Policies ." Fair Value Hedges The Company hedges the fair value of fixed rate commercial real estate loans using interest rate swaps through which the Company pays fixed amounts and receives variable amounts. These derivative contracts are designated as fair value hedges. Fair Value Hedges (Dollar amounts in thousands) As of December 31, 2015 2014 Gross notional amount outstanding $ 11,620 $ 12,793 Derivative liability fair value (643 ) (1,032 ) Weighted-average interest rate received 2.25 % 2.07 % Weighted-average interest rate paid 6.36 % 6.37 % Weighted-average maturity (in years) 1.97 2.95 Fair value of assets needed to settle derivative transactions (1) 665 1,057 (1) This amount represents the fair value if credit risk related contingent features were triggered. Hedge ineffectiveness is recognized in other noninterest income in the Consolidated Statements of Income. For the years ended December 31, 2015 , 2014 , and 2013 , gains or losses related to fair value hedge ineffectiveness were not material. Cash Flow Hedges As of December 31, 2015 , the Company hedged $710.0 million of certain corporate variable rate loans using interest rate swaps through which the Company receives fixed amounts and pays variable amounts. The Company also hedged $510.0 million of borrowed funds using forward starting interest rate swaps through which the Company receives variable amounts and pays fixed amounts. These transactions allow the Company to add stability to net interest income and manage its exposure to interest rate movements. The forward starting interest rate swaps begin at various dates between June 2015 and March 2018 and mature between June 2019 and May 2020. Forward starting interest rate swaps of $262.5 million began during the year ended December 31, 2015 . These derivative contracts are designated as cash flow hedges. Cash Flow Hedges (Dollar amounts in thousands) As of December 31, 2015 2014 Gross notional amount outstanding $ 1,220,000 $ 650,000 Derivative asset fair value 4,787 1,166 Derivative liability fair value (8,950 ) (3,096 ) Weighted-average interest rate received 1.24 % 1.63 % Weighted-average interest rate paid 0.75 % 0.16 % Weighted-average maturity (in years) 3.91 4.52 The effective portion of gains or losses on cash flow hedges is recorded in accumulated other comprehensive loss on an after-tax basis and is subsequently reclassified to interest income or expense in the period that the forecasted hedge impacts earnings. Hedge effectiveness is determined using a regression analysis at the inception of the hedge relationship and on an ongoing basis. For the years ended December 31, 2015 and 2014, there were no material gains or losses related to cash flow hedge ineffectiveness. As of December 31, 2015 , the Company estimates that $4.6 million will be reclassified from accumulated other comprehensive loss as an increase to interest income over the next twelve months. Other Derivative Instruments The Company also enters into derivative transactions with its commercial customers and simultaneously enters into an offsetting interest rate derivative transaction with a third party. This transaction allows the Company's customers to effectively convert a variable rate loan into a fixed rate loan. Due to the offsetting nature of these transactions, the Company does not apply hedge accounting treatment. The Company's credit exposure on these derivative transactions results primarily from counterparty credit risk. The credit valuation adjustment ("CVA") is a fair value adjustment to the derivative to account for this risk. As of December 31, 2015 and 2014 the CVA was not material. Transaction fees related to commercial customer derivative instruments of $4.8 million , $2.2 million , and $2.8 million were recorded in noninterest income for the years ended December 31, 2015 , 2014 , and 2013, respectively. Other Derivative Instruments (Dollar amounts in thousands) As of December 31, 2015 2014 Gross notional amount outstanding $ 853,385 $ 527,893 Derivative asset fair value 11,446 7,852 Derivative liability fair value (11,446 ) (7,852 ) Fair value of assets needed to settle derivative transactions (1) 11,939 8,130 (1) This amount represents the fair value if credit risk related contingent factors were triggered. The Company occasionally enters into risk participation agreements with counterparty banks to transfer or assume a portion of the credit risk related to customer transactions. The amounts of these instruments were not material for any period presented. The Company had no other derivative instruments as of December 31, 2015 and 2014 . The Company does not enter into derivative transactions for purely speculative purposes. Credit Risk Derivative instruments are inherently subject to credit risk, which represents the Company's risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Credit risk is managed by limiting and collateralizing the aggregate amount of net unrealized losses by transaction, monitoring the size and the maturity structure of the derivatives, and applying uniform credit standards. Company policy establishes limits on credit exposure to any single counterparty. In addition, the Company established bilateral collateral agreements with derivative counterparties that provide for exchanges of marketable securities or cash to collateralize either party's net losses above a stated minimum threshold. As of December 31, 2015 and 2014 , these collateral agreements covered 100% of the fair value of the Company's outstanding fair value hedges. Derivative assets and liabilities are presented gross, rather than net, of pledged collateral amounts. Certain derivative instruments are subject to master netting agreements with counterparties. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities in the Consolidated Statements of Financial Condition. The following table presents the fair value of the Company's derivatives and offsetting positions as of December 31, 2015 and 2014 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of December 31, 2015 2014 Assets Liabilities Assets Liabilities Gross amounts recognized $ 16,233 $ 21,039 $ 9,018 $ 11,980 Less: amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition (1) 16,233 21,039 9,018 11,980 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (4,791 ) (4,791 ) (1,195 ) (1,195 ) Cash collateral pledged — (16,248 ) — (10,785 ) Net credit exposure $ 11,442 $ — $ 7,823 $ — (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. As of December 31, 2015 and 2014 , the Company's derivative instruments generally contained provisions that require the Company's debt to remain above a certain credit rating by each of the major credit rating agencies or that the Company maintain certain capital levels. If the Company's debt were to fall below that credit rating or the Company's capital were to fall below the required levels, it would be in violation of those provisions, and the counterparties to the derivative instruments could terminate the swap transaction and demand cash settlement of the derivative instrument in an amount equal to the derivative liability fair value. As of December 31, 2015 and 2014 , the Company was not in violation of these provisions. |
Commitments, Guarantees, and Co
Commitments, Guarantees, and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees, and Contingent Liabilities | COMMITMENTS, GUARANTEES, AND CONTINGENT LIABILITIES Credit Commitments and Guarantees In the normal course of business, the Company enters into a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers and to conduct lending activities, including commitments to extend credit and standby and commercial letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. Contractual or Notional Amounts of Financial Instruments (Dollar amounts in thousands) As of December 31, 2015 2014 Commitments to extend credit: Commercial, industrial, and agricultural $ 1,303,056 $ 1,299,683 Commercial real estate 366,250 170,573 Home equity 352,114 317,783 Other commitments (1) 203,121 194,556 Total commitments to extend credit $ 2,224,541 $ 1,982,595 Standby letters of credit $ 100,610 $ 110,639 Recourse on assets sold: Unpaid principal balance of loans sold $ 196,389 $ 185,910 Carrying value of recourse obligation (2) 87 155 (1) Other commitments includes installment and overdraft protection program commitments. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. Commitments to extend credit are agreements to lend funds to a customer, subject to contractual terms and covenants. Commitments generally have fixed expiration dates or other termination clauses, variable interest rates, and fee requirements, when applicable. Since many of the commitments are expected to expire without being drawn, the total commitment amounts do not necessarily represent future cash flow requirements. In the event of a customer's non-performance, the Company's credit loss exposure is equal to the contractual amount of the commitments. The credit risk is essentially the same as extending loans to customers. The Company uses the same credit policies for credit commitments as its loans and minimizes exposure to credit loss through various collateral requirements. 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 are contingent on the failure of the customer to perform according to the terms of the contract with the third party and are often issued in favor of a municipality where construction is taking place to ensure the borrower adequately completes the construction. The maximum potential future payments guaranteed by the Company under standby letters of credit arrangements are equal to the contractual amount of the commitment. If a commitment is funded, the Company may seek recourse through the liquidation of the underlying collateral, including real estate, production plants and property, marketable securities, or receipt of cash. As a result of the sale of certain 1-4 family mortgage loans, the Company is contractually obligated to repurchase any non-performing loans or loans that do not meet underwriting requirements at recorded value. In accordance with the sales agreements, there is no limitation to the maximum potential future payments or expiration of the Company's recourse obligation. There were no material loan repurchases during the years ended December 31, 2015 or 2014 . During 2013, the Company terminated certain FHLB forward commitments which resulted in a gain of $7.8 million recorded as a component of noninterest income in the Consolidated Statement of Income. Legal Proceedings In the ordinary course of business, there were certain legal proceedings pending against the Company and its subsidiaries as of December 31, 2015 . While the outcome of any legal proceeding is inherently uncertain, based on information currently available, the Company's management does not expect that any liabilities arising from pending legal matters will not have a material adverse effect on the Company's financial position, results of operations, or cash flows. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Statements of Financial Condition. Those assets and liabilities are presented below in the sections titled "Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis" and "Assets and Liabilities Required to be Measured at Fair Value on a Non-Recurring Basis." Other assets and liabilities are not required to be measured at fair value in the Consolidated Statements of Financial Condition, but must be disclosed at fair value. See the "Fair Value Measurements of Other Financial Instruments" section of this note. Any aggregation of the estimated fair values presented in this note does not represent the value of the Company. Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. GAAP provides a three-tiered fair value hierarchy based on the inputs used to measure fair value. The hierarchy is defined as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs require significant management judgment or estimation, some of which use model-based techniques and may be internally developed. Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities between levels of the fair value hierarchy during the periods presented. Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis The following table provides the fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Recurring Fair Value Measurements (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Trading securities: Money market funds $ 2,530 $ — $ — $ 1,725 $ — $ — Mutual funds 14,364 — — 15,735 — — Total trading securities 16,894 — — 17,460 — — Securities available-for-sale: U.S. treasury securities 16,980 — — — — — U.S. agency securities — 86,643 — — 30,431 — CMOs — 687,185 — — 534,156 — MBSs — 153,530 — — 159,765 — Municipal securities — 327,570 — — 423,820 — CDOs — — 31,529 — — 33,774 Corporate debt securities — — — — 1,802 — Equity securities — 3,199 — — 3,261 — Total securities available-for- sale 16,980 1,258,127 31,529 — 1,153,235 33,774 Mortgage servicing rights (1) — — 1,853 — — 1,728 Derivative assets (1) — 16,233 — — 9,018 — Liabilities: Derivative liabilities (2) $ — $ 21,039 $ — $ — $ 11,980 $ — (1) Included in other assets in the Consolidated Statements of Financial Condition. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. The following sections describe the specific valuation techniques and inputs used to measure financial assets and liabilities at fair value. Trading Securities The Company's trading securities consist of diversified investment securities held in a grantor trust and are invested in money market and mutual funds. The fair value of these money market and mutual funds is based on quoted market prices in active exchange markets and is classified in level 1 of the fair value hierarchy. Securities Available-for-Sale The Company's securities available-for-sale are primarily fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair values are based on quoted prices in active markets or market prices for similar securities obtained from external pricing services or dealer market participants and are classified in level 2 in the fair value hierarchy. Quarterly, the Company evaluates the methodologies used by its external pricing services to estimate the fair value of these securities to determine whether the valuations represent an exit price in the Company's principal markets. CDOs are classified in level 3 in the fair value hierarchy. The Company estimates the fair values for each CDO using discounted cash flow analyses with the assistance of a structured credit valuation firm. This methodology is based on a credit analysis and historical financial data for each of the issuers underlying the CDOs (the "Issuers"). These estimates are highly subjective and sensitive to several significant, unobservable inputs. The cash flows for each Issuer are then discounted to present values using LIBOR plus an adjustment to reflect the impact of market factors. Finally, the discounted cash flows for each Issuer are aggregated to derive the estimated fair value for the specific CDO. The following table presents ranges of significant, unobservable inputs calculated using the weighted average of the Issuers used by the Company as of December 31, 2015 and 2014. Significant Unobservable Inputs Used in the Valuation of CDOs As of December 31, 2015 2014 Probability of prepayment 1.8 % - 15.1% 2.9 % - 15.2% Probability of default 19.1 % - 32.6% 18.4 % - 57.7% Loss given default 93.8 % - 97.1% 83.8 % - 97.0% Probability of deferral cure 15.2 % - 63.1% 6.7 % - 75.0% Most Issuers have the right to prepay the securities on the fifth anniversary of issuance and under other limited circumstances. To estimate prepayments, a credit analysis of each Issuer is performed to estimate its ability and likelihood to fund a prepayment. If a prepayment occurs, the Company receives cash equal to the par value for the portion of the CDO associated with that Issuer. The likelihood that an Issuer who is currently deferring payment on the securities will pay all deferred amounts and remain current thereafter is based on an analysis of the Issuer's asset quality, leverage ratios, and other measures of financial viability. The impact of changes in these key inputs could result in a significantly higher or lower fair value measurement for each CDO. The timing of the default, the magnitude of the default, and the timing and magnitude of the cure probability are directly interrelated. Defaults that occur sooner and/or are greater than anticipated have a negative impact on the valuation. In addition, a high cure probability assumption has a positive effect on the fair value, and, if a cure event takes place sooner than anticipated, the impact on the valuation is also favorable. Management monitors the valuation results of each CDO on a semi-annual basis, which includes an analysis of historical pricing trends for these types of securities, overall economic conditions (such as tracking LIBOR curves), and the performance of the Issuers' industries. Annually, management validates significant assumptions by reviewing detailed back-testing performed by the structured credit valuation firm. A rollforward of the carrying value of CDOs for the three years ended December 31, 2015 is presented in the following table. Rollforward of Carrying Value of CDOs (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 33,774 $ 18,309 $ 12,129 Additions — 6,549 — Change in other comprehensive (loss) income (1) (2,030 ) 13,495 6,180 Paydowns and sales (2) (215 ) (4,579 ) — Ending balance $ 31,529 $ 33,774 $ 18,309 (1) Included in unrealized holding (losses) gains in the Consolidated Statements of Comprehensive Income. (2) During the year ended December 31, 2014, one CDO with a carrying value of $1.3 million and four CDOs totaling $2.9 million , which were acquired in the Great Lakes transaction, were sold. In addition, one CDO with a carrying value of zero was sold during the year ended December 31, 2013. Mortgage Servicing Rights The Company services loans for others owned by third parties that as a result are not included in the Consolidated Statements of Financial Condition. The Company collects servicing fees equal to a percentage of the outstanding principal balance of the loans being serviced. Mortgage servicing rights are recorded at fair value and are included in other assets in the Consolidated Statements of Financial Condition. The Company determines the fair value of mortgage servicing rights by estimating the present value of expected future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights as of December 31, 2015 included prepayment speeds, maturities, and discount rates. While market-based data is used to determine the assumptions, the Company incorporates its own estimates of the assumptions market participants would use in determining the fair value of mortgage servicing rights, which results in a level 3 classification in the fair value hierarchy. A rollforward of the carrying value of mortgage servicing rights for the three years ended December 31, 2015 is presented in the following table. Carrying Value of Mortgage Servicing Rights (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 1,728 $ 1,893 $ 985 New mortgage servicing rights 342 315 1,060 Total (losses) gains included in earnings (1) : Changes in valuation inputs and assumptions (11 ) (480 ) 63 Other changes in fair value (2) (206 ) — (215 ) Ending balance $ 1,853 $ 1,728 $ 1,893 Contractual servicing fees earned during the year (1) $ 546 $ 520 $ 418 Total amount of loans being serviced for the benefit of others at the end of the year 242,915 220,372 214,458 (1) Included in mortgage banking income in the Consolidated Statements of Income and relate to assets still held at the end of the year. (2) Primarily represents changes in expected future cash flows over time due to payoffs and paydowns. Derivative Assets and Derivative Liabilities The Company enters into interest rate swaps and derivative transactions with commercial customers. These derivative transactions are executed in the dealer market, and pricing is based on market quotes obtained from the counterparties. The market quotes were developed using market observable inputs, which primarily include LIBOR. Therefore, derivatives are classified in level 2 of the fair value hierarchy. For its derivative assets and liabilities, the Company also considers non-performance risk, including the likelihood of default by itself and its counterparties, when evaluating whether the market quotes from the counterparties are representative of an exit price. Pension Plan Assets Although Pension Plan assets are not consolidated in the Company's Consolidated Statements of Financial Condition, they are required to be measured at fair value on an annual basis. The fair value of Pension Plan assets is presented in the following table by level in the fair value hierarchy. Annual Fair Value Measurements for Pension Plan Assets (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total Pension plan assets: Mutual funds (1) $ 23,061 $ — $ 23,061 $ 25,499 $ — $ 25,499 U.S. government and government agency securities 6,866 5,538 12,404 7,879 8,063 15,942 Corporate bonds — 9,569 9,569 — 6,599 6,599 Common stocks 11,330 — 11,330 14,149 — 14,149 Common trust funds — 8,539 8,539 — 10,004 10,004 Total pension plan assets $ 41,257 $ 23,646 $ 64,903 $ 47,527 $ 24,666 $ 72,193 (1) Includes mutual funds, money market funds, cash, cash equivalents, and accrued interest. Mutual funds, certain U.S. government agency securities, and common stocks are based on quoted market prices in active exchange markets and classified in level 1 of the fair value hierarchy. Corporate bonds and certain U.S. government and government agency securities are valued at quoted prices from independent sources that are based on observable market trades or observable prices for similar bonds where a price for the identical bond is not observable and, therefore, are classified in level 2 of the fair value hierarchy. Common trust funds are valued at quoted redemption values on the last business day of the Pension Plan's fiscal year and are classified in level 2 of the fair value hierarchy. There were no Pension Plan assets classified in level 3 of the fair value hierarchy. Assets and Liabilities Required to be Measured at Fair Value on a Non-Recurring Basis The following table provides the fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Non-Recurring Fair Value Measurements (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ — $ — $ 10,519 $ — $ — $ 23,799 OREO (2) — — 8,581 — — 22,760 Loans held-for-sale (3) — — 14,444 — — 9,459 Assets held-for-sale (4) — — 7,428 — — 2,026 (1) Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. (2) Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented. (3) Included in other assets in the Consolidated Statements of Financial Condition. (4) Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition. Collateral-Dependent Impaired Loans Certain collateral-dependent impaired loans are subject to fair value adjustments to reflect the difference between the carrying value of the loan and the value of the underlying collateral. The fair values of collateral-dependent impaired loans are primarily determined by current appraised values of the underlying collateral. Based on the age and/or type, appraisals may be adjusted in the range of 0% to 15% . In certain cases, an internal valuation may be used when the underlying collateral is located in areas where comparable sales data is limited or unavailable. Accordingly, collateral-dependent impaired loans are classified in level 3 of the fair value hierarchy. Collateral-dependent impaired loans for which the fair value is greater than the recorded investment are not measured at fair value in the Consolidated Statements of Financial Condition and are not included in this disclosure. OREO The fair value of OREO is measured using the current appraised value of the properties. In certain circumstances, a current appraisal may not be available or may not represent an accurate measurement of the property's fair value due to outdated market information or other factors. In these cases, the fair value is determined based on the lower of the (i) most recent appraised value, (ii) broker price opinion, (iii) current listing price, or (iv) signed sales contract. Given these valuation methods, OREO is classified in level 3 of the fair value hierarchy. Loans Held-for-Sale Loans held-for-sale consists of 1-4 family mortgage loans, which were originated with the intent to sell, and one commercial real estate loan as of both December 31, 2015 and 2014 . These loans were transferred to the held-for-sale category at the contract price and, accordingly, are classified in level 3 of the fair value hierarchy. Assets Held-for-Sale Assets-held-for-sale as of December 31, 2014 consists of former branches no longer in operation. As of December 31, 2015, assets held-for-sale consists of twelve former branches that are no longer in operation and seven parcels of land previously purchased for expansion. The increase in assets held-for-sale during 2015 was driven by the Company's strategic branch initiatives. These properties are being actively marketed and were transferred into the held-for-sale category at the lower of their fair value, as determined by a current appraisal, or their recorded investment. Based on these valuation methods, they are classified in level 3 of the fair value hierarchy. Goodwill and Other Intangible Assets Goodwill and other intangible assets are subject to annual impairment testing, which requires a significant degree of management judgment. If the testing had resulted in impairment, the Company would have classified goodwill and other intangible assets as a level 3 non-recurring fair value measurement. Additional information regarding goodwill, other intangible assets, and impairment policies can be found in Note 1 , " Summary of Significant Accounting Policies ," and Note 9 , " Goodwill and Other Intangible Assets ." Financial Instruments Not Required to be Measured at Fair Value For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table. Fair Value Measurements of Other Financial Instruments (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Fair Value Hierarchy Carrying Fair Value Carrying Fair Value Assets: Cash and due from banks 1 $ 114,587 $ 114,587 $ 117,315 $ 117,315 Interest-bearing deposits in other banks 2 266,615 266,615 488,947 488,947 Securities held-to-maturity 2 23,152 20,054 26,555 27,670 FHLB and FRB stock 2 39,306 39,306 37,558 37,558 Loans 3 7,091,988 6,959,024 6,672,611 6,536,248 Investment in BOLI 3 209,601 209,601 206,498 206,498 Accrued interest receivable 3 27,847 27,847 27,506 27,506 Other interest-earning assets 3 1,982 1,982 3,799 3,799 Liabilities: Deposits 2 $ 8,097,738 $ 8,093,640 $ 7,887,758 $ 7,879,413 Borrowed funds 2 165,096 165,096 137,994 137,994 Senior and subordinated debt 1 201,208 205,726 200,869 209,035 Accrued interest payable 2 2,175 2,175 2,324 2,324 Management uses various methodologies and assumptions to determine the estimated fair values of the financial instruments in the table above. The fair value estimates are made at a discrete point in time based on relevant market information and consider management's judgments regarding future expected economic conditions, loss experience, and specific risk characteristics of the financial instruments. Short-Term Financial Assets and Liabilities – For financial instruments with a shorter-term or with no stated maturity, prevailing market rates, and limited credit risk, the carrying amounts approximate fair value. Those financial instruments include cash and due from banks, interest-bearing deposits in other banks, accrued interest receivable, and accrued interest payable. Securities Held-to-Maturity – The fair value of securities held-to-maturity is estimated using the present value of expected future cash flows of the remaining maturities of the securities. FHLB and FRB Stock – The carrying amounts approximate fair value as the stock is non-marketable. Loans – Loans includes the FDIC indemnification asset and net loans, which consists of loans held-for-investment, acquired loans, covered loans, and the allowance for loan and covered loan losses. The fair value of loans is estimated using the present value of the expected future cash flows of the remaining maturities of the loans. Prepayment assumptions that consider the Company's historical experience and current economic and lending conditions were included. The discount rate was based on the LIBOR yield curve with adjustments for liquidity and credit risk inherent in the loans. The fair value of the covered loan portfolio is determined by discounting the expected future cash flows at a market interest rate, which is derived from LIBOR swap rates over the life of those loans. The expected future cash flows are derived from the contractual terms of the covered loans, net of any projected credit losses. For valuation purposes, these loans are placed into groups with similar characteristics and risk factors, where appropriate. The timing and amount of credit losses for each group are estimated using historical default and loss experience, current collateral valuations, borrower credit scores, and internal risk ratings. For individually significant loans or credit relationships, the estimated fair value is determined by a specific loan level review utilizing appraised values for collateral and projections of the timing and amount of expected future cash flows. Investment in BOLI – The fair value of BOLI approximates the carrying amount as both are based on each policy's respective CSV, which is the amount the Company would receive from liquidation of these investments. The CSV is derived from monthly reports provided by the managing brokers and is determined using the Company's initial insurance premium and earnings of the underlying assets, offset by management fees. Other Interest-Earning Assets – The fair value of other interest-earning assets is estimated using the present value of the expected future cash flows of the remaining maturities of the assets. Deposits – The fair values disclosed for demand deposits, savings deposits, NOW accounts, and money market deposits are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair value for fixed-rate time deposits was estimated using the expected future cash flows discounted based on the LIBOR yield curve, plus or minus the spread associated with current pricing. Borrowed Funds – The fair value of FHLB advances is estimated by discounting the agreements based on maturities using the rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date. The carrying amounts of securities sold under agreements to repurchase approximate their fair value due to their short-term nature. Senior and Subordinated Debt – The fair value of senior and subordinated debt was determined using quoted market prices. Commitments to Extend Credit and Letters of Credit – The Company estimated the fair value of lending commitments outstanding to be immaterial based on (i) the limited interest rate exposure of the commitments outstanding due to their variable nature, (ii) the short-term nature of the commitment periods, (iii) termination clauses provided in the agreements, and (iv) the market rate of fees charged. