Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST MIDWEST BANCORP INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 112,345,301 | |
Amendment Flag | false | |
Entity Central Index Key | 702,325 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 174,268 | $ 155,055 |
Interest-bearing deposits in other banks | 74,892 | 107,093 |
Trading securities, at fair value | 19,130 | 17,920 |
Securities available-for-sale, at fair value | 1,937,124 | 1,919,450 |
Securities held-to-maturity, at amortized cost | 17,742 | 22,291 |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost | 46,306 | 59,131 |
Loans | 10,054,370 | 8,254,145 |
Allowance for loan losses | (88,163) | (86,083) |
Net loans | 9,966,207 | 8,168,062 |
Other real estate owned (OREO) | 29,140 | 26,083 |
Premises, furniture, and equipment, net | 140,653 | 82,577 |
Investment in bank-owned life insurance (BOLI) | 276,960 | 219,746 |
Goodwill and other intangible assets | 754,621 | 366,876 |
Accrued interest receivable and other assets | 336,428 | 278,271 |
Total assets | 13,773,471 | 11,422,555 |
Liabilities | ||
Noninterest-bearing deposits | 3,492,987 | 2,766,748 |
Interest-bearing deposits | 7,463,554 | 6,061,855 |
Total deposits | 10,956,541 | 8,828,603 |
Borrowed funds | 547,923 | 879,008 |
Senior and subordinated debt | 194,745 | 194,603 |
Accrued interest payable and other liabilities | 269,529 | 263,261 |
Total liabilities | 11,968,738 | 10,165,475 |
Stockholders' Equity | ||
Common stock | 1,123 | 913 |
Additional paid-in capital | 1,022,417 | 498,937 |
Retained earnings | 1,030,403 | 1,016,674 |
Accumulated other comprehensive loss, net of tax | (40,264) | (40,910) |
Treasury stock, at cost | (208,946) | (218,534) |
Total stockholders' equity | 1,804,733 | 1,257,080 |
Total liabilities and stockholders' equity | $ 13,773,471 | $ 11,422,555 |
Stockholders' Equity, Number of Shares, Par Value, and Other Disclosures | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 112,343,000 | 91,284,000 |
Common stock, shares outstanding | 102,757,000 | 81,325,000 |
Treasury stock, shares | 9,586,000 | 9,959,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest Income | ||
Loans | $ 112,365 | $ 78,455 |
Investment securities | 10,484 | 8,558 |
Other short-term investments | 850 | 535 |
Total interest income | 123,699 | 87,548 |
Interest Expense | ||
Deposits | 3,209 | 2,385 |
Borrowed funds | 2,194 | 1,316 |
Senior and subordinated debt | 3,099 | 3,133 |
Total interest expense | 8,502 | 6,834 |
Net interest income | 115,197 | 80,714 |
Provision for loan losses | 4,918 | 7,593 |
Net interest income after provision for loan losses | 110,279 | 73,121 |
Noninterest Income | ||
Service charges on deposit accounts | 11,365 | 9,473 |
Wealth management fees | 9,660 | 7,559 |
Card-based fees | 8,116 | 6,718 |
Mortgage banking income | 1,888 | 1,368 |
Capital market products income | 1,376 | 3,215 |
Other service charges, commissions, and fees | 5,442 | 5,261 |
Net securities gains | 0 | 887 |
Other income | 2,104 | 1,445 |
Total noninterest income | 39,951 | 35,926 |
Noninterest Expense | ||
Salaries and employee benefits | 55,772 | 44,594 |
Net occupancy and equipment expense | 12,325 | 9,697 |
Professional services | 8,463 | 5,920 |
Technology and related costs | 4,433 | 3,701 |
Net OREO expense | 1,700 | 664 |
Other expenses | 15,384 | 12,993 |
Acquisition and integration related expenses | 18,565 | 5,020 |
Total noninterest expense | 116,642 | 82,589 |
Income before income tax expense | 33,588 | 26,458 |
Income tax expense | 10,733 | 8,496 |
Net income | $ 22,855 | $ 17,962 |
Per Common Share Data | ||
Basic earnings per common share (in Dollars per share) | $ 0.23 | $ 0.23 |
Diluted earnings per common share (in Dollars per share) | 0.23 | 0.23 |
Dividends declared per common share (in dollars per share) | $ 0.09 | $ 0.09 |
Weighted-average common shares outstanding (in Shares) | 100,411 | 77,980 |
Weighted-average diluted common shares outstanding (in Shares) | 100,432 | 77,992 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 22,855 | $ 17,962 |
Unrealized holding gains: | ||
Before tax | 3,298 | 18,873 |
Tax effect | (1,321) | (7,546) |
Net of tax | 1,977 | 11,327 |
Reclassification of net gains included in net income: | ||
Before tax | 0 | 887 |
Tax effect | 0 | (355) |
Net of tax | 0 | 532 |
Net unrealized holding gains | 1,977 | 10,795 |
Derivative Instruments | ||
Before tax | (2,220) | 4,275 |
Tax effect | 889 | (1,722) |
Net of tax | (1,331) | 2,553 |
Total other comprehensive income | 646 | 13,348 |
Total comprehensive income | $ 23,501 | $ 31,310 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income - AOCI - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Other comprehensive income | $ 646 | $ 13,348 |
Accumulated Unrealized Gain (Loss) on Securities Available- for-Sale | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (22,645) | (10,271) |
Other comprehensive income | 1,977 | 10,795 |
Ending balance | (20,668) | 524 |
Accumulated Unrealized Gain (Loss) on Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (1,176) | (2,468) |
Other comprehensive income | (1,331) | 2,553 |
Ending balance | (2,507) | 85 |
Unrecognized Net Pension Costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (17,089) | (15,650) |
Other comprehensive income | 0 | 0 |
Ending balance | (17,089) | (15,650) |
Total Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (40,910) | (28,389) |
Other comprehensive income | 646 | 13,348 |
Ending balance | $ (40,264) | $ (15,041) |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance Beginning at Dec. 31, 2015 | $ 1,146,268 | $ 882 | $ 446,672 | $ 953,516 | $ (28,389) | $ (226,413) |
Balance Beginning (in Shares) at Dec. 31, 2015 | 77,952 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 17,962 | 17,962 | ||||
Other comprehensive income | 13,348 | 13,348 | ||||
Common dividends declared ($0.09 per common share) | (7,228) | (7,228) | ||||
Acquisitions, net of issuance costs | 54,896 | $ 31 | 54,865 | |||
Acquisitions, net of issuance costs (in Shares) | 3,042 | |||||
Common stock issued | 59 | 59 | ||||
Common stock issued (in Shares) | 4 | |||||
Restricted stock activity | (2,546) | (10,282) | 7,736 | |||
Restricted stock activity (in Shares) | 303 | |||||
Treasury stock issued to benefit plans | (33) | (33) | ||||
Treasury stock issued to benefit plans (in Shares) | (3) | |||||
Share-based compensation expense | 1,839 | 1,839 | ||||
Balance Ending at Mar. 31, 2016 | 1,224,565 | $ 913 | 493,153 | 964,250 | (15,041) | (218,710) |
Balance Ending (in Shares) at Mar. 31, 2016 | 81,298 | |||||
Balance Beginning at Dec. 31, 2016 | $ 1,257,080 | $ 913 | 498,937 | 1,016,674 | (40,910) | (218,534) |
Balance Beginning (in Shares) at Dec. 31, 2016 | 81,325 | 81,325 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 22,855 | 22,855 | ||||
Other comprehensive income | 646 | 646 | ||||
Common dividends declared ($0.09 per common share) | (9,126) | (9,126) | ||||
Acquisitions, net of issuance costs | 534,090 | $ 210 | 533,322 | 558 | ||
Acquisitions, net of issuance costs (in Shares) | 21,078 | |||||
Common stock issued | 53 | 53 | ||||
Common stock issued (in Shares) | 2 | |||||
Restricted stock activity | (3,752) | (12,860) | 9,108 | |||
Restricted stock activity (in Shares) | 355 | |||||
Treasury stock issued to benefit plans | (78) | (78) | ||||
Treasury stock issued to benefit plans (in Shares) | (3) | |||||
Share-based compensation expense | 2,965 | 2,965 | ||||
Balance Ending at Mar. 31, 2017 | $ 1,804,733 | $ 1,123 | $ 1,022,417 | $ 1,030,403 | $ (40,264) | $ (208,946) |
Balance Ending (in Shares) at Mar. 31, 2017 | 102,757 | 102,757 |
Consolidated Statements of Cha7
Consolidated Statements of Changes In Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.09 | $ 0.09 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 8,201 | $ 10,232 |
Investing Activities | ||
Proceeds from maturities, repayments, and calls of securities available-for-sale | 80,060 | 68,235 |
Proceeds from sales of securities available-for-sale | 210,154 | 31,453 |
Purchases of securities available-for-sale | (94,766) | (276,265) |
Proceeds from maturities, repayments, and calls of securities held-to-maturity | 4,549 | 3,973 |
Purchases of securities held-to-maturity | 0 | (8) |
Purchases (sales) of FHLB stock | 16,072 | (61) |
Net increase in loans | (43,771) | (268,179) |
Proceeds from claims on BOLI, net of premiums paid | (24) | (22) |
Proceeds from sales of OREO | 5,364 | 1,640 |
Proceeds from sales of premises, furniture, and equipment | 404 | 675 |
Purchases of premises, furniture, and equipment | (2,891) | (2,921) |
Net cash received from acquisitions | 41,717 | 57,347 |
Net cash provided by (used in) investing activities | 216,868 | (384,133) |
Financing Activities | ||
Net increase in deposit accounts | 104,064 | 88,159 |
Net (decrease) increase in borrowed funds | (331,085) | 219,899 |
Cash dividends paid | (7,206) | (6,885) |
Restricted stock activity | (3,830) | (2,113) |
Net cash (used in) provided by financing activities | (238,057) | 299,060 |
Net decrease in cash and cash equivalents | (12,988) | (74,841) |
Cash and cash equivalents at beginning of period | 262,148 | 381,202 |
Cash and cash equivalents at end of period | 249,160 | 306,361 |
Supplemental Disclosures of Cash Flow Information: | ||
Income taxes (refunded) paid | (1,259) | 2,421 |
Interest paid to depositors and creditors | 9,354 | 3,563 |
Dividends declared, but unpaid | 9,163 | 7,593 |
Acquisitions, net of issuance costs | 534,090 | 54,896 |
Non-cash transfers of loans to OREO | 683 | 942 |
Non-cash transfers of loans held-for-investment to loans held-for-sale | $ 13,136 | $ 25,125 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation â The accompanying unaudited condensed consolidated interim financial statements ("consolidated financial statements") of First Midwest Bancorp, Inc. (the " Company "), a Delaware corporation, were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (" SEC ") for quarterly reports on Form 10-Q and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. The results of operations for the quarter ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . 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 accompanying consolidated financial statements do not include certain information and note disclosures required by GAAP for complete annual financial statements. Therefore, these financial statements should be read in conjunction with the Company 's 2016 Annual Report on Form 10-K (" 2016 10-K"). 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. Use of Estimates â 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 â 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. The accounting policies related to business combinations, loans, the allowance for credit losses, and derivative financial instruments are presented below. For a summary of all other significant accounting policies, see Note 1, "Summary of Significant Accounting Policies," in the Company 's 2016 10-K. Business Combinations â 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 Condensed Consolidated Statements of Income from the effective date of the acquisition. Loans â 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. 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 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. The Company 's net investment in direct financing leases is included in loans and consists of future minimum lease payments and estimated residual values, net of unearned income. Interest income on loans is accrued based on principal amounts outstanding. 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 â Covered loans consists of loans acquired by the Company in Federal Deposit Insurance Corporation (" FDIC ")-assisted transactions, 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 the FDIC Agreements. During 2015, certain covered loans were no longer covered under the FDIC Agreements, and are included in acquired loans and no longer classified as covered loans. Covered loans 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 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 losses or providing an allowance for loan losses. 90-Days Past Due Loans âThe 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 â 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 status, 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 ( " TDR s" ) â 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 TDR s when the modification is short-term or results in an insignificant delay in payments. The Company 's TDR s 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 TDR s 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 restructured until it is paid in full or charged-off. Impaired Loans â Impaired loans consist of corporate non-accrual loans and TDR s. 