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company, through the Bank, makes loans and has transactions with certain of its directors and executive officers. All of these loans and transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral requirements, for comparable transactions with unrelated persons and did not involve more than the normal risk of collectability or present unfavorable features. For the years ended December 31, 2015 and 2014 , loans to directors and executive officers totaled $16.9 million and $31.8 million , respectively, and were not greater than 5% of stockholders' equity. |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Company Financial Statements | CONDENSED PARENT COMPANY FINANCIAL STATEMENTS The following represents the condensed financial statements of First Midwest Bancorp, Inc., the Parent Company. Statements of Financial Condition (Parent Company only) (Dollar amounts in thousands) As of December 31, 2015 2014 Assets Cash and due from banks $ 119,693 $ 43,546 Investments in and advances to subsidiaries 1,184,900 1,211,244 Goodwill 18,216 13,625 Other assets 54,394 79,468 Total assets $ 1,377,203 $ 1,347,883 Liabilities and Stockholders' Equity Senior and subordinated debt $ 201,208 $ 200,869 Accrued interest payable and other liabilities 29,727 46,239 Stockholders' equity 1,146,268 1,100,775 Total liabilities and stockholders' equity $ 1,377,203 $ 1,347,883 Statements of Income (Parent Company only) (Dollar amounts in thousands) Years ended December 31, 2015 2014 2013 Income Dividends from subsidiaries $ 127,000 $ 56,881 $ 54,200 Interest income 2,164 1,502 1,067 Net losses on early extinguishment of debt — — (1,034 ) Securities transactions and other 584 6,451 37,485 Total income 129,748 64,834 91,718 Expenses Interest expense 12,545 12,062 13,607 Salaries and employee benefits 14,624 12,589 15,198 Other expenses 6,003 5,867 5,792 Total expenses 33,172 30,518 34,597 Income before income tax benefit (expense) and equity in undistributed (loss) income of subsidiaries 96,576 34,316 57,121 Income tax benefit (expense) 11,950 8,710 (962 ) Income before equity in undistributed (loss) income of subsidiaries 108,526 43,026 56,159 Equity in undistributed (loss) income of subsidiaries (26,462 ) 26,280 23,147 Net income 82,064 69,306 79,306 Net income applicable to non-vested restricted shares (882 ) (836 ) (1,107 ) Net income applicable to common shares $ 81,182 $ 68,470 $ 78,199 Statements of Cash Flows (Parent Company only) (Dollar amounts in thousands) Years ended December 31, 2015 2014 2013 Operating Activities Net income $ 82,064 $ 69,306 $ 79,306 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed loss (income) of subsidiaries 26,462 (26,280 ) (23,147 ) Depreciation of premises, furniture, and equipment 7 6 7 Net gains on sales of securities (1 ) (5,702 ) (34,119 ) Net losses on early extinguishment of debt — — 1,034 Share-based compensation expense 7,242 5,926 5,903 Tax expense related to share-based compensation (1,200 ) (106 ) (10 ) Net decrease in other assets 23,699 4,599 1,084 Net (decrease) increase in other liabilities (17,132 ) 14,063 (1,624 ) Net cash provided by operating activities 121,141 61,812 28,434 Investing Activities Purchases of securities available-for-sale — — (46,532 ) Proceeds from sales and maturities of securities available-for-sale 310 8,540 43,329 Purchase of premises, furniture, and equipment (5 ) — — Net cash paid from acquisitions (16,047 ) (15,809 ) — Net cash used in investing activities (15,742 ) (7,269 ) (3,203 ) Financing Activities Payments for retirement of subordinated debt — — (24,094 ) Treasury stock activity (120 ) 369 — Cash dividends paid (27,036 ) (22,568 ) (7,508 ) Restricted stock activity (2,890 ) (2,781 ) (1,607 ) Excess tax benefit related to share-based compensation 794 912 79 Net cash used in financing activities (29,252 ) (24,068 ) (33,130 ) Net increase (decrease) in cash and cash equivalents 76,147 30,475 (7,899 ) Cash and cash equivalents at beginning of year 43,546 13,071 20,970 Cash and cash equivalents at end of year $ 119,693 $ 43,546 $ 13,071 Supplemental Disclosures of Cash Flow Information: Common stock issued for acquisitions, net of issuance costs $ — $ 38,300 $ — |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations – First Midwest Bancorp, Inc. (the "Company") is a bank holding company that was incorporated in Delaware in 1982 and began operations on March 31, 1983. The Company is headquartered in Itasca, Illinois and has operations located primarily throughout the Chicago metropolitan area, as well as northwest Indiana, central and western Illinois, and eastern Iowa. The Company operates three wholly owned subsidiaries: First Midwest Bank (the "Bank"), Catalyst Asset Holdings, LLC ("Catalyst"), and Parasol Investment Management, LLC ("Parasol"). The Bank conducts the majority of the Company's operations. Catalyst manages certain non-performing assets of the Company. Parasol serves in an advisory capacity to certain wealth management accounts with the Bank. The Company is engaged in commercial and retail banking and offers a broad range of banking, treasury, and wealth management products and services, tailored to the needs of its commercial and industrial, commercial real estate, municipal, and consumer customers. Basis of Presentation – The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. The Company uses the accrual basis of accounting for financial reporting purposes. Certain reclassifications were made to prior year amounts to conform to the current year presentation. |
Reclassification | Certain reclassifications were made to prior year amounts to conform to the current year presentation. For the year ended December 31, 2014, the Bank acquired assets and assumed liabilities of Great Lakes Bank, National Association. The fair values assigned to these assets and liabilities were preliminary and subject to refinement after the acquisition date as new information related to acquisition date fair values became available. During the year ended December 31, 2015, the Bank obtained specific information relating to the acquisition date fair values of certain assets, which required measurement period adjustments. These adjustments were recognized in the current period in accordance with the early adoption of accounting guidance applicable to business combinations. |
Use of Estimates | Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation – The accompanying consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. |
Segment Disclosures | Segment Disclosures – The Company has one reportable segment. The Company's chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segment disclosures are not required. |
Business Combinations | Business Combinations – Business combinations are accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed are recorded at their estimated fair values as of the date of acquisition, with any excess of the purchase price of the acquisition over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Alternatively, a gain is recorded if the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid. The results of operations of the acquired business are included in the Consolidated Statements of Income from the effective date of the acquisition. |
Cash and Cash Equivalents | Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management defines cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, if any, such as federal funds sold and securities purchased under agreements to resell. |
Securities | Securities – Securities are classified as held-to-maturity, trading, or available-for-sale at the time of purchase. Securities Held-to-Maturity – Securities classified as held-to-maturity are securities for which management has the intent and ability to hold to maturity. These securities are stated at cost and adjusted for amortization of premiums and accretion of discounts over the estimated lives of the securities using the effective interest method. Trading Securities – The Company's trading securities consist of diversified investment securities held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock. The accounts of the grantor trust are consolidated with the accounts of the Company in its consolidated financial statements. Trading securities are reported at fair value. Other than the securities held in the grantor trust, the Company does not carry any securities for trading purposes. Securities Available-for-Sale – All other securities are classified as available-for-sale. Securities available-for-sale are carried at fair value with unrealized gains and losses, net of related deferred income taxes, recorded in stockholders' equity as a separate component of accumulated other comprehensive loss. The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security using the effective interest method. Amortization of premiums and accretion of discounts are included in interest income. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in net securities gains in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company individually assesses securities with unrealized losses to determine whether there were any events or circumstances indicating that an other-than-temporary impairment ("OTTI") has occurred. In evaluating OTTI, the Company considers many factors, including (i) the severity and duration of the impairment, (ii) the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades for debt securities, (iii) its intent to hold the security until its value recovers, and (iv) the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. If management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery, an OTTI charge will be recognized through income as a realized loss and included in net securities gains in the Consolidated Statements of Income. If management does not expect to sell the security or believes it is not more likely than not that it will be required to sell the security prior to full recovery, the OTTI is separated into the amount related to credit deterioration, which is recognized through income as a realized loss, and the amount resulting from other factors, which is recognized in other comprehensive (loss) income. |
FHLB and FRB Stock | FHLB and FRB Stock – The Company, as a member of the FHLB and FRB, is required to maintain an investment in the capital stock of the FHLB and FRB. No ready market exists for these stocks, and they have no quoted market values. The stock is redeemable at par by the FRB and FHLB and is, therefore, carried at cost and periodically evaluated for impairment. |
Loans | Loans – Loans held-for-investment are loans that the Company intends to hold until they are paid in full and are carried at the principal amount outstanding, including certain net deferred loan origination fees. Interest income on loans is accrued based on principal amounts outstanding. Loan origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized as a yield adjustment over the contractual life of the related loans or commitments and included in interest income. Fees related to standby letters of credit are amortized into fee income over the contractual life of the commitment. Other credit-related fees are recognized as fee income when earned. Loans held-for-sale are carried at the lower of aggregate cost or fair value and included in other assets in the Consolidated Statements of Financial Condition. |
Acquired and Covered Loans | Acquired and Covered Loans – Covered loans consist of loans acquired by the Company in FDIC-assisted transactions, the majority of which are covered by loss share agreements with the FDIC (the "FDIC Agreements"), under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets during the coverage period. Acquired loans consist of all other loans that were acquired in business combinations that are not covered by FDIC Agreements. Covered loans are reported separately in the financial statements and acquired loans are included within loans held-for-investment. Acquired and covered loans are separated into (i) non-purchased credit impaired ("Non-PCI") and (ii) purchased credit impaired ("PCI") loans. Non-PCI loans include loans that did not have evidence of credit deterioration since origination at the acquisition date. PCI loans include loans that had evidence of credit deterioration since origination and for which it was probable at acquisition that the Company would not collect all contractually required principal and interest payments. Evidence of credit deterioration was evaluated using various indicators, such as past due and non-accrual status. Leases and revolving loans do not qualify to be accounted for as PCI loans and are accounted for as Non-PCI loans. The acquisition adjustment related to Non-PCI loans is amortized into interest income over the contractual life of the related loans. If an acquired non-PCI loan is renewed subsequent to the acquisition date, any remaining acquisition adjustment is accreted into interest income and the loan is considered a new loan that is no longer classified as an acquired loan. PCI loans are accounted for based on estimates of expected future cash flows. To estimate the fair value, the Company generally aggregates purchased consumer loans and certain smaller balance commercial loans into pools of loans with common risk characteristics, such as delinquency status, credit score, and internal risk ratings. The fair values of larger balance commercial loans are estimated on an individual basis. Expected future cash flows in excess of the fair value of loans at the purchase date ("accretable yield") are recorded as interest income over the life of the loans if the timing and amount of the expected future cash flows can be reasonably estimated. The non-accretable yield represents the difference between contractually required payments and the expected future cash flows determined at acquisition. Subsequent increases in expected future cash flows are offset against the allowance for credit losses to the extent an allowance has been established or otherwise recognized as interest income prospectively. The present value of any decreases in expected future cash flows is recognized by recording a charge-off through the allowance for loan and covered loan losses or providing an allowance for loan and covered loan losses. |
90-Days Past Due Loans | 90-Days Past Due Loans – The Company’s accrual of interest on loans is generally discontinued at the time the loan is 90 days past due unless the credit is sufficiently collateralized and in the process of renewal or collection. |
Non-accrual Loans | Non-accrual Loans – Generally, corporate loans are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due unless the credit is sufficiently collateralized and in the process of renewal or collection or (ii) when an individual analysis of a borrower’s creditworthiness warrants a downgrade to non-accrual regardless of past due status. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed, and unpaid interest accrued in prior years is charged against the allowance for loan losses. After the loan is placed on non-accrual, all debt service payments are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate that the Company will collect all principal and interest. Commercial loans and loans secured by real estate are charged-off when deemed uncollectible. A loss is recorded if the net realizable value of the underlying collateral is less than the outstanding principal and interest. Consumer loans that are not secured by real estate are subject to mandatory charge-off at a specified delinquency date and are usually not classified as non-accrual prior to being charged-off. Closed-end consumer loans, which include installment, automobile, and single payment loans, are usually charged-off no later than the end of the month in which the loan becomes 120 days past due. PCI loans are generally considered accruing loans unless reasonable estimates of the timing and amount of expected future cash flows cannot be determined. Loans without reasonable future cash flow estimates are classified as non-accrual loans, and interest income is not recognized on those loans until the timing and amount of the expected future cash flows can be reasonably determined. |
Troubled Debt Restructurings (TDRs) | Troubled Debt Restructurings ("TDRs") – A restructuring is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity date. Loans are not classified as TDRs when the modification is short-term or results in an insignificant delay in payments. The Company’s TDRs are determined on a case-by-case basis. The Company does not accrue interest on a TDR unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate some level of past performance and the future capacity to perform under the modified terms. Generally, six months of consecutive payment performance under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess the borrower’s capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected future cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. If the loan was restructured at below market rates and terms, it continues to be separately reported as a TDR until it is paid in full or charged-off. |
Impaired Loans | Impaired Loans – Impaired loans consist of corporate non-accrual loans and TDRs. A loan is considered impaired when it is probable that the Company will not collect all contractual principal and interest. With the exception of accruing TDRs, impaired loans are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. Impaired loans with balances under a specified threshold are not individually evaluated for impairment. For all other impaired loans, impairment is measured by comparing the estimated value of the loan to the recorded book value. The value of collateral-dependent loans is based on the fair value of the underlying collateral, less costs to sell. The value of other loans is measured using the present value of expected future cash flows discounted at the loan’s initial effective interest rate. |
Allowance for Loan Losses | Allowance for Credit Losses – The allowance for credit losses is comprised of the allowance for loan losses, the allowance for covered loan losses, and the reserve for unfunded commitments, and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans, consideration of current economic trends, and other factors. Loans deemed to be uncollectible are charged-off against the allowance for loan and covered loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan and covered loan losses. Additions to the allowance for loan and covered loan losses are charged to expense through the provision for loan and covered loan losses. The amount of provision depends on a number of factors, including net charge-off levels, loan growth, changes in the composition of the loan portfolio, and the Company’s assessment of the allowance for loan and covered loan losses based on the methodology discussed below. Allowance for Loan Losses – The allowance for loan losses consists of (i) specific reserves for individual loans where the recorded investment exceeds the value, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) an allowance based on other internal and external qualitative factors. The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount. If the value of an impaired loan is less than the recorded book value, the Company either establishes a valuation allowance (i.e., a specific reserve) equal to the excess of the book value over the value of the loan as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss. The general reserve component is based on a loss migration analysis, which examines actual loss experience by loan category for a rolling 8-quarter period and the related internal risk rating for corporate loans. The loss migration analysis is updated quarterly primarily using actual loss experience. This component is then adjusted based on management’s consideration of many internal and external qualitative factors, including: • Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that historical trends do not reflect current conditions. • Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. • Changes in the experience, ability, and depth of credit management and other relevant staff. • Changes in the quality of the Company’s loan review system and Board of Directors oversight. • The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating. • Changes in the value of the underlying collateral for collateral-dependent loans. • Changes in the national and local economy that affect the collectability of various segments of the portfolio. • The effect of other external factors, such as competition and legal and regulatory requirements, on the Company’s loan portfolio. The allowance for loan losses also consists of an allowance on acquired Non-PCI and PCI loans. No allowance for loan losses is recorded on acquired loans at the acquisition date. An allowance for credit losses is established as necessary to reflect credit deterioration since the acquisition date. The acquired Non-PCI allowance is based on management's evaluation of the acquired Non-PCI loan portfolio giving consideration to the current portfolio balance including the remaining acquisition adjustments, maturity dates, and overall credit quality. The allowance on acquired PCI loans is determined in the same manner as the allowance for covered loan losses, which is discussed below. Acquired Non-PCI loans that have renewed subsequent to the respective acquisition dates are no longer classified as acquired loans. Instead, they are included with our general loan population and allocated an allowance based on a loss migration analysis. Allowance for Covered Loan Losses – The allowance for covered loan losses consists of an allowance on covered Non-PCI and PCI loans. The allowance for covered Non-PCI loans is calculated in the same manner as the general reserve component based on a loss migration analysis as discussed above. The covered PCI allowance reflects the difference between the carrying value and the discounted expected future cash flows of the covered PCI loans. On a periodic basis, the adequacy of this allowance is determined through a re-estimation of expected future cash flows on all outstanding covered PCI loans using either a probability of default/loss given default ("PD/LGD") methodology or a specific review methodology. The PD/LGD model is a loss model that estimates expected future cash flows using a probability of default curve and loss given default estimates. Reserve for Unfunded Commitments – The Company also maintains a reserve for unfunded commitments, including letters of credit, for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is estimated using the loss migration analysis from the allowance for loan losses, adjusted for probabilities of future funding requirements. The reserve for unfunded commitments is included in other liabilities in the Consolidated Statements of Financial Condition. The establishment of the allowance for credit losses involves a high degree of judgment given the difficulty of assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the adequacy of the allowance for credit losses depends on a variety of factors beyond the Company’s control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. |
OREO | OREO – OREO consists of properties acquired through foreclosure in partial or total satisfaction of defaulted loans. At initial transfer into OREO, properties are recorded at fair value, less estimated selling costs. Subsequently, OREO is carried at the lower of the cost basis or fair value, less estimated selling costs. OREO write-downs occurring at the transfer date are charged against the allowance for loan and covered loan losses, establishing a new cost basis. Subsequent to the initial transfer, the carrying values of OREO may be adjusted through a valuation allowance to reflect reductions in value resulting from new appraisals, new list prices, changes in market conditions, or changes in disposition strategies. Increases in value can be recognized through a reduction in the valuation allowance, but may not exceed the established cost basis. These valuation adjustments, along with expenses related to maintenance of the properties, are included in net OREO expense in the Consolidated Statements of Income. |
FDIC Indemnification Asset | FDIC Indemnification Asset – The majority of loans and OREO acquired through FDIC-assisted transactions are covered by the FDIC Agreements, under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets during the indemnification period. The FDIC indemnification asset represents the present value of expected future reimbursements from the FDIC. Since the indemnified items are covered loans and covered OREO, which are initially measured at fair value, the FDIC indemnification asset is also initially measured at fair value by discounting the expected future cash flows to be received from the FDIC. These expected future cash flows are estimated by multiplying estimated losses on covered PCI loans and covered OREO by the reimbursement rates in the FDIC Agreements. The balance of the FDIC indemnification asset is adjusted periodically to reflect changes in expected future cash flows. Decreases in estimated reimbursements from the FDIC are recorded prospectively through amortization and increases in estimated reimbursements from the FDIC are recognized by an increase in the carrying value of the indemnification asset. Payments from the FDIC for reimbursement of losses result in a reduction of the FDIC indemnification asset. |
Depreciable Assets | Depreciable Assets – Premises, furniture, and equipment are stated at cost, less accumulated depreciation. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Useful lives range from 3 to 10 years for furniture and equipment and 25 to 40 years for premises. Leasehold improvements are amortized over the shorter of the life of the asset or the lease term. Gains on dispositions are included in other noninterest income and losses on dispositions are included in other noninterest expense in the Consolidated Statements of Income. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. Certain assets, such as buildings and land, that the Company intends to sell and meets held-for-sale criteria are transferred into the held-for-sale category at the lower of their fair value, as determined by a current appraisal, or their recorded investment. Long-lived depreciable assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the undiscounted expected future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in other noninterest expense in the Consolidated Statements of Income. |
BOLI | BOLI – BOLI represents life insurance policies on the lives of certain Company directors and officers for which the Company is the sole owner and beneficiary. These policies are recorded as an asset in the Consolidated Statements of Financial Condition at their cash surrender value ("CSV") or the current amount that could be realized if settled. The change in CSV and insurance proceeds received are included as a component of noninterest income in the Consolidated Statements of Income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price of the acquisition over the fair value of the net tangible and intangible assets acquired using the acquisition method of accounting. Goodwill is not amortized. Instead, impairment testing is conducted annually as of October 1 or more often if events or circumstances between annual tests indicate that there may be impairment. Impairment testing is performed using either a qualitative or quantitative approach at the reporting unit level. All of the Company's goodwill is allocated to First Midwest Bancorp, Inc., which is the Company's only applicable reporting unit for purposes of testing goodwill for impairment. The Company performs impairment testing using a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Qualitative factors include, but are not limited to, macroeconomic conditions, industry and market specific conditions and trends, the Company's financial performance, market capitalization, stock price, and Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise, the Company would proceed with a quantitative two-step goodwill impairment test. In the first step, the Company compares its estimate of the fair value of the reporting unit, which is based on a discounted cash flow analysis, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step is not required. If necessary, the second step compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by assigning the value of the reporting unit to all of the assets and liabilities of that unit, including any other identifiable intangible assets. An impairment loss is recognized if the carrying amount of the reporting unit goodwill exceeds the implied fair value of goodwill. Other intangible assets represent purchased assets that lack physical substance, but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Identified intangible assets that have a finite useful life are amortized over that life in a manner that reflects the estimated decline in the economic value of the identified intangible asset. All of the Company's other intangible assets have finite lives and are amortized over varying periods not exceeding 13 years. Intangible assets are reviewed for impairment annually or more frequently when events or circumstances indicate that its carrying amount may not be recoverable. |
Wealth Management | Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is recognized on an accrual basis and is included as a component of noninterest income in the Consolidated Statements of Income. |
Derivative Financial Instruments | Derivative Financial Instruments – To provide derivative products to customers and in the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy to minimize significant unplanned fluctuations in earnings and expected future cash flows caused by interest rate volatility. All derivative instruments are recorded at fair value as either other assets or other liabilities in the Consolidated Statements of Financial Condition. Subsequent changes in a derivative’s fair value are recognized in earnings unless specific hedge accounting criteria are met. On the date the Company enters into a derivative contract, the derivative is designated as a fair value hedge, a cash flow hedge, or a non-hedge derivative instrument. Fair value hedges are designed to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk. Cash flow hedges are designed to mitigate exposure to variability in expected future cash flows to be received or paid related to an asset, liability, or other type of forecasted transaction. The Company formally documents all relationships between hedging instruments and hedged items, including its risk management objective and strategy at inception. At the hedge’s inception and quarterly thereafter, a formal assessment is performed to determine the effectiveness of the derivative in offsetting changes in the fair values or expected future cash flows of the hedged items in the current period and prospectively. If a derivative instrument designated as a hedge is terminated or ceases to be highly effective, hedge accounting is discontinued prospectively, and the gain or loss is amortized into earnings. For fair value hedges, the gain or loss is amortized over the remaining life of the hedged asset or liability. For cash flow hedges, the gain or loss is amortized over the same period that the forecasted hedged transactions impact earnings. If the hedged item is disposed of, any fair value adjustments are included in the gain or loss from the disposition of the hedged item. If the forecasted transaction is no longer probable, the gain or loss is included in earnings immediately. For fair value hedges, changes in the fair value of the derivative instruments, as well as changes in the fair value of the hedged item, are recognized in earnings. For cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of accumulated other comprehensive loss and is reclassified to earnings when the hedged transaction is reflected in earnings. Ineffectiveness is calculated based on the change in fair value of the hedged item compared with the change in fair value of the hedging instrument. For all types of hedges, any ineffectiveness in the hedging relationship is recognized in earnings during the period the ineffectiveness occurs. |
Comprehensive Income | Comprehensive Income – Comprehensive income is the total of reported net income and other comprehensive (loss) income which includes all other revenues, expenses, gains, and losses that are not reported in net income under GAAP. The Company includes the following items, net of tax, in other comprehensive (loss) income in the Consolidated Statements of Comprehensive Income: (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in the fair value of derivatives designated as cash flow hedges, and (iii) changes in unrecognized net pension costs related to the Company's pension plan. |
Treasury Stock | Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders' equity in the Consolidated Statements of Financial Condition. Treasury stock issued is valued based on the "last in, first out" inventory method. The difference between the consideration received on issuance and the carrying value is charged or credited to additional paid-in capital. |
Share-based Compensation | Share-Based Compensation – The Company recognizes share-based compensation expense based on the estimated fair value of the award at the grant or modification date over the period during which an employee is required to provide service in exchange for such award. Share-based compensation expense is included in salaries and wages in the Consolidated Statements of Income. |
Income Taxes | Income Taxes – The Company files United States ("U.S.") federal income tax returns and state income tax returns in various states. The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company's income tax return. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established for any deferred tax asset for which recovery or settlement is not more likely than not. The effect of a change in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period that includes the enactment date. |
Earnings per Common Share (EPS) | Earnings per Common Share ("EPS") – EPS is computed using the two-class method. Basic EPS is computed by dividing net income applicable to common shares by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, which contain nonforfeitable rights to dividends or dividend equivalents. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. |
Adopted Accounting Guidance and Accounting Pronouncements Pending Adoption | Adopted Accounting Pronouncements Receivables - Troubled Debt Restructurings by Creditors: In January of 2014, the Financial Accounting Standards Board ("FASB") issued guidance to clarify when an in substance repossession or foreclosure occurs and an entity is considered to have received physical possession of the residential real estate property such that a loan receivable should be derecognized and the real estate property recognized. Additionally, the guidance requires interim and annual disclosure of the amount of foreclosed residential real estate property held by the entity and the recorded investment in consumer mortgage loans collateralized by residential real estate property that is in the process of foreclosure according to local requirements of the applicable jurisdiction. The guidance is effective for annual and interim periods beginning after December 15, 2014. The adoption of this guidance on January 1, 2015 did not materially impact the Company's financial condition, results of operations, or liquidity. Receivables - Troubled Debt Restructurings by Creditors: In August of 2014, the FASB issued guidance that requires an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if (i) the loan has a government guarantee that is not separable from the loan before foreclosure, (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The guidance is effective for annual and interim reporting periods beginning after December 15, 2014. The adoption of this guidance on January 1, 2015 did not materially impact the Company's financial condition, results of operations, or liquidity. Simplifying the Accounting for Measurement-Period Adjustments: In September of 2015, the FASB issued guidance to simplify the recognition of measurement-period adjustments related to a business combination. This guidance eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the reporting period in which the adjustment amounts are determined. In addition, the effect of the adjustments on the income statement must be calculated as if the accounting had been completed at the acquisition date. The guidance is effective for annual and interim periods beginning after December 15, 2015 and early adoption of this guidance is permitted. The Company elected to early adopt this guidance during the fourth quarter of 2015, which did not materially impact the Company's financial condition, results of operations, or liquidity. Accounting Pronouncements Pending Adoption Amendments to Consolidation Analysis: In February of 2015, the FASB issued guidance that updates current accounting for the consolidation of certain legal entities. This guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, and provides certain exceptions from consolidation guidance for certain reporting entities. This guidance is effective for annual and interim periods beginning after December 15, 2015. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Revenue from Contracts with Customers: In May of 2014, the FASB issued guidance that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance was initially effective for annual and interim reporting periods beginning on or after December 15, 2016. In August of 2015, the FASB issued guidance that defers the effective date by one year. The deferral causes the guidance to be effective for annual and interim reporting periods beginning on or after December 15, 2017, and must be applied either retrospectively or using the modified retrospective approach. Early adoption is permitted, but not before the original effective date. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern: In August of 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. The guidance is effective for annual and interim periods beginning after December 15, 2016. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Simplifying the Presentation of Debt Issuance Costs: In April of 2015, the FASB issued guidance to clarify the presentation of debt issuance costs within the balance sheet. Additionally, the guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. The guidance is effective for annual and interim periods beginning after December 15, 2015. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Amendments to Guidance on Classifying and Measuring Financial Instruments: In January of 2016, the FASB issued guidance that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value. Any changes in fair value will be recognized in net income unless the investments qualify for a new practicability exception. This guidance also requires entities to recognize changes in instrument-specific credit risk related to financial liabilities measured under the fair value option in other comprehensive income. No changes were made to the guidance for classifying and measuring investments in debt securities and loans. This guidance is effective for annual and interim periods beginning after December 15, 2017. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. |
Pension and Other Postretirement Plans | To the extent the cumulative actuarial losses included in accumulated other comprehensive loss exceed 10% of the greater of the accumulated benefit obligation or the market-related value of the Pension Plan assets, it is the Company's policy to amortize the Pension Plan's net actuarial losses into income over the future working life of the Pension Plan participants. In connection with the freeze of benefit accruals under the Pension Plan in 2013, the Company changed its policy to amortize net actuarial losses into income over the average remaining life expectancy of the Pension Plan participants. Actuarial losses included in accumulated other comprehensive loss as of December 31, 2015 exceeded 10% of the accumulated benefit obligation and the fair value of Pension Plan assets. The amortization of net actuarial losses is a component of the net periodic benefit cost. Amortization of the net actuarial losses and prior service cost included in other comprehensive (loss) income is not expected to have a material impact on the Company's future results of operations, financial position, or liquidity. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the assets acquired and liabilities assumed, net of the fair value adjustments, in the Peoples, Popular, and Great Lakes transactions as of the acquisition date. The assets acquired and liabilities assumed, both intangible and tangible, were recorded at their estimated fair values as of the acquisition date and have been accounted for under the acquisition method of accounting. Acquisition Activity (Dollar amounts in thousands) Peoples Popular Great Lakes December 3, 2015 August 8, 2014 December 2, 2014 Assets Cash and due from banks and interest-bearing deposits in other banks $ 781 $ 161,276 $ 78,609 Securities available-for-sale 41,492 — 219,279 FHLB and FRB stock 558 — 1,970 Loans 53,917 549,386 223,169 OREO 515 — 1,244 Investment in BOLI — — 10,373 Goodwill 7,544 32,181 10,339 Other intangible assets 580 8,003 6,192 Premises, furniture, and equipment 2,215 4,647 5,011 Accrued interest receivable and other assets 2,911 6,574 10,059 Total assets $ 110,513 $ 762,067 $ 566,245 Liabilities Noninterest-bearing deposits $ 15,869 $ 163,299 $ 110,885 Interest-bearing deposits 75,944 568,573 353,424 Total deposits 91,813 731,872 464,309 Intangible liabilities — 10,631 — Borrowed funds 1,200 — 29,490 Senior and subordinated debt — — 9,809 Accrued interest payable and other liabilities 672 564 6,887 Total liabilities 93,685 743,067 510,495 Consideration Paid Common stock (2014 - 2,440,754 shares issued at $15.737 per share), net of $110,000 in issuance costs — — 38,300 Cash paid 16,828 19,000 17,450 Total consideration paid 16,828 19,000 55,750 $ 110,513 $ 762,067 $ 566,245 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | A summary of the Company's securities portfolio by category and maturity is presented in the following tables. Securities Portfolio (Dollar amounts in thousands) As of December 31, 2015 2014 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 17,000 $ 15 $ (35 ) $ 16,980 $ — $ — $ — $ — U.S. agency securities 86,461 351 (169 ) 86,643 30,297 144 (10 ) 30,431 Collateralized mortgage 695,198 1,072 (9,085 ) 687,185 538,882 2,256 (6,982 ) 534,156 Other mortgage-backed 152,481 1,920 (871 ) 153,530 155,443 4,632 (310 ) 159,765 Municipal securities 321,437 6,443 (310 ) 327,570 414,255 10,583 (1,018 ) 423,820 Trust preferred collateralized debt obligations ("CDOs") 48,287 34 (16,792 ) 31,529 48,502 152 (14,880 ) 33,774 Corporate debt securities — — — — 1,719 83 — 1,802 Equity securities 3,282 86 (169 ) 3,199 3,224 72 (35 ) 3,261 Total securities available-for-sale $ 1,324,146 $ 9,921 $ (27,431 ) $ 1,306,636 $ 1,192,322 $ 17,922 $ (23,235 ) $ 1,187,009 Securities Held-to-Maturity Municipal securities $ 23,152 $ — $ (3,098 ) $ 20,054 $ 26,555 $ 1,115 $ — $ 27,670 Trading Securities $ 16,894 $ 17,460 |
Investments Classified by Contractual Maturity Date | Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of December 31, 2015 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 95,201 $ 93,096 $ 2,092 $ 1,812 After one year to five years 272,169 266,151 8,809 7,630 After five years to ten years 57,528 56,256 4,184 3,624 After ten years 48,287 47,219 8,067 6,988 Securities that do not have a single contractual maturity date 850,961 843,914 — — Total $ 1,324,146 $ 1,306,636 $ 23,152 $ 20,054 |
Realized Gain (Loss) on Investments | The following table presents net realized gains on securities available-for-sale. Securities Available-for-Sale Gains (Losses) (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Gains (losses) on sales of securities: Gross realized gains $ 2,519 $ 8,188 $ 34,572 Gross realized losses (146 ) (63 ) — Net realized gains on sales of securities 2,373 8,125 34,572 Non-cash impairment charges: OTTI — (28 ) (408 ) Net realized gains $ 2,373 $ 8,097 $ 34,164 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all securities available-for-sale held by the Company for the years ended December 31, 2015 , 2014 , and 2013 . The majority of the beginning and ending balance of OTTI relates to CDOs currently held by the Company. Changes in OTTI Recognized in Earnings (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 23,880 $ 32,422 $ 38,803 OTTI included in earnings (1) : Losses on securities that previously had OTTI — 28 — Losses on securities that did not previously have OTTI — — 408 Reduction for securities sales (2) (171 ) (8,570 ) (6,789 ) Ending balance $ 23,709 $ 23,880 $ 32,422 (1) Included in net securities gains in the Consolidated Statements of Income. (2) These reductions were driven by the sale of one CMO with a carrying value of $1.3 million during the year ended December 31, 2015, one CDO with a carrying value of $1.3 million during the year ended December 31, 2014, and one CDO with a carrying value of zero during the year ended December 31, 2013. |
Unrealized Gain (Loss) on Investments | The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of December 31, 2015 and 2014 . Securities in an Unrealized Loss Position (Dollar amounts in thousands) Less Than 12 Months Greater Than 12 Months Total Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2015 Securities Available-for-Sale: U.S. treasury securities 4 $ 7,946 $ 35 $ — $ — $ 7,946 $ 35 U.S. agency securities 10 30,620 169 — — 30,620 169 CMOs 133 309,787 3,110 257,362 5,975 567,149 9,085 MBSs 27 63,028 427 31,980 444 95,008 871 Municipal securities 68 8,135 65 24,227 245 32,362 310 CDOs 8 8,034 971 21,642 15,821 29,676 16,792 Equity securities 2 485 120 2,305 49 2,790 169 Total 252 $ 428,035 $ 4,897 $ 337,516 $ 22,534 $ 765,551 $ 27,431 Securities Held-to-Maturity: Municipal securities 19 $ 20,054 $ 3,098 $ — $ — $ 20,054 $ 3,098 As of December 31, 2014 Securities Available-for-Sale: U.S. agency securities 1 $ 1,943 $ 10 $ — $ — $ 1,943 $ 10 CMOs 87 61,321 559 284,327 6,423 345,648 6,982 MBSs 11 1,113 1 39,043 309 40,156 310 Municipal securities 91 1,317 9 53,987 1,009 55,304 1,018 CDOs 4 — — 22,791 14,880 22,791 14,880 Equity securities 1 — — 2,270 35 2,270 35 Total 195 $ 65,694 $ 579 $ 402,418 $ 22,656 $ 468,112 $ 23,235 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Composition Of Loan Portfolio | The following table presents the Company's loans held-for-investment by class. Loan Portfolio (Dollar amounts in thousands) As of December 31, 2015 2014 Commercial and industrial $ 2,524,726 $ 2,253,556 Agricultural 387,440 358,249 Commercial real estate: Office, retail, and industrial 1,395,454 1,478,379 Multi-family 528,324 564,421 Construction 216,882 204,236 Other commercial real estate 931,190 887,897 Total commercial real estate 3,071,850 3,134,933 Total corporate loans 5,984,016 5,746,738 Home equity 653,468 543,185 1-4 family mortgages 355,854 291,463 Installment 137,602 76,032 Total consumer loans 1,146,924 910,680 Total loans, excluding covered loans 7,130,940 6,657,418 Covered loans (1) 30,775 79,435 Total loans $ 7,161,715 $ 6,736,853 Deferred loan fees included in total loans $ 5,191 $ 3,922 Overdrawn demand deposits included in total loans 2,810 3,438 (1) For information on covered loans, see Note 6 , " Acquired and Covered Loans ." |
Schedule of Financial Instruments Owned and Pledged as Collateral | The carrying value of loans that were pledged to secure liabilities as of December 31, 2015 and 2014 are presented below. Carrying Value of Loans Pledged (Dollar amounts in thousands) As of December 31 2015 2014 Loans pledged to secure: FHLB advances $ 3,057,421 $ 1,952,736 FRB's Discount Window Primary Credit Program 841,808 845,974 Total $ 3,899,229 $ 2,798,710 |
Schedule of Loans Sold | The following table presents 1-4 family mortgage loan sales for the years ended December 31, 2015 , 2014 , and 2013 . 1-4 Family Mortgage Loan Sales (Dollar amounts in thousands) Proceeds Book Value Net Gains (1) Year Ended December 31, 2015 Loans originated with intent to sell $ 157,499 $ 153,130 $ 4,369 Loans held-for-investment 27,809 26,887 922 Total $ 185,308 $ 180,017 $ 5,291 Year Ended December 31, 2014 Loans originated with intent to sell $ 95,422 $ 92,525 $ 2,897 Loans held-for-investment 53,258 52,384 874 Total $ 148,680 $ 144,909 $ 3,771 Year Ended December 31, 2013 Loans originated with intent to sell $ 37,788 $ 36,592 $ 1,196 Loans held-for-investment 114,342 110,821 3,521 Total $ 152,130 $ 147,413 $ 4,717 (1) Net gains on mortgage loan sales are included in mortgage banking income in the Consolidated Statements of Income. |
Acquired and Covered Loans (Tab
Acquired and Covered Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquired Loans [Abstract] | |
Acquired and Covered Loans | The following table presents acquired and covered PCI and Non-PCI loans as of December 31, 2015 and 2014 . Acquired and Covered Loans (Dollar amounts in thousands) As of December 31, 2015 2014 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 50,286 $ 534,506 $ 584,792 $ 28,712 $ 714,836 $ 743,548 Covered loans 9,919 20,856 30,775 54,682 24,753 79,435 Total acquired and covered loans $ 60,205 $ 555,362 $ 615,567 $ 83,394 $ 739,589 $ 822,983 |
Changes In The FDIC Indemnification Asset | Rollforwards of the carrying value of the FDIC indemnification asset for the three years ended December 31, 2015 is presented in the following table. Changes in the FDIC Indemnification Asset (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 8,452 $ 16,585 $ 37,051 Amortization (1,461 ) (3,315 ) (2,984 ) Change in expected reimbursements from the FDIC for changes in expected credit losses 1,313 (481 ) (1,242 ) Payments received from the FDIC (4,401 ) (4,337 ) (16,240 ) Ending balance $ 3,903 $ 8,452 $ 16,585 |
Changes In Accretable Yield For Purchased Credit Impaired Loans | Changes in the accretable yield for acquired and covered PCI loans were as follows. Changes in Accretable Yield (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 28,244 $ 36,792 $ 51,498 Additions 1,168 3,517 — Accretion (11,311 ) (12,535 ) (15,016 ) Other (1) 6,811 470 310 Ending balance $ 24,912 $ 28,244 $ 36,792 (1) Represents a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio. |
Past Due Loans, Allowance For39
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table presents an aging analysis of the Company's past due loans as of December 31, 2015 and 2014 . The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date. Aging Analysis of Past Due Loans and Non-Performing Loans by Class (Dollar amounts in thousands) Aging Analysis (Accruing and Non-accrual) Non-performing Loans Current 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Non-accrual Loans 90 Days Past Due Loans, Still Accruing Interest As of December 31, 2015 Commercial and industrial $ 2,516,197 $ 4,956 $ 3,573 $ 8,529 $ 2,524,726 $ 5,587 $ 857 Agricultural 387,109 245 86 331 387,440 355 — Commercial real estate: Office, retail, and industrial 1,386,383 2,647 6,424 9,071 1,395,454 6,875 4 Multi-family 526,625 541 1,158 1,699 528,324 796 548 Construction 216,377 — 505 505 216,882 905 — Other commercial real estate 922,531 3,575 5,084 8,659 931,190 5,611 661 Total commercial real estate 3,051,916 6,763 13,171 19,934 3,071,850 14,187 1,213 Total corporate loans 5,955,222 11,964 16,830 28,794 5,984,016 20,129 2,070 Home equity 647,175 3,247 3,046 6,293 653,468 5,310 216 1-4 family mortgages 350,980 2,680 2,194 4,874 355,854 3,416 528 Installment 136,780 753 69 822 137,602 20 69 Total consumer loans 1,134,935 6,680 5,309 11,989 1,146,924 8,746 813 Total loans, excluding 7,090,157 18,644 22,139 40,783 7,130,940 28,875 2,883 Covered loans 29,808 405 562 967 30,775 555 174 Total loans $ 7,119,965 $ 19,049 $ 22,701 $ 41,750 $ 7,161,715 $ 29,430 $ 3,057 As of December 31, 2014 Commercial and industrial $ 2,230,947 $ 19,505 $ 3,104 $ 22,609 $ 2,253,556 $ 22,693 $ 205 Agricultural 355,982 1,934 333 2,267 358,249 360 — Commercial real estate: Office, retail, and industrial 1,463,724 2,340 12,315 14,655 1,478,379 12,939 76 Multi-family 562,625 1,261 535 1,796 564,421 754 83 Construction 197,255 — 6,981 6,981 204,236 6,981 — Other commercial real estate 876,609 5,412 5,876 11,288 887,897 6,970 438 Total commercial real estate 3,100,213 9,013 25,707 34,720 3,134,933 27,644 597 Total corporate loans 5,687,142 30,452 29,144 59,596 5,746,738 50,697 802 Home equity 535,587 3,216 4,382 7,598 543,185 6,290 145 1-4 family mortgages 287,892 2,246 1,325 3,571 291,463 2,941 166 Installment 75,428 506 98 604 76,032 43 60 Total consumer loans 898,907 5,968 5,805 11,773 910,680 9,274 371 Total loans, excluding 6,586,049 36,420 34,949 71,369 6,657,418 59,971 1,173 Covered loans 66,331 2,714 10,390 13,104 79,435 6,186 5,002 Total loans $ 6,652,380 $ 39,134 $ 45,339 $ 84,473 $ 6,736,853 $ 66,157 $ 6,175 |
Allowance For Credit Losses On Financing Receivables by Segment | A rollforward of the allowance for credit losses by portfolio segment for the years ended December 31, 2015 , 2014 , and 2013 is presented in the table below. Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Commercial, Industrial, and Agricultural Office, Retail, and Industrial Multi-family Construction Other Commercial Real Estate Consumer Covered Loans Reserve for Unfunded Commitments Total Allowance As of December 31, 2015 Beginning balance $ 29,458 $ 10,992 $ 2,249 $ 2,297 $ 8,327 $ 12,145 $ 7,226 $ 1,816 $ 74,510 Charge-offs (15,885 ) (2,887 ) (545 ) (136 ) (2,643 ) (4,187 ) (634 ) — (26,917 ) Recoveries 2,573 467 15 350 1,993 1,183 120 — 6,701 Net charge-offs (13,312 ) (2,420 ) (530 ) 214 (650 ) (3,004 ) (514 ) — (20,216 ) Provision for loan 20,928 4,544 743 (1,071 ) (1,589 ) 2,671 (5,074 ) (591 ) 20,561 Ending Balance $ 37,074 $ 13,116 $ 2,462 $ 1,440 $ 6,088 $ 11,812 $ 1,638 $ 1,225 $ 74,855 As of December 31, 2014 Beginning balance $ 30,381 $ 10,405 $ 2,017 $ 6,316 $ 10,817 $ 13,010 $ 12,559 $ 1,616 $ 87,121 Charge-offs (17,424 ) (7,345 ) (943 ) (1,052 ) (4,834 ) (7,574 ) (1,012 ) — (40,184 ) Recoveries 3,800 497 87 166 1,727 729 1,199 — 8,205 Net charge-offs (13,624 ) (6,848 ) (856 ) (886 ) (3,107 ) (6,845 ) 187 — (31,979 ) Provision for loan 12,701 7,435 1,088 (3,133 ) 617 5,980 (5,520 ) 200 19,368 Ending balance $ 29,458 $ 10,992 $ 2,249 $ 2,297 $ 8,327 $ 12,145 $ 7,226 $ 1,816 $ 74,510 As of December 31, 2013 Beginning balance $ 36,761 $ 11,432 $ 3,575 $ 9,223 $ 13,531 $ 12,862 $ 12,062 $ 3,366 $ 102,812 Charge-offs (12,094 ) (4,744 ) (1,029 ) (1,916 ) (4,784 ) (9,414 ) (4,599 ) — (38,580 ) Recoveries 3,797 228 584 1,032 1,646 1,071 24 — 8,382 Net charge-offs (8,297 ) (4,516 ) (445 ) (884 ) (3,138 ) (8,343 ) (4,575 ) — (30,198 ) Provision for loan 1,917 3,489 (1,113 ) (2,023 ) 424 8,491 5,072 (1,750 ) 14,507 Ending balance $ 30,381 $ 10,405 $ 2,017 $ 6,316 $ 10,817 $ 13,010 $ 12,559 $ 1,616 $ 87,121 |
Schedule of Loans and The Related Allowance for Credit Losses | The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of December 31, 2015 and 2014 . Loans and Related Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Loans Allowance for Credit Losses Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total As of December 31, 2015 Commercial, industrial, and $ 2,871 $ 2,902,361 $ 6,934 $ 2,912,166 $ 883 $ 35,378 $ 813 $ 37,074 Commercial real estate: Office, retail, and industrial 6,162 1,376,789 12,503 1,395,454 715 10,833 1,568 13,116 Multi-family 800 526,037 1,487 528,324 — 2,367 95 2,462 Construction 178 212,671 4,033 216,882 — 1,160 280 1,440 Other commercial real estate 3,665 913,161 14,364 931,190 — 5,367 721 6,088 Total commercial 10,805 3,028,658 32,387 3,071,850 715 19,727 2,664 23,106 Total corporate loans 13,676 5,931,019 39,321 5,984,016 1,598 55,105 3,477 60,180 Consumer — 1,135,959 10,965 1,146,924 — 11,425 387 11,812 Total loans, excluding 13,676 7,066,978 50,286 7,130,940 1,598 66,530 3,864 71,992 Covered loans — 20,856 9,919 30,775 — 248 1,390 1,638 Reserve for unfunded — — — — — 1,225 — 1,225 Total loans $ 13,676 $ 7,087,834 $ 60,205 $ 7,161,715 $ 1,598 $ 68,003 $ 5,254 $ 74,855 As of December 31, 2014 Commercial, industrial, and $ 19,796 $ 2,588,141 $ 3,868 $ 2,611,805 $ 2,249 $ 27,209 $ — $ 29,458 Commercial real estate: Office, retail, and industrial 12,332 1,458,918 7,129 1,478,379 271 10,721 — 10,992 Multi-family 939 561,400 2,082 564,421 — 2,249 — 2,249 Construction 6,671 195,094 2,471 204,236 — 2,297 — 2,297 Other commercial real estate 3,266 880,087 4,544 887,897 11 8,316 — 8,327 Total commercial 23,208 3,095,499 16,226 3,134,933 282 23,583 — 23,865 Total corporate loans 43,004 5,683,640 20,094 5,746,738 2,531 50,792 — 53,323 Consumer — 902,062 8,618 910,680 — 11,822 323 12,145 Total loans, excluding 43,004 6,585,702 28,712 6,657,418 2,531 62,614 323 65,468 Covered loans — 24,753 54,682 79,435 — 488 6,738 7,226 Reserve for unfunded — — — — — 1,816 — 1,816 Total loans $ 43,004 $ 6,610,455 $ 83,394 $ 6,736,853 $ 2,531 $ 64,918 $ 7,061 $ 74,510 |
Impaired Financing Receivable | The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2015 and 2014 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of December 31, 2015 2014 Recorded Investment In Recorded Investment In Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Commercial and industrial $ 1,673 $ 1,198 $ 4,592 $ 883 $ 666 $ 19,130 $ 35,457 $ 2,249 Agricultural — — — — — — — — Commercial real estate: Office, retail, and industrial 4,654 1,508 12,083 715 9,623 2,709 18,340 271 Multi-family 800 — 941 — 939 — 1,024 — Construction 178 — 299 — 6,671 — 7,731 — Other commercial real estate 3,665 — 4,403 — 2,752 514 4,490 11 Total commercial real 9,297 1,508 17,726 715 19,985 3,223 31,585 282 Total impaired loans $ 10,970 $ 2,706 $ 22,318 $ 1,598 $ 20,651 $ 22,353 $ 67,042 $ 2,531 |
Impaired Financing Receivables Continued | The following table presents the average recorded investment and interest income recognized on impaired loans by class for the years ended December 31, 2015 , 2014 , and 2013 . PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Average Recorded Balance Interest Income Recognized (1) Average Recorded Balance Interest Income Recognized (1) Average Interest (1) Commercial and industrial $ 8,940 $ 163 $ 16,137 $ 371 $ 20,925 $ 205 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial 9,359 52 19,003 245 24,802 18 Multi-family 855 13 1,245 5 1,116 8 Construction 3,902 118 5,764 — 5,932 — Other commercial real estate 3,310 44 6,014 138 13,141 31 Total commercial real estate 17,426 227 32,026 388 44,991 57 Total impaired loans $ 26,366 $ 390 $ 48,163 $ 759 $ 65,916 $ 262 (1) Recorded using the cash basis of accounting. |