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 TDR s, 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 â The allowance for credit losses is comprised of the allowance for 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 losses, while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Additions to the allowance for loan losses are charged to expense through the provision for 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 losses based on the methodology discussed below. Allowance for Loan Losses â 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 collateral 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 and covered non-PCI and PCI loans. No allowance for loan losses is recorded on acquired loans at the acquisition date. Subsequent to the acquisition date, an allowance for credit losses is established as necessary to reflect credit deterioration. 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 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 acquired and covered PCI allowance reflects the difference between the carrying value and the discounted expected future cash flows of the acquired and 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 of the outstanding acquired and 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. Acquired non-PCI loans that have renewed subsequent to the respective acquisition dates are no longer classified as acquired loans. Instead, they are included in the general loan population and allocated an allowance based on a loss migration analysis. Reserve for Unfunded Commitments â 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. Derivative Financial Instruments â 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Adopted Accounting Pronouncements Contingent Put and Call Options in Debt Instruments: In March of 2016, the Financial Accounting Standards Board ("FASB") issued final guidance clarifying the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Entities are required to apply the guidance to existing debt instruments (or hybrid financial instruments that are determined to have a debt host) using a modified retrospective transition method as of the period of adoption. The adoption of this guidance on January 1, 2017 did not impact the Company 's financial condition, results of operations, or liquidity. Equity Method Accounting: In March of 2016, the FASB issued final guidance to simplify the equity method of accounting. The guidance eliminates the requirement to retrospectively apply equity method accounting in previous periods when an investor initially obtains significant influence over an investee. This guidance is effective for annual and interim periods beginning after December 15, 2016. The adoption of this guidance on January 1, 2017 did not impact the Company 's financial condition, results of operations, or liquidity. Accounting for Employee Share-based Payments: In March of 2016, the FASB issued guidance to simplify the accounting for employee share-based payment transactions. The guidance requires entities to recognize the income tax effects of awards in the income statement when the awards vest or are settled. In addition, the guidance allows entities to repurchase more of an employee's shares than it can under current guidance for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The adoption of this guidance on January 1, 2017 resulted in a $638,000 tax benefit recorded in the Company's results of operations. The Company elected to estimate forfeitures, which is consistent with the Company's practice before the adoption of this guidance. Accounting Pronouncements Pending Adoption 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. In March of 2016, the FASB issued an amendment to this guidance to clarify the implementation of guidance on principal versus agent consideration. Additional amendments to clarify the implementation guidance on the identification of performance obligations and licensing were issued in April of 2016 and narrow-scope improvements and practical expedients were issued in May of 2016. The guidance was initially effective for annual and interim reporting periods beginning on or after December 15, 2016 but was deferred to 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. The Company's revenue is comprised of net interest income on financial assets and liabilities, which are excluded from the scope of this guidance, and noninterest income. The Company expects that this guidance will change how revenue from certain revenue streams is recognized within wealth management fees but does not expect these changes to have a significant impact on the Company's financial condition, results of operations, or liquidity. The Company continues to evaluate the impact of this guidance on other components of noninterest income. The Company will adopt this guidance on January 1, 2018, with a cumulative effect adjustment to opening retained earnings, if an adjustment is deemed to be significant. 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. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Leases: In February of 2016, the FASB issued guidance to increase transparency and comparability across entities for leasing arrangements. This guidance requires lessees to recognize assets and liabilities for most leases. For lessors, this guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. In addition, this guidance clarifies criteria for the determination of whether a contract is or contains a lease. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. During 2016, the Company entered into a sale-leaseback transaction that resulted in a deferred gain of $82.5 million , with $79.5 million remaining as of March 31, 2017 . Upon adoption of this guidance, the remaining deferred gain will be recognized immediately as a cumulative-effect adjustment to equity. For additional discussion of the sale-leaseback transaction, see note 8 " Premises, Furniture, and Equipment ." Management is evaluating the new guidance and the additional impact to the Company 's financial condition, results of operations, or liquidity. Measurement of Credit Losses on Financial Instruments: In June of 2016, the FASB issued guidance that will require entities to present financial assets measured at amortized cost at the net amount expected to be collected, considering an entity's current estimate of all expected credit losses. In addition, credit losses relating to available-for-sale debt securities will be required to be recorded through an allowance for credit losses, with changes in credit loss estimates recognized through current earnings. This guidance is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, but not for periods beginning before December 15, 2018. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. Classification of Certain Cash Receipts and Cash Payments: In August of 2016, the FASB issued guidance clarifying certain cash flow presentation and classification issues to reduce diversity in practice. This guidance is effective for annual and interim reporting periods beginning on or after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's Consolidated Statement of Cash Flows. Income Taxes: In October of 2016, the FASB issued guidance that requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Clarifying the Definition of a Business: In January of 2017, the FASB issued guidance that clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Accounting for Goodwill Impairment: In January of 2017, the FASB issued guidance that simplifies the accounting for goodwill impairment for all entities. The new guidance eliminates the requirement to calculate the implied fair value of goodwill using the second step of the quantitative two-step goodwill impairment model prescribed under current accounting guidance. Under the new guidance, if a reporting unit's carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. This guidance is effective for annual and interim goodwill impairment testing dates beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Presentation of Defined Benefit Retirement Plan Costs: In March of 2017, the FASB issued guidance that changes how employers that sponsor defined pension and or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers will present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of net periodic benefit cost will be presented separately from the line item(s) that includes the service cost. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Premium Amortization on Purchased Callable Debt Securities: In March of 2017, the FASB issued guidance that shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Completed Acquisitions Standard Bancshares, Inc. On January 6, 2017, the Company completed the acquisition of Standard Bancshares, Inc. (" Standard "), the holding company for Standard Bank and Trust Company. Pursuant to the terms of the merger agreement, on January 6, 2017, each outstanding share of Standard common stock was canceled and converted into the right to receive 0.4350 of a share of Company common stock. Based on the closing trading price of shares of Company common stock on the NASDAQ on that date of $25.34 , the value of the merger consideration per share of Standard common stock was $11.02 . Each outstanding Standard stock settled right was redeemed for cash, and each outstanding Standard stock option and each share of Standard phantom stock was cancelled and terminated in exchange for the right to receive cash, in each case, pursuant to the terms of the merger agreement. This resulted in an overall transaction value of approximately $580.7 million , which consisted of 21,057,085 shares of Company common stock and $47.1 million in cash. Goodwill of $339.3 million associated with the acquisition was recorded by the Company. All operating systems were converted during the first quarter of 2017. The fair value adjustments associated with these accounts and goodwill remain preliminary and may change as the Company continues to finalize the fair value of the assets and liabilities acquired. Premier Asset Management LLC On February 28, 2017, the Company completed the acquisition of Premier Asset Management LLC ("Premier"), a registered investment advisor based in Chicago, Illinois. At the close of the acquisition, the Company acquired approximately $550.0 million of trust assets under management. NI Bancshares Corporation On March 8, 2016, the Company completed the acquisition of NI Bancshares Corporation (" NI Bancshares "), the holding company for The National Bank & Trust Company of Sycamore. As part of the acquisition, the Company acquired all assets and assumed all liabilities of NI Bancshares , which included ten banking offices in northern Illinois and over $700.0 million in trust assets under management. The merger consideration was a combination of Company common stock and cash, at a purchase price of $70.1 million . Goodwill of $22.2 million associated with the acquisition was recorded by the Company. During the first quarter of 2017, the Company finalized the fair value adjustments associated with the NI Bancshares transaction, which required a measurement period adjustment of $423,000 to increase goodwill. This adjustment was recognized in the current period in accordance with accounting guidance applicable to business combinations. The following table presents the assets acquired and liabilities assumed, net of the fair value adjustments, in the Standard and NI Bancshares 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 (Amounts in thousands, except share and per share data) Standard NI Bancshares January 6, 2017 March 8, 2016 Assets Cash and due from banks and interest-bearing deposits in other banks $ 102,149 $ 72,533 Securities available-for-sale 214,107 125,843 Securities held-to-maturity â 1,864 FHLB and FRB stock 3,247 1,549 Loans 1,769,709 396,181 OREO 8,427 2,863 Investment in BOLI 55,629 8,384 Goodwill 339,298 22,174 Other intangible assets 31,072 10,408 Premises, furniture, and equipment 59,163 19,636 Accrued interest receivable and other assets 56,077 16,453 Total assets $ 2,638,878 $ 677,888 Liabilities Noninterest-bearing deposits $ 675,354 $ 130,909 Interest-bearing deposits 1,348,520 464,012 Total deposits 2,023,874 594,921 Borrowed funds â 2,416 Intangible liabilities â 230 Accrued interest payable and other liabilities 34,289 10,239 Total liabilities 2,058,163 607,806 Consideration Paid Common stock (2017 - 21,057,085 shares issued at $25.34 per share, 2016 - 3,042,494 shares issued at $18.059 per share), net of issuance costs 533,590 54,896 Cash paid 47,125 15,186 Total consideration paid 580,715 70,082 $ 2,638,878 $ 677,888 Expenses related to the acquisition and integration of the transactions above totaled $18.6 million and $5.0 million during the quarters ended March 31, 2017 and 2016 , respectively, and are reported as a separate component within noninterest expense in the Condensed Consolidated Statements of Income. The acquisition of Standard was considered material to the Company's financial statements; therefore, pro forma financial data and related disclosures are included in the following tables. The unaudited pro forma combined results of operations for the quarters ended March 31, 2017 and 2016 are presented as if the Standard acquisition had occurred on January 1, 2016, the first day of the Company's 2016 fiscal year. The unaudited pro forma combined results of operations are presented for illustrative purposes only and do not necessarily indicate the financial results of the combined companies had the companies actually been combined at the beginning of the period presented. Fair value adjustments included in the following table are preliminary and may be revised. The unaudited pro forma results of operations also does not consider any potential impacts of potential revenue enhancements, anticipated cost savings and expense efficiencies, or asset dispositions, among other factors. Acquisition and integration related expenses directly attributable to the Standard acquisition have been excluded from the following table and are estimated to total $27.0 million , of which $17.5 million was expensed during the quarter ended March 31, 2017. Unaudited Pro Forma Combined Results of Operations (Dollar amounts in thousands) Quarters Ended March 31, 2017 2016 Total revenues (1) $ 156,757 $ 143,345 Net income 32,734 22,950 (1) Includes net interest income and total noninterest income. Acquired loans are recorded at fair value, which incorporates credit risk, at the date of acquisition. No allowance for credit losses is recorded on the acquisition date. Acquired loans are separated into (i) non-PCI and (ii) 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. PCI loans are accounted for based on estimates of expected future cash flows. 