Financing Receivable Credit Quality Indicators | The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of December 31, 2015 and 2014 . Corporate Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Pass Special (1)(4) Substandard (2)(4) Non-Accrual (3) Total As of December 31, 2015 Commercial and industrial $ 2,379,992 $ 86,263 $ 52,884 $ 5,587 $ 2,524,726 Agricultural 381,523 — 5,562 355 387,440 Commercial real estate: Office, retail, and industrial 1,320,164 32,627 35,788 6,875 1,395,454 Multi-family 517,412 6,146 3,970 796 528,324 Construction 201,496 4,678 9,803 905 216,882 Other commercial real estate 898,746 13,179 13,654 5,611 931,190 Total commercial real estate 2,937,818 56,630 63,215 14,187 3,071,850 Total corporate loans $ 5,699,333 $ 142,893 $ 121,661 $ 20,129 $ 5,984,016 As of December 31, 2014 Commercial and industrial $ 2,115,170 $ 84,615 $ 31,078 $ 22,693 $ 2,253,556 Agricultural 357,595 294 — 360 358,249 Commercial real estate: Office, retail, and industrial 1,393,885 38,891 32,664 12,939 1,478,379 Multi-family 553,255 6,363 4,049 754 564,421 Construction 178,992 5,776 12,487 6,981 204,236 Other commercial real estate 829,003 32,517 19,407 6,970 887,897 Total commercial real estate 2,955,135 83,547 68,607 27,644 3,134,933 Total corporate loans $ 5,427,900 $ 168,456 $ 99,685 $ 50,697 $ 5,746,738 (1) Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future. (2) Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. (3) Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. (4) Total special mention and substandard loans includes accruing TDRs of $862,000 as of December 31, 2015 and $1.8 million as of December 31, 2014 . |
Financing Receivable Credit Quality Indicators Continued | Consumer Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Performing Non-accrual Total As of December 31, 2015 Home equity $ 648,158 $ 5,310 $ 653,468 1-4 family mortgages 352,438 3,416 355,854 Installment 137,582 20 137,602 Total consumer loans $ 1,138,178 $ 8,746 $ 1,146,924 As of December 31, 2014 Home equity $ 536,895 $ 6,290 $ 543,185 1-4 family mortgages 288,522 2,941 291,463 Installment 75,989 43 76,032 Total consumer loans $ 901,406 $ 9,274 $ 910,680 |
Troubled Debt Restructuring by Class | The table below presents TDRs by class as of December 31, 2015 and 2014 . See Note 1 , " Summary of Significant Accounting Policies ," for the accounting policy for TDRs. TDRs by Class (Dollar amounts in thousands) As of December 31, 2015 2014 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 294 $ 1,050 $ 1,344 $ 269 $ 18,799 $ 19,068 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial 164 — 164 586 — 586 Multi-family 598 186 784 887 232 1,119 Construction — — — — — — Other commercial real estate 340 — 340 433 183 616 Total commercial real estate 1,102 186 1,288 1,906 415 2,321 Total corporate loans 1,396 1,236 2,632 2,175 19,214 21,389 Home equity 494 667 1,161 651 506 1,157 1-4 family mortgages 853 421 1,274 878 184 1,062 Installment — — — — — — Total consumer loans 1,347 1,088 2,435 1,529 690 2,219 Total loans $ 2,743 $ 2,324 $ 5,067 $ 3,704 $ 19,904 $ 23,608 (1) These TDRs are included in non-accrual loans in the preceding tables. |
Troubled Debt Restructurings on Financing Receivables | The following table presents a summary of loans that were restructured during the years ended December 31, 2015 , 2014 , and 2013 . Loans Restructured During the Period (Dollar amounts in thousands) Number of Loans Pre-Modification Recorded Investment Funds Disbursed Interest and Escrow Capitalized Charge-offs Post-Modification Recorded Investment Year Ended December 31, 2015 Home equity 1 $ 120 $ — $ — $ — $ 120 1-4 family mortgages 2 325 — — — 325 Total loans restructured during the period 3 $ 445 $ — $ — $ — $ 445 Year Ended December 31, 2014 Commercial and industrial 7 $ 23,852 $ — $ — $ — $ 23,852 Office, retail, and industrial 1 417 — — — 417 Multi-family 1 275 — — — 275 Home equity 1 75 — — — 75 Total loans restructured during the period 10 $ 24,619 $ — $ — $ — $ 24,619 Year Ended December 31, 2013 Commercial and industrial 7 $ 14,439 $ — $ 2 $ — $ 14,441 Office, retail, and industrial 6 2,275 30 — — 2,305 Multi-family 5 1,274 — 57 — 1,331 Construction 2 508 — — — 508 Other commercial real estate 5 526 — — — 526 Home equity 13 1,189 — — — 1,189 1-4 family mortgages 1 132 — 4 — 136 Total loans restructured during the period 39 $ 20,343 $ 30 $ 63 $ — $ 20,436 |
Schedule of Troubled Debt Restructurings That Defaulted Within Twelve Months of the Restructured Date | The following table presents TDRs that had payment defaults during the years ended December 31, 2015 , 2014 , and 2013 where the default occurred within twelve months of the restructure date. TDRs That Defaulted Within Twelve Months of the Restructured Date (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — 2 $ 125 1 $ 350 Other commercial real estate — — — — 3 354 Home equity — — 1 77 — — Total — $ — 3 $ 202 4 $ 704 |
Troubled Debt Restructuring Activity Rollforward | A rollforward of the carrying value of TDRs for the years ended December 31, 2015 , 2014 , and 2013 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Accruing Beginning balance $ 3,704 $ 23,770 $ 6,867 Additions 120 804 4,847 Net payments (774 ) (1,440 ) (723 ) Returned to performing status — (20,656 ) (5,529 ) Net transfers (to) from non-accrual (307 ) 1,226 18,308 Ending balance 2,743 3,704 23,770 Non-accrual Beginning balance 19,904 4,083 10,924 Additions 325 23,815 15,589 Net (payments) advances (15,525 ) 1,991 (1,359 ) Charge-offs (2,687 ) (8,457 ) (1,880 ) Transfers to OREO — (302 ) (77 ) Loans sold — — (806 ) Net transfers from (to) accruing 307 (1,226 ) (18,308 ) Ending balance 2,324 19,904 4,083 Total TDRs $ 5,067 $ 23,608 $ 27,853 |
Premises, Furniture, and Equi40
Premises, Furniture, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table summarizes the Company's premises, furniture, and equipment by category. Premises, Furniture, and Equipment (Dollar amounts in thousands) As of December 31, 2015 2014 Land $ 43,442 $ 51,104 Premises 152,444 148,963 Furniture and equipment 90,672 85,489 Total cost 286,558 285,556 Accumulated depreciation (171,708 ) (156,473 ) Net book value of premises, furniture, and equipment 114,850 129,083 Assets held-for-sale 7,428 2,026 Total premises, furniture, and equipment $ 122,278 $ 131,109 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future Minimum Operating Lease Payments (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 5,119 2017 4,832 2018 4,115 2019 2,327 2020 1,893 2021 and thereafter 11,287 Total minimum lease payments $ 29,573 |
Scheduled Accretion of Operating Leases | The following table presents the remaining scheduled accretion of the intangible liability by year. Scheduled Accretion of Operating Lease Intangible (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 1,144 2017 1,144 2018 900 2019 651 2020 613 2021 and thereafter 4,582 Total accretion $ 9,034 |
Schedule Of Rental Expense And Income | The following table presents net operating lease expense for the years ended December 31, 2015 , 2014 , and 2013 . Net Operating Lease Expense (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Lease expense charged to operations (1) $ 5,706 $ 4,216 $ 3,123 Rental income from premises leased to others (2) 606 541 531 Net operating lease expense $ 5,100 $ 3,675 $ 2,592 (1) Includes amounts paid under short-term cancelable leases and included in net occupancy and equipment expense in the Consolidated Statements of Income. As of December 31, 2015 and 2014, lease expense is net of accretion related to the intangible liability of $1.1 million and $453,000 , respectively. (2) Included as a reduction to net occupancy and equipment expense in the Consolidated Statements of Income. |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in the carrying amount of goodwill for the years ended December 31, 2015 , 2014 , and 2013 . Changes in the Carrying Amount of Goodwill (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 310,589 $ 264,062 $ 265,477 Acquisitions 8,418 46,527 — Sale of equity method investment — — (1,415 ) Ending balance $ 319,007 $ 310,589 $ 264,062 |
Schedule of Finite-Lived Intangible Assets | Other Intangible Assets (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Gross Accumulated Amortization Net Beginning balance $ 47,970 $ 24,360 $ 23,610 $ 33,775 $ 21,471 $ 12,304 $ 33,775 $ 18,193 $ 15,582 Additions 580 — 580 14,195 — 14,195 — — — Amortization expense — 3,920 (3,920 ) — 2,889 (2,889 ) — 3,278 (3,278 ) Ending balance $ 48,550 $ 28,280 $ 20,270 $ 47,970 $ 24,360 $ 23,610 $ 33,775 $ 21,471 $ 12,304 Weighted-average remaining life (in years) 7.4 8.0 5.9 Estimated remaining useful lives (in years) 0.8 to 10.0 0.3 to 10.3 0.2 to 11.3 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Scheduled Amortization of Other Intangible Assets (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 3,901 2017 3,121 2018 2,196 2019 2,131 2020 2,080 2021 and thereafter 6,841 Total $ 20,270 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of Deposits | The following table presents the Company's deposits by type. Summary of Deposits (Dollar amounts in thousands) As of December 31, 2015 2014 Demand deposits $ 2,414,454 $ 2,301,757 Savings deposits 1,547,587 1,391,444 NOW accounts 1,456,175 1,413,973 Money market deposits 1,526,056 1,509,026 Time deposits less than $100,000 754,576 859,441 Time deposits greater than $100,000 398,890 412,117 Total deposits $ 8,097,738 $ 7,887,758 |
Schedule of Maturities of Time Deposits | The following table provides maturity information related to the Company's time deposits. Scheduled Maturities of Time Deposits (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 754,417 2017 162,138 2018 71,235 2019 70,948 2020 94,472 2021 and thereafter 256 Total $ 1,153,466 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company's borrowed funds by funding source. Summary of Borrowed Funds (Dollar amounts in thousands) As of December 31, 2015 2014 Securities sold under agreements to repurchase $ 155,196 $ 137,994 FHLB advances 9,900 — Total borrowed funds $ 165,096 $ 137,994 |
Unused Short-Term Credit Lines Available for Use [Table Text Block] | The following table presents short-term credit lines available for use, for which the Company did not have an outstanding balance as of December 31, 2015 and 2014 . Short-Term Credit Lines Available for Use (Dollar amounts in thousands) As of December 31, 2015 2014 FRBs Discount Window Primary Credit Program $ 655,745 $ 675,507 Available federal funds lines 659,000 685,500 Correspondent bank line of credit — 35,000 |
Senior and Subordinated Debt (T
Senior and Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table presents the Company's senior and subordinated debt by issuance. Senior and Subordinated Debt (Dollar amounts in thousands) As of December 31, Issuance Date Maturity Date Interest Rate 2015 2014 Senior notes March 2006 November 2016 5.875% $ 114,891 $ 114,768 Subordinated notes September 2009 April 2016 5.850% 38,499 38,495 Junior subordinated debentures: First Midwest Capital Trust I ("FMCT") November 2003 December 2033 6.950% 37,799 37,797 Great Lakes Statutory Trust II ("GLST II") (1) December 2005 December 2035 L+1.400% (2) 4,296 4,202 Great Lakes Statutory Trust III ("GLST III") (1) June 2007 September 2037 L+1.700% (2) 5,723 5,607 Total junior subordinated debentures 47,818 47,606 Total senior and subordinated debt $ 201,208 $ 200,869 (1) The junior subordinated debentures related to GLST II and GLST III were assumed by the Company through the Great Lakes acquisition. As of December 31, 2015, these amounts include acquisition adjustments which resulted in a discount of $1.9 million to GLST II and $2.5 million to GLST III. The acquisition adjustments totaled $2.0 million and $2.6 million to GLST II and GLST III, respectively, as of December 31, 2014. (2) The interest rates are a variable rate based on the three-month LIBOR plus 1.400% and 1.700% for GLST II and GLST III, respectively. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below displays the calculation of basic and diluted earnings per share. Basic and Diluted Earnings per Common Share (Amounts in thousands, except per share data) Years Ended December 31, 2015 2014 2013 Net income $ 82,064 $ 69,306 $ 79,306 Net income applicable to non-vested restricted shares (882 ) (836 ) (1,107 ) Net income applicable to common shares $ 81,182 $ 68,470 $ 78,199 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 77,059 74,484 73,984 Dilutive effect of common stock equivalents 13 12 10 Weighted-average diluted common shares outstanding 77,072 74,496 73,994 Basic earnings per common share $ 1.05 $ 0.92 $ 1.06 Diluted earnings per common share 1.05 0.92 1.06 Anti-dilutive shares not included in the computation of diluted earnings per common share (1) 800 1,198 1,462 (1) This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Components of Income Tax Expense (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Current income tax expense (benefit): Federal $ 18,524 $ 16,343 $ 4,744 State 2,326 (1,388 ) 10,504 Total 20,850 14,955 15,248 Deferred income tax expense: Federal 12,048 7,901 31,572 State 4,849 8,314 1,895 Total 16,897 16,215 33,467 Total income tax expense $ 37,747 $ 31,170 $ 48,715 |
Schedule of Effective Income Tax Rate Reconciliation | Components of Effective Tax Rate (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Statutory federal income tax $ 41,934 35.0 % $ 35,167 35.0 % $ 44,807 35.0 % (Decrease) increase in income taxes resulting from: Tax-exempt income, net of interest expense disallowance (6,752 ) (5.6 ) (7,520 ) (7.5 ) (7,877 ) (6.2 ) State income tax, net of federal income tax effect 4,665 3.9 4,503 4.5 8,142 6.4 Other (2,100 ) (1.8 ) (980 ) (1.0 ) 3,643 2.9 Total $ 37,747 31.5 % $ 31,170 31.0 % $ 48,715 38.1 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred Tax Assets and Liabilities (Dollar amounts in thousands) As of December 31, 2015 2014 Deferred tax assets: Allowance for credit losses $ 26,131 $ 26,078 Unrealized losses on securities 18,328 18,527 Alternative minimum tax ("AMT") and other credit carryforwards 17,739 29,007 State net operating loss ("NOL") carryforwards 7,679 11,917 Equity based compensation 5,469 6,875 Non-equity based compensation 3,739 3,477 Property valuation adjustments 3,003 — OREO 2,597 3,480 Other 8,693 7,754 Total deferred tax assets 93,378 107,115 Deferred tax liabilities: Acquisition adjustments (10,097 ) (10,960 ) Accrued retirement benefits (6,065 ) (6,447 ) Cancellation of indebtedness income (3,204 ) (4,272 ) Deferred loan fees and costs (2,432 ) — Other (4,631 ) (5,045 ) Total deferred tax liabilities (26,429 ) (26,724 ) Deferred tax valuation allowance — — Net deferred tax assets 66,949 80,391 Tax effect of adjustments related to other comprehensive (loss) income 19,744 11,294 Net deferred tax assets including adjustments $ 86,693 $ 91,685 Net operating loss carryforwards available to offset future taxable income: Federal gross NOL carryforwards, begin to expire in 2035 $ 922 $ — Illinois gross NOL carryforwards, begin to expire in 2023 160,016 232,834 Indiana gross NOL carryforwards, begin to expire in 2023 11,796 17,192 Alternative minimum tax credits 17,739 25,739 Other credits, begin to expire in 2028 — 3,268 |
Summary of Income Tax Contingencies | Rollforward of Unrecognized Tax Benefits (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 912 $ 279 $ — Additions for tax positions relating to the current year 480 635 279 Additions for tax positions relating to prior years 37 — — Reductions for tax positions relating to prior years (21 ) (2 ) — Ending balance $ 1,408 $ 912 $ 279 Interest and penalties not included above (1) : Interest expense, net of tax effect, and penalties $ 20 $ 4 $ — Accrued interest and penalties, net of tax effect, at end of year 24 4 — (1) Included in income tax expense in the Consolidated Statements of Income. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Profit Sharing Plan | Profit Sharing Plan (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Profit sharing expense (1) $ 6,919 $ 6,354 $ 2,914 Company dividends received by the Profit Sharing Plan $ 466 $ 428 $ 159 Company shares held by the Profit Sharing Plan at the end of the year: Number of shares 1,277,567 1,364,558 1,426,708 Fair value $ 23,546 $ 23,348 $ 25,010 (1) Included in retirement and other employee benefits in the Consolidated Statements of Income. |
Schedule of Pension Plan Cost and Obligation | Pension Plan Cost and Obligations (Dollar amounts in thousands) As of December 31, 2015 2014 Accumulated benefit obligation $ 67,185 $ 67,283 Change in projected benefit obligation: Beginning balance $ 67,283 $ 61,292 Service cost — — Interest cost 2,334 2,346 Settlements (7,320 ) (6,502 ) Actuarial loss 5,336 10,508 Benefits paid (448 ) (361 ) Ending balance $ 67,185 $ 67,283 Change in fair value of plan assets: Beginning balance $ 72,193 $ 74,370 Actual return on plan assets 478 4,686 Benefits paid (448 ) (361 ) Settlements (7,320 ) (6,502 ) Ending balance $ 64,903 $ 72,193 Funded status recognized in the Consolidated Statements of Financial Condition: Noncurrent (liability) asset $ (2,282 ) $ 4,910 Amounts recognized in accumulated other comprehensive loss: Prior service cost $ — $ — Net loss 26,481 19,911 Net amount recognized $ 26,481 $ 19,911 Actuarial losses included in accumulated other comprehensive loss as a percent of: Accumulated benefit obligation 39.4 % 29.6 % Fair value of plan assets 40.8 % 27.6 % Amounts expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost in the next fiscal year: Prior service cost $ — $ — Net loss 516 401 Net amount expected to be recognized $ 516 $ 401 Weighted-average assumptions at the end of the year used to determine the actuarial present value of the projected benefit obligation: Discount rate 3.99 % 3.60 % |
Schedule of Net Periodic Benefit Pension Costs | Net Periodic Benefit Pension Cost (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Components of net periodic benefit cost: Service cost $ — $ — $ 2,600 Interest cost 2,334 2,346 2,414 Expected return on plan assets (4,333 ) (4,931 ) (4,299 ) Recognized net actuarial loss 367 249 1,453 Amortization of prior service cost — — 1 Recognized settlement loss 2,254 1,377 — Net periodic cost (income) 622 (959 ) 2,169 Other changes in plan assets and benefit obligations recognized as a charge to other comprehensive (loss) income: Net (loss) gain for the period (9,191 ) (10,752 ) 16,146 Amortization of prior service cost — — 1 Amortization of net loss 2,621 1,625 1,453 Total unrealized (loss) gain (6,570 ) (9,127 ) 17,600 Total recognized in net periodic pension cost and other comprehensive (loss) income $ (7,192 ) $ (8,168 ) $ 15,431 Weighted-average assumptions used to determine the net periodic cost: Discount rate 3.60 % 4.30 % 3.40 % Expected return on plan assets 6.50 % 7.25 % 7.25 % Rate of compensation increase N/A (1) N/A (1) 2.50 % N/A – Not applicable. (1) The rate of compensation increase is no longer applicable in determining the net periodic cost due to the amendment to freeze benefit accruals, which is discussed above. |
Schedule of Pension Plan Asset Allocation | Pension Plan Asset Allocation (Dollar amounts in thousands) Percentage of Plan Assets as of December 31, Target Allocation Fair Value of Plan Assets (1) 2015 2014 Asset Category: Equity securities 50 - 60% $ 38,314 59 % 59 % Fixed income 30 - 48% 22,457 35 % 36 % Cash equivalents 2 - 10% 4,132 6 % 5 % Total $ 64,903 100 % 100 % (1) Additional information regarding the fair value of Pension Plan assets as of December 31, 2015 can be found in Note 22 , " Fair Value ." |
Schedule of Estimated Future Pension Benefit Payments | Estimated future pension benefit payments for fiscal years ending December 31, 2016 through 2025 are as follows. Estimated Future Pension Benefit Payments (Dollar amounts in thousands) Total Year ending December 31, 2016 $ 11,175 2017 7,052 2018 5,755 2019 5,241 2020 4,538 2021-2025 19,363 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of Common Stock Available Under Share-Based Plans | Shares of Common Stock Available Under Share-Based Plans As of December 31, 2015 Shares Authorized Shares Available For Grant Omnibus Plan 8,631,641 2,105,921 Directors Plan 481,250 102,063 |
Nonqualified Stock Option Transactions | Nonqualified Stock Option Transactions (Amounts in thousands, except per share data) Year Ended December 31, 2015 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (1) Aggregate Intrinsic Value (2) Options outstanding beginning balance 1,153 $ 32.93 Expired (397 ) 33.66 Options outstanding ending balance 756 $ 32.55 1.32 $ 273 Exercisable at the end of the year 756 $ 32.55 1.32 $ 273 (1) Represents the average remaining contractual life in years. (2) Aggregate intrinsic value represents the total pre-tax intrinsic value that would have been received by the option holders if they had exercised their options on December 31, 2015 . Intrinsic value equals the difference between the Company's average of the high and low stock price on the last trading day of the year and the option exercise price, multiplied by the number of shares. This amount will fluctuate with changes in the fair value of the Company's common stock. |
Restricted Stock, Restricted Stock Unit, and Performance Share Award Transactions | Restricted Stock, Restricted Stock Unit, and Performance Share Award Transactions (Amounts in thousands, except per share data) Year Ended December 31, 2015 Restricted Stock/Unit Awards Performance Shares Number of Shares/Units Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Non-vested awards beginning balance 997 $ 13.79 238 $ 14.36 Granted 453 16.95 112 16.95 Vested (483 ) 12.54 — — Forfeited (59 ) 15.07 (12 ) 15.07 Non-vested awards ending balance 908 $ 15.92 338 $ 15.19 |
Effect of Recording Share-Based Compensation Expense | Effect of Recording Share-Based Compensation Expense (Dollar amounts in thousands) Years ended December 31, 2015 2014 2013 Restricted stock, restricted unit, and performance share award expense $ 7,242 $ 5,926 $ 5,779 Salary stock award expense — — 124 Total share-based compensation expense 7,242 5,926 5,903 Income tax benefit 2,962 2,424 2,414 Share-based compensation expense, net of tax $ 4,280 $ 3,502 $ 3,489 Unrecognized compensation expense $ 8,644 $ 6,937 $ 6,327 Weighted-average amortization period remaining (in years) 1.4 1.3 1.2 |
Salary Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Other Share-based Compensation, Activity | Salary Stock Awards Granted Years ended December 31, 2015 2014 2013 Shares granted — — 8,693 Weighted-average price $ — $ — $ 14.30 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Other Share-based Compensation, Activity | Other Restricted Stock, Restricted Stock Unit, and Performance Share Award Information (Amounts in thousands, except per share data) Years Ended December 31, 2015 2014 2013 Weighted-average grant date fair value of restricted stock, restricted stock unit, and performance share awards granted during the year $ 16.95 $ 16.13 $ 13.01 Total fair value of restricted stock and restricted stock unit awards vested during the year 7,615 7,546 4,917 Income tax benefit realized from the vesting/release of restricted stock and restricted stock unit awards 2,368 2,939 1,966 |
Regulatory and Capital Matters
Regulatory and Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Summary of Regulatory Capital Ratios | The following table outlines the Company's and the Bank's measures of capital as of the dates presented and the capital guidelines established by the Federal Reserve for the Company and the Bank to be categorized as adequately capitalized and the Bank to be categorized as "well-capitalized." Summary of Regulatory Capital Ratios (Dollar amounts in thousands) Actual Adequately Capitalized To Be Well-Capitalized Under Prompt Corrective Action Provisions Capital Ratio % Capital Ratio % Capital Ratio % As of December 31, 2015 (1) Total capital to risk-weighted assets: First Midwest Bancorp, Inc. $ 968,331 11.15 $ 695,029 8.00 N/A N/A First Midwest Bank 929,167 11.02 674,380 8.00 $ 842,974 10.00 Tier 1 capital to risk-weighted assets: First Midwest Bancorp, Inc. 893,476 10.28 521,272 6.00 N/A N/A First Midwest Bank 854,322 10.13 505,785 6.00 674,380 8.00 Tier 1 common capital to risk-weighted assets: First Midwest Bancorp, Inc. 845,640 9.73 390,954 4.50 N/A N/A First Midwest Bank 854,322 10.13 379,338 4.50 547,933 6.50 Tier 1 leverage to average assets: First Midwest Bancorp, Inc. 893,476 9.40 380,043 4.00 N/A N/A First Midwest Bank 854,322 9.09 375,950 4.00 469,937 5.00 As of December 31, 2014 (1) Total capital to risk-weighted assets: First Midwest Bancorp, Inc. $ 884,692 11.23 $ 630,140 8.00 N/A N/A First Midwest Bank 931,829 12.30 606,038 8.00 $ 757,547 10.00 Tier 1 capital to risk-weighted assets: First Midwest Bancorp, Inc. 802,483 10.19 315,070 4.00 N/A N/A First Midwest Bank 857,362 11.32 303,019 4.00 454,528 6.00 Tier 1 leverage to average assets: First Midwest Bancorp, Inc. 802,483 9.03 355,362 4.00 N/A N/A First Midwest Bank 857,362 9.76 351,222 4.00 439,028 5.00 N/A – Not applicable. (1) Basel III Capital Rules, which became effective for the Company on January 1, 2015, revised the risk-based capital requirements and introduced a new capital measure, Tier 1 common capital to risk-weighted assets. As a result, ratios as of December 31, 2015 are computed using the new rules and ratios as of December 31, 2014 are computed using the regulatory guidance applicable at that time. |
Derivative Instruments and He50
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | Cash Flow Hedges (Dollar amounts in thousands) As of December 31, 2015 2014 Gross notional amount outstanding $ 1,220,000 $ 650,000 Derivative asset fair value 4,787 1,166 Derivative liability fair value (8,950 ) (3,096 ) Weighted-average interest rate received 1.24 % 1.63 % Weighted-average interest rate paid 0.75 % 0.16 % Weighted-average maturity (in years) 3.91 4.52 Fair Value Hedges (Dollar amounts in thousands) As of December 31, 2015 2014 Gross notional amount outstanding $ 11,620 $ 12,793 Derivative liability fair value (643 ) (1,032 ) Weighted-average interest rate received 2.25 % 2.07 % Weighted-average interest rate paid 6.36 % 6.37 % Weighted-average maturity (in years) 1.97 2.95 Fair value of assets needed to settle derivative transactions (1) 665 1,057 (1) This amount represents the fair value if credit risk related contingent features were triggered. |
Schedule of Derivative Instruments | Other Derivative Instruments (Dollar amounts in thousands) As of December 31, 2015 2014 Gross notional amount outstanding $ 853,385 $ 527,893 Derivative asset fair value 11,446 7,852 Derivative liability fair value (11,446 ) (7,852 ) Fair value of assets needed to settle derivative transactions (1) 11,939 8,130 (1) This amount represents the fair value if credit risk related contingent factors were triggered. |
Offsetting Assets | The following table presents the fair value of the Company's derivatives and offsetting positions as of December 31, 2015 and 2014 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of December 31, 2015 2014 Assets Liabilities Assets Liabilities Gross amounts recognized $ 16,233 $ 21,039 $ 9,018 $ 11,980 Less: amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition (1) 16,233 21,039 9,018 11,980 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (4,791 ) (4,791 ) (1,195 ) (1,195 ) Cash collateral pledged — (16,248 ) — (10,785 ) Net credit exposure $ 11,442 $ — $ 7,823 $ — (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Offsetting Liabilities | The following table presents the fair value of the Company's derivatives and offsetting positions as of December 31, 2015 and 2014 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of December 31, 2015 2014 Assets Liabilities Assets Liabilities Gross amounts recognized $ 16,233 $ 21,039 $ 9,018 $ 11,980 Less: amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition (1) 16,233 21,039 9,018 11,980 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (4,791 ) (4,791 ) (1,195 ) (1,195 ) Cash collateral pledged — (16,248 ) — (10,785 ) Net credit exposure $ 11,442 $ — $ 7,823 $ — (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and 51
Commitments, Guarantees, and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure | Contractual or Notional Amounts of Financial Instruments (Dollar amounts in thousands) As of December 31, 2015 2014 Commitments to extend credit: Commercial, industrial, and agricultural $ 1,303,056 $ 1,299,683 Commercial real estate 366,250 170,573 Home equity 352,114 317,783 Other commitments (1) 203,121 194,556 Total commitments to extend credit $ 2,224,541 $ 1,982,595 Standby letters of credit $ 100,610 $ 110,639 Recourse on assets sold: Unpaid principal balance of loans sold $ 196,389 $ 185,910 Carrying value of recourse obligation (2) 87 155 (1) Other commitments includes installment and overdraft protection program commitments. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table provides the fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Recurring Fair Value Measurements (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Trading securities: Money market funds $ 2,530 $ — $ — $ 1,725 $ — $ — Mutual funds 14,364 — — 15,735 — — Total trading securities 16,894 — — 17,460 — — Securities available-for-sale: U.S. treasury securities 16,980 — — — — — U.S. agency securities — 86,643 — — 30,431 — CMOs — 687,185 — — 534,156 — MBSs — 153,530 — — 159,765 — Municipal securities — 327,570 — — 423,820 — CDOs — — 31,529 — — 33,774 Corporate debt securities — — — — 1,802 — Equity securities — 3,199 — — 3,261 — Total securities available-for- sale 16,980 1,258,127 31,529 — 1,153,235 33,774 Mortgage servicing rights (1) — — 1,853 — — 1,728 Derivative assets (1) — 16,233 — — 9,018 — Liabilities: Derivative liabilities (2) $ — $ 21,039 $ — $ — $ 11,980 $ — (1) Included in other assets in the Consolidated Statements of Financial Condition. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. |