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. For additional discussion regarding significant accounting policies on acquired loans see Note 1 , " Summary of Significant Accounting Policies ." The following table presents additional detail for loans acquired in the Standard transaction at the acquisition date. Standard Acquired Loans (Dollar amounts in thousands) January 6, 2017 PCI Loans Non-PCI Loans Fair value $ 123,643 $ 1,646,066 Contractually required principal and interest payments 208,586 1,940,459 Best estimate of contractual cash flows not expected to be collected (1) 57,626 100,918 Best estimate of contractual cash flows expected to be collected 150,960 1,839,541 (1) Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES The significant accounting policies related to securities are presented in Note 1 , " Summary of Significant Accounting Policies " to the Consolidated Financial Statements in the Company 's 2016 10-K. 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 March 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 48,574 $ 23 $ (81 ) $ 48,516 $ 48,581 $ 26 $ (66 ) $ 48,541 U.S. agency securities 180,894 518 (382 ) 181,030 183,528 519 (410 ) 183,637 Collateralized mortgage obligations ("CMOs") 1,066,439 1,039 (16,114 ) 1,051,364 1,064,130 969 (17,653 ) 1,047,446 Other mortgage-backed securities ("MBSs") 357,473 1,230 (5,737 ) 352,966 337,139 1,395 (5,879 ) 332,655 Municipal securities 263,606 2,092 (2,988 ) 262,710 273,319 1,245 (3,718 ) 270,846 Trust-preferred collateralized debt obligations ("CDOs") 47,728 260 (14,552 ) 33,436 47,681 261 (14,682 ) 33,260 Equity securities 7,246 148 (292 ) 7,102 3,206 147 (288 ) 3,065 Total securities available-for-sale $ 1,971,960 $ 5,310 $ (40,146 ) $ 1,937,124 $ 1,957,584 $ 4,562 $ (42,696 ) $ 1,919,450 Securities Held-to-Maturity Municipal securities $ 17,742 $ â $ (2,624 ) $ 15,118 $ 22,291 $ â $ (4,079 ) $ 18,212 Trading Securities $ 19,130 $ 17,920 Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of March 31, 2017 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 90,123 $ 87,605 $ 1,926 $ 1,641 After one year to five years 399,483 388,321 6,834 5,823 After five years to ten years 3,470 3,373 2,975 2,535 After ten years 47,726 46,393 6,007 5,119 Securities that do not have a single contractual maturity date 1,431,158 1,411,432 â â Total $ 1,971,960 $ 1,937,124 $ 17,742 $ 15,118 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 $1.1 billion for both March 31, 2017 and December 31, 2016 . No securities held-to-maturity were pledged as of March 31, 2017 or December 31, 2016 . During the quarters ended March 31, 2017 and 2016 there were no material gross trading gains/(losses). The following table presents net realized gains on securities available-for-sale for the quarters ended March 31, 2017 and 2016 . Securities Available-for-Sale Gains (Dollar amounts in thousands) Quarters Ended 2017 2016 Gains on sales of securities: Gross realized gains $ â $ 930 Gross realized losses â (43 ) Net realized gains on sales of securities â 887 Non-cash impairment charges: Other-than-temporary securities impairment ("OTTI") â â Net realized gains $ â $ 887 There were no net securities gains recognized during the first quarter of 2017 . Securities of $214.1 million were acquired in the Standard transaction during the first quarter of 2017, of which $210.2 million were sold shortly after the acquisition and resulted in no gains or losses as they were recorded at fair value upon acquisition. 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 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 quarters ended March 31, 2017 and 2016 . 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) Quarters Ended 2017 2016 Beginning balance $ 23,345 $ 23,709 OTTI included in earnings (1) : Reduction for sales of securities â â Ending balance $ 23,345 $ 23,709 (1) Included in net securities gains in the Condensed Consolidated Statements of Income. The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of March 31, 2017 and December 31, 2016 . Securities in an Unrealized Loss Position (Dollar amounts in thousands) Less Than 12 Months 12 Months or Longer Total Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of March 31, 2017 Securities Available-for-Sale U.S. treasury securities 17 $ 35,481 $ 75 $ 3,995 $ 6 $ 39,476 $ 81 U.S. agency securities 30 70,426 358 6,928 24 77,354 382 CMOs 196 781,003 12,259 128,464 3,855 909,467 16,114 MBSs 73 290,278 5,180 17,013 557 307,291 5,737 Municipal securities 272 94,694 2,371 21,520 617 116,214 2,988 CDOs 7 â â 30,762 14,552 30,762 14,552 Equity securities 2 â â 6,687 292 6,687 292 Total 597 $ 1,271,882 $ 20,243 $ 215,369 $ 19,903 $ 1,487,251 $ 40,146 Securities Held-to-Maturity Municipal securities 13 $ â $ â $ 15,118 $ 2,624 $ 15,118 $ 2,624 As of December 31, 2016 Securities Available-for-Sale U.S. treasury securities 16 $ 33,505 $ 61 $ 3,995 $ 5 $ 37,500 $ 66 U.S. agency securities 28 62,064 364 11,814 46 73,878 410 CMOs 194 523,233 10,309 411,758 7,344 934,991 17,653 MBSs 68 221,174 4,726 77,780 1,154 298,954 5,880 Municipal securities 380 133,957 3,059 29,280 659 163,237 3,718 CDOs 7 â â 30,592 14,682 30,592 14,682 Equity securities 2 404 201 2,319 86 2,723 287 Total 695 $ 974,337 $ 18,720 $ 567,538 $ 23,976 $ 1,541,875 $ 42,696 Securities Held-to-Maturity Municipal securities 14 $ â $ â $ 18,212 $ 4,079 $ 18,212 $ 4,079 Substantially all of the Company 's CMO s 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 March 31, 2017 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 March 31, 2017 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 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 . For a detailed discussion of the CDO valuation methodology, see Note 14 , " Fair Value ." |
Loans
Loans | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Leases Receivable Disclosure [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 March 31, December 31, Commercial and industrial $ 3,370,780 $ 2,827,658 Agricultural 422,784 389,496 Commercial real estate: Office, retail, and industrial 1,988,979 1,581,967 Multi-family 671,710 614,052 Construction 568,460 451,540 Other commercial real estate 1,357,781 979,528 Total commercial real estate 4,586,930 3,627,087 Total corporate loans 8,380,494 6,844,241 Home equity 880,667 747,983 1-4 family mortgages 540,148 423,922 Installment 253,061 237,999 Total consumer loans 1,673,876 1,409,904 Total loans $ 10,054,370 $ 8,254,145 Deferred loan fees included in total loans $ 4,429 $ 3,838 Overdrawn demand deposits included in total loans 6,303 7,836 The increase in total loans for the quarter ended March 31, 2017 includes loans acquired in the Standard acquisition. For additional disclosure related to the Standard transaction, see note 3 , " Acquisitions ." 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. It is the Company 's policy to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with state lending laws, the Company 's lending standards, and credit monitoring and remediation procedures. A discussion of risk characteristics relevant to each portfolio segment is presented in Note 5 , "Loans" to the Consolidated Financial Statements in the Company 's 2016 10-K. Loan Sales The following table presents loan sales for the quarters ended March 31, 2017 and 2016 . Loan Sales (Dollar amounts in thousands) Quarters Ended 2017 2016 Corporate loan sales Proceeds from sales $ 15,368 $ 9,588 Less book value of loans sold 15,117 9,130 Net gains on corporate loan sales (1) $ 251 $ 458 1-4 family mortgage loan sales Proceeds from sales $ 55,761 $ 39,507 Less book value of loans sold 54,598 38,680 Net gains on 1-4 family mortgage loan sales (2) 1,163 827 Total net gains on loan sales $ 1,414 $ 1,285 (1) Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income. (2) Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed 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 1-4 family mortgage loans. A description of the recourse obligation is presented in Note 13 , " Commitments, Guarantees, and Contingent Liabilities ." |
Acquired and Covered Loans
Acquired and Covered Loans | 3 Months Ended |
Mar. 31, 2017 | |
Acquired Loans [Abstract] | |
Acquired and Covered Loans | ACQUIRED AND COVERED LOANS The significant accounting policies related to acquired and covered loans, which are classified as PCI and non-PCI , are presented in Note 1 , " Summary of Significant Accounting Policies ." The following table presents the carrying amount of acquired and covered PCI and non-PCI loans as of March 31, 2017 and December 31, 2016 . Acquired and Covered Loans (1) (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 169,961 $ 2,101,985 $ 2,271,946 $ 53,772 $ 613,339 $ 667,111 Covered loans 7,746 14,712 22,458 7,895 15,379 23,274 Total acquired and covered loans $ 177,707 $ 2,116,697 $ 2,294,404 $ 61,667 $ 628,718 $ 690,385 (1) Included in loans in the Consolidated Statements of Condition. The outstanding balance of PCI loans was $251.2 million and $84.8 million as of March 31, 2017 and December 31, 2016 , respectively. The increase in acquired loans for the quarter ended March 31, 2017 includes loans acquired in the Standard acquisition. For additional disclosure related to the Standard transaction, see note 3 , " Acquisitions ." Acquired non-PCI loans that are renewed are no longer classified as acquired loans. These loans totaled $170.9 million and $117.6 million as of March 31, 2017 and December 31, 2016 , respectively. 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 March 31, 2017 and December 31, 2016 . Rollforwards of the carrying value of the FDIC indemnification asset for the quarters ended March 31, 2017 and 2016 are presented in the following table. Changes in the FDIC Indemnification Asset (Dollar amounts in thousands) Quarters Ended 2017 2016 Beginning balance $ 4,522 $ 3,903 Amortization (302 ) (280 ) Change in expected reimbursements from the FDIC for changes in expected credit losses (328 ) 216 Net payments to the FDIC 328 1,841 Ending balance $ 4,220 $ 5,680 Changes in the accretable yield for acquired and covered PCI loans were as follows. Changes in Accretable Yield (Dollar amounts in thousands) Quarters Ended 2017 2016 Beginning balances $ 19,385 $ 24,912 Additions 27,316 3,981 Accretion (3,955 ) (1,546 ) Other (1) (1,497 ) (89 ) Ending balance $ 41,249 $ 27,258 (1) Decreases result from the resolution of certain loans occurring earlier than anticipated while increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio. Total accretion on acquired and covered PCI and non-PCI loans for March 31, 2017 and 2016 was $11.3 million and $2.4 million , respectively. |
Past Due Loans, Allowance For C
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS | 3 Months Ended |
Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [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 March 31, 2017 and December 31, 2016 . 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 (1) 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Non- accrual (2) 90 Days or More Past Due, Still Accruing Interest As of March 31, 2017 Commercial and industrial $ 3,359,919 $ 7,165 $ 3,696 $ 10,861 $ 3,370,780 $ 21,514 $ 1,251 Agricultural 420,692 1,434 658 2,092 422,784 1,283 â Commercial real estate: Office, retail, and industrial 1,971,050 1,281 16,648 17,929 1,988,979 19,505 52 Multi-family 666,914 4,782 14 4,796 671,710 163 14 Construction 565,710 2,556 194 2,750 568,460 198 â Other commercial real estate 1,352,633 3,563 1,585 5,148 1,357,781 3,858 1 Total commercial real estate 4,556,307 12,182 18,441 30,623 4,586,930 23,724 67 Total corporate loans 8,336,918 20,781 22,795 43,576 8,380,494 46,521 1,318 Home equity 874,810 3,045 2,812 5,857 880,667 4,799 864 1-4 family mortgages 538,177 1,254 717 1,971 540,148 2,974 41 Installment 250,952 1,699 410 2,109 253,061 â 410 Total consumer loans 1,663,939 5,998 3,939 9,937 1,673,876 7,773 1,315 Total loans $ 10,000,857 $ 26,779 $ 26,734 $ 53,513 $ 10,054,370 $ 54,294 $ 2,633 As of December 31, 2016 Commercial and industrial $ 2,816,442 $ 6,426 $ 4,790 $ 11,216 $ 2,827,658 $ 29,938 $ 374 Agricultural 388,596 â 900 900 389,496 181 736 Commercial real estate: Office, retail, and industrial 1,564,007 5,327 12,633 17,960 1,581,967 17,277 1,129 Multi-family 612,446 858 748 1,606 614,052 311 604 Construction 450,927 332 281 613 451,540 286 â Other commercial real estate 974,575 1,307 3,646 4,953 979,528 2,892 1,526 Total commercial real estate 3,601,955 7,824 17,308 25,132 3,627,087 20,766 3,259 Total corporate loans 6,806,993 14,250 22,998 37,248 6,844,241 50,885 4,369 Home equity 740,919 4,545 2,519 7,064 747,983 5,465 109 1-4 family mortgages 420,264 2,652 1,006 3,658 423,922 2,939 272 Installment 236,264 1,476 259 1,735 237,999 â 259 Total consumer loans 1,397,447 8,673 3,784 12,457 1,409,904 8,404 640 Total loans $ 8,204,440 $ 22,923 $ 26,782 $ 49,705 $ 8,254,145 $ 59,289 $ 5,009 (1) PCI loans with an accretable yield are considered current. (2) Includes PCI loans of $387,000 and $682,000 as of March 31, 2017 and December 31, 2016 , respectively, which no longer have an accretable yield as estimates of expected future cash flows have decreased since the acquisition due to credit deterioration. Allowance for Credit Losses The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb estimated losses inherent in the existing 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 quarters ended March 31, 2017 and 2016 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 Reserve for Unfunded Commitments Total Allowance for Credit Losses Quarter ended March 31, 2017 Beginning balance $ 40,709 $ 17,595 $ 3,261 $ 3,444 $ 7,739 $ 13,335 $ 1,000 $ 87,083 Charge-offs (4,074 ) (127 ) â (5 ) (408 ) (1,664 ) â (6,278 ) Recoveries 1,666 975 28 227 101 443 â 3,440 Net charge-offs (2,408 ) 848 28 222 (307 ) (1,221 ) â (2,838 ) Provision for loan losses and other 3,485 (742 ) (429 ) 444 (510 ) 2,670 â 4,918 Ending balance $ 41,786 $ 17,701 $ 2,860 $ 4,110 $ 6,922 $ 14,784 $ 1,000 $ 89,163 Quarter ended March 31, 2016 Beginning balance $ 37,074 $ 13,124 $ 2,469 $ 1,440 $ 6,109 $ 13,414 $ 1,225 $ 74,855 Charge-offs (1,898 ) (524 ) (204 ) (126 ) (1,445 ) (992 ) â (5,189 ) Recoveries 502 103 25 15 151 320 â 1,116 Net charge-offs (1,396 ) (421 ) (179 ) (111 ) (1,294 ) (672 ) â (4,073 ) Provision for loan losses and other 2,058 1,717 257 1,104 1,773 684 â 7,593 Ending balance $ 37,736 $ 14,420 $ 2,547 $ 2,433 $ 6,588 $ 13,426 $ 1,225 $ 78,375 The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of March 31, 2017 and December 31, 2016 . 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 March 31, 2017 Commercial, industrial, and agricultural $ 18,167 $ 3,745,009 $ 30,388 $ 3,793,564 $ 109 $ 41,133 $ 544 $ 41,786 Commercial real estate: Office, retail, and industrial 13,442 1,956,042 19,495 1,988,979 31 16,200 1,470 17,701 Multi-family 396 656,769 14,545 671,710 â 2,784 76 2,860 Construction â 548,280 20,180 568,460 â 3,946 164 4,110 Other commercial real estate 2,493 1,286,300 68,988 1,357,781 18 5,832 1,072 6,922 Total commercial real estate 16,331 4,447,391 123,208 4,586,930 49 28,762 2,782 31,593 Total corporate loans 34,498 8,192,400 153,596 8,380,494 158 69,895 3,326 73,379 Consumer â 1,649,765 24,111 1,673,876 â 13,550 1,234 14,784 Reserve for unfunded commitments â â â â â 1,000 â 1,000 Total loans $ 34,498 $ 9,842,165 $ 177,707 $ 10,054,370 $ 158 $ 84,445 $ 4,560 $ 89,163 As of December 31, 2016 Commercial, industrial, and agricultural $ 24,645 $ 3,189,327 $ 3,182 $ 3,217,154 $ 507 $ 39,554 $ 648 $ 40,709 Commercial real estate: Office, retail, and industrial 16,287 1,553,234 12,446 1,581,967 â 16,148 1,448 17,596 Multi-family 398 601,429 12,225 614,052 â 3,059 202 3,261 Construction 34 447,058 4,448 451,540 â 3,280 164 3,444 Other commercial real estate 1,286 965,900 12,342 979,528 18 6,613 1,108 7,739 Total commercial real estate 18,005 3,567,621 41,461 3,627,087 18 29,100 2,922 32,040 Total corporate loans 42,650 6,756,948 44,643 6,844,241 525 68,654 3,569 72,748 Consumer â 1,392,880 17,024 1,409,904 â 12,210 1,125 13,335 Reserve for unfunded commitments â â â â â 1,000 â 1,000 Total loans $ 42,650 $ 8,149,828 $ 61,667 $ 8,254,145 $ 525 $ 81,864 $ 4,694 $ 87,083 Loans Individually Evaluated for Impairment The following table presents loans individually evaluated for impairment by class of loan as of March 31, 2017 and December 31, 2016 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 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 $ 16,781 $ 272 $ 25,299 $ 109 $ 11,579 $ 13,066 $ 29,514 $ 507 Agricultural 1,114 â 1,817 â â â â â Commercial real estate: Office, retail, and industrial 12,732 710 17,723 31 16,287 â 21,057 â Multi-family 396 â 596 â 398 â 398 â Construction â â 315 â 34 â 34 â Other commercial real estate 2,258 235 4,550 18 1,016 270 2,141 18 Total commercial real estate 16,500 945 25,001 49 17,735 270 23,630 18 Total impaired loans individually evaluated for impairment $ 33,281 $ 1,217 $ 50,300 $ 158 $ 29,314 $ 13,336 $ 53,144 $ 525 The following table presents the average recorded investment and interest income recognized on impaired loans by class for the quarters ended March 31, 2017 and 2016 . PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Quarters Ended March 31, 2017 2016 Average Interest Income Recognized (1) Average Interest Income Recognized (1) Commercial and industrial $ 20,849 $ 214 $ 2,794 $ 38 Agricultural 557 â â â Commercial real estate: Office, retail, and industrial 14,865 93 7,923 48 Multi-family 397 28 601 1 Construction 17 136 106 â Other commercial real estate 1,890 12 3,819 19 Total commercial real estate 17,169 269 12,449 68 Total impaired loans $ 38,575 $ 483 $ 15,243 $ 106 (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, as of March 31, 2017 and December 31, 2016 . Corporate Credit Quality Indicators by Class (Dollar amounts in thousands) Pass Special Mention (1) (4) Substandard (2) (4) Non-accrual (3) Total As of March 31, 2017 Commercial and industrial $ 3,134,827 $ 113,944 $ 100,495 $ 21,514 $ 3,370,780 Agricultural 405,354 9,873 6,274 1,283 422,784 Commercial real estate: Office, retail, and industrial 1,887,699 39,545 42,230 19,505 1,988,979 Multi-family 665,313 4,336 1,898 163 671,710 Construction 542,862 8,927 16,473 198 568,460 Other commercial real estate 1,312,347 21,599 19,977 3,858 1,357,781 Total commercial real estate 4,408,221 74,407 80,578 23,724 4,586,930 Total corporate loans $ 7,948,402 $ 198,224 $ 187,347 $ 46,521 $ 8,380,494 As of December 31, 2016 Commercial and industrial $ 2,638,833 $ 92,340 $ 66,547 $ 29,938 $ 2,827,658 Agricultural 366,382 17,039 5,894 181 389,496 Commercial real estate: Office, retail, and industrial 1,491,030 34,007 39,513 17,277 1,581,827 Multi-family 607,324 4,370 2,029 311 614,034 Construction 438,946 111 12,197 286 451,540 Other commercial real estate 951,115 11,808 13,544 2,892 979,359 Total commercial real estate 3,488,415 50,296 67,283 20,766 3,626,760 Total corporate loans $ 6,493,630 $ 159,675 $ 139,724 $ 50,885 $ 6,843,914 (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 well-defined 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 well-defined 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 TDR s of $674,000 as of March 31, 2017 and $834,000 as of December 31, 2016 . Consumer Credit Quality Indicators by Class (Dollar amounts in thousands) Performing Non-accrual Total As of March 31, 2017 Home equity $ 875,868 $ 4,799 $ 880,667 1-4 family mortgages 537,174 2,974 540,148 Installment 253,061 â 253,061 Total consumer loans $ 1,666,103 $ 7,773 $ 1,673,876 As of December 31, 2016 Home equity $ 727,618 $ 4,986 $ 732,604 1-4 family mortgages 413,415 2,939 416,354 Installment 237,999 â 237,999 Total consumer loans $ 1,379,032 $ 7,925 $ 1,386,957 TDR s TDR s 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 TDR s by class as of March 31, 2017 and December 31, 2016 . See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDR s. TDR s by Class (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 278 $ 922 $ 1,200 $ 281 $ 150 $ 431 Agricultural â â â â â â Commercial real estate: Office, retail, and industrial â 864 864 155 4,733 4,888 Multi-family 582 163 745 586 168 754 Construction â â â â â â Other commercial real estate 263 â 263 268 48 316 Total commercial real estate 845 1,027 1,872 1,009 4,949 5,958 Total corporate loans 1,123 1,949 3,072 1,290 5,099 6,389 Home equity 172 795 967 177 820 997 1-4 family mortgages 817 368 1,185 824 378 1,202 Installment â â â â â â Total consumer loans 989 1,163 2,152 1,001 1,198 2,199 Total loans $ 2,112 $ 3,112 $ 5,224 $ 2,291 $ 6,297 $ 8,588 (1) These TDR s are included in non-accrual loans in the preceding tables. TDR s are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were $32,000 in specific reserves related to TDR s as of March 31, 2017 and there were no specific reserves related to TDRs as of December 31, 2016 . Accruing TDR s that do not perform in accordance with their modified terms are transferred to non-accrual. There were no material TDR s that defaulted within twelve months of the restructure date during the quarters ended March 31, 2017 and 2016 . A rollforward of the carrying value of TDR s for the quarters ended March 31, 2017 and 2016 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Quarters Ended 2017 2016 Accruing Beginning balance $ 2,291 $ 2,743 Additions 922 â Net payments received (24 ) (41 ) Net transfers to non-accrual (1,077 ) â Ending balance 2,112 2,702 Non-accrual Beginning balance 6,297 2,324 Net payments received (4,150 ) (56 ) Charge-offs (112 ) â Net transfers from accruing 1,077 â Ending balance 3,112 2,268 Total TDRs $ 5,224 $ 4,970 For TDR s 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 TDR s as of March 31, 2017 and December 31, 2016 . |
Premises, Furniture, and Equipm
Premises, Furniture, and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, December 31, Land $ 29,942 $ 18,304 Premises 138,748 94,369 Furniture and equipment 133,618 105,859 Total cost 302,308 218,532 Accumulated depreciation (178,801 ) (140,030 ) Net book value of premises, furniture, and equipment 123,507 78,502 Assets held-for-sale 17,146 4,075 Total premises, furniture, and equipment $ 140,653 $ 82,577 During 2016, First Midwest Bank (the "Bank") completed a sale-leaseback transaction, whereby the Bank sold to a third party for an aggregate cash purchase price of $150.3 million , 55 properties with book values totaling $58.8 million , owned and operated by the Bank as branches. Upon the sale of the branches the Bank concurrently entered into triple net lease agreements with certain affiliates of the third party for each of the branches sold. Subject to the right of the Bank to terminate certain of the lease agreements at the end of the eleventh year, the lease agreements have initial terms of 14 years. Each lease agreement provides the Bank with five consecutive renewal options of five years each. The sale-leaseback transaction resulted in a pre-tax gain of $88.0 million , net of transaction related expenses, with $79.5 million of deferred pre-tax gains remaining as of March 31, 2017. As of March 31, 2017 and December 31, 2016 assets held-for-sale consisted of former branches that are no longer in operation and parcels of land previously purchased for expansion. Depreciation on premises, furniture, and equipment totaled $3.5 million and $3.2 million for the quarter s ended March 31, 2017 and 2016, respectively. Operating Leases As of March 31, 2017 , 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, 2033 . 