Unobservable Inputs Used In The Valuation Of CDOs | The following table presents ranges of significant, unobservable inputs calculated using the weighted average of the Issuers used by the Company as of December 31, 2015 and 2014. Significant Unobservable Inputs Used in the Valuation of CDOs As of December 31, 2015 2014 Probability of prepayment 1.8 % - 15.1% 2.9 % - 15.2% Probability of default 19.1 % - 32.6% 18.4 % - 57.7% Loss given default 93.8 % - 97.1% 83.8 % - 97.0% Probability of deferral cure 15.2 % - 63.1% 6.7 % - 75.0% |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | A rollforward of the carrying value of CDOs for the three years ended December 31, 2015 is presented in the following table. Rollforward of Carrying Value of CDOs (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 33,774 $ 18,309 $ 12,129 Additions — 6,549 — Change in other comprehensive (loss) income (1) (2,030 ) 13,495 6,180 Paydowns and sales (2) (215 ) (4,579 ) — Ending balance $ 31,529 $ 33,774 $ 18,309 (1) Included in unrealized holding (losses) gains in the Consolidated Statements of Comprehensive Income. (2) During the year ended December 31, 2014, one CDO with a carrying value of $1.3 million and four CDOs totaling $2.9 million , which were acquired in the Great Lakes transaction, were sold. In addition, one CDO with a carrying value of zero was sold during the year ended December 31, 2013. |
Fair Value Inputs Mortgage Servicing Assets Quantitative Information | A rollforward of the carrying value of mortgage servicing rights for the three years ended December 31, 2015 is presented in the following table. Carrying Value of Mortgage Servicing Rights (Dollar amounts in thousands) Years Ended December 31, 2015 2014 2013 Beginning balance $ 1,728 $ 1,893 $ 985 New mortgage servicing rights 342 315 1,060 Total (losses) gains included in earnings (1) : Changes in valuation inputs and assumptions (11 ) (480 ) 63 Other changes in fair value (2) (206 ) — (215 ) Ending balance $ 1,853 $ 1,728 $ 1,893 Contractual servicing fees earned during the year (1) $ 546 $ 520 $ 418 Total amount of loans being serviced for the benefit of others at the end of the year 242,915 220,372 214,458 (1) Included in mortgage banking income in the Consolidated Statements of Income and relate to assets still held at the end of the year. (2) Primarily represents changes in expected future cash flows over time due to payoffs and paydowns. |
Fair Value Assets Measured On Annual Basis | The fair value of Pension Plan assets is presented in the following table by level in the fair value hierarchy. Annual Fair Value Measurements for Pension Plan Assets (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total Pension plan assets: Mutual funds (1) $ 23,061 $ — $ 23,061 $ 25,499 $ — $ 25,499 U.S. government and government agency securities 6,866 5,538 12,404 7,879 8,063 15,942 Corporate bonds — 9,569 9,569 — 6,599 6,599 Common stocks 11,330 — 11,330 14,149 — 14,149 Common trust funds — 8,539 8,539 — 10,004 10,004 Total pension plan assets $ 41,257 $ 23,646 $ 64,903 $ 47,527 $ 24,666 $ 72,193 (1) Includes mutual funds, money market funds, cash, cash equivalents, and accrued interest. |
Fair Value Measurements, Nonrecurring | The following table provides the fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Non-Recurring Fair Value Measurements (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ — $ — $ 10,519 $ — $ — $ 23,799 OREO (2) — — 8,581 — — 22,760 Loans held-for-sale (3) — — 14,444 — — 9,459 Assets held-for-sale (4) — — 7,428 — — 2,026 (1) Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. (2) Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented. (3) Included in other assets in the Consolidated Statements of Financial Condition. (4) Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition. |
Fair Value, by Balance Sheet Grouping | For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table. Fair Value Measurements of Other Financial Instruments (Dollar amounts in thousands) As of December 31, 2015 As of December 31, 2014 Fair Value Hierarchy Carrying Fair Value Carrying Fair Value Assets: Cash and due from banks 1 $ 114,587 $ 114,587 $ 117,315 $ 117,315 Interest-bearing deposits in other banks 2 266,615 266,615 488,947 488,947 Securities held-to-maturity 2 23,152 20,054 26,555 27,670 FHLB and FRB stock 2 39,306 39,306 37,558 37,558 Loans 3 7,091,988 6,959,024 6,672,611 6,536,248 Investment in BOLI 3 209,601 209,601 206,498 206,498 Accrued interest receivable 3 27,847 27,847 27,506 27,506 Other interest-earning assets 3 1,982 1,982 3,799 3,799 Liabilities: Deposits 2 $ 8,097,738 $ 8,093,640 $ 7,887,758 $ 7,879,413 Borrowed funds 2 165,096 165,096 137,994 137,994 Senior and subordinated debt 1 201,208 205,726 200,869 209,035 Accrued interest payable 2 2,175 2,175 2,324 2,324 |
Condensed Parent Company Fina53
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Statements of Financial Condition - Parent Company Only | The following represents the condensed financial statements of First Midwest Bancorp, Inc., the Parent Company. Statements of Financial Condition (Parent Company only) (Dollar amounts in thousands) As of December 31, 2015 2014 Assets Cash and due from banks $ 119,693 $ 43,546 Investments in and advances to subsidiaries 1,184,900 1,211,244 Goodwill 18,216 13,625 Other assets 54,394 79,468 Total assets $ 1,377,203 $ 1,347,883 Liabilities and Stockholders' Equity Senior and subordinated debt $ 201,208 $ 200,869 Accrued interest payable and other liabilities 29,727 46,239 Stockholders' equity 1,146,268 1,100,775 Total liabilities and stockholders' equity $ 1,377,203 $ 1,347,883 |
Statements of Income - Parent Company Only | Statements of Income (Parent Company only) (Dollar amounts in thousands) Years ended December 31, 2015 2014 2013 Income Dividends from subsidiaries $ 127,000 $ 56,881 $ 54,200 Interest income 2,164 1,502 1,067 Net losses on early extinguishment of debt — — (1,034 ) Securities transactions and other 584 6,451 37,485 Total income 129,748 64,834 91,718 Expenses Interest expense 12,545 12,062 13,607 Salaries and employee benefits 14,624 12,589 15,198 Other expenses 6,003 5,867 5,792 Total expenses 33,172 30,518 34,597 Income before income tax benefit (expense) and equity in undistributed (loss) income of subsidiaries 96,576 34,316 57,121 Income tax benefit (expense) 11,950 8,710 (962 ) Income before equity in undistributed (loss) income of subsidiaries 108,526 43,026 56,159 Equity in undistributed (loss) income of subsidiaries (26,462 ) 26,280 23,147 Net income 82,064 69,306 79,306 Net income applicable to non-vested restricted shares (882 ) (836 ) (1,107 ) Net income applicable to common shares $ 81,182 $ 68,470 $ 78,199 |
Statements of Cash Flows - Parent Company Only | Statements of Cash Flows (Parent Company only) (Dollar amounts in thousands) Years ended December 31, 2015 2014 2013 Operating Activities Net income $ 82,064 $ 69,306 $ 79,306 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed loss (income) of subsidiaries 26,462 (26,280 ) (23,147 ) Depreciation of premises, furniture, and equipment 7 6 7 Net gains on sales of securities (1 ) (5,702 ) (34,119 ) Net losses on early extinguishment of debt — — 1,034 Share-based compensation expense 7,242 5,926 5,903 Tax expense related to share-based compensation (1,200 ) (106 ) (10 ) Net decrease in other assets 23,699 4,599 1,084 Net (decrease) increase in other liabilities (17,132 ) 14,063 (1,624 ) Net cash provided by operating activities 121,141 61,812 28,434 Investing Activities Purchases of securities available-for-sale — — (46,532 ) Proceeds from sales and maturities of securities available-for-sale 310 8,540 43,329 Purchase of premises, furniture, and equipment (5 ) — — Net cash paid from acquisitions (16,047 ) (15,809 ) — Net cash used in investing activities (15,742 ) (7,269 ) (3,203 ) Financing Activities Payments for retirement of subordinated debt — — (24,094 ) Treasury stock activity (120 ) 369 — Cash dividends paid (27,036 ) (22,568 ) (7,508 ) Restricted stock activity (2,890 ) (2,781 ) (1,607 ) Excess tax benefit related to share-based compensation 794 912 79 Net cash used in financing activities (29,252 ) (24,068 ) (33,130 ) Net increase (decrease) in cash and cash equivalents 76,147 30,475 (7,899 ) Cash and cash equivalents at beginning of year 43,546 13,071 20,970 Cash and cash equivalents at end of year $ 119,693 $ 43,546 $ 13,071 Supplemental Disclosures of Cash Flow Information: Common stock issued for acquisitions, net of issuance costs $ — $ 38,300 $ — |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Detail) | 12 Months Ended |
Dec. 31, 2015segmentsubsidiary | |
Accounting Policies [Abstract] | |
Number of wholly owned subsidiaries | subsidiary | 3 |
Number of segments | segment | 1 |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible assets amortization period | 13 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Premises | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 25 years |
Premises | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Acquisitions (Detail) - Narrati
Acquisitions (Detail) - Narrative $ in Thousands | Dec. 03, 2015USD ($)location | Nov. 12, 2015USD ($)location | Dec. 02, 2014USD ($)location | Sep. 26, 2014USD ($) | Aug. 08, 2014USD ($)retail_branch | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 319,007 | $ 319,007 | $ 310,589 | $ 264,062 | $ 265,477 | |||||
Acquisition and integration related costs | $ 1,389 | $ 13,872 | $ 0 | |||||||
National Bank & Trust Company of Sycamore | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Announced number of locations to be acquired | location | 10 | |||||||||
Announced loans to be acquired | $ 415,000 | |||||||||
Announced deposits to be acquired | 600,000 | |||||||||
Announced trust assets to be acquired | 700,000 | |||||||||
Announced consideration to be transferred | $ 70,000 | |||||||||
Peoples' Bank of Arlington Heights | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of retail branches acquired | location | 2 | |||||||||
Payments to acquire business | $ 16,828 | |||||||||
Goodwill | 7,544 | |||||||||
Consideration transferred | 16,828 | |||||||||
Consideration transferred, common stock | $ 0 | |||||||||
Popular Community Bank | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of retail branches acquired | retail_branch | 12 | |||||||||
Payments to acquire business | $ 19,000 | |||||||||
Goodwill | 32,181 | |||||||||
Consideration transferred | 19,000 | |||||||||
Consideration transferred, common stock | $ 0 | |||||||||
Great Lakes Financial Resources, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of retail branches acquired | location | 7 | |||||||||
Payments to acquire business | $ 17,450 | |||||||||
Goodwill | $ 10,339 | |||||||||
Number of drive-up locations acquired | location | 1 | |||||||||
Consideration transferred | $ 55,750 | |||||||||
Consideration transferred, common stock | $ 38,300 | |||||||||
Adjustment to decrease loans | (933) | |||||||||
Adjustment to decrease property, plant, and equipment | (523) | |||||||||
Adjustment to increase accrued interest receivable and other assets | 582 | |||||||||
Adjustment to intangibles to increase goodwill | $ 874 | |||||||||
FMEF | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire business | $ 3,100 | |||||||||
Goodwill | 4,000 | |||||||||
Assets acquired, excluding goodwill | $ 5,900 |
Acquisitions (Detail) - Acquisi
Acquisitions (Detail) - Acquisition Activity - USD ($) $ / shares in Units, $ in Thousands | Dec. 03, 2015 | Dec. 02, 2014 | Aug. 08, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | |||||||
Goodwill | $ 319,007 | $ 310,589 | $ 264,062 | $ 265,477 | |||
Liabilities | |||||||
Intangible liabilities | $ 9,034 | ||||||
Peoples | |||||||
Assets | |||||||
Cash and due from banks and interest-bearing deposits in other banks | $ 781 | ||||||
Securities available-for-sale | 41,492 | ||||||
FHLB and FRB stock | 558 | ||||||
Loans | 53,917 | ||||||
OREO | 515 | ||||||
Investment in BOLI | 0 | ||||||
Goodwill | 7,544 | ||||||
Other intangible assets | 580 | ||||||
Premises, furniture, and equipment | 2,215 | ||||||
Accrued interest receivable and other assets | 2,911 | ||||||
Total assets | 110,513 | ||||||
Liabilities | |||||||
Noninterest-bearing deposits | 15,869 | ||||||
Interest-bearing deposits | 75,944 | ||||||
Total deposits | 91,813 | ||||||
Intangible liabilities | 0 | ||||||
Borrowed funds | 1,200 | ||||||
Senior and subordinated debt | 0 | ||||||
Accrued interest payable and other liabilities | 672 | ||||||
Total liabilities | 93,685 | ||||||
Consideration Paid | |||||||
Common stock (2014 - 2,440,754 shares issued at $15.737 per share), net of $110,000 in issuance costs | 0 | ||||||
Cash paid | 16,828 | ||||||
Total consideration paid | $ 16,828 | ||||||
Popular | |||||||
Assets | |||||||
Cash and due from banks and interest-bearing deposits in other banks | $ 161,276 | ||||||
Securities available-for-sale | 0 | ||||||
FHLB and FRB stock | 0 | ||||||
Loans | 549,386 | ||||||
OREO | 0 | ||||||
Investment in BOLI | 0 | ||||||
Goodwill | 32,181 | ||||||
Other intangible assets | 8,003 | ||||||
Premises, furniture, and equipment | 4,647 | ||||||
Accrued interest receivable and other assets | 6,574 | ||||||
Total assets | 762,067 | ||||||
Liabilities | |||||||
Noninterest-bearing deposits | 163,299 | ||||||
Interest-bearing deposits | 568,573 | ||||||
Total deposits | 731,872 | ||||||
Intangible liabilities | 10,631 | $ 10,600 | |||||
Borrowed funds | 0 | ||||||
Senior and subordinated debt | 0 | ||||||
Accrued interest payable and other liabilities | 564 | ||||||
Total liabilities | 743,067 | ||||||
Consideration Paid | |||||||
Common stock (2014 - 2,440,754 shares issued at $15.737 per share), net of $110,000 in issuance costs | 0 | ||||||
Cash paid | 19,000 | ||||||
Total consideration paid | $ 19,000 | ||||||
Great Lakes | |||||||
Assets | |||||||
Cash and due from banks and interest-bearing deposits in other banks | $ 78,609 | ||||||
Securities available-for-sale | 219,279 | ||||||
FHLB and FRB stock | 1,970 | ||||||
Loans | 223,169 | ||||||
OREO | 1,244 | ||||||
Investment in BOLI | 10,373 | ||||||
Goodwill | 10,339 | ||||||
Other intangible assets | 6,192 | ||||||
Premises, furniture, and equipment | 5,011 | ||||||
Accrued interest receivable and other assets | 10,059 | ||||||
Total assets | 566,245 | ||||||
Liabilities | |||||||
Noninterest-bearing deposits | 110,885 | ||||||
Interest-bearing deposits | 353,424 | ||||||
Total deposits | 464,309 | ||||||
Intangible liabilities | 0 | ||||||
Borrowed funds | 29,490 | ||||||
Senior and subordinated debt | 9,809 | ||||||
Accrued interest payable and other liabilities | 6,887 | ||||||
Total liabilities | 510,495 | ||||||
Consideration Paid | |||||||
Common stock (2014 - 2,440,754 shares issued at $15.737 per share), net of $110,000 in issuance costs | 38,300 | ||||||
Cash paid | 17,450 | ||||||
Total consideration paid | $ 55,750 | ||||||
Common stock, shares issued | 2,440,754 | ||||||
Shares issued (dollars per share) | $ 15.737 | ||||||
Issuance costs | $ 110 |
Securities (Detail) - Securitie
Securities (Detail) - Securities Portfolio - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities Available-for-Sale | ||
Amortized Cost | $ 1,324,146 | $ 1,192,322 |
Gross Unrealized Gains | 9,921 | 17,922 |
Gross Unrealized Losses | (27,431) | (23,235) |
Fair Value | 1,306,636 | 1,187,009 |
Securities Held-to-Maturity | ||
Amortized Cost | 23,152 | 26,555 |
Gross Unrealized Gains | 0 | 1,115 |
Gross Unrealized Losses | (3,098) | 0 |
Fair Value | 20,054 | 27,670 |
Trading Securities | 16,894 | 17,460 |
US Treasury Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 17,000 | 0 |
Gross Unrealized Gains | 15 | 0 |
Gross Unrealized Losses | (35) | 0 |
Fair Value | 16,980 | 0 |
U.S. Agency Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 86,461 | 30,297 |
Gross Unrealized Gains | 351 | 144 |
Gross Unrealized Losses | (169) | (10) |
Fair Value | 86,643 | 30,431 |
Collateralized Mortgage Obligations | ||
Securities Available-for-Sale | ||
Amortized Cost | 695,198 | 538,882 |
Gross Unrealized Gains | 1,072 | 2,256 |
Gross Unrealized Losses | (9,085) | (6,982) |
Fair Value | 687,185 | 534,156 |
Other Mortgage Backed Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 152,481 | 155,443 |
Gross Unrealized Gains | 1,920 | 4,632 |
Gross Unrealized Losses | (871) | (310) |
Fair Value | 153,530 | 159,765 |
Municipal Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 321,437 | 414,255 |
Gross Unrealized Gains | 6,443 | 10,583 |
Gross Unrealized Losses | (310) | (1,018) |
Fair Value | 327,570 | 423,820 |
Trust-preferred Collateralized Debt Obligations | ||
Securities Available-for-Sale | ||
Amortized Cost | 48,287 | 48,502 |
Gross Unrealized Gains | 34 | 152 |
Gross Unrealized Losses | (16,792) | (14,880) |
Fair Value | 31,529 | 33,774 |
Corporate Debt Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 0 | 1,719 |
Gross Unrealized Gains | 0 | 83 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 1,802 |
Equity Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 3,282 | 3,224 |
Gross Unrealized Gains | 86 | 72 |
Gross Unrealized Losses | (169) | (35) |
Fair Value | $ 3,199 | $ 3,261 |
Securities (Detail) - Remaining
Securities (Detail) - Remaining Contractual Maturity of Securities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
One year or less | $ 95,201 | |
After one year to five years | 272,169 | |
After five years to ten years | 57,528 | |
After ten years | 48,287 | |
Securities that do not have a single contractual maturity date | 850,961 | |
Amortized Cost | 1,324,146 | $ 1,192,322 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
One year or less | 93,096 | |
After one year to five years | 266,151 | |
After five years to ten years | 56,256 | |
After ten years | 47,219 | |
Securities that do not have a single contractual maturity date | 843,914 | |
Total | 1,306,636 | 1,187,009 |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
One year or less | 2,092 | |
After one year to five years | 8,809 | |
After five years to ten years | 4,184 | |
After ten years | 8,067 | |
Securities that do not have a single contractual maturity date | 0 | |
Total | 23,152 | 26,555 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
One year or less | 1,812 | |
After one year to five years | 7,630 | |
After five years to ten years | 3,624 | |
After ten years | 6,988 | |
Securities that do not have a single contractual maturity date | 0 | |
Total | $ 20,054 | $ 27,670 |
Securities (Detail) - Narrative
Securities (Detail) - Narrative | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities pledged as collateral | $ 856,900,000 | $ 779,400,000 | |
Held-to-maturity securities pledged as collateral | 0 | 0 | |
Net realized gains on sales of securities | $ 2,373,000 | $ 8,125,000 | $ 34,572,000 |
Number Of CMOs Sold | security | 1 | ||
Carrying Value Of CMO Sold | $ 1,300,000 | ||
Number of CDOs sold | security | 1 | 1 | |
Carrying value of CDO sold | $ 1,300,000 | $ 0 | |
Other Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net realized gains on sales of securities | 1,900,000 | ||
Available-for-sale securities, excluding other mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net realized gains on sales of securities | $ 521,000 | ||
Trust-preferred Collateralized Debt Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net realized gains on sales of securities | 3,500,000 | ||
Available-for-sale securities, excluding collateralized debt obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net realized gains on sales of securities | $ 4,600,000 | ||
Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net realized gains on sales of securities | $ 34,000,000 |
Securities (Detail) - Securit60
Securities (Detail) - Securities Gains (Losses) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gains (losses) on sales of securities: | |||
Gross realized gains | $ 2,519 | $ 8,188 | $ 34,572 |
Gross realized losses | (146) | (63) | 0 |
Net realized gains on sales of securities | 2,373 | 8,125 | 34,572 |
Non-cash impairment charges: | |||
OTTI | 0 | (28) | (408) |
Net realized gains | $ 2,373 | $ 8,097 | $ 34,164 |
Securities (Detail) - Changes I
Securities (Detail) - Changes In Credit Losses Recognized In Earnings - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Cumulative amount recognized at the beginning of the year | $ 23,880 | $ 32,422 | $ 38,803 | |
OTTI included in earnings: | ||||
Losses on securities that previously had OTTI | [1] | 0 | 28 | 0 |
Losses on securities that did not previously have OTTI | [1] | 0 | 0 | 408 |
Reduction for securities sales | [2] | (171) | (8,570) | (6,789) |
Cumulative amount recognized at the end of the year | $ 23,709 | $ 23,880 | $ 32,422 | |
[1] | Included in net securities gains in the Consolidated Statements of Income. | |||
[2] | These reductions were driven by the sale of one CMO with a carrying value of $1.3 million during the year ended December 31, 2015, one CDO with a carrying value of $1.3 million during the year ended December 31, 2014, and one CDO with a carrying value of zero during the year ended December 31, 2013. |
Securities (Detail) - Securit62
Securities (Detail) - Securities In An Unrealized Loss Position $ in Thousands | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 252 | 195 |
Fair Value - Less Than 12 Months | $ 428,035 | $ 65,694 |
Unrealized Losses - Less Than 12 Months | 4,897 | 579 |
Fair Value - 12 Months or Longer | 337,516 | 402,418 |
Unrealized Losses - 12 Months or Longer | 22,534 | 22,656 |
Fair Value - Total | 765,551 | 468,112 |
Unrealized Losses - Total | $ 27,431 | $ 23,235 |
Securities Held-to-Maturity [Abstract] | ||
Number of Securities | security | 19 | |
Fair Value - Less than 12 Months | $ 20,054 | |
Unrealized Losses - Less Than 12 Months | 3,098 | |
Fair Value - 12 Months or Longer | 0 | |
Unrealized Losses - 12 Months or Longer | 0 | |
Fair Value - Total | 20,054 | |
Unrealized Losses - Total | $ 3,098 | |
US Treasury Securities | ||
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 4 | |
Fair Value - Less Than 12 Months | $ 7,946 | |
Unrealized Losses - Less Than 12 Months | 35 | |
Fair Value - 12 Months or Longer | 0 | |
Unrealized Losses - 12 Months or Longer | 0 | |
Fair Value - Total | 7,946 | |
Unrealized Losses - Total | $ 35 | |
U.S. Agency Securities | ||
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 10 | 1 |
Fair Value - Less Than 12 Months | $ 30,620 | $ 1,943 |
Unrealized Losses - Less Than 12 Months | 169 | 10 |
Fair Value - 12 Months or Longer | 0 | 0 |
Unrealized Losses - 12 Months or Longer | 0 | 0 |
Fair Value - Total | 30,620 | 1,943 |
Unrealized Losses - Total | $ 169 | $ 10 |
Collateralized Mortgage Obligations | ||
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 133 | 87 |
Fair Value - Less Than 12 Months | $ 309,787 | $ 61,321 |
Unrealized Losses - Less Than 12 Months | 3,110 | 559 |
Fair Value - 12 Months or Longer | 257,362 | 284,327 |
Unrealized Losses - 12 Months or Longer | 5,975 | 6,423 |
Fair Value - Total | 567,149 | 345,648 |
Unrealized Losses - Total | $ 9,085 | $ 6,982 |
Other Mortgage Backed Securities | ||
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 27 | 11 |
Fair Value - Less Than 12 Months | $ 63,028 | $ 1,113 |
Unrealized Losses - Less Than 12 Months | 427 | 1 |
Fair Value - 12 Months or Longer | 31,980 | 39,043 |
Unrealized Losses - 12 Months or Longer | 444 | 309 |
Fair Value - Total | 95,008 | 40,156 |
Unrealized Losses - Total | $ 871 | $ 310 |
Municipal Securities | ||
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 68 | 91 |
Fair Value - Less Than 12 Months | $ 8,135 | $ 1,317 |
Unrealized Losses - Less Than 12 Months | 65 | 9 |
Fair Value - 12 Months or Longer | 24,227 | 53,987 |
Unrealized Losses - 12 Months or Longer | 245 | 1,009 |
Fair Value - Total | 32,362 | 55,304 |
Unrealized Losses - Total | $ 310 | $ 1,018 |
Trust-preferred Collateralized Debt Obligations | ||
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 8 | 4 |
Fair Value - Less Than 12 Months | $ 8,034 | $ 0 |
Unrealized Losses - Less Than 12 Months | 971 | 0 |
Fair Value - 12 Months or Longer | 21,642 | 22,791 |
Unrealized Losses - 12 Months or Longer | 15,821 | 14,880 |
Fair Value - Total | 29,676 | 22,791 |
Unrealized Losses - Total | $ 16,792 | $ 14,880 |
Equity Securities | ||
Securities Available-for-Sale [Abstract] | ||
Number of Securities | security | 2 | 1 |
Fair Value - Less Than 12 Months | $ 485 | $ 0 |
Unrealized Losses - Less Than 12 Months | 120 | 0 |
Fair Value - 12 Months or Longer | 2,305 | 2,270 |
Unrealized Losses - 12 Months or Longer | 49 | 35 |
Fair Value - Total | 2,790 | 2,270 |
Unrealized Losses - Total | $ 169 | $ 35 |
Loans (Detail) - Loan Portfolio
Loans (Detail) - Loan Portfolio - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Commercial and industrial | $ 2,524,726 | $ 2,253,556 | |
Agricultural | 387,440 | 358,249 | |
Commercial real estate: | |||
Office, retail, and industrial | 1,395,454 | 1,478,379 | |
Multi-family | 528,324 | 564,421 | |
Construction | 216,882 | 204,236 | |
Other commercial real estate | 931,190 | 887,897 | |
Total commercial real estate | 3,071,850 | 3,134,933 | |
Total corporate loans | 5,984,016 | 5,746,738 | |
Home equity | 653,468 | 543,185 | |
1-4 family mortgages | 355,854 | 291,463 | |
Installment | 137,602 | 76,032 | |
Total consumer loans | 1,146,924 | 910,680 | |
Total loans, excluding covered loans | 7,130,940 | 6,657,418 | |
Covered loans | [1] | 30,775 | 79,435 |
Total loans | 7,161,715 | 6,736,853 | |
Deferred loan fees included in total loans | 5,191 | 3,922 | |
Overdrawn demand deposits included in total loans | $ 2,810 | $ 3,438 | |
[1] | For information on covered loans, see Note 6, "Acquired and Covered Loans." |
Loans (Detail) - Carrying Value
Loans (Detail) - Carrying Value of Loans Pledged - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans pledged to secure: | ||
FHLB advances | $ 3,057,421 | $ 1,952,736 |
FRB's Discount Window Primary Credit Program | 841,808 | 845,974 |
Total | $ 3,899,229 | $ 2,798,710 |
Loans (Detail) - 1-4 Family Mor
Loans (Detail) - 1-4 Family Mortgage Loans Sales - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Loan sales | ||||
Proceeds | $ 185,308 | $ 148,680 | $ 152,130 | |
Book Value | 180,017 | 144,909 | 147,413 | |
Net Gains | [1] | 5,291 | 3,771 | 4,717 |
Loans originated with intent to sell | ||||
Loan sales | ||||
Proceeds | 157,499 | 95,422 | 37,788 | |
Book Value | 153,130 | 92,525 | 36,592 | |
Net Gains | [1] | 4,369 | 2,897 | 1,196 |
Loans held-for-investment | ||||
Loan sales | ||||
Proceeds | 27,809 | 53,258 | 114,342 | |
Book Value | 26,887 | 52,384 | 110,821 | |
Net Gains | [1] | $ 922 | $ 874 | $ 3,521 |
[1] | Net gains on mortgage loan sales are included in mortgage banking income in the Consolidated Statements of Income. |
Acquired and Covered Loans Acqu
Acquired and Covered Loans Acquired and Covered Loans (Details) - Narrative $ in Millions | Dec. 31, 2015USD ($)transaction |
Acquired Loans [Abstract] | |
Number of FDIC assisted transactions no longer covered | transaction | 3 |
Financing receivables and other real estate owned FDIC coverage loss | $ 21 |
Renewed non-purchased credit impaired loans | $ 61.6 |
Acquired and Covered Loans (Det
Acquired and Covered Loans (Detail) - Acquired and Covered Loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Acquired Loans [Line Items] | ||
Non-PCI | $ 555,362 | $ 739,589 |
Total | 615,567 | 822,983 |
Acquired Loans | ||
Acquired Loans [Line Items] | ||
Non-PCI | 534,506 | 714,836 |
Total | 584,792 | 743,548 |
Covered Loans | ||
Acquired Loans [Line Items] | ||
Non-PCI | 20,856 | 24,753 |
Total | 30,775 | 79,435 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired Loans [Line Items] | ||
PCI | 60,205 | 83,394 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Acquired Loans | ||
Acquired Loans [Line Items] | ||
PCI | 50,286 | 28,712 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Covered Loans | ||
Acquired Loans [Line Items] | ||
PCI | $ 9,919 | $ 54,682 |
Acquired and Covered Loans (D68
Acquired and Covered Loans (Detail) - Changes in FDIC Indemnification Asset - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
FDIC Indemnification Asset [Roll Forward] | |||
Balance at the beginning of the year | $ 8,452 | $ 16,585 | $ 37,051 |
Amortization | (1,461) | (3,315) | (2,984) |
Change in expected reimbursements from the FDIC for changes in expected credit losses | 1,313 | (481) | (1,242) |
Payments received from the FDIC | (4,401) | (4,337) | (16,240) |
Balance at the end of the year | $ 3,903 | $ 8,452 | $ 16,585 |
Acquired and Covered Loans (D69
Acquired and Covered Loans (Detail) - Changes in Accretable Yield - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at the beginning of the year | $ 28,244 | $ 36,792 | $ 51,498 | |
Additions | 1,168 | 3,517 | 0 | |
Accretion | (11,311) | (12,535) | (15,016) | |
Other | [1] | 6,811 | 470 | 310 |
Balance at the end of the year | $ 24,912 | $ 28,244 | $ 36,792 | |
[1] | Represents a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio. |
Past Due Loans, Allowance For70
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Aging Analysis of Past Due Loans and Non-Performing Loans by Class - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 7,161,715 | $ 6,736,853 |
Commercial And Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,516,197 | 2,230,947 |
Total Past Due | 8,529 | 22,609 |
Total loans | 2,524,726 | 2,253,556 |
Non-accrual Loans | 5,587 | 22,693 |
90 Days Past Due Loans, Still Accruing Interest | 857 | 205 |
Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 387,109 | 355,982 |