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 March 31, 2017 . Future Minimum Operating Lease Payments (Dollar amounts in thousands) Total One year or less $ 18,809 After one year to two years 16,591 After two years to three years 16,800 After three years to four years 16,276 After four years to five years 16,190 After five years 124,340 Total minimum lease payments $ 209,006 As of March 31, 2017, deferred pre-tax gains of $79.5 million related to the sale-lease back transaction will be accreted as a reduction to lease expense in other expenses on the Condensed Consolidated Statements of Income on a straight-line basis over the initial terms of the leases. The Company assumed certain operating leases related to various branches in previous acquisitions. An intangible liability is recorded when the cash flows of a lease exceeds its 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 and 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 One year or less $ 1,180 After one year to two years 829 After two years to three years 658 After three years to four years 648 After four years to five years 648 After five years 3,835 Total accretion $ 7,798 The following table presents net operating lease expense for the quarters ended March 31, 2017 and 2016 . Net Operating Lease Expense (Dollar amounts in thousands) Quarters Ended 2017 2016 Lease expense charged to operations $ 4,559 $ 1,727 Accretion of operating lease intangible (1) (295 ) (286 ) Accretion of deferred gain on sale-leaseback transaction (1) (1,473 ) â Rental income from premises leased to others (1) (181 ) (158 ) Net operating lease expense $ 2,610 $ 1,283 (1) Included as reductions to net occupancy and equipment expense in the Condensed Consolidated Statements of Income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The Company's annual goodwill impairment test was performed as of October 1, 2016. It was determined that no impairment existed as of that date or as of March 31, 2017 . For a discussion of the accounting policies for goodwill and other intangible assets, see Note 1 , " Summary of Significant Accounting Policies " to the Consolidated Financial Statements in the Company 's 2016 10-K. The following table presents changes in the carrying amount of goodwill for the quarters ended March 31, 2017 and 2016 . Changes in the Carrying Amount of Goodwill (Dollar amounts in thousands) Quarters Ended March 31, 2017 2016 Beginning balance $ 340,879 $ 319,007 Acquisitions 350,693 20,761 Ending balance $ 691,572 $ 339,768 The increase in goodwill for the quarter ended March 31, 2017 resulted from the Standard and Premier acquisitions and measurement period adjustments related to finalizing the fair values of the assets acquired and liabilities assumed in the NI Bancshares acquisition. During the quarter ended March 31, 2016 , the increase in goodwill resulted from the NI Bancshares acquisition. The Company's other intangible assets are core deposit intangibles and trust department customer relationship intangibles, which are being amortized over their estimated useful lives. Other intangible assets are subject to impairment testing when events or circumstances indicate that its carrying amount may not be recoverable. The increase in other intangible assets for the quarter ended March 31, 2017 resulted from the Standard and Premier acquisitions. The increase in other intangible assets for the quarter ended March 31, 2016 resulted from the NI Bancshares acquisition. During the quarters ended March 31, 2017 and March 31, 2016 there were no events or circumstances to indicate impairment. Other Intangible Assets (Dollar amounts in thousands) Three Months Ended March 31, 2017 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Beginning balance $ 58,959 $ 32,962 $ 25,997 $ 48,550 $ 28,280 $ 20,270 Additions 39,017 â 39,017 10,925 â 10,925 Amortization expense â 1,965 (1,965 ) â 985 (985 ) Ending balance $ 97,976 $ 34,927 $ 63,049 $ 59,475 $ 29,265 $ 30,210 Scheduled Amortization of Other Intangible Assets (Dollar amounts in thousands) Total Year Ending March 31, 2017 2018 $ 7,702 2019 7,108 2020 7,064 2021 7,009 2022 6,922 2023 and thereafter 27,244 Total $ 63,049 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2017 | |
Deposits [Abstract] | |
Deposits | DEPOSITS The following table presents the Company's deposits by type. Summary of Deposits (Dollar amounts in thousands) As of March 31, December 31, Demand deposits $ 3,492,987 $ 2,766,748 Savings deposits 2,073,518 1,615,833 NOW accounts 1,876,215 1,675,421 Money market deposits 1,972,566 1,577,316 Time deposits less than $100,000 918,092 755,558 Time deposits greater than $100,000 623,163 437,727 Total deposits $ 10,956,541 $ 8,828,603 The increase in total deposits for the quarter ended March 31, 2017 includes deposits assumed in the Standard acquisition. For additional disclosure related to the Standard transaction, see note 3 , " Acquisitions ." |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The table below displays the calculation of basic and diluted earnings per common share (" EPS "). Basic and Diluted EPS (Amounts in thousands, except per share data) Quarters Ended 2017 2016 Net income $ 22,855 $ 17,962 Net income applicable to non-vested restricted shares (234 ) (212 ) Net income applicable to common shares $ 22,621 $ 17,750 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 100,411 77,980 Dilutive effect of common stock equivalents 21 12 Weighted-average diluted common shares outstanding 100,432 77,992 Basic EPS $ 0.23 $ 0.23 Diluted EPS $ 0.23 $ 0.23 Anti-dilutive shares not included in the computation of diluted EPS (1) 343 608 (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. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 December 31, 2016 Gross notional amount outstanding $ 5,833 $ 5,958 Derivative liability fair value (226 ) (282 ) Weighted-average interest rate received 2.83 % 2.63 % Weighted-average interest rate paid 5.96 % 5.96 % Weighted-average maturity (in years) 1.60 1.84 Fair value of derivative (1) $ 240 $ 296 (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 Condensed Consolidated Statements of Income. For the quarters ended March 31, 2017 and 2016 , gains or losses related to fair value hedge ineffectiveness were not material. Cash Flow Hedges As of March 31, 2017 , the Company hedged $980.0 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 $980.0 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. Forward starting interest rate swaps totaling $415.0 million began on various dates between June of 2015 and February of 2017, and mature between June of 2019 and February of 2020. The remaining forward starting interest rate swaps begin at various dates between February of 2018 and February of 2020 and mature between February of 2020 and April of 2022. These derivative contracts are designated as cash flow hedges. Cash Flow Hedges (Dollar amounts in thousands) As of March 31, 2017 December 31, 2016 Gross notional amount outstanding $ 1,960,000 $ 1,470,000 Derivative asset fair value 4,078 5,402 Derivative liability fair value (8,286 ) (7,390 ) Weighted-average interest rate received 1.42 % 1.37 % Weighted-average interest rate paid 1.23 % 1.11 % Weighted-average maturity (in years) 3.00 2.83 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 hedged item impacts earnings. Hedge effectiveness is determined using a regression analysis at the inception of the hedge relationship and on an ongoing basis. For the quarters ended March 31, 2017 and 2016, there were no material gains or losses related to cash flow hedge ineffectiveness. As of March 31, 2017 , the Company estimates that $7.6 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 through capital market products with its commercial customers and simultaneously enters into an offsetting interest rate derivative transaction with third-parties. 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 March 31, 2017 and December 31, 2016 , the Company's credit exposure was fully secured by the underlying collateral on customer loans and mitigated through netting arrangements with third parties, therefore, no CVA was recorded. Capital market products income related to commercial customer derivative instruments of $1.4 million and $3.2 million were recorded in noninterest income for the quarters ended March 31, 2017 and 2016, respectively. Other Derivative Instruments (Dollar amounts in thousands) As of March 31, 2017 December 31, 2016 Gross notional amount outstanding $ 2,100,325 $ 1,656,612 Derivative asset fair value 15,722 13,478 Derivative liability fair value (15,722 ) (13,478 ) Fair value of derivative (1) 16,340 13,753 (1) This amount represents the fair value if credit risk related contingent features 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 periods presented. The Company had no other derivative instruments as of March 31, 2017 and December 31, 2016 . 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 March 31, 2017 and December 31, 2016 , 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 March 31, 2017 and December 31, 2016 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 Assets Liabilities Assets Liabilities Gross amounts recognized $ 19,800 $ 24,234 $ 18,880 $ 21,150 Less: amounts offset in the Consolidated Statements of Financial Condition â â â â Net amount presented in the Consolidated Statements of Financial Condition (1) 19,800 24,234 18,880 21,150 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (11,293 ) (11,293 ) (10,889 ) (10,889 ) Cash collateral pledged â (12,941 ) â (10,261 ) Net credit exposure $ 8,507 $ â $ 7,991 $ â (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. As of March 31, 2017 and December 31, 2016 , 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 March 31, 2017 and December 31, 2016 the Company was in compliance with these provisions. |
Commitments, Guarantees, and Co
Commitments, Guarantees, and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 December 31, 2016 Commitments to extend credit: Commercial, industrial, and agricultural $ 1,737,410 $ 1,522,152 Commercial real estate 427,425 397,423 Home equity 486,880 426,384 Other commitments (1) 250,123 214,943 Total commitments to extend credit $ 2,901,838 $ 2,560,902 Letters of credit $ 146,632 $ 100,430 Recourse on assets sold: Unpaid principal balance of loans sold $ 185,101 $ 187,158 Carrying value of recourse obligation (2) 150 142 (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. 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. Commercial letters of credit are issued to facilitate transactions between a customer and a third party based on agreed upon terms. The maximum potential future payments guaranteed by the Company under 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 quarters ended March 31, 2017 and 2016 . Legal Proceedings In the ordinary course of business, there were certain legal proceedings pending against the Company and its subsidiaries at March 31, 2017 . 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 have a material adverse effect on the Company's financial position, results of operations, or cash flows. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2017 | |
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 required to be measured at fair value on a recurring basis 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 March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Trading securities: Money market funds $ 1,768 $ â $ â $ 1,645 $ â $ â Mutual funds 17,362 â â 16,275 â â Total trading securities 19,130 â â 17,920 â â Securities available-for-sale: U.S. treasury securities 48,516 â â 48,541 â â U.S. agency securities â 181,030 â â 183,637 â CMOs â 1,051,364 â â 1,047,446 â MBSs â 352,966 â â 332,655 â Municipal securities â 262,710 â â 270,846 â CDOs â â 33,436 â â 33,260 Equity securities â 7,102 â â 3,065 â Total securities available-for-sale 48,516 1,855,172 33,436 48,541 1,837,649 33,260 Mortgage servicing rights ("MSRs") (1) â â 6,245 6,120 Derivative assets (1) â 19,800 â â 18,880 â Liabilities: Derivative liabilities (2) $ â $ 24,234 $ â $ â $ 21,150 $ â (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 for these securities 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 of the fair value hierarchy. The fair value of U.S. treasury securities is based on quoted market prices in active exchange markets and is classified in level 1 of 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 of 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 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 the ranges of significant, unobservable inputs calculated using the weighted-average of the Issuers used by the Company as of March 31, 2017 and December 31, 2016. Significant Unobservable Inputs Used in the Valuation of CDOs As of March 31, 2017 December 31, 2016 Probability of prepayment 0.0 % - 10.9% 0.0 % - 10.9% Probability of default 16.6 % - 44.1% 16.7 % - 46.8% Loss given default 93.3 % - 99.1% 93.3 % - 98.9% Probability of deferral cure 0.0 % - 100.0% 7.6 % - 100.0% 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 quarters ended March 31, 2017 and 2016 is presented in the following table. Carrying Value of CDOs (Dollar amounts in thousands) Quarters Ended 2017 2016 Beginning balance $ 33,260 $ 31,529 Change in other comprehensive income (1) 129 (786 ) Other 47 14 Ending balance $ 33,436 $ 30,757 (1) Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income. MSR s The Company services loans for others totaling $632.7 million as of March 31, 2017 and $640.5 million as of December 31, 2016 . These loans are owned by third parties and are not included in the Consolidated Statements of Financial Condition. The Company determines the fair value of MSR s by estimating the present value of expected future cash flows associated with the mortgage loans being serviced and classifies them in level 3 of the fair value hierarchy. The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSR s as of March 31, 2017 . Significant Unobservable Inputs Used in the Valuation of MSR s As of March 31, 2017 December 31, 2016 Prepayment speed 7.7 % - 25.5% 7.7 % - 22.8% Maturity (months) 10 - 102 12 - 103 Discount rate 9.5 % - 13.0% 9.5 % - 13.0% The impact of changes in these key inputs could result in a significantly higher or lower fair value measurement for MSR s. Significant increases in expected prepayment speeds and discount rates have negative impacts on the valuation. Higher maturity assumptions have a favorable effect on the estimated fair value. A rollforward of the carrying value of MSR s for the quarters ended March 31, 2017 and 2016 is presented in the following table. Carrying Value of MSR s (Dollar amounts in thousands) Quarters Ended 2017 2016 Beginning balance $ 6,120 $ 1,853 Additions from acquisition â 3,092 New MSRs 156 185 Total gains (losses) included in earnings (1) : Changes in valuation inputs and assumptions 172 (40 ) Other changes in fair value (2) (203 ) (68 ) Ending balance $ 6,245 $ 5,022 Contractual servicing fees earned (1) $ 395 $ 183 (1) Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of March 31, 2017 and 2016 . (2) Primarily represents changes in expected future cash flows 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 counterparty are representative of an exit price. 