Total Past Due | 331 | 2,267 |
Total loans | 387,440 | 358,249 |
Non-accrual Loans | 355 | 360 |
90 Days Past Due Loans, Still Accruing Interest | 0 | 0 |
Office, Retail, and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,386,383 | 1,463,724 |
Total Past Due | 9,071 | 14,655 |
Total loans | 1,395,454 | 1,478,379 |
Non-accrual Loans | 6,875 | 12,939 |
90 Days Past Due Loans, Still Accruing Interest | 4 | 76 |
Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 526,625 | 562,625 |
Total Past Due | 1,699 | 1,796 |
Total loans | 528,324 | 564,421 |
Non-accrual Loans | 796 | 754 |
90 Days Past Due Loans, Still Accruing Interest | 548 | 83 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 216,377 | 197,255 |
Total Past Due | 505 | 6,981 |
Total loans | 216,882 | 204,236 |
Non-accrual Loans | 905 | 6,981 |
90 Days Past Due Loans, Still Accruing Interest | 0 | 0 |
Other Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 922,531 | 876,609 |
Total Past Due | 8,659 | 11,288 |
Total loans | 931,190 | 887,897 |
Non-accrual Loans | 5,611 | 6,970 |
90 Days Past Due Loans, Still Accruing Interest | 661 | 438 |
Total Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,051,916 | 3,100,213 |
Total Past Due | 19,934 | 34,720 |
Total loans | 3,071,850 | 3,134,933 |
Non-accrual Loans | 14,187 | 27,644 |
90 Days Past Due Loans, Still Accruing Interest | 1,213 | 597 |
Total Corporate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,955,222 | 5,687,142 |
Total Past Due | 28,794 | 59,596 |
Total loans | 5,984,016 | 5,746,738 |
Non-accrual Loans | 20,129 | 50,697 |
90 Days Past Due Loans, Still Accruing Interest | 2,070 | 802 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 647,175 | 535,587 |
Total Past Due | 6,293 | 7,598 |
Total loans | 653,468 | 543,185 |
Non-accrual Loans | 5,310 | 6,290 |
90 Days Past Due Loans, Still Accruing Interest | 216 | 145 |
1-4 family mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 350,980 | 287,892 |
Total Past Due | 4,874 | 3,571 |
Total loans | 355,854 | 291,463 |
Non-accrual Loans | 3,416 | 2,941 |
90 Days Past Due Loans, Still Accruing Interest | 528 | 166 |
Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 136,780 | 75,428 |
Total Past Due | 822 | 604 |
Total loans | 137,602 | 76,032 |
Non-accrual Loans | 20 | 43 |
90 Days Past Due Loans, Still Accruing Interest | 69 | 60 |
Total consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,134,935 | 898,907 |
Total Past Due | 11,989 | 11,773 |
Total loans | 1,146,924 | 910,680 |
Non-accrual Loans | 8,746 | 9,274 |
90 Days Past Due Loans, Still Accruing Interest | 813 | 371 |
Total Loans Excluding Covered Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,090,157 | 6,586,049 |
Total Past Due | 40,783 | 71,369 |
Total loans | 7,130,940 | 6,657,418 |
Non-accrual Loans | 28,875 | 59,971 |
90 Days Past Due Loans, Still Accruing Interest | 2,883 | 1,173 |
Covered Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 29,808 | 66,331 |
Total Past Due | 967 | 13,104 |
Total loans | 30,775 | 79,435 |
Non-accrual Loans | 555 | 6,186 |
90 Days Past Due Loans, Still Accruing Interest | 174 | 5,002 |
Loans Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,119,965 | 6,652,380 |
Total Past Due | 41,750 | 84,473 |
Total loans | 7,161,715 | 6,736,853 |
Non-accrual Loans | 29,430 | 66,157 |
90 Days Past Due Loans, Still Accruing Interest | 3,057 | 6,175 |
30-89 Days Past Due | Commercial And Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,956 | 19,505 |
30-89 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 245 | 1,934 |
30-89 Days Past Due | Office, Retail, and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,647 | 2,340 |
30-89 Days Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 541 | 1,261 |
30-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-89 Days Past Due | Other Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,575 | 5,412 |
30-89 Days Past Due | Total Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,763 | 9,013 |
30-89 Days Past Due | Total Corporate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,964 | 30,452 |
30-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,247 | 3,216 |
30-89 Days Past Due | 1-4 family mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,680 | 2,246 |
30-89 Days Past Due | Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 753 | 506 |
30-89 Days Past Due | Total consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,680 | 5,968 |
30-89 Days Past Due | Total Loans Excluding Covered Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,644 | 36,420 |
30-89 Days Past Due | Covered Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 405 | 2,714 |
30-89 Days Past Due | Loans Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 19,049 | 39,134 |
90 Days or More Past Due | Commercial And Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,573 | 3,104 |
90 Days or More Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 86 | 333 |
90 Days or More Past Due | Office, Retail, and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,424 | 12,315 |
90 Days or More Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,158 | 535 |
90 Days or More Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 505 | 6,981 |
90 Days or More Past Due | Other Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,084 | 5,876 |
90 Days or More Past Due | Total Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,171 | 25,707 |
90 Days or More Past Due | Total Corporate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 16,830 | 29,144 |
90 Days or More Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,046 | 4,382 |
90 Days or More Past Due | 1-4 family mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,194 | 1,325 |
90 Days or More Past Due | Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 69 | 98 |
90 Days or More Past Due | Total consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,309 | 5,805 |
90 Days or More Past Due | Total Loans Excluding Covered Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,139 | 34,949 |
90 Days or More Past Due | Covered Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 562 | 10,390 |
90 Days or More Past Due | Loans Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 22,701 | $ 45,339 |
Past Due Loans, Allowance For71
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Allowance for Credit Losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 74,510 | $ 87,121 | $ 102,812 |
Charge-offs | (26,917) | (40,184) | (38,580) |
Recoveries | 6,701 | 8,205 | 8,382 |
Net charge-offs | (20,216) | (31,979) | (30,198) |
Provision for loan and covered loan losses and other | 20,561 | 19,368 | 14,507 |
Ending Balance | 74,855 | 74,510 | 87,121 |
Commercial, Industrial, and Agricultural | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 29,458 | 30,381 | 36,761 |
Charge-offs | (15,885) | (17,424) | (12,094) |
Recoveries | 2,573 | 3,800 | 3,797 |
Net charge-offs | (13,312) | (13,624) | (8,297) |
Provision for loan and covered loan losses and other | 20,928 | 12,701 | 1,917 |
Ending Balance | 37,074 | 29,458 | 30,381 |
Office, Retail, and Industrial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 10,992 | 10,405 | 11,432 |
Charge-offs | (2,887) | (7,345) | (4,744) |
Recoveries | 467 | 497 | 228 |
Net charge-offs | (2,420) | (6,848) | (4,516) |
Provision for loan and covered loan losses and other | 4,544 | 7,435 | 3,489 |
Ending Balance | 13,116 | 10,992 | 10,405 |
Multi-family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,249 | 2,017 | 3,575 |
Charge-offs | (545) | (943) | (1,029) |
Recoveries | 15 | 87 | 584 |
Net charge-offs | (530) | (856) | (445) |
Provision for loan and covered loan losses and other | 743 | 1,088 | (1,113) |
Ending Balance | 2,462 | 2,249 | 2,017 |
Construction | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,297 | 6,316 | 9,223 |
Charge-offs | (136) | (1,052) | (1,916) |
Recoveries | 350 | 166 | 1,032 |
Net charge-offs | 214 | (886) | (884) |
Provision for loan and covered loan losses and other | (1,071) | (3,133) | (2,023) |
Ending Balance | 1,440 | 2,297 | 6,316 |
Other Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 8,327 | 10,817 | 13,531 |
Charge-offs | (2,643) | (4,834) | (4,784) |
Recoveries | 1,993 | 1,727 | 1,646 |
Net charge-offs | (650) | (3,107) | (3,138) |
Provision for loan and covered loan losses and other | (1,589) | 617 | 424 |
Ending Balance | 6,088 | 8,327 | 10,817 |
Consumer | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 12,145 | 13,010 | 12,862 |
Charge-offs | (4,187) | (7,574) | (9,414) |
Recoveries | 1,183 | 729 | 1,071 |
Net charge-offs | (3,004) | (6,845) | (8,343) |
Provision for loan and covered loan losses and other | 2,671 | 5,980 | 8,491 |
Ending Balance | 11,812 | 12,145 | 13,010 |
Covered Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 7,226 | 12,559 | 12,062 |
Charge-offs | (634) | (1,012) | (4,599) |
Recoveries | 120 | 1,199 | 24 |
Net charge-offs | (514) | 187 | (4,575) |
Provision for loan and covered loan losses and other | (5,074) | (5,520) | 5,072 |
Ending Balance | 1,638 | 7,226 | 12,559 |
Reserve for Unfunded Commitments | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,816 | 1,616 | 3,366 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 |
Provision for loan and covered loan losses and other | (591) | 200 | (1,750) |
Ending Balance | $ 1,225 | $ 1,816 | $ 1,616 |
Past Due Loans, Allowance For72
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Loans and Related Allowance for Credit Losses by Portfolio Segment - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | $ 7,161,715 | $ 6,736,853 | ||
Total Allowance for Credit Losses | 74,855 | 74,510 | $ 87,121 | $ 102,812 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 60,205 | 83,394 | ||
Commercial, Industrial, and Agricultural | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 2,871 | 19,796 | ||
Loans Collectively Evaluated for Impairment | 2,902,361 | 2,588,141 | ||
Total loans | 2,912,166 | 2,611,805 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 883 | 2,249 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 35,378 | 27,209 | ||
Total Allowance for Credit Losses | 37,074 | 29,458 | ||
Commercial, Industrial, and Agricultural | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 6,934 | 3,868 | ||
Total Allowance for Credit Losses | 813 | 0 | ||
Office, Retail, and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 6,162 | 12,332 | ||
Loans Collectively Evaluated for Impairment | 1,376,789 | 1,458,918 | ||
Total loans | 1,395,454 | 1,478,379 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 715 | 271 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 10,833 | 10,721 | ||
Total Allowance for Credit Losses | 13,116 | 10,992 | ||
Office, Retail, and Industrial | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 12,503 | 7,129 | ||
Total Allowance for Credit Losses | 1,568 | 0 | ||
Multi-family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 800 | 939 | ||
Loans Collectively Evaluated for Impairment | 526,037 | 561,400 | ||
Total loans | 528,324 | 564,421 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 2,367 | 2,249 | ||
Total Allowance for Credit Losses | 2,462 | 2,249 | ||
Multi-family | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 1,487 | 2,082 | ||
Total Allowance for Credit Losses | 95 | 0 | ||
Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 178 | 6,671 | ||
Loans Collectively Evaluated for Impairment | 212,671 | 195,094 | ||
Total loans | 216,882 | 204,236 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 1,160 | 2,297 | ||
Total Allowance for Credit Losses | 1,440 | 2,297 | ||
Construction | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 4,033 | 2,471 | ||
Total Allowance for Credit Losses | 280 | 0 | ||
Other Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 3,665 | 3,266 | ||
Loans Collectively Evaluated for Impairment | 913,161 | 880,087 | ||
Total loans | 931,190 | 887,897 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 11 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 5,367 | 8,316 | ||
Total Allowance for Credit Losses | 6,088 | 8,327 | ||
Other Commercial Real Estate | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 14,364 | 4,544 | ||
Total Allowance for Credit Losses | 721 | 0 | ||
Total Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 10,805 | 23,208 | ||
Loans Collectively Evaluated for Impairment | 3,028,658 | 3,095,499 | ||
Total loans | 3,071,850 | 3,134,933 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 715 | 282 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 19,727 | 23,583 | ||
Total Allowance for Credit Losses | 23,106 | 23,865 | ||
Total Commercial Real Estate | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 32,387 | 16,226 | ||
Total Allowance for Credit Losses | 2,664 | 0 | ||
Total Corporate Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 13,676 | 43,004 | ||
Loans Collectively Evaluated for Impairment | 5,931,019 | 5,683,640 | ||
Total loans | 5,984,016 | 5,746,738 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 1,598 | 2,531 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 55,105 | 50,792 | ||
Total Allowance for Credit Losses | 60,180 | 53,323 | ||
Total Corporate Loans | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 39,321 | 20,094 | ||
Total Allowance for Credit Losses | 3,477 | 0 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Loans Collectively Evaluated for Impairment | 1,135,959 | 902,062 | ||
Total loans | 1,146,924 | 910,680 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 11,425 | 11,822 | ||
Total Allowance for Credit Losses | 11,812 | 12,145 | ||
Consumer | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 10,965 | 8,618 | ||
Total Allowance for Credit Losses | 387 | 323 | ||
Total Loans Excluding Covered Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 13,676 | 43,004 | ||
Loans Collectively Evaluated for Impairment | 7,066,978 | 6,585,702 | ||
Total loans | 7,130,940 | 6,657,418 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 1,598 | 2,531 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 66,530 | 62,614 | ||
Total Allowance for Credit Losses | 71,992 | 65,468 | ||
Total Loans Excluding Covered Loans | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 50,286 | 28,712 | ||
Total Allowance for Credit Losses | 3,864 | 323 | ||
Covered Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Loans Collectively Evaluated for Impairment | 20,856 | 24,753 | ||
Total loans | 30,775 | 79,435 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 248 | 488 | ||
Total Allowance for Credit Losses | 1,638 | 7,226 | ||
Covered Loans | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 9,919 | 54,682 | ||
Total Allowance for Credit Losses | 1,390 | 6,738 | ||
Reserve for Unfunded Commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Loans Collectively Evaluated for Impairment | 0 | 0 | ||
Total loans | 0 | 0 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 1,225 | 1,816 | ||
Total Allowance for Credit Losses | 1,225 | 1,816 | ||
Reserve for Unfunded Commitments | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 0 | 0 | ||
Total Allowance for Credit Losses | 0 | 0 | ||
Total Loans Included in Calculation of Allowance | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Individually Evaluated for Impairment | 13,676 | 43,004 | ||
Loans Collectively Evaluated for Impairment | 7,087,834 | 6,610,455 | ||
Total loans | 7,161,715 | 6,736,853 | ||
Allowance for Credit Losses Individually Evaluated for Impairment | 1,598 | 2,531 | ||
Allowance for Credit Losses Collectively Evaluated for Impairment | 68,003 | 64,918 | ||
Total Allowance for Credit Losses | 74,855 | 74,510 | ||
Total Loans Included in Calculation of Allowance | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans Purchased impaired loans | 60,205 | 83,394 | ||
Total Allowance for Credit Losses | $ 5,254 | $ 7,061 |
Past Due Loans, Allowance For73
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Impaired Loans Individually Evaluated by Class - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commercial And Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | $ 1,673 | $ 666 |
Recorded investment in loans with a specific reserve | 1,198 | 19,130 |
Unpaid Principal Balance | 4,592 | 35,457 |
Specific Reserve | 883 | 2,249 |
Agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | 0 | 0 |
Recorded investment in loans with a specific reserve | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Reserve | 0 | 0 |
Office, Retail, and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | 4,654 | 9,623 |
Recorded investment in loans with a specific reserve | 1,508 | 2,709 |
Unpaid Principal Balance | 12,083 | 18,340 |
Specific Reserve | 715 | 271 |
Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | 800 | 939 |
Recorded investment in loans with a specific reserve | 0 | 0 |
Unpaid Principal Balance | 941 | 1,024 |
Specific Reserve | 0 | 0 |
Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | 178 | 6,671 |
Recorded investment in loans with a specific reserve | 0 | 0 |
Unpaid Principal Balance | 299 | 7,731 |
Specific Reserve | 0 | 0 |
Other Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | 3,665 | 2,752 |
Recorded investment in loans with a specific reserve | 0 | 514 |
Unpaid Principal Balance | 4,403 | 4,490 |
Specific Reserve | 0 | 11 |
Total Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | 9,297 | 19,985 |
Recorded investment in loans with a specific reserve | 1,508 | 3,223 |
Unpaid Principal Balance | 17,726 | 31,585 |
Specific Reserve | 715 | 282 |
Total Impaired Loans Individually Evaluated For Impairment | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment in loans with no specific reserve | 10,970 | 20,651 |
Recorded investment in loans with a specific reserve | 2,706 | 22,353 |
Unpaid Principal Balance | 22,318 | 67,042 |
Specific Reserve | $ 1,598 | $ 2,531 |
Past Due Loans, Allowance For74
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Impaired Loans Individually Evaluated by Class (Continued) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | $ 26,366 | $ 48,163 | $ 65,916 | |
Interest income recognized | [1] | 390 | 759 | 262 |
Commercial And Industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | 8,940 | 16,137 | 20,925 | |
Interest income recognized | [1] | 163 | 371 | 205 |
Agricultural | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | 0 | 0 | 0 | |
Interest income recognized | [1] | 0 | 0 | 0 |
Office, Retail, and Industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | 9,359 | 19,003 | 24,802 | |
Interest income recognized | [1] | 52 | 245 | 18 |
Multi-family | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | 855 | 1,245 | 1,116 | |
Interest income recognized | [1] | 13 | 5 | 8 |
Construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | 3,902 | 5,764 | 5,932 | |
Interest income recognized | [1] | 118 | 0 | 0 |
Other Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | 3,310 | 6,014 | 13,141 | |
Interest income recognized | [1] | 44 | 138 | 31 |
Total Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Balance | 17,426 | 32,026 | 44,991 | |
Interest income recognized | [1] | $ 227 | $ 388 | $ 57 |
[1] | Recorded using the cash basis of accounting. |
Past Due Loans, Allowance For75
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Credit Quality Indicators by Class, Excluding Covered Loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial And Industrial | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | $ 2,379,992 | $ 2,115,170 | |
Commercial And Industrial | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 86,263 | 84,615 |
Commercial And Industrial | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 52,884 | 31,078 |
Commercial And Industrial | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 5,587 | 22,693 |
Commercial And Industrial | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 2,524,726 | 2,253,556 | |
Agricultural | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 381,523 | 357,595 | |
Agricultural | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 0 | 294 |
Agricultural | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 5,562 | 0 |
Agricultural | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 355 | 360 |
Agricultural | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 387,440 | 358,249 | |
Office, Retail, and Industrial | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 1,320,164 | 1,393,885 | |
Office, Retail, and Industrial | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 32,627 | 38,891 |
Office, Retail, and Industrial | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 35,788 | 32,664 |
Office, Retail, and Industrial | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 6,875 | 12,939 |
Office, Retail, and Industrial | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 1,395,454 | 1,478,379 | |
Multi-family | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 517,412 | 553,255 | |
Multi-family | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 6,146 | 6,363 |
Multi-family | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 3,970 | 4,049 |
Multi-family | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 796 | 754 |
Multi-family | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 528,324 | 564,421 | |
Construction | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 201,496 | 178,992 | |
Construction | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 4,678 | 5,776 |
Construction | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 9,803 | 12,487 |
Construction | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 905 | 6,981 |
Construction | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 216,882 | 204,236 | |
Other Commercial Real Estate | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 898,746 | 829,003 | |
Other Commercial Real Estate | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 13,179 | 32,517 |
Other Commercial Real Estate | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 13,654 | 19,407 |
Other Commercial Real Estate | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 5,611 | 6,970 |
Other Commercial Real Estate | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 931,190 | 887,897 | |
Total Commercial Real Estate | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 2,937,818 | 2,955,135 | |
Total Commercial Real Estate | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 56,630 | 83,547 |
Total Commercial Real Estate | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 63,215 | 68,607 |
Total Commercial Real Estate | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 14,187 | 27,644 |
Total Commercial Real Estate | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 3,071,850 | 3,134,933 | |
Total Corporate Loans | Pass | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | 5,699,333 | 5,427,900 | |
Total Corporate Loans | Special Mention | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 142,893 | 168,456 |
Total Corporate Loans | Substandard | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 121,661 | 99,685 |
Total Corporate Loans | Non Accrual | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | [4] | 20,129 | 50,697 |
Total Corporate Loans | Total | |||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | |||
Credit Quality Indicators by Class | $ 5,984,016 | $ 5,746,738 | |
[1] | Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future. | ||
[2] | Total special mention and substandard loans includes accruing TDRs of $862,000 as of December 31, 2015 and $1.8 million as of December 31, 2014. | ||
[3] | Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. | ||
[4] | Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. |
Past Due Loans, Allowance For76
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Narrative - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Modifications [Line Items] | |||
Valuation allowance on troubled debt restructured loans | $ 758 | $ 1,800 | |
Commitments to lend additional funds TDRs | 666 | ||
Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Total value of TDRs returned to performing status | 0 | 20,656 | $ 5,529 |
Special Mention and Substandard Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Accruing | $ 862 | $ 1,800 |
Past Due Loans, Allowance For77
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Home equity | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | $ 653,468 | $ 543,185 |
1-4 family mortgages | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 355,854 | 291,463 |
Installment | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 137,602 | 76,032 |
Total consumer loans | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 1,146,924 | 910,680 |
Performing | Home equity | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 648,158 | 536,895 |
Performing | 1-4 family mortgages | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 352,438 | 288,522 |
Performing | Installment | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 137,582 | 75,989 |
Performing | Total consumer loans | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 1,138,178 | 901,406 |
Non-accrual | Home equity | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 5,310 | 6,290 |
Non-accrual | 1-4 family mortgages | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 3,416 | 2,941 |
Non-accrual | Installment | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | 20 | 43 |
Non-accrual | Total consumer loans | ||
Credit Quality Indicators by Class, Excluding Covered Loans [Line Items] | ||
Credit Quality Indicators by Class | $ 8,746 | $ 9,274 |
Past Due Loans, Allowance For78
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - TDRs By Class - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of TDRs by Class [Line Items] | ||||
Total | $ 5,067 | $ 23,608 | $ 27,853 | |
Commercial And Industrial | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 294 | 269 | ||
Non-accrual | [1] | 1,050 | 18,799 | |
Total | 1,344 | 19,068 | ||
Agricultural | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Office, Retail, and Industrial | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 164 | 586 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 164 | 586 | ||
Multi-family | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 598 | 887 | ||
Non-accrual | [1] | 186 | 232 | |
Total | 784 | 1,119 | ||
Construction | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Other Commercial Real Estate | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 340 | 433 | ||
Non-accrual | [1] | 0 | 183 | |
Total | 340 | 616 | ||
Total Commercial Real Estate | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 1,102 | 1,906 | ||
Non-accrual | [1] | 186 | 415 | |
Total | 1,288 | 2,321 | ||
Total Corporate Loans | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 1,396 | 2,175 | ||
Non-accrual | [1] | 1,236 | 19,214 | |
Total | 2,632 | 21,389 | ||
Home equity | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 494 | 651 | ||
Non-accrual | [1] | 667 | 506 | |
Total | 1,161 | 1,157 | ||
1-4 family mortgages | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 853 | 878 | ||
Non-accrual | [1] | 421 | 184 | |
Total | 1,274 | 1,062 | ||
Installment | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Total consumer loans | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 1,347 | 1,529 | ||
Non-accrual | [1] | 1,088 | 690 | |
Total | 2,435 | 2,219 | ||
Total Loans | ||||
Schedule of TDRs by Class [Line Items] | ||||
Accruing | 2,743 | 3,704 | ||
Non-accrual | [1] | 2,324 | 19,904 | |
Total | $ 5,067 | $ 23,608 | ||
[1] | These TDRs are included in non-accrual loans in the preceding tables. |
Past Due Loans, Allowance For79
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - TDRs That Were Restructured $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 3 | 10 | 39 |
Pre-Modification Recorded Investment | $ 445 | $ 24,619 | $ 20,343 |
Funds Disbursed | 0 | 0 | 30 |
Interest and Escrow Capitalized | 0 | 0 | 63 |
Charge-offs | 0 | 0 | 0 |
Post-Modification Recorded Investment | $ 445 | $ 24,619 | $ 20,436 |
Commercial And Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 7 | 7 | |
Pre-Modification Recorded Investment | $ 23,852 | $ 14,439 | |
Funds Disbursed | 0 | 0 | |
Interest and Escrow Capitalized | 0 | 2 | |
Charge-offs | 0 | 0 | |
Post-Modification Recorded Investment | $ 23,852 | $ 14,441 | |
Office, Retail, and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 6 | |
Pre-Modification Recorded Investment | $ 417 | $ 2,275 | |
Funds Disbursed | 0 | 30 | |
Interest and Escrow Capitalized | 0 | 0 | |
Charge-offs | 0 | 0 | |
Post-Modification Recorded Investment | $ 417 | $ 2,305 | |
Multi-family | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 5 | |
Pre-Modification Recorded Investment | $ 275 | $ 1,274 | |
Funds Disbursed | 0 | 0 | |
Interest and Escrow Capitalized | 0 | 57 | |
Charge-offs | 0 | 0 | |
Post-Modification Recorded Investment | $ 275 | $ 1,331 | |
Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | ||
Pre-Modification Recorded Investment | $ 508 | ||
Funds Disbursed | 0 | ||
Interest and Escrow Capitalized | 0 | ||
Charge-offs | 0 | ||
Post-Modification Recorded Investment | $ 508 | ||
Other Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 5 | ||
Pre-Modification Recorded Investment | $ 526 | ||
Funds Disbursed | 0 | ||
Interest and Escrow Capitalized | 0 | ||
Charge-offs | 0 | ||
Post-Modification Recorded Investment | $ 526 | ||
Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 1 | 13 |
Pre-Modification Recorded Investment | $ 120 | $ 75 | $ 1,189 |
Funds Disbursed | 0 | 0 | 0 |
Interest and Escrow Capitalized | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 |
Post-Modification Recorded Investment | $ 120 | $ 75 | $ 1,189 |
1-4 family mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | 1 | |
Pre-Modification Recorded Investment | $ 325 | $ 132 | |
Funds Disbursed | 0 | 0 | |
Interest and Escrow Capitalized | 0 | 4 | |
Charge-offs | 0 | 0 | |