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 March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ â $ â $ 11,528 $ â $ â $ 22,019 OREO (2) â â 780 â â 8,624 Loans held-for-sale (3) â â 9,144 â â 10,484 Assets held-for-sale (4) â â 17,146 â â 4,075 (1) Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. (2) Includes 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 As of March 31, 2017 , loans held-for-sale consists of 1-4 family mortgage loans, which were originated with the intent to sell and three corporate loans. These loans were recorded in the held-for-sale category at the contract price and, accordingly, are classified in level 3 of the fair value hierarchy. As of December 31, 2016 , loans held-for-sale consists of 1-4 family mortgage loans, which were originated with the intent to sell, and a corporate loan. Assets Held-for-Sale Assets held-for-sale as of March 31, 2017 and December 31, 2016 consists of former branches that are no longer in operation and parcels of land previously purchased for expansion. These properties are being actively marketed and were transferred into the held-for-sale category at their fair value as determined by current appraisals. Based on these valuation methods, they are classified in level 3 of the fair value hierarchy. 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 March 31, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and due from banks 1 $ 174,268 $ 174,268 $ 155,055 $ 155,055 Interest-bearing deposits in other banks 2 74,892 74,892 107,093 107,093 Securities held-to-maturity 2 17,742 15,118 22,291 18,212 FHLB and FRB stock 2 46,306 46,306 59,131 59,131 Loans 3 9,970,427 9,712,763 8,172,584 7,973,845 Investment in BOLI 3 276,960 276,960 219,746 219,746 Accrued interest receivable 3 39,868 39,868 34,384 34,384 Other interest-earning assets 3 635 635 834 834 Liabilities: Deposits 2 $ 10,956,541 $ 10,945,331 $ 8,828,603 $ 8,820,572 Borrowed funds 2 547,923 547,923 879,008 879,008 Senior and subordinated debt 2 194,745 202,522 194,603 197,888 Accrued interest payable 2 2,564 2,564 3,416 3,416 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, and the allowance for 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. Investment in BOLI - The fair value of BOLI approximates the carrying amount as both are based on each policy's respective cash surrender value ("CSV"), which is the amount the Company would receive from the 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 values of senior and subordinated notes are estimated based on quoted market prices of similar instruments. The fair values of junior subordinated debentures are estimated based on quoted market prices of comparable securities when available, or by discounting the expected future cash flows at market interest rates. 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. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation â The accompanying unaudited condensed consolidated interim financial statements ("consolidated financial statements") of First Midwest Bancorp, Inc. (the " Company "), a Delaware corporation, were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (" SEC ") for quarterly reports on Form 10-Q and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. The results of operations for the quarter ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . 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 accompanying consolidated financial statements do not include certain information and note disclosures required by GAAP for complete annual financial statements. Therefore, these financial statements should be read in conjunction with the Company 's 2016 Annual Report on Form 10-K (" 2016 10-K"). The Company uses the accrual basis of accounting for financial reporting purposes. |
Reclassification | Certain reclassifications were made to prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates â 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 â 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. |
Business Combinations | Business Combinations â 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 Condensed Consolidated Statements of Income from the effective date of the acquisition. |
Loans | Loans â 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. 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 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. The Company 's net investment in direct financing leases is included in loans and consists of future minimum lease payments and estimated residual values, net of unearned income. Interest income on loans is accrued based on principal amounts outstanding. 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 â Covered loans consists of loans acquired by the Company in Federal Deposit Insurance Corporation (" FDIC ")-assisted transactions, 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 the FDIC Agreements. During 2015, certain covered loans were no longer covered under the FDIC Agreements, and are included in acquired loans and no longer classified as covered loans. Covered loans 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 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 losses or providing an allowance for loan losses. |
90-Days Past Due Loans | 90-Days Past Due Loans âThe 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 â 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 status, 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 (âTDRsâ) | Troubled Debt Restructurings ( " TDR s" ) â 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 TDR s when the modification is short-term or results in an insignificant delay in payments. The Company 's TDR s 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 TDR s 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 restructured until it is paid in full or charged-off. |
Impaired Loans | Impaired Loans â Impaired loans consist of corporate non-accrual loans and TDR s. 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 TDR s, 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/Loan Losses and Reserve for Unfunded Commitments | Allowance for Credit Losses â The allowance for credit losses is comprised of the allowance for 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 losses, while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Additions to the allowance for loan losses are charged to expense through the provision for 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 losses based on the methodology discussed below. Allowance for Loan Losses â 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 collateral 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 and covered non-PCI and PCI loans. No allowance for loan losses is recorded on acquired loans at the acquisition date. Subsequent to the acquisition date, an allowance for credit losses is established as necessary to reflect credit deterioration. 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 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 acquired and covered PCI allowance reflects the difference between the carrying value and the discounted expected future cash flows of the acquired and 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 of the outstanding acquired and 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. Acquired non-PCI loans that have renewed subsequent to the respective acquisition dates are no longer classified as acquired loans. Instead, they are included in the general loan population and allocated an allowance based on a loss migration analysis. Reserve for Unfunded Commitments â 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. |
Derivative Financial Instruments | Derivative Financial Instruments â 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. |
Recent Accounting Pronouncements | Adopted Accounting Pronouncements Contingent Put and Call Options in Debt Instruments: In March of 2016, the Financial Accounting Standards Board ("FASB") issued final guidance clarifying the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Entities are required to apply the guidance to existing debt instruments (or hybrid financial instruments that are determined to have a debt host) using a modified retrospective transition method as of the period of adoption. The adoption of this guidance on January 1, 2017 did not impact the Company 's financial condition, results of operations, or liquidity. Equity Method Accounting: In March of 2016, the FASB issued final guidance to simplify the equity method of accounting. The guidance eliminates the requirement to retrospectively apply equity method accounting in previous periods when an investor initially obtains significant influence over an investee. This guidance is effective for annual and interim periods beginning after December 15, 2016. The adoption of this guidance on January 1, 2017 did not impact the Company 's financial condition, results of operations, or liquidity. Accounting for Employee Share-based Payments: In March of 2016, the FASB issued guidance to simplify the accounting for employee share-based payment transactions. The guidance requires entities to recognize the income tax effects of awards in the income statement when the awards vest or are settled. In addition, the guidance allows entities to repurchase more of an employee's shares than it can under current guidance for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The adoption of this guidance on January 1, 2017 resulted in a $638,000 tax benefit recorded in the Company's results of operations. The Company elected to estimate forfeitures, which is consistent with the Company's practice before the adoption of this guidance. Accounting Pronouncements Pending Adoption 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. In March of 2016, the FASB issued an amendment to this guidance to clarify the implementation of guidance on principal versus agent consideration. Additional amendments to clarify the implementation guidance on the identification of performance obligations and licensing were issued in April of 2016 and narrow-scope improvements and practical expedients were issued in May of 2016. The guidance was initially effective for annual and interim reporting periods beginning on or after December 15, 2016 but was deferred to 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. The Company's revenue is comprised of net interest income on financial assets and liabilities, which are excluded from the scope of this guidance, and noninterest income. The Company expects that this guidance will change how revenue from certain revenue streams is recognized within wealth management fees but does not expect these changes to have a significant impact on the Company's financial condition, results of operations, or liquidity. The Company continues to evaluate the impact of this guidance on other components of noninterest income. The Company will adopt this guidance on January 1, 2018, with a cumulative effect adjustment to opening retained earnings, if an adjustment is deemed to be significant. 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. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Leases: In February of 2016, the FASB issued guidance to increase transparency and comparability across entities for leasing arrangements. This guidance requires lessees to recognize assets and liabilities for most leases. For lessors, this guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. In addition, this guidance clarifies criteria for the determination of whether a contract is or contains a lease. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. During 2016, the Company entered into a sale-leaseback transaction that resulted in a deferred gain of $82.5 million , with $79.5 million remaining as of March 31, 2017 . Upon adoption of this guidance, the remaining deferred gain will be recognized immediately as a cumulative-effect adjustment to equity. For additional discussion of the sale-leaseback transaction, see note 8 " Premises, Furniture, and Equipment ." Management is evaluating the new guidance and the additional impact to the Company 's financial condition, results of operations, or liquidity. Measurement of Credit Losses on Financial Instruments: In June of 2016, the FASB issued guidance that will require entities to present financial assets measured at amortized cost at the net amount expected to be collected, considering an entity's current estimate of all expected credit losses. In addition, credit losses relating to available-for-sale debt securities will be required to be recorded through an allowance for credit losses, with changes in credit loss estimates recognized through current earnings. This guidance is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, but not for periods beginning before December 15, 2018. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. Classification of Certain Cash Receipts and Cash Payments: In August of 2016, the FASB issued guidance clarifying certain cash flow presentation and classification issues to reduce diversity in practice. This guidance is effective for annual and interim reporting periods beginning on or after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's Consolidated Statement of Cash Flows. Income Taxes: In October of 2016, the FASB issued guidance that requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Clarifying the Definition of a Business: In January of 2017, the FASB issued guidance that clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Accounting for Goodwill Impairment: In January of 2017, the FASB issued guidance that simplifies the accounting for goodwill impairment for all entities. The new guidance eliminates the requirement to calculate the implied fair value of goodwill using the second step of the quantitative two-step goodwill impairment model prescribed under current accounting guidance. Under the new guidance, if a reporting unit's carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. This guidance is effective for annual and interim goodwill impairment testing dates beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Presentation of Defined Benefit Retirement Plan Costs: In March of 2017, the FASB issued guidance that changes how employers that sponsor defined pension and or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers will present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of net periodic benefit cost will be presented separately from the line item(s) that includes the service cost. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Premium Amortization on Purchased Callable Debt Securities: In March of 2017, the FASB issued guidance that shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Acquisition Activity | The following table presents the assets acquired and liabilities assumed, net of the fair value adjustments, in the Standard and NI Bancshares 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 (Amounts in thousands, except share and per share data) Standard NI Bancshares January 6, 2017 March 8, 2016 Assets Cash and due from banks and interest-bearing deposits in other banks $ 102,149 $ 72,533 Securities available-for-sale 214,107 125,843 Securities held-to-maturity â 1,864 FHLB and FRB stock 3,247 1,549 Loans 1,769,709 396,181 OREO 8,427 2,863 Investment in BOLI 55,629 8,384 Goodwill 339,298 22,174 Other intangible assets 31,072 10,408 Premises, furniture, and equipment 59,163 19,636 Accrued interest receivable and other assets 56,077 16,453 Total assets $ 2,638,878 $ 677,888 Liabilities Noninterest-bearing deposits $ 675,354 $ 130,909 Interest-bearing deposits 1,348,520 464,012 Total deposits 2,023,874 594,921 Borrowed funds â 2,416 Intangible liabilities â 230 Accrued interest payable and other liabilities 34,289 10,239 Total liabilities 2,058,163 607,806 Consideration Paid Common stock (2017 - 21,057,085 shares issued at $25.34 per share, 2016 - 3,042,494 shares issued at $18.059 per share), net of issuance costs 533,590 54,896 Cash paid 47,125 15,186 Total consideration paid 580,715 70,082 $ 2,638,878 $ 677,888 |
Unaudited Pro Forma Combined Results of Operations | The unaudited pro forma combined results of operations for the quarters ended March 31, 2017 and 2016 are presented as if the Standard acquisition had occurred on January 1, 2016, the first day of the Company's 2016 fiscal year. The unaudited pro forma combined results of operations are presented for illustrative purposes only and do not necessarily indicate the financial results of the combined companies had the companies actually been combined at the beginning of the period presented. Fair value adjustments included in the following table are preliminary and may be revised. The unaudited pro forma results of operations also does not consider any potential impacts of potential revenue enhancements, anticipated cost savings and expense efficiencies, or asset dispositions, among other factors. Acquisition and integration related expenses directly attributable to the Standard acquisition have been excluded from the following table and are estimated to total $27.0 million , of which $17.5 million was expensed during the quarter ended March 31, 2017. Unaudited Pro Forma Combined Results of Operations (Dollar amounts in thousands) Quarters Ended March 31, 2017 2016 Total revenues (1) $ 156,757 $ 143,345 Net income 32,734 22,950 (1) Includes net interest income and total noninterest income. |
Summary of Standard Acquired Loans | The following table presents additional detail for loans acquired in the Standard transaction at the acquisition date. Standard Acquired Loans (Dollar amounts in thousands) January 6, 2017 PCI Loans Non-PCI Loans Fair value $ 123,643 $ 1,646,066 Contractually required principal and interest payments 208,586 1,940,459 Best estimate of contractual cash flows not expected to be collected (1) 57,626 100,918 Best estimate of contractual cash flows expected to be collected 150,960 1,839,541 (1) Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | 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 March 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 48,574 $ 23 $ (81 ) $ 48,516 $ 48,581 $ 26 $ (66 ) $ 48,541 U.S. agency securities 180,894 518 (382 ) 181,030 183,528 519 (410 ) 183,637 Collateralized mortgage obligations ("CMOs") 1,066,439 1,039 (16,114 ) 1,051,364 1,064,130 969 (17,653 ) 1,047,446 Other mortgage-backed securities ("MBSs") 357,473 1,230 (5,737 ) 352,966 337,139 1,395 (5,879 ) 332,655 Municipal securities 263,606 2,092 (2,988 ) 262,710 273,319 1,245 (3,718 ) 270,846 Trust-preferred collateralized debt obligations ("CDOs") 47,728 260 (14,552 ) 33,436 47,681 261 (14,682 ) 33,260 Equity securities 7,246 148 (292 ) 7,102 3,206 147 (288 ) 3,065 Total securities available-for-sale $ 1,971,960 $ 5,310 $ (40,146 ) $ 1,937,124 $ 1,957,584 $ 4,562 $ (42,696 ) $ 1,919,450 Securities Held-to-Maturity Municipal securities $ 17,742 $ â $ (2,624 ) $ 15,118 $ 22,291 $ â $ (4,079 ) $ 18,212 Trading Securities $ 19,130 $ 17,920 |
Securities Held-to-Maturity | 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 March 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 48,574 $ 23 $ (81 ) $ 48,516 $ 48,581 $ 26 $ (66 ) $ 48,541 U.S. agency securities 180,894 518 (382 ) 181,030 183,528 519 (410 ) 183,637 Collateralized mortgage obligations ("CMOs") 1,066,439 1,039 (16,114 ) 1,051,364 1,064,130 969 (17,653 ) 1,047,446 Other mortgage-backed securities ("MBSs") 357,473 1,230 (5,737 ) 352,966 337,139 1,395 (5,879 ) 332,655 Municipal securities 263,606 2,092 (2,988 ) 262,710 273,319 1,245 (3,718 ) 270,846 Trust-preferred collateralized debt obligations ("CDOs") 47,728 260 (14,552 ) 33,436 47,681 261 (14,682 ) 33,260 Equity securities 7,246 148 (292 ) 7,102 3,206 147 (288 ) 3,065 Total securities available-for-sale $ 1,971,960 $ 5,310 $ (40,146 ) $ 1,937,124 $ 1,957,584 $ 4,562 $ (42,696 ) $ 1,919,450 Securities Held-to-Maturity Municipal securities $ 17,742 $ â $ (2,624 ) $ 15,118 $ 22,291 $ â $ (4,079 ) $ 18,212 Trading Securities $ 19,130 $ 17,920 |
Trading 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 March 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 48,574 $ 23 $ (81 ) $ 48,516 $ 48,581 $ 26 $ (66 ) $ 48,541 U.S. agency securities 180,894 518 (382 ) 181,030 183,528 519 (410 ) 183,637 Collateralized mortgage obligations ("CMOs") 1,066,439 1,039 (16,114 ) 1,051,364 1,064,130 969 (17,653 ) 1,047,446 Other mortgage-backed securities ("MBSs") 357,473 1,230 (5,737 ) 352,966 337,139 1,395 (5,879 ) 332,655 Municipal securities 263,606 2,092 (2,988 ) 262,710 273,319 1,245 (3,718 ) 270,846 Trust-preferred collateralized debt obligations ("CDOs") 47,728 260 (14,552 ) 33,436 47,681 261 (14,682 ) 33,260 Equity securities 7,246 148 (292 ) 7,102 3,206 147 (288 ) 3,065 Total securities available-for-sale $ 1,971,960 $ 5,310 $ (40,146 ) $ 1,937,124 $ 1,957,584 $ 4,562 $ (42,696 ) $ 1,919,450 Securities Held-to-Maturity Municipal securities $ 17,742 $ â $ (2,624 ) $ 15,118 $ 22,291 $ â $ (4,079 ) $ 18,212 Trading Securities $ 19,130 $ 17,920 |
Remaining Contractual Maturity of Securities | Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of March 31, 2017 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 90,123 $ 87,605 $ 1,926 $ 1,641 After one year to five years 399,483 388,321 6,834 5,823 After five years to ten years 3,470 3,373 2,975 2,535 After ten years 47,726 46,393 6,007 5,119 Securities that do not have a single contractual maturity date 1,431,158 1,411,432 â â Total $ 1,971,960 $ 1,937,124 $ 17,742 $ 15,118 |
Securities Available-for-Sale Gains | The following table presents net realized gains on securities available-for-sale for the quarters ended March 31, 2017 and 2016 . Securities Available-for-Sale Gains (Dollar amounts in thousands) Quarters Ended 2017 2016 Gains on sales of securities: Gross realized gains $ â $ 930 Gross realized losses â (43 ) Net realized gains on sales of securities â 887 Non-cash impairment charges: Other-than-temporary securities impairment ("OTTI") â â Net realized gains $ â $ 887 |
OTTI 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 quarters ended March 31, 2017 and 2016 . 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) Quarters Ended 2017 2016 Beginning balance $ 23,345 $ 23,709 OTTI included in earnings (1) : Reduction for sales of securities â â Ending balance $ 23,345 $ 23,709 (1) Included in net securities gains in the Condensed Consolidated Statements of Income. |
Securities in an Unrealized Loss Position | The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of March 31, 2017 and December 31, 2016 . Securities in an Unrealized Loss Position (Dollar amounts in thousands) Less Than 12 Months 12 Months or Longer Total Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of March 31, 2017 Securities Available-for-Sale U.S. treasury securities 17 $ 35,481 $ 75 $ 3,995 $ 6 $ 39,476 $ 81 U.S. agency securities 30 70,426 358 6,928 24 77,354 382 CMOs 196 781,003 12,259 128,464 3,855 909,467 16,114 MBSs 73 290,278 5,180 17,013 557 307,291 5,737 Municipal securities 272 94,694 2,371 21,520 617 116,214 2,988 CDOs 7 â â 30,762 14,552 30,762 14,552 Equity securities 2 â â 6,687 292 6,687 292 Total 597 $ 1,271,882 $ 20,243 $ 215,369 $ 19,903 $ 1,487,251 $ 40,146 Securities Held-to-Maturity Municipal securities 13 $ â $ â $ 15,118 $ 2,624 $ 15,118 $ 2,624 As of December 31, 2016 Securities Available-for-Sale U.S. treasury securities 16 $ 33,505 $ 61 $ 3,995 $ 5 $ 37,500 $ 66 U.S. agency securities 28 62,064 364 11,814 46 73,878 410 CMOs 194 523,233 10,309 411,758 7,344 934,991 17,653 MBSs 68 221,174 4,726 77,780 1,154 298,954 5,880 Municipal securities 380 133,957 3,059 29,280 659 163,237 3,718 CDOs 7 â â 30,592 14,682 30,592 14,682 Equity securities 2 404 201 2,319 86 2,723 287 Total 695 $ 974,337 $ 18,720 $ 567,538 $ 23,976 $ 1,541,875 $ 42,696 Securities Held-to-Maturity Municipal securities 14 $ â $ â $ 18,212 $ 4,079 $ 18,212 $ 4,079 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Leases Receivable Disclosure [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 March 31, December 31, Commercial and industrial $ 3,370,780 $ 2,827,658 Agricultural 422,784 389,496 Commercial real estate: Office, retail, and industrial 1,988,979 1,581,967 Multi-family 671,710 614,052 Construction 568,460 451,540 Other commercial real estate 1,357,781 979,528 Total commercial real estate 4,586,930 3,627,087 Total corporate loans 8,380,494 6,844,241 Home equity 880,667 747,983 1-4 family mortgages 540,148 423,922 Installment 253,061 237,999 Total consumer loans 1,673,876 1,409,904 Total loans $ 10,054,370 $ 8,254,145 Deferred loan fees included in total loans $ 4,429 $ 3,838 Overdrawn demand deposits included in total loans 6,303 7,836 |
Schedule Of Loans Sold | The following table presents loan sales for the quarters ended March 31, 2017 and 2016 . Loan Sales (Dollar amounts in thousands) Quarters Ended 2017 2016 Corporate loan sales Proceeds from sales $ 15,368 $ 9,588 Less book value of loans sold 15,117 9,130 Net gains on corporate loan sales (1) $ 251 $ 458 1-4 family mortgage loan sales Proceeds from sales $ 55,761 $ 39,507 Less book value of loans sold 54,598 38,680 Net gains on 1-4 family mortgage loan sales (2) 1,163 827 Total net gains on loan sales $ 1,414 $ 1,285 (1) Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income. (2) Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed Consolidated Statements of Income. |