Post-Modification Recorded Investment | $ 325 | $ 136 |
Past Due Loans, Allowance For80
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - TDRs That Defaulted Within Twelve Months of the Restructured Date $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($)loan | |
Past Due Loans Allowance for Credit Losses and Impaired Loan Details TDRs That Defaulted within Twelve Months of the Restructured Date [Line Items] | |||
Number of Loans | loan | 0 | 3 | 4 |
Recorded Investment | $ | $ 0 | $ 202 | $ 704 |
Commercial And Industrial | |||
Past Due Loans Allowance for Credit Losses and Impaired Loan Details TDRs That Defaulted within Twelve Months of the Restructured Date [Line Items] | |||
Number of Loans | loan | 0 | 2 | 1 |
Recorded Investment | $ | $ 0 | $ 125 | $ 350 |
Other Commercial Real Estate | |||
Past Due Loans Allowance for Credit Losses and Impaired Loan Details TDRs That Defaulted within Twelve Months of the Restructured Date [Line Items] | |||
Number of Loans | loan | 0 | 0 | 3 |
Recorded Investment | $ | $ 0 | $ 0 | $ 354 |
Home equity | |||
Past Due Loans Allowance for Credit Losses and Impaired Loan Details TDRs That Defaulted within Twelve Months of the Restructured Date [Line Items] | |||
Number of Loans | loan | 0 | 1 | 0 |
Recorded Investment | $ | $ 0 | $ 77 | $ 0 |
Past Due Loans, Allowance For81
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs (Detail) - TDR Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Troubled Debt Restructuring Activity [Roll Forward] | |||
Beginning Balance | $ 23,608 | $ 27,853 | |
Additions | 445 | 24,619 | $ 20,436 |
Ending Balance | 5,067 | 23,608 | 27,853 |
Accruing | |||
Troubled Debt Restructuring Activity [Roll Forward] | |||
Beginning Balance | 3,704 | 23,770 | 6,867 |
Additions | 120 | 804 | 4,847 |
Net payments | (774) | (1,440) | (723) |
Returned to performing status | 0 | (20,656) | (5,529) |
Net transfers (to) from non-accrual | (307) | 1,226 | 18,308 |
Ending Balance | 2,743 | 3,704 | 23,770 |
Non-Accrual | |||
Troubled Debt Restructuring Activity [Roll Forward] | |||
Beginning Balance | 19,904 | 4,083 | 10,924 |
Additions | 325 | 23,815 | 15,589 |
Net payments | (15,525) | 1,991 | (1,359) |
Charge-offs | (2,687) | (8,457) | (1,880) |
Transfers to OREO | 0 | (302) | (77) |
Loans sold | 0 | 0 | (806) |
Net transfers from (to) accruing | 307 | (1,226) | (18,308) |
Ending Balance | $ 2,324 | $ 19,904 | $ 4,083 |
Premises, Furniture, and Equi82
Premises, Furniture, and Equipment (Detail) - Premises, Furniture, and Equipment - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 43,442 | $ 51,104 |
Premises | 152,444 | 148,963 |
Furniture and equipment | 90,672 | 85,489 |
Total cost | 286,558 | 285,556 |
Accumulated depreciation | (171,708) | (156,473) |
Net book value of premises, furniture, and equipment | 114,850 | 129,083 |
Assets held-for-sale | 7,428 | 2,026 |
Total premises, furniture, and equipment | $ 122,278 | $ 131,109 |
Premises, Furniture, and Equi83
Premises, Furniture, and Equipment (Detail) - Narrative $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)locationland | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Aug. 08, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Number of former branches held for sale | location | 12 | |||
Number of land parcels held for sale | land | 7 | |||
Property valuation adjustments | $ 8,581 | $ 0 | $ 0 | |
Depreciation of premises, furniture, and equipment | 13,367 | 12,224 | $ 11,038 | |
Intangible liabilities | $ 9,034 | |||
Popular Community Bank | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible liabilities | $ 10,600 | $ 10,631 |
Premises, Furniture, and Equi84
Premises, Furniture, and Equipment (Detail) - Operating Leases $ in Thousands | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Abstract] | |
2,016 | $ 5,119 |
2,017 | 4,832 |
2,018 | 4,115 |
2,019 | 2,327 |
2,020 | 1,893 |
2021 and thereafter | 11,287 |
Total minimum lease payments | $ 29,573 |
Premises, Furniture, and Equi85
Premises, Furniture, and Equipment (Detail) - Accretion of Operating Leases $ in Thousands | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Abstract] | |
2,016 | $ 1,144 |
2,017 | 1,144 |
2,018 | 900 |
2,019 | 651 |
2,020 | 613 |
2021 and thereafter | 4,582 |
Total accretion | $ 9,034 |
Premises, Furniture, and Equi86
Premises, Furniture, and Equipment (Detail) - Rental Expense - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property, Plant and Equipment [Abstract] | ||||
Lease expense charged to operations | [1] | $ 5,706 | $ 4,216 | $ 3,123 |
Rental income from premises leased to others | [2] | 606 | 541 | 531 |
Net operating lease expense | 5,100 | 3,675 | $ 2,592 | |
Accretion of below market lease | $ 1,100 | $ 453 | ||
[1] | Includes amounts paid under short-term cancelable leases and included in net occupancy and equipment expense in the Consolidated Statements of Income. As of December 31, 2015 and 2014, lease expense is net of accretion related to the intangible liability of $1.1 million and $453,000, respectively. | |||
[2] | Included as a reduction to net occupancy and equipment expense in the Consolidated Statements of Income. |
Goodwill and Other Intangible87
Goodwill and Other Intangible Assets (Detail) - Changes in Carrying Amount of Goodwill - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 310,589 | $ 264,062 | $ 265,477 |
Acquisitions | 8,418 | 46,527 | 0 |
Sale of equity method investment | 0 | 0 | (1,415) |
Ending balance | $ 319,007 | $ 310,589 | $ 264,062 |
Goodwill and Other Intangible88
Goodwill and Other Intangible Assets (Detail) - Core Deposit Intangibles - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Balance at the beginning of the year, gross | $ 47,970 | $ 33,775 | $ 33,775 |
Balance at the beginning of the year, accumulated amortization | 24,360 | 21,471 | 18,193 |
Balance at the beginning of the year, net | 23,610 | 12,304 | 15,582 |
Additions | 580 | 14,195 | 0 |
Amortization expense | (3,920) | (2,889) | (3,278) |
Balance at the end of the year, gross | 48,550 | 47,970 | 33,775 |
Balance at the end of the year, accumulated amortization | 28,280 | 24,360 | 21,471 |
Balance at the end of the year, net | $ 20,270 | $ 23,610 | $ 12,304 |
Weighted-average remaining life (in years) | 7 years 5 months 9 days | 8 years | 5 years 10 months 8 days |
Minimum | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Estimated useful lives (in years) | 9 months 6 days | 3 months 6 days | 2 months 4 days |
Maximum | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Estimated useful lives (in years) | 10 years | 10 years 3 months 6 days | 11 years 3 months 6 days |
Goodwill and Other Intangible89
Goodwill and Other Intangible Assets (Detail) - Amortization of Other Intangible Assets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
2,016 | $ 3,901 | |||
2,017 | 3,121 | |||
2,018 | 2,196 | |||
2,019 | 2,131 | |||
2,020 | 2,080 | |||
2021 and thereafter | 6,841 | |||
Total | $ 20,270 | $ 23,610 | $ 12,304 | $ 15,582 |
Deposits (Detail) - Summary of
Deposits (Detail) - Summary of Deposits - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Demand deposits | $ 2,414,454 | $ 2,301,757 |
Savings deposits | 1,547,587 | 1,391,444 |
NOW accounts | 1,456,175 | 1,413,973 |
Money market deposits | 1,526,056 | 1,509,026 |
Time deposits less than $100,000 | 754,576 | 859,441 |
Time deposits greater than $100,000 | 398,890 | 412,117 |
Total deposits | $ 8,097,738 | $ 7,887,758 |
Deposits (Detail) - Maturities
Deposits (Detail) - Maturities of Time Deposits $ in Thousands | Dec. 31, 2015USD ($) |
Deposits [Abstract] | |
2,016 | $ 754,417 |
2,017 | 162,138 |
2,018 | 71,235 |
2,019 | 70,948 |
2,020 | 94,472 |
2021 and thereafter | 256 |
Total | $ 1,153,466 |
Borrowed Funds (Detail) - Summa
Borrowed Funds (Detail) - Summary of Borrowed Funds - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Securities sold under agreements to repurchase | $ 155,196 | $ 137,994 |
FHLB advances | 9,900 | 0 |
Total borrowed funds | $ 165,096 | $ 137,994 |
Borrowed Funds (Detail) - Narra
Borrowed Funds (Detail) - Narrative - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
FHLB advances | $ 9,900 | $ 0 | |
Floating interest rate | 0.40% | ||
Repayments of debt | 114,600 | ||
Net losses on early extinguishment of debt | $ 0 | 2,059 | $ 1,034 |
Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Line of credit facility, remaining borrowing capacity | $ 0 | 35,000 | |
Federal Home Loan Bank Advances | |||
Debt Instrument [Line Items] | |||
Net losses on early extinguishment of debt | $ 2,100 |
Borrowed Funds (Detail) - Unuse
Borrowed Funds (Detail) - Unused Short-Term Credit Lines Available for Use - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
FRBs Discount Window Primary Credit Program | $ 655,745 | $ 675,507 |
Available federal funds lines | 659,000 | 685,500 |
Notes Payable to Banks | ||
Short-term Debt [Line Items] | ||
Correspondent bank line of credit | $ 0 | $ 35,000 |
Senior and Subordinated Debt (D
Senior and Subordinated Debt (Detail) - Senior and Subordinated Debt - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Senior and Subordinated Debt [Line Items] | |||
Total junior subordinated debentures | $ 47,818 | $ 47,606 | |
Total senior and subordinated debt | $ 201,208 | 200,869 | |
Senior Notes | |||
Senior and Subordinated Debt [Line Items] | |||
Issuance Date | Mar. 21, 2006 | ||
Maturity Date | Nov. 22, 2016 | ||
Senior notes | $ 114,891 | $ 114,768 | |
Interest Rate | 5.875% | 5.875% | |
Subordinated Notes | |||
Senior and Subordinated Debt [Line Items] | |||
Issuance Date | Sep. 24, 2009 | ||
Maturity Date | Apr. 1, 2016 | ||
Subordinated notes | $ 38,499 | $ 38,495 | |
Interest Rate | 5.85% | 5.85% | |
First Midwest Capital Trust I | 6.950% Junior Subordinated Debentures due December 2033 | |||
Senior and Subordinated Debt [Line Items] | |||
Issuance Date | Nov. 11, 2003 | ||
Maturity Date | Dec. 1, 2033 | ||
Total junior subordinated debentures | $ 37,799 | $ 37,797 | |
Interest Rate | 6.95% | 6.95% | |
Great Lakes Statutory Trust II | |||
Senior and Subordinated Debt [Line Items] | |||
Acquisition discount | $ 1,900 | $ 2,000 | |
Great Lakes Statutory Trust II | LIBOR plus 1.400% Junior Subordinated Debentures due December 2035 | |||
Senior and Subordinated Debt [Line Items] | |||
Issuance Date | Dec. 15, 2005 | ||
Maturity Date | Dec. 15, 2035 | ||
Total junior subordinated debentures | [1] | $ 4,296 | $ 4,202 |
Basis spread on variable rate | [2] | 1.40% | 1.40% |
Great Lakes Statutory Trust III | |||
Senior and Subordinated Debt [Line Items] | |||
Acquisition discount | $ 2,500 | $ 2,600 | |
Great Lakes Statutory Trust III | LIBOR plus 1.700% Junior Subordinated Debentures due September 2037 | |||
Senior and Subordinated Debt [Line Items] | |||
Issuance Date | Jun. 15, 2007 | ||
Maturity Date | Sep. 15, 2037 | ||
Total junior subordinated debentures | [1] | $ 5,723 | $ 5,607 |
Basis spread on variable rate | [2] | 1.70% | 1.70% |
[1] | The junior subordinated debentures related to GLST II and GLST III were assumed by the Company through the Great Lakes acquisition. As of December 31, 2015, these amounts include acquisition adjustments which resulted in a discount of $1.9 million to GLST II and $2.5 million to GLST III. The acquisition adjustments totaled $2.0 million and $2.6 million to GLST II and GLST III, respectively, as of December 31, 2014. | ||
[2] | The interest rates are a variable rate based on the three-month LIBOR plus 1.400% and 1.700% for GLST II and GLST III, respectively. |
Senior and Subordinated Debt 96
Senior and Subordinated Debt (Detail) - Narrative | 3 Months Ended |
Dec. 31, 2014trust | |
Debt Disclosure [Abstract] | |
Number of business trusts acquired | 2 |
Material Transactions Affecti97
Material Transactions Affecting Stockholders' Equity (Detail) - $ / shares | Dec. 02, 2014 | May. 21, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Class of Stock [Line Items] | |||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common stock, increase shares authorized | 50,000,000 | ||||||||||||
Common stock and Preferred stock, shares authorized | 151,000,000 | ||||||||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||
Common dividends declared per common share (in USD per share) | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.07 | $ 0.04 | $ 0.04 | $ 0.01 | ||
Great Lakes Financial Resources, Inc. | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, shares issued | 2,440,754 | ||||||||||||
Shares issued (dollars per share) | $ 15.737 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Detail) - Basic and Diluted Earnings Per Common Share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings Per Share [Abstract] | ||||
Net income | $ 82,064 | $ 69,306 | $ 79,306 | |
Net income applicable to non-vested restricted shares | (882) | (836) | (1,107) | |
Net income applicable to common shares | $ 81,182 | $ 68,470 | $ 78,199 | |
Weighted-average common shares outstanding: | ||||
Weighted-average common shares outstanding (basic) | 77,059 | 74,484 | 73,984 | |
Dilutive effect of common stock equivalents | 13 | 12 | 10 | |
Weighted-average diluted common shares outstanding | 77,072 | 74,496 | 73,994 | |
Basic earnings (loss) per common share (in dollars per share) | $ 1.05 | $ 0.92 | $ 1.06 | |
Diluted earnings (loss) per common share (in dollars per share) | $ 1.05 | $ 0.92 | $ 1.06 | |
Anti-dilutive shares not included in the computation of diluted earnings per common share (in Shares) | [1] | 800 | 1,198 | 1,462 |
[1] | This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock. |
Income Taxes (Detail) - Compone
Income Taxes (Detail) - Components of Income Tax Benefit - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax expense (benefit): | |||
Federal | $ 18,524 | $ 16,343 | $ 4,744 |
State | 2,326 | (1,388) | 10,504 |
Total | 20,850 | 14,955 | 15,248 |
Deferred income tax expense: | |||
Federal | 12,048 | 7,901 | 31,572 |
State | 4,849 | 8,314 | 1,895 |
Total | 16,897 | 16,215 | 33,467 |
Total income tax expense | 37,747 | 31,170 | 48,715 |
Income Tax Expense Benefit [Member] | |||
Deferred income tax expense: | |||
Total income tax expense | $ 37,747 | $ 31,170 | $ 48,715 |
Income Taxes (Detail) - Comp100
Income Taxes (Detail) - Components of Effective Tax Rate - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate (amount) | $ 41,934 | $ 35,167 | $ 44,807 |
Statutory federal income tax rate (percent of pretax income) | 35.00% | 35.00% | 35.00% |
Tax-exempt income, net of interest expense disallowance (amount) | $ (6,752) | $ (7,520) | $ (7,877) |
Tax-exempt income, net of interest expense disallowance (percent of pretax income) | (5.60%) | (7.50%) | (6.20%) |
State income tax, net of federal income tax effect (amount) | $ 4,665 | $ 4,503 | $ 8,142 |
State income tax, net of federal income tax effect (percent of pretax income) | 3.90% | 4.50% | 6.40% |
Other (amount) | $ (2,100) | $ (980) | $ 3,643 |
Net (percent of pretax income) | (1.80%) | (1.00%) | 2.90% |
Total income tax expense | $ 37,747 | $ 31,170 | $ 48,715 |
Effective tax rate | 31.50% | 31.00% | 38.10% |
Income Taxes (Detail) - Narrati
Income Taxes (Detail) - Narrative - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | |||
Deferred tax assets, net | $ 86,693 | $ 91,685 | |
Acquired thrift's tax bad debt reserve | 2,500 | 2,500 | $ 2,500 |
Unrecognized tax benefit that would affect effective tax rate | 936,000 | 597,000 | $ 181,000 |
Peoples' Bank and Great Lakes Acquisitions [Member] | |||
Income Taxes [Line Items] | |||
Deferred tax assets, net | $ 3,500 | ||
Popular National Machine Tool and Great Lake Acquisitions | |||
Income Taxes [Line Items] | |||
Deferred tax assets, net | $ 7,400 |
Income Taxes (Detail) - Deferre
Income Taxes (Detail) - Deferred Tax Assets And Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for credit losses | $ 26,131 | $ 26,078 |
Unrealized losses on securities | 18,328 | 18,527 |
Alternative minimum tax (AMT) and other credit carryforwards | 17,739 | 29,007 |
State net operating loss (NOL) carryforwards | 7,679 | 11,917 |
Equity based compensation | 5,469 | 6,875 |
Non-equity based compensation | 3,739 | 3,477 |
Property valuation adjustments | 3,003 | 0 |
OREO | 2,597 | 3,480 |
Other | 8,693 | 7,754 |
Total deferred tax assets | 93,378 | 107,115 |
Deferred tax liabilities: | ||
Acquisition adjustments | (10,097) | (10,960) |
Accrued retirement benefits | (6,065) | (6,447) |
Cancellation of indebtedness income | (3,204) | (4,272) |
Deferred loan fees and costs | (2,432) | 0 |
Other | (4,631) | (5,045) |
Total deferred tax liabilities | (26,429) | (26,724) |
Deferred tax valuation allowance | 0 | 0 |
Net deferred tax assets | 66,949 | 80,391 |
Tax effect of adjustments related to other comprehensive (loss) income | 19,744 | 11,294 |
Net deferred tax assets including adjustments | 86,693 | 91,685 |
Alternative minimum tax credits | ||
Net operating loss carryforwards available to offset future taxable income: | ||
Alternative minimum tax credits | 17,739 | 25,739 |
Other credits, begin to expire in 2028 | ||
Net operating loss carryforwards available to offset future taxable income: | ||
Other credits, begin to expire in 2028 | 0 | 3,268 |
Internal Revenue Service (IRS) | ||
Net operating loss carryforwards available to offset future taxable income: | ||
Gross NOL Carryforwards | 922 | 0 |
Illinois | ||
Net operating loss carryforwards available to offset future taxable income: | ||
Gross NOL Carryforwards | 160,016 | 232,834 |
Indiana | ||
Net operating loss carryforwards available to offset future taxable income: | ||
Gross NOL Carryforwards | $ 11,796 | $ 17,192 |
Income Taxes (Detail) - Rollfor
Income Taxes (Detail) - Rollforward of Unrecognized Tax Benefits - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Beginning balance | $ 912 | $ 279 | $ 0 | |
Additions for tax positions relating to the current year | 480 | 635 | 279 | |
Additions for tax positions relating to prior years | 37 | 0 | 0 | |
Reductions for tax positions relating to prior years | (21) | (2) | 0 | |
Ending balance | 1,408 | 912 | 279 | |
Interest and penalties not included above: | ||||
Interest expense, net of tax effect, and penalties | [1] | 20 | 4 | 0 |
Accrued interest and penalties, net of tax effect, at end of year | [1] | $ 24 | $ 4 | $ 0 |
[1] | Included in income tax expense in the Consolidated Statements of Income. |
Employee Benefit Plans (Detail)
Employee Benefit Plans (Detail) - Narrative | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Defined contribution plan, employer matching contribution percent of employee's compensation | 4.00% | 4.00% | 2.00% |
Defined contribution plan, transition contribution in next fiscal year (percent) | 4.00% | ||
Defined contribution plan, discretionary contribution vesting period | 6 years | ||
Actuarial losses as a percentage of accumulated benefit obligation | 39.40% | 29.60% | |
Pension Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Actuarial losses as a percentage of accumulated benefit obligation | 10.00% | ||
Contributions | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Defined contribution plan, employee contribution limit, percentage of compensation | 100.00% | 45.00% | |
Certain Highly Compensated Employees | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Defined contribution plan, employee contribution limit, percentage of compensation | 15.00% | ||
Voluntary 401K Plans | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred contribution plan, employer contribution limit (percent) | 2.00% | ||
Deferred Profit Sharing | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred contribution plan, employer contribution limit (percent) | 15.00% |
Employee Benefit Plans (Deta105
Employee Benefit Plans (Detail) - Profit Sharing Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Profit Sharing Plan [Line Items] | ||||
Profit sharing expense | $ 31,852 | $ 27,245 | $ 26,119 | |
Company dividends received by the Profit Sharing Plan | $ 466 | $ 428 | $ 159 | |
Company shares held by the Profit Sharing Plan at the end of the year: | ||||
Number of shares | 1,277,567 | 1,364,558 | 1,426,708 | |
Fair value | $ 23,546 | $ 23,348 | $ 25,010 | |
Profit Sharing Expense | ||||
Profit Sharing Plan [Line Items] | ||||
Profit sharing expense | [1] | $ 6,919 | $ 6,354 | $ 2,914 |
[1] | Included in retirement and other employee benefits in the Consolidated Statements of Income |
Employee Benefit Plans (Deta106
Employee Benefit Plans (Detail) - Pension Plan Cost and Obligations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Accumulated benefit obligation | $ 67,185 | $ 67,283 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at the beginning of the year | 67,283 | 61,292 | |
Service cost | 0 | 0 | $ 2,600 |
Interest cost | 2,334 | 2,346 | 2,414 |
Settlements | (7,320) | (6,502) | |
Actuarial loss | 5,336 | 10,508 | |
Benefits paid | (448) | (361) | |
Projected benefit obligation at the end of the year | 67,185 | 67,283 | 61,292 |
Change in fair value of plan assets: | |||
Fair value of plan assets at the beginning of the year | 72,193 | 74,370 | |
Actual return on plan assets | 478 | 4,686 | |
Benefits paid | (448) | (361) | |
Settlements | (7,320) | (6,502) | |
Fair value of plan assets at the end of the year | 64,903 | 72,193 | $ 74,370 |
Funded status recognized in the Consolidated Statements of Financial Condition: | |||
Noncurrent (liability) asset | (2,282) | 4,910 | |
Amounts recognized in accumulated other comprehensive loss: | |||
Prior service cost | 0 | 0 | |
Net loss | 26,481 | 19,911 | |
Net amount recognized | $ 26,481 | $ 19,911 | |
Actuarial losses included in accumulated other comprehensive loss as a percent of: | |||
Accumulated benefit obligation | 39.40% | 29.60% | |
Fair value of plan assets | 40.80% | 27.60% | |
Amounts expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost in the next fiscal year: | |||
Prior service cost | $ 0 | $ 0 | |
Net loss | 516 | 401 | |
Net amount expected to be recognized | $ 516 | $ 401 | |
Weighted-average assumptions at the end of the year used to determine the actuarial present value of the projected benefit obligation: | |||
Discount rate | 3.99% | 3.60% |
Employee Benefit Plans (Deta107
Employee Benefit Plans (Detail) - Net Periodic Benefit Pension Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of net periodic benefit cost: | |||
Service cost | $ 0 | $ 0 | $ 2,600 |
Interest cost | 2,334 | 2,346 | 2,414 |
Expected return on plan assets | (4,333) | (4,931) | (4,299) |
Recognized net actuarial loss | 367 | 249 | 1,453 |
Amortization of prior service cost | 0 | 0 | 1 |
Recognized settlement loss | 2,254 | 1,377 | 0 |
Net periodic cost (income) | 622 | (959) | 2,169 |
Other changes in plan assets and benefit obligations recognized as a charge to other comprehensive (loss) income: | |||
Net (loss) gain for the period | (9,191) | (10,752) | 16,146 |
Amortization of prior service cost | 0 | 0 | 1 |
Amortization of net loss | 2,621 | 1,625 | 1,453 |
Total unrealized (loss) gain | (6,570) | (9,127) | 17,600 |
Total recognized in net periodic pension cost and other comprehensive (loss) income | $ (7,192) | $ (8,168) | $ 15,431 |
Weighted-average assumptions used to determine the net periodic cost: | |||
Discount rate | 3.60% | 4.30% | 3.40% |
Expected return on plan assets | 6.50% | 7.25% | 7.25% |
Rate of compensation increase | 2.50% |
Employee Benefit Plans (Deta108
Employee Benefit Plans (Detail) - Pension Plan Asset Allocation - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Asset Category: | ||||
Fair Value of Plan Assets (in Dollars) | $ 64,903 | $ 72,193 | $ 74,370 | |
Defined contribution plan, employer matching contribution percent of employee's compensation | 4.00% | 4.00% | 2.00% | |
Equity Securities | ||||
Asset Category: | ||||
Target Plan Asset Allocations, minimum | 50.00% | |||
Target Plan Asset Allocations, maximum | 60.00% | |||
Fair Value of Plan Assets (in Dollars) | [1] | $ 38,314 | ||
Percentage of Plan Assets | 59.00% | 59.00% | ||
Fixed Income Securities | ||||
Asset Category: | ||||
Target Plan Asset Allocations, minimum | 30.00% | |||
Target Plan Asset Allocations, maximum | 48.00% | |||
Fair Value of Plan Assets (in Dollars) | [1] | $ 22,457 | ||
Percentage of Plan Assets | 35.00% | 36.00% | ||
Cash Equivalents | ||||
Asset Category: | ||||
Target Plan Asset Allocations, minimum | 2.00% | |||
Target Plan Asset Allocations, maximum | 10.00% | |||
Fair Value of Plan Assets (in Dollars) | [1] | $ 4,132 | ||
Percentage of Plan Assets | 6.00% | 5.00% | ||
Total | ||||
Asset Category: | ||||
Fair Value of Plan Assets (in Dollars) | [1] | $ 64,903 | ||
Percentage of Plan Assets | 100.00% | 100.00% | ||
[1] | Additional information regarding the fair value of Pension Plan assets as of December 31, 2015 can be found in Note 22, "Fair Value." |
Employee Benefit Plans (Deta109
Employee Benefit Plans (Detail) - Estimated Future Pension Benefit Payments $ in Thousands | Dec. 31, 2015USD ($) |
Compensation and Retirement Disclosure [Abstract] | |
2,016 | $ 11,175 |
2,017 | 7,052 |
2,018 | 5,755 |
2,019 | 5,241 |
2,020 | 4,538 |
2021-2025 | $ 19,363 |
Share-Based Compensation (Detai
Share-Based Compensation (Detail) - Narrative - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted in period (in shares) | 0 | 0 | 0 |
Stock options exercised in period (in shares) | 0 | 0 | 0 |
Nonemployee Directors Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 14,000 | ||
Award term | 10 years | ||
Nonemployee Directors Stock Plan | Accelerated Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Nonqualified Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award term | 10 years | ||
Stock options granted in period (in shares) | 0 | ||
Restricted Stock And Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 453,000 | ||
Award vesting period | 3 years | ||
Restricted Stock And Restricted Stock Unit Awards | Vesting After Two Years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 50.00% | ||
Restricted Stock And Restricted Stock Unit Awards | Vesting After Three Years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 50.00% | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 112,000 | ||
Period of internal and external performance metric analysis | 3 years | ||
Metric weighting (percent) | 50.00% | ||
Performance Shares | Vesting After Three Years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.00% | ||
Performance Shares | Vesting After Fourth and Fifth Years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.00% | ||
Performance Shares | Vesting After Fifth Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.00% | ||
Minimum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares earned of those granted based on performance | 0.00% | ||
Maximum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares earned of those granted based on performance | 200.00% |
Share-Based Compensation (De111
Share-Based Compensation (Detail) - Shares of Common Stock Available Under Share-Based Plans | Dec. 31, 2015shares |
Omnibus Stock and Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Authorized | 8,631,641,000 |
Shares Available For Grant | 2,105,921,000 |
Nonemployee Directors Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Authorized | 481,250,000 |
Shares Available For Grant | 102,063,000 |
Share-Based Compensation (De112
Share-Based Compensation (Detail) - Salary Stock Awards Granted - Salary Stock Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | 0 | 8,693,000 |
Weighted-average price (in dollars per share) | $ 0 | $ 0 | $ 14.30 |
Share-Based Compensation (De113
Share-Based Compensation (Detail) - Nonqualified Stock Option Transactions $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding beginning balance | shares | 1,153 | |
Expired | shares | (397) | |
Options outstanding ending balance | shares | 756 | |
Exercisable at the end of the year | shares | 756 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price [Abstract] | ||
Options outstanding beginning balance (in dollars per share) | $ / shares | $ 32.93 | |
Expired (in dollars per share) | $ / shares | 33.66 | |
Options outstanding ending balance (in dollars per share) | $ / shares | 32.55 | |
Exercisable at the end of the year (in dollars per share) | $ / shares | $ 32.55 | |
Weighted average remaining contractual term of options outstanding ending balance (in years) | 1 year 3 months 27 days | [1] |
Weighted average remaining contractual term of options exercisable at the end of the year (in years) | 1 year 3 months 27 days | [1] |
Aggregate intrinsic value of options outstanding at the end of the year | $ | $ 273 | [2] |
Aggregate intrinsic value of options exercisable at the end of the year | $ | $ 273 | [2] |
[1] | Represents the average remaining contractual life in years. | |
[2] | Aggregate intrinsic value represents the total pre-tax intrinsic value that would have been received by the option holders if they had exercised their options on December 31, 2015. Intrinsic value equals the difference between the Company's average of the high and low stock price on the last trading day of the year and the option exercise price, multiplied by the number of shares. This amount will fluctuate with changes in the fair value of the Company's common stock. |
Share-Based Compensation (De114
Share-Based Compensation (Detail) - Restricted Stock Award Transactions shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Restricted Stock And Restricted Stock Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards at beginning of year (in shares) | shares | 997 |
Granted (in shares) | shares | 453 |
Vested (in shares) | shares | (483) |
Forfeited (in shares) | shares | (59) |
Non-vested awards at end of year (in shares) | shares | 908 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested awards at beginning of year (in dollars per share) | $ / shares | $ 13.79 |
Granted (in dollars per share) | $ / shares | 16.95 |
Vested (in dollars per share) | $ / shares | 12.54 |
Forfeited (in dollars per share) | $ / shares | 15.07 |