Acquired and Covered Loans (Tab
Acquired and Covered Loans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Acquired Loans [Abstract] | |
Acquired Loans | The following table presents the carrying amount of acquired and covered PCI and non-PCI loans as of March 31, 2017 and December 31, 2016 . Acquired and Covered Loans (1) (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 169,961 $ 2,101,985 $ 2,271,946 $ 53,772 $ 613,339 $ 667,111 Covered loans 7,746 14,712 22,458 7,895 15,379 23,274 Total acquired and covered loans $ 177,707 $ 2,116,697 $ 2,294,404 $ 61,667 $ 628,718 $ 690,385 (1) Included in loans in the Consolidated Statements of Condition. |
FDIC Indemnification Asset Roll Forward | Rollforwards of the carrying value of the FDIC indemnification asset for the quarters ended March 31, 2017 and 2016 are presented in the following table. Changes in the FDIC Indemnification Asset (Dollar amounts in thousands) Quarters Ended 2017 2016 Beginning balance $ 4,522 $ 3,903 Amortization (302 ) (280 ) Change in expected reimbursements from the FDIC for changes in expected credit losses (328 ) 216 Net payments to the FDIC 328 1,841 Ending balance $ 4,220 $ 5,680 |
Schedule Of 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) Quarters Ended 2017 2016 Beginning balances $ 19,385 $ 24,912 Additions 27,316 3,981 Accretion (3,955 ) (1,546 ) Other (1) (1,497 ) (89 ) Ending balance $ 41,249 $ 27,258 (1) Decreases result from the resolution of certain loans occurring earlier than anticipated while increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio. |
Past Due Loans, Allowance For28
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Past Due Financing Receivables | The following table presents an aging analysis of the Company 's past due loans as of March 31, 2017 and December 31, 2016 . 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 (1) 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Non- accrual (2) 90 Days or More Past Due, Still Accruing Interest As of March 31, 2017 Commercial and industrial $ 3,359,919 $ 7,165 $ 3,696 $ 10,861 $ 3,370,780 $ 21,514 $ 1,251 Agricultural 420,692 1,434 658 2,092 422,784 1,283 â Commercial real estate: Office, retail, and industrial 1,971,050 1,281 16,648 17,929 1,988,979 19,505 52 Multi-family 666,914 4,782 14 4,796 671,710 163 14 Construction 565,710 2,556 194 2,750 568,460 198 â Other commercial real estate 1,352,633 3,563 1,585 5,148 1,357,781 3,858 1 Total commercial real estate 4,556,307 12,182 18,441 30,623 4,586,930 23,724 67 Total corporate loans 8,336,918 20,781 22,795 43,576 8,380,494 46,521 1,318 Home equity 874,810 3,045 2,812 5,857 880,667 4,799 864 1-4 family mortgages 538,177 1,254 717 1,971 540,148 2,974 41 Installment 250,952 1,699 410 2,109 253,061 â 410 Total consumer loans 1,663,939 5,998 3,939 9,937 1,673,876 7,773 1,315 Total loans $ 10,000,857 $ 26,779 $ 26,734 $ 53,513 $ 10,054,370 $ 54,294 $ 2,633 As of December 31, 2016 Commercial and industrial $ 2,816,442 $ 6,426 $ 4,790 $ 11,216 $ 2,827,658 $ 29,938 $ 374 Agricultural 388,596 â 900 900 389,496 181 736 Commercial real estate: Office, retail, and industrial 1,564,007 5,327 12,633 17,960 1,581,967 17,277 1,129 Multi-family 612,446 858 748 1,606 614,052 311 604 Construction 450,927 332 281 613 451,540 286 â Other commercial real estate 974,575 1,307 3,646 4,953 979,528 2,892 1,526 Total commercial real estate 3,601,955 7,824 17,308 25,132 3,627,087 20,766 3,259 Total corporate loans 6,806,993 14,250 22,998 37,248 6,844,241 50,885 4,369 Home equity 740,919 4,545 2,519 7,064 747,983 5,465 109 1-4 family mortgages 420,264 2,652 1,006 3,658 423,922 2,939 272 Installment 236,264 1,476 259 1,735 237,999 â 259 Total consumer loans 1,397,447 8,673 3,784 12,457 1,409,904 8,404 640 Total loans $ 8,204,440 $ 22,923 $ 26,782 $ 49,705 $ 8,254,145 $ 59,289 $ 5,009 (1) PCI loans with an accretable yield are considered current. (2) Includes PCI loans of $387,000 and $682,000 as of March 31, 2017 and December 31, 2016 , respectively, which no longer have an accretable yield as estimates of expected future cash flows have decreased since the acquisition due to credit deterioration. |
Allowance for Credit Losses on Financing Receivables | A rollforward of the allowance for credit losses by portfolio segment for the quarters ended March 31, 2017 and 2016 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 Reserve for Unfunded Commitments Total Allowance for Credit Losses Quarter ended March 31, 2017 Beginning balance $ 40,709 $ 17,595 $ 3,261 $ 3,444 $ 7,739 $ 13,335 $ 1,000 $ 87,083 Charge-offs (4,074 ) (127 ) â (5 ) (408 ) (1,664 ) â (6,278 ) Recoveries 1,666 975 28 227 101 443 â 3,440 Net charge-offs (2,408 ) 848 28 222 (307 ) (1,221 ) â (2,838 ) Provision for loan losses and other 3,485 (742 ) (429 ) 444 (510 ) 2,670 â 4,918 Ending balance $ 41,786 $ 17,701 $ 2,860 $ 4,110 $ 6,922 $ 14,784 $ 1,000 $ 89,163 Quarter ended March 31, 2016 Beginning balance $ 37,074 $ 13,124 $ 2,469 $ 1,440 $ 6,109 $ 13,414 $ 1,225 $ 74,855 Charge-offs (1,898 ) (524 ) (204 ) (126 ) (1,445 ) (992 ) â (5,189 ) Recoveries 502 103 25 15 151 320 â 1,116 Net charge-offs (1,396 ) (421 ) (179 ) (111 ) (1,294 ) (672 ) â (4,073 ) Provision for loan losses and other 2,058 1,717 257 1,104 1,773 684 â 7,593 Ending balance $ 37,736 $ 14,420 $ 2,547 $ 2,433 $ 6,588 $ 13,426 $ 1,225 $ 78,375 |
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 March 31, 2017 and December 31, 2016 . 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 March 31, 2017 Commercial, industrial, and agricultural $ 18,167 $ 3,745,009 $ 30,388 $ 3,793,564 $ 109 $ 41,133 $ 544 $ 41,786 Commercial real estate: Office, retail, and industrial 13,442 1,956,042 19,495 1,988,979 31 16,200 1,470 17,701 Multi-family 396 656,769 14,545 671,710 â 2,784 76 2,860 Construction â 548,280 20,180 568,460 â 3,946 164 4,110 Other commercial real estate 2,493 1,286,300 68,988 1,357,781 18 5,832 1,072 6,922 Total commercial real estate 16,331 4,447,391 123,208 4,586,930 49 28,762 2,782 31,593 Total corporate loans 34,498 8,192,400 153,596 8,380,494 158 69,895 3,326 73,379 Consumer â 1,649,765 24,111 1,673,876 â 13,550 1,234 14,784 Reserve for unfunded commitments â â â â â 1,000 â 1,000 Total loans $ 34,498 $ 9,842,165 $ 177,707 $ 10,054,370 $ 158 $ 84,445 $ 4,560 $ 89,163 As of December 31, 2016 Commercial, industrial, and agricultural $ 24,645 $ 3,189,327 $ 3,182 $ 3,217,154 $ 507 $ 39,554 $ 648 $ 40,709 Commercial real estate: Office, retail, and industrial 16,287 1,553,234 12,446 1,581,967 â 16,148 1,448 17,596 Multi-family 398 601,429 12,225 614,052 â 3,059 202 3,261 Construction 34 447,058 4,448 451,540 â 3,280 164 3,444 Other commercial real estate 1,286 965,900 12,342 979,528 18 6,613 1,108 7,739 Total commercial real estate 18,005 3,567,621 41,461 3,627,087 18 29,100 2,922 32,040 Total corporate loans 42,650 6,756,948 44,643 6,844,241 525 68,654 3,569 72,748 Consumer â 1,392,880 17,024 1,409,904 â 12,210 1,125 13,335 Reserve for unfunded commitments â â â â â 1,000 â 1,000 Total loans $ 42,650 $ 8,149,828 $ 61,667 $ 8,254,145 $ 525 $ 81,864 $ 4,694 $ 87,083 |
Impaired Financing Receivables | The following table presents loans individually evaluated for impairment by class of loan as of March 31, 2017 and December 31, 2016 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 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 $ 16,781 $ 272 $ 25,299 $ 109 $ 11,579 $ 13,066 $ 29,514 $ 507 Agricultural 1,114 â 1,817 â â â â â Commercial real estate: Office, retail, and industrial 12,732 710 17,723 31 16,287 â 21,057 â Multi-family 396 â 596 â 398 â 398 â Construction â â 315 â 34 â 34 â Other commercial real estate 2,258 235 4,550 18 1,016 270 2,141 18 Total commercial real estate 16,500 945 25,001 49 17,735 270 23,630 18 Total impaired loans individually evaluated for impairment $ 33,281 $ 1,217 $ 50,300 $ 158 $ 29,314 $ 13,336 $ 53,144 $ 525 The following table presents the average recorded investment and interest income recognized on impaired loans by class for the quarters ended March 31, 2017 and 2016 . PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Quarters Ended March 31, 2017 2016 Average Interest Income Recognized (1) Average Interest Income Recognized (1) Commercial and industrial $ 20,849 $ 214 $ 2,794 $ 38 Agricultural 557 â â â Commercial real estate: Office, retail, and industrial 14,865 93 7,923 48 Multi-family 397 28 601 1 Construction 17 136 106 â Other commercial real estate 1,890 12 3,819 19 Total commercial real estate 17,169 269 12,449 68 Total impaired loans $ 38,575 $ 483 $ 15,243 $ 106 (1) Recorded using the cash basis of accounting. |
Financing Receivable Credit Quality Indicators | Consumer Credit Quality Indicators by Class (Dollar amounts in thousands) Performing Non-accrual Total As of March 31, 2017 Home equity $ 875,868 $ 4,799 $ 880,667 1-4 family mortgages 537,174 2,974 540,148 Installment 253,061 â 253,061 Total consumer loans $ 1,666,103 $ 7,773 $ 1,673,876 As of December 31, 2016 Home equity $ 727,618 $ 4,986 $ 732,604 1-4 family mortgages 413,415 2,939 416,354 Installment 237,999 â 237,999 Total consumer loans $ 1,379,032 $ 7,925 $ 1,386,957 The following tables present credit quality indicators by class for corporate and consumer loans, as of March 31, 2017 and December 31, 2016 . Corporate Credit Quality Indicators by Class (Dollar amounts in thousands) Pass Special Mention (1) (4) Substandard (2) (4) Non-accrual (3) Total As of March 31, 2017 Commercial and industrial $ 3,134,827 $ 113,944 $ 100,495 $ 21,514 $ 3,370,780 Agricultural 405,354 9,873 6,274 1,283 422,784 Commercial real estate: Office, retail, and industrial 1,887,699 39,545 42,230 19,505 1,988,979 Multi-family 665,313 4,336 1,898 163 671,710 Construction 542,862 8,927 16,473 198 568,460 Other commercial real estate 1,312,347 21,599 19,977 3,858 1,357,781 Total commercial real estate 4,408,221 74,407 80,578 23,724 4,586,930 Total corporate loans $ 7,948,402 $ 198,224 $ 187,347 $ 46,521 $ 8,380,494 As of December 31, 2016 Commercial and industrial $ 2,638,833 $ 92,340 $ 66,547 $ 29,938 $ 2,827,658 Agricultural 366,382 17,039 5,894 181 389,496 Commercial real estate: Office, retail, and industrial 1,491,030 34,007 39,513 17,277 1,581,827 Multi-family 607,324 4,370 2,029 311 614,034 Construction 438,946 111 12,197 286 451,540 Other commercial real estate 951,115 11,808 13,544 2,892 979,359 Total commercial real estate 3,488,415 50,296 67,283 20,766 3,626,760 Total corporate loans $ 6,493,630 $ 159,675 $ 139,724 $ 50,885 $ 6,843,914 (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 well-defined 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 well-defined 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 TDR s of $674,000 as of March 31, 2017 and $834,000 as of December 31, 2016 . |
Troubled Debt Restructuring Activity Rollforward | The table below presents TDR s by class as of March 31, 2017 and December 31, 2016 . See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDR s. TDR s by Class (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 278 $ 922 $ 1,200 $ 281 $ 150 $ 431 Agricultural â â â â â â Commercial real estate: Office, retail, and industrial â 864 864 155 4,733 4,888 Multi-family 582 163 745 586 168 754 Construction â â â â â â Other commercial real estate 263 â 263 268 48 316 Total commercial real estate 845 1,027 1,872 1,009 4,949 5,958 Total corporate loans 1,123 1,949 3,072 1,290 5,099 6,389 Home equity 172 795 967 177 820 997 1-4 family mortgages 817 368 1,185 824 378 1,202 Installment â â â â â â Total consumer loans 989 1,163 2,152 1,001 1,198 2,199 Total loans $ 2,112 $ 3,112 $ 5,224 $ 2,291 $ 6,297 $ 8,588 (1) These TDR s are included in non-accrual loans in the preceding tables. A rollforward of the carrying value of TDR s for the quarters ended March 31, 2017 and 2016 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Quarters Ended 2017 2016 Accruing Beginning balance $ 2,291 $ 2,743 Additions 922 â Net payments received (24 ) (41 ) Net transfers to non-accrual (1,077 ) â Ending balance 2,112 2,702 Non-accrual Beginning balance 6,297 2,324 Net payments received (4,150 ) (56 ) Charge-offs (112 ) â Net transfers from accruing 1,077 â Ending balance 3,112 2,268 Total TDRs $ 5,224 $ 4,970 |
Premises, Furniture, and Equi29
Premises, Furniture, and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of 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 March 31, December 31, Land $ 29,942 $ 18,304 Premises 138,748 94,369 Furniture and equipment 133,618 105,859 Total cost 302,308 218,532 Accumulated depreciation (178,801 ) (140,030 ) Net book value of premises, furniture, and equipment 123,507 78,502 Assets held-for-sale 17,146 4,075 Total premises, furniture, and equipment $ 140,653 $ 82,577 |
Schedule of Future Minimum Lease Payments for Operating Leases | 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 March 31, 2017 . Future Minimum