Non-vested awards at end of year (in dollars per share) | $ / shares | $ 15.92 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested awards at beginning of year (in shares) | shares | 238 |
Granted (in shares) | shares | 112 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (12) |
Non-vested awards at end of year (in shares) | shares | 338 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested awards at beginning of year (in dollars per share) | $ / shares | $ 14.36 |
Granted (in dollars per share) | $ / shares | 16.95 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 15.07 |
Non-vested awards at end of year (in dollars per share) | $ / shares | $ 15.19 |
Share-Based Compensation (De115
Share-Based Compensation (Detail) - Other Restricted Stock Award/Unit Information - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit realized from the vesting/release of restricted stock and restricted stock unit awards | $ 2,962 | $ 2,424 | $ 2,414 |
Restricted Stock Restricted Stock Unit and Performance Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of restricted stock, restricted stock unit, and performance share awards granted during the year ( in dollars per share) | $ 16.95 | $ 16.13 | $ 13.01 |
Restricted Stock And Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of restricted stock, restricted stock unit, and performance share awards granted during the year ( in dollars per share) | $ 16.95 | ||
Total fair value of restricted stock and restricted stock unit awards vested during the year | $ 7,615 | $ 7,546 | $ 4,917 |
Income tax benefit realized from the vesting/release of restricted stock and restricted stock unit awards | $ 2,368 | $ 2,939 | $ 1,966 |
Share-Based Compensation (De116
Share-Based Compensation (Detail) - Effect of Recording Share-Based Compensation Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Restricted stock, restricted unit, and performance share award expense | $ 7,242 | $ 5,926 | $ 5,779 |
Salary stock award expense | 0 | 0 | 124 |
Total share-based compensation expense | 7,242 | 5,926 | 5,903 |
Income tax benefit | 2,962 | 2,424 | 2,414 |
Share-based compensation expense, net of tax | 4,280 | 3,502 | 3,489 |
Unrecognized compensation expense | $ 8,644 | $ 6,937 | $ 6,327 |
Weighted-average amortization period remaining (in years) | 1 year 4 months 7 days | 1 year 3 months 18 days | 1 year 2 months 12 days |
Stockholder Rights Plan (Detail
Stockholder Rights Plan (Detail) - Narrative - Rights Agreement Expired November 15, 2015 - $ / shares | Nov. 15, 2015 | Feb. 15, 1989 |
Class of Warrant or Right [Line Items] | ||
Number of securities called by each warrant or right | 1 | |
Series A Preferred Stock | ||
Class of Warrant or Right [Line Items] | ||
Number of securities called by each warrant or right | 0.01 | |
Exercise price of warrants or rights (dollars per share) | $ 150 |
Regulatory and Capital Matte118
Regulatory and Capital Matters (Detail) - Narrative - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash reserve balance | $ 66,900,000 | $ 60,000,000 |
Adjustment to available dividends | 8,200,000 | |
Regulatory capital requirements under banking regulations, inclusion of trust-preferred securities in Tier One capital calculation | 15,000,000,000 | |
Trust-preferred securities included in Tier 1 capital | $ 50,700,000 | |
Tier 1 risk based capital conservation buffer initial requirements phasing duration | 4 years | |
Implementation of deductions and other adjustments to CET1, percentage | 40.00% | |
Implementation of deductions and other adjustments to CET1 additional, percentage | 20.00% | |
Risk weighted threshold of items deducted from CET1 capital | 10.00% | |
Aggregate risk weighted threshold of items deducted from CET1 | 15.00% | |
January 2,019 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Minimum ratio of CET1 to risk-weighted assets | 4.50% | |
Capital conservation buffer | 2.50% | |
Resulting minimum ratio of CET1 to risk-weighted assets after capital converstion buffer | 7.00% | |
Minimum ratio of Tier 1 capital to risk-weighted assets | 6.00% | |
Minimum ratio of Tier 1 capital to risk-weighted assets, adjusted | 8.50% | |
Minimum ratio of Total capital to risk-weighted assets | 8.00% | |
Minimum ratio of Total capital to risk-weighted assets, adjusted | 10.50% | |
Minimum leverage ratio | 4.00% | |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Risk-weighting | 0.00% | |
Maximum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Risk-weighting | 600.00% |
Regulatory and Capital Matte119
Regulatory and Capital Matters (Detail) - Summary of Capital Ratios - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
First Midwest Bancorp, Inc. | |||
Total capital to risk-weighted assets: | |||
Actual Capital (in Dollars) | [1] | $ 968,331 | $ 884,692 |
Actual Ratio | [1] | 11.15% | 11.23% |
Adequately Capitalized Capital (in Dollars) | [1] | $ 695,029 | $ 630,140 |
Adequately Capitalized Ratio | [1] | 8.00% | 8.00% |
Tier 1 capital to risk-weighted assets: | |||
Actual Capital (in Dollars) | [1] | $ 893,476 | $ 802,483 |
Actual Ratio | [1] | 10.28% | 10.19% |
Adequately Capitalized Capital (in Dollars) | [1] | $ 521,272 | $ 315,070 |
Adequately Capitalized Ratio | [1] | 6.00% | 4.00% |
Tier 1 common capital to risk weighted assets: | |||
Actual Capital (in Dollars) | [1] | $ 845,640 | |
Actual Ratio | [1] | 9.73% | |
Adequately Capitalized Capital (in Dollars) | [1] | $ 390,954 | |
Adequately Capitalized Ratio | [1] | 4.50% | |
Tier 1 leverage to average assets: | |||
Actual Capital (in Dollars) | [1] | $ 893,476 | $ 802,483 |
Actual Ratio | [1] | 9.40% | 9.03% |
Adequately Capitalized Capital (in Dollars) | [1] | $ 380,043 | $ 355,362 |
Adequately Capitalized Ratio | [1] | 4.00% | 4.00% |
First Midwest Bank | |||
Total capital to risk-weighted assets: | |||
Actual Capital (in Dollars) | [1] | $ 929,167 | $ 931,829 |
Actual Ratio | [1] | 11.02% | 12.30% |
Adequately Capitalized Capital (in Dollars) | [1] | $ 674,380 | $ 606,038 |
Adequately Capitalized Ratio | [1] | 8.00% | 8.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provisions Capital (in Dollars) | [1] | $ 842,974 | $ 757,547 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | [1] | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets: | |||
Actual Capital (in Dollars) | [1] | $ 854,322 | $ 857,362 |
Actual Ratio | [1] | 10.13% | 11.32% |
Adequately Capitalized Capital (in Dollars) | [1] | $ 505,785 | $ 303,019 |
Adequately Capitalized Ratio | [1] | 6.00% | 4.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provisions Capital (in Dollars) | [1] | $ 674,380 | $ 454,528 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions | [1] | 8.00% | 6.00% |
Tier 1 common capital to risk weighted assets: | |||
Actual Capital (in Dollars) | [1] | $ 854,322 | |
Actual Ratio | [1] | 10.13% | |
Adequately Capitalized Capital (in Dollars) | [1] | $ 379,338 | |
Adequately Capitalized Ratio | [1] | 4.50% | |
To Be Well-Capitalized Under Prompt Corrective Action Provisions Capital (in Dollars) | [1] | $ 547,933 | |
To Be Well-Capitalized Under Prompt Corrective Action Provisions | [1] | 6.50% | |
Tier 1 leverage to average assets: | |||
Actual Capital (in Dollars) | [1] | $ 854,322 | $ 857,362 |
Actual Ratio | [1] | 9.09% | 9.76% |
Adequately Capitalized Capital (in Dollars) | [1] | $ 375,950 | $ 351,222 |
Adequately Capitalized Ratio | [1] | 4.00% | 4.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provisions Capital (in Dollars) | [1] | $ 469,937 | $ 439,028 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions | [1] | 5.00% | 5.00% |
[1] | Basel III Capital Rules, which became effective for the Company on January 1, 2015, revised the risk-based capital requirements and introduced a new capital measure, Tier 1 common capital to risk-weighted assets. As a result, ratios as of December 31, 2015 are computed using the new rules and ratios as of December 31, 2014 are computed using the regulatory guidance applicable at that time. |
Derivative Instruments and H120
Derivative Instruments and Hedging Activities (Details) - Fair Value Hedges - Fair Value Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gross notional amount outstanding | $ 11,620 | $ 12,793 | |
Derivative liability fair value | $ (643) | $ (1,032) | |
Weighted-average interest rate received | 2.25% | 2.07% | |
Weighted-average interest rate paid | 6.36% | 6.37% | |
Weighted-average maturity (in years) | 1 year 11 months 19 days | 2 years 11 months 11 days | |
Fair value of assets needed to settle derivative transactions | [1] | $ 665 | $ 1,057 |
[1] | This amount represents the fair value if credit risk related contingent features were triggered. |
Derivative Instruments and H121
Derivative Instruments and Hedging Activities (Details) - Narrative - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Interest rate cash flow hedge gain (loss) to be reclassified during the next 12 months, net | $ 4.6 | ||
Derivative transaction fees | $ 4.8 | $ 2.2 | $ 2.8 |
Portion of fair value outstanding, interest rate swaps covered by collateral agreements (percent) | 100.00% | 100.00% | |
Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of variable rate loans hedged using interest rate swaps | $ 710 | ||
Amount hedged of borrowed funds using forward starting interest rate swaps | 510 | ||
Forward starting interest rate swaps | $ 262.5 |
Derivative Instruments and H122
Derivative Instruments and Hedging Activities (Details) - Cash Flow Hedges - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount outstanding | $ 1,220,000 | $ 650,000 |
Derivative asset fair value | 4,787 | 1,166 |
Derivative liability fair value | $ (8,950) | $ (3,096) |
Weighted-average interest rate received | 1.24% | 1.63% |
Weighted-average interest rate paid | 0.75% | 0.16% |
Weighted-average maturity (in years) | 3 years 10 months 28 days | 4 years 6 months 8 days |
Derivative Instruments and H123
Derivative Instruments and Hedging Activities (Details) - Other Derivative Instruments - Other Derivative Instruments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Gross notional amount outstanding | $ 853,385 | $ 527,893 | |
Derivative asset fair value | 11,446 | 7,852 | |
Derivative liability fair value | (11,446) | (7,852) | |
Fair value of assets needed to settle derivative transactions | [1] | $ 11,939 | $ 8,130 |
[1] | This amount represents the fair value if credit risk related contingent factors were triggered. |
Derivative Instruments and H124
Derivative Instruments and Hedging Activities (Details) - Offsetting Derivatives - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Offsetting Derivative Assets [Abstract] | |||
Gross amounts recognized | $ 16,233 | $ 9,018 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 16,233 | 9,018 |
Offsetting derivative positions | (4,791) | (1,195) | |
Cash collateral pledged | 0 | 0 | |
Net credit exposure | 11,442 | 7,823 | |
Offsetting Derivative Liabilities [Abstract] | |||
Gross amounts recognized | 21,039 | 11,980 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 21,039 | 11,980 |
Offsetting derivative positions | (4,791) | (1,195) | |
Cash collateral pledged | (16,248) | (10,785) | |
Net credit exposure | $ 0 | $ 0 | |
[1] | Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and125
Commitments, Guarantees, and Contingent Liabilities (Detail) - Contractual or Notional Amounts of Financial Instruments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments to extend credit: | |||
Commercial, industrial, and agricultural | $ 1,303,056 | $ 1,299,683 | |
Commercial real estate | 366,250 | 170,573 | |
Home equity | 352,114 | 317,783 | |
Other commitments | [1] | 203,121 | 194,556 |
Total commitments to extend credit | 2,224,541 | 1,982,595 | |
Standby letters of credit | 100,610 | 110,639 | |
Recourse on assets sold: | |||
Unpaid principal balance of loans sold | 196,389 | 185,910 | |
Carrying value of recourse obligation | [2] | $ 87 | $ 155 |
[1] | Other commitments includes installment and overdraft protection program commitments. | ||
[2] | Included in other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and126
Commitments, Guarantees, and Contingent Liabilities (Detail) - FHLB Advances - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Gain on termination of FHLB forward commitments | $ 0 | $ 0 | $ 7,829 |
Fair Value (Detail) - Recurring
Fair Value (Detail) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Trading securities: | |||||
Total trading securities | $ 16,894 | $ 17,460 | |||
Securities available-for-sale: | |||||
CDOs | 31,529 | 33,774 | $ 18,309 | $ 12,129 | |
Total | 1,306,636 | 1,187,009 | |||
Mortgage servicing rights | 1,853 | 1,728 | $ 1,893 | $ 985 | |
Level 1 | |||||
Trading securities: | |||||
Money market funds | 2,530 | 1,725 | |||
Mutual funds | 14,364 | 15,735 | |||
Total trading securities | 16,894 | 17,460 | |||
Securities available-for-sale: | |||||
U.S. treasury securities | 16,980 | 0 | |||
U.S. agency securities | 0 | 0 | |||
CMOs | 0 | 0 | |||
MBSs | 0 | 0 | |||
Municipal securities | 0 | 0 | |||
CDOs | 0 | 0 | |||
Corporate debt securities | 0 | 0 | |||
Equity securities | 0 | 0 | |||
Total | 16,980 | 0 | |||
Mortgage servicing rights | [1] | 0 | 0 | ||
Derivative assets | [1] | 0 | 0 | ||
Liabilities: | |||||
Derivative liabilities | [2] | 0 | 0 | ||
Level 2 | |||||
Trading securities: | |||||
Money market funds | 0 | 0 | |||
Mutual funds | 0 | 0 | |||
Total trading securities | 0 | 0 | |||
Securities available-for-sale: | |||||
U.S. treasury securities | 0 | 0 | |||
U.S. agency securities | 86,643 | 30,431 | |||
CMOs | 687,185 | 534,156 | |||
MBSs | 153,530 | 159,765 | |||
Municipal securities | 327,570 | 423,820 | |||
CDOs | 0 | 0 | |||
Corporate debt securities | 0 | 1,802 | |||
Equity securities | 3,199 | 3,261 | |||
Total | 1,258,127 | 1,153,235 | |||
Mortgage servicing rights | [1] | 0 | 0 | ||
Derivative assets | [1] | 16,233 | 9,018 | ||
Liabilities: | |||||
Derivative liabilities | [2] | 21,039 | 11,980 | ||
Level 3 | |||||
Trading securities: | |||||
Money market funds | 0 | 0 | |||
Mutual funds | 0 | 0 | |||
Total trading securities | 0 | 0 | |||
Securities available-for-sale: | |||||
U.S. treasury securities | 0 | 0 | |||
U.S. agency securities | 0 | 0 | |||
CMOs | 0 | 0 | |||
MBSs | 0 | 0 | |||
Municipal securities | 0 | 0 | |||
CDOs | 31,529 | 33,774 | |||
Corporate debt securities | 0 | 0 | |||
Equity securities | 0 | 0 | |||
Total | 31,529 | 33,774 | |||
Mortgage servicing rights | [1] | 1,853 | 1,728 | ||
Derivative assets | [1] | 0 | 0 | ||
Liabilities: | |||||
Derivative liabilities | [2] | $ 0 | $ 0 | ||
[1] | Included in other assets in the Consolidated Statements of Financial Condition. | ||||
[2] | Included in other liabilities in the Consolidated Statements of Financial Condition. |
Fair Value (Detail) - Significa
Fair Value (Detail) - Significant Unobservable Inputs Used In The Valuation of CDOs | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Probability of prepayment | 1.80% | 2.90% |
Probability of default | 19.10% | 18.40% |
Loss given default | 93.80% | 83.80% |
Probability of deferral cure | 15.20% | 6.70% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Probability of prepayment | 15.10% | 15.20% |
Probability of default | 32.60% | 57.70% |
Loss given default | 97.10% | 97.00% |
Probability of deferral cure | 63.10% | 75.00% |
Fair Value (Detail) - Rollforwa
Fair Value (Detail) - Rollforward of Carrying Value of CDOs - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 33,774 | $ 18,309 | $ 12,129 | |
Additions | 0 | 6,549 | 0 | |
Change in other comprehensive (loss) income | [1] | (2,030) | 13,495 | 6,180 |
Paydowns and sales | [2] | (215) | (4,579) | 0 |
Ending balance | $ 31,529 | $ 33,774 | $ 18,309 | |
[1] | Included in unrealized holding (losses) gains in the Consolidated Statements of Comprehensive Income. | |||
[2] | During the year ended December 31, 2014, one CDO with a carrying value of $1.3 million and four CDOs totaling $2.9 million, which were acquired in the Great Lakes transaction, were sold. In addition, one CDO with a carrying value of zero was sold during the year ended December 31, 2 |
Fair Value (Detail) - Narrative
Fair Value (Detail) - Narrative | 12 Months Ended | |||
Dec. 31, 2014USD ($)securityloan | Dec. 31, 2013USD ($)security | Dec. 31, 2015locationlandloan | Dec. 02, 2014USD ($) | |
Fair Value [Line Items] | ||||
Number of CDOs sold | security | 1 | 1 | ||
Carrying value of CDO sold | $ 1,300,000 | $ 0 | ||
Number of former branches held for sale | location | 12 | |||
Number of land parcels held for sale | land | 7 | |||
Commercial Real Estate | ||||
Fair Value [Line Items] | ||||
Type of loans held-for-sale | loan | 1 | 1 | ||
Great Lakes Financial Resources, Inc. | ||||
Fair Value [Line Items] | ||||
Securities available-for-sale | $ 219,279,000 | |||
Trust-preferred Collateralized Debt Obligations | Great Lakes Financial Resources, Inc. | ||||
Fair Value [Line Items] | ||||
Number of CDOs sold | security | 4 | |||
Securities available-for-sale | $ 2,900,000 | |||
Minimum | ||||
Fair Value [Line Items] | ||||
Appraisal adjustment | 0.00% | |||
Maximum | ||||
Fair Value [Line Items] | ||||
Appraisal adjustment | 15.00% |
Fair Value (Detail) - Carrying
Fair Value (Detail) - Carrying Value of Mortgage Servicing Rights - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 1,728 | $ 1,893 | $ 985 | |
New mortgage servicing rights | 342 | 315 | 1,060 | |
Changes in valuation inputs and assumptions | [1] | (11) | (480) | 63 |
Other changes in fair value | [1],[2] | (206) | 0 | (215) |
Ending balance | 1,853 | 1,728 | 1,893 | |
Contractual servicing fees earned during the year | [1] | 546 | 520 | 418 |
Total amount of loans being serviced for the benefit of others at the end of the year | $ 242,915 | $ 220,372 | $ 214,458 | |
[1] | Included in mortgage banking income in the Consolidated Statements of Income and relate to assets still held at the end of the year. | |||
[2] | Primarily represents changes in expected future cash flows over time due to payoffs and paydowns. |
Fair Value (Detail) - Annual Fa
Fair Value (Detail) - Annual Fair Value Measurements of Pension Plan Asses - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value [Line Items] | ||||
Pension plan assets | $ 64,903 | $ 72,193 | $ 74,370 | |
Mutual Funds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | [1] | 23,061 | 25,499 | |
U.S. Government and Government Agency Securities | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 12,404 | 15,942 | ||
Corporate Bonds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 9,569 | 6,599 | ||
Common Stock | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 11,330 | 14,149 | ||
Common Trust Funds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 8,539 | 10,004 | ||
Level 1 | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 41,257 | 47,527 | ||
Level 1 | Mutual Funds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | [1] | 23,061 | 25,499 | |
Level 1 | U.S. Government and Government Agency Securities | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 6,866 | 7,879 | ||
Level 1 | Corporate Bonds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 0 | 0 | ||
Level 1 | Common Stock | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 11,330 | 14,149 | ||
Level 1 | Common Trust Funds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 0 | 0 | ||
Level 2 | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 23,646 | 24,666 | ||
Level 2 | Mutual Funds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | [1] | 0 | 0 | |
Level 2 | U.S. Government and Government Agency Securities | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 5,538 | 8,063 | ||
Level 2 | Corporate Bonds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 9,569 | 6,599 | ||
Level 2 | Common Stock | ||||
Fair Value [Line Items] | ||||
Pension plan assets | 0 | 0 | ||
Level 2 | Common Trust Funds | ||||
Fair Value [Line Items] | ||||
Pension plan assets | $ 8,539 | $ 10,004 | ||
[1] | Includes mutual funds, money market funds, cash, cash equivalents, and accrued interest. |
Fair Value (Detail) - Non-Recur
Fair Value (Detail) - Non-Recurring Fair Value Measurements - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value [Line Items] | |||
Assets held-for-sale | $ 7,428 | $ 2,026 | |
Level 1 | |||
Fair Value [Line Items] | |||
Collateral-dependent impaired loans | [1] | 0 | 0 |
OREO | [2] | 0 | 0 |
Loans held-for-sale | [3] | 0 | 0 |
Assets held-for-sale | [4] | 0 | 0 |
Level 2 | |||
Fair Value [Line Items] | |||
Collateral-dependent impaired loans | [1] | 0 | 0 |
OREO | [2] | 0 | 0 |
Loans held-for-sale | [3] | 0 | 0 |
Assets held-for-sale | [4] | 0 | 0 |
Level 3 | |||
Fair Value [Line Items] | |||
Collateral-dependent impaired loans | [1] | 10,519 | 23,799 |
OREO | [2] | 8,581 | 22,760 |
Loans held-for-sale | [3] | 14,444 | 9,459 |
Assets held-for-sale | [4] | $ 7,428 | $ 2,026 |
[1] | Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. | ||
[2] | Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented. | ||
[3] | Included in other assets in the Consolidated Statements of Financial Condition. | ||
[4] | Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition. |
Fair Value (Detail) - Fair Valu
Fair Value (Detail) - Fair Value Measurements of Other Financial Instruments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and due from banks | $ 114,587 | $ 117,315 |
Interest-bearing deposits in other banks | 266,615 | 488,947 |
Securities held-to-maturity | 23,152 | 26,555 |
FHLB and FRB stock | 39,306 | 37,558 |
Loans | 7,088,085 | 6,664,159 |
Investment in BOLI | 209,601 | 206,498 |
Liabilities: | ||
Deposits | 8,097,738 | 7,887,758 |
Borrowed funds | 165,096 | 137,994 |
Senior and subordinated debt | 201,208 | 200,869 |
Level 1 | ||
Assets: | ||
Cash and due from banks | 114,587 | 117,315 |
Liabilities: | ||
Senior and subordinated debt | 205,726 | 209,035 |
Level 1 | Carrying Amount | ||
Assets: | ||
Cash and due from banks | 114,587 | 117,315 |
Liabilities: | ||
Senior and subordinated debt | 201,208 | 200,869 |
Level 2 | ||
Assets: | ||
Interest-bearing deposits in other banks | 266,615 | 488,947 |
Securities held-to-maturity | 20,054 | 27,670 |
FHLB and FRB stock | 39,306 | 37,558 |
Liabilities: | ||
Deposits | 8,093,640 | 7,879,413 |
Borrowed funds | 165,096 | 137,994 |
Accrued interest payable | 2,175 | 2,324 |
Level 2 | Carrying Amount | ||
Assets: | ||
Interest-bearing deposits in other banks | 266,615 | 488,947 |
Securities held-to-maturity | 23,152 | 26,555 |
FHLB and FRB stock | 39,306 | 37,558 |
Liabilities: | ||
Deposits | 8,097,738 | 7,887,758 |
Borrowed funds | 165,096 | 137,994 |
Accrued interest payable | 2,175 | 2,324 |
Level 3 | ||
Assets: | ||
Loans | 6,959,024 | 6,536,248 |
Investment in BOLI | 209,601 | 206,498 |
Accrued interest receivable | 27,847 | 27,506 |
Other interest-earning assets | 1,982 | 3,799 |
Level 3 | Carrying Amount | ||
Assets: | ||
Loans | 7,091,988 | 6,672,611 |
Investment in BOLI | 209,601 | 206,498 |
Accrued interest receivable | 27,847 | 27,506 |
Other interest-earning assets | $ 1,982 | $ 3,799 |
Related Party Transactions (Det
Related Party Transactions (Detail) - Narrative - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Due from Related Parties | $ 16.9 | $ 31.8 |
Stockholders' Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk (percentage) | 5.00% |
Condensed Parent Company Fin136
Condensed Parent Company Financial Statements (Detail) - Statements of Financial Condition (Parent Company Only) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and due from banks | $ 381,202 | $ 606,262 | $ 587,241 | $ 716,266 |
Goodwill | 319,007 | 310,589 | 264,062 | 265,477 |
Other assets | 174,560 | 190,912 | ||
Total assets | 9,732,676 | 9,445,139 | ||
Liabilities and Stockholders’ Equity | ||||
Senior and subordinated debt | 201,208 | 200,869 | ||
Accrued interest payable and other liabilities | 122,366 | 117,743 | ||
Stockholders' equity | 1,146,268 | 1,100,775 | 1,001,442 | 940,893 |
Total liabilities and stockholders' equity | 9,732,676 | 9,445,139 | ||
Parent Company | ||||
Assets | ||||
Cash and due from banks | 119,693 | 43,546 | $ 13,071 | $ 20,970 |
Investments in and advances to subsidiaries | 1,184,900 | 1,211,244 | ||
Goodwill | 18,216 | 13,625 | ||
Other assets | 54,394 | 79,468 | ||
Total assets | 1,377,203 | 1,347,883 | ||
Liabilities and Stockholders’ Equity | ||||
Senior and subordinated debt | 201,208 | 200,869 | ||
Accrued interest payable and other liabilities | 29,727 | 46,239 | ||
Stockholders' equity | 1,146,268 | 1,100,775 | ||
Total liabilities and stockholders' equity | $ 1,377,203 | $ 1,347,883 |
Condensed Parent Company Fin137
Condensed Parent Company Financial Statements (Detail) - Statements of Income (Parent Company Only) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income | |||
Interest income | $ 335,984 | $ 299,864 | $ 287,247 |
Net losses on early extinguishment of debt | 0 | (2,059) | (1,034) |
Securities transactions and other | 2,764 | 4,567 | 4,452 |
Expenses | |||
Interest expense | 24,386 | 23,012 | 27,115 |
Other expenses | 21,601 | 20,135 | 17,358 |
Income before income tax expense | 119,811 | 100,476 | 128,021 |
Income tax benefit (expense) | (37,747) | (31,170) | (48,715) |
Net income | 82,064 | 69,306 | 79,306 |
Net income applicable to non-vested restricted shares | (882) | (836) | (1,107) |
Net income applicable to common shares | 81,182 | 68,470 | 78,199 |
Parent Company | |||
Income | |||
Dividends from subsidiaries | 127,000 | 56,881 | 54,200 |
Interest income | 2,164 | 1,502 | 1,067 |
Net losses on early extinguishment of debt | 0 | 0 | (1,034) |
Securities transactions and other | 584 | 6,451 | 37,485 |
Total income | 129,748 | 64,834 | 91,718 |
Expenses | |||
Interest expense | 12,545 | 12,062 | 13,607 |
Salaries and employee benefits | 14,624 | 12,589 | 15,198 |
Other expenses | 6,003 | 5,867 | 5,792 |
Total expenses | 33,172 | 30,518 | 34,597 |
Income before income tax expense | 96,576 | 34,316 | 57,121 |
Income tax benefit (expense) | 11,950 | 8,710 | (962) |
Income before equity in undistributed (loss) income of subsidiaries | 108,526 | 43,026 | 56,159 |
Equity in undistributed (loss) income of subsidiaries | (26,462) | 26,280 | 23,147 |
Net income | 82,064 | 69,306 | 79,306 |
Net income applicable to non-vested restricted shares | (882) | (836) | (1,107) |
Net income applicable to common shares | $ 81,182 | $ 68,470 | $ 78,199 |
Condensed Parent Company Fin138
Condensed Parent Company Financial Statements (Detail) - Statements of Cash Flows (Parent Company Only) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 82,064 | $ 69,306 | $ 79,306 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of premises, furniture, and equipment | 13,367 | 12,224 | 11,038 |
Net securities gains | (2,373) | (8,097) | (34,164) |
Net losses on early extinguishment of debt | 0 | 2,059 | 1,034 |
Share-based compensation expense | 7,242 | 5,926 | 5,903 |
Tax expense related to share-based compensation | (1,200) | (106) | (10) |
Net decrease in other assets | 10,023 | (18,015) | 30,696 |
Net (decrease) increase in other liabilities | (1,042) | 22,367 | (21,859) |
Investing Activities | |||
Purchases of securities available-for-sale | (509,481) | (25,856) | (335,442) |
Purchases of premises, furniture, and equipment | (11,269) | (14,085) | (11,030) |
Net cash paid from acquisitions | (16,047) | 200,645 | 0 |
Net cash (used in) provided by investing activities | (498,390) | 108,357 | (372,280) |
Financing Activities | |||
Payments for retirement of subordinated debt | 0 | 0 | (24,094) |
Treasury stock activity | 120 | 0 | 0 |
Cash dividends paid | (27,036) | (22,568) | (7,508) |
Restricted stock activity | (2,890) | (2,781) | (1,607) |
Excess tax benefit related to share-based compensation | 794 | 912 | 79 |
Net cash provided by (used in) financing activities | 114,817 | (215,578) | 106,903 |
Net increase (decrease) in cash and cash equivalents | (225,060) | 19,021 | (129,025) |
Cash and cash equivalents at beginning of year | 606,262 | 587,241 | 716,266 |
Cash and cash equivalents at end of year | 381,202 | 606,262 | 587,241 |
Supplemental Disclosures of Cash Flow Information: | |||
Common stock issued for acquisitions, net of issuance costs | 0 | 38,300 | 0 |
Parent Company | |||
Operating Activities | |||
Net income | 82,064 | 69,306 | 79,306 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed loss (income) of subsidiaries | 26,462 | (26,280) | (23,147) |
Depreciation of premises, furniture, and equipment | 7 | 6 | 7 |
Net securities gains | (1) | (5,702) | (34,119) |
Net losses on early extinguishment of debt | 0 | 0 | 1,034 |
Share-based compensation expense | 7,242 | 5,926 | 5,903 |
Tax expense related to share-based compensation | (1,200) | (106) | (10) |
Net decrease in other assets | 23,699 | 4,599 | 1,084 |
Net (decrease) increase in other liabilities | (17,132) | 14,063 | (1,624) |
Net cash provided by operating activities | 121,141 | 61,812 | 28,434 |
Investing Activities | |||
Purchases of securities available-for-sale | 0 | 0 | (46,532) |
Proceeds from sales and maturities of securities available-for-sale | 310 | 8,540 | 43,329 |
Purchases of premises, furniture, and equipment | (5) | 0 | 0 |
Net cash paid from acquisitions | (16,047) | (15,809) | 0 |
Net cash (used in) provided by investing activities | (15,742) | (7,269) | (3,203) |
Financing Activities | |||
Payments for retirement of subordinated debt | 0 | 0 | (24,094) |
Treasury stock activity | 120 | (369) | 0 |
Cash dividends paid | (27,036) | (22,568) | (7,508) |
Restricted stock activity | (2,890) | (2,781) | (1,607) |
Excess tax benefit related to share-based compensation | 794 | 912 | 79 |
Net cash provided by (used in) financing activities | (29,252) | (24,068) | (33,130) |
Net increase (decrease) in cash and cash equivalents | 76,147 | 30,475 | (7,899) |
Cash and cash equivalents at beginning of year | 43,546 | 13,071 | 20,970 |
Cash and cash equivalents at end of year | 119,693 | 43,546 | 13,071 |
Supplemental Disclosures of Cash Flow Information: | |||
Common stock issued for acquisitions, net of issuance costs | $ 0 | $ 38,300 | $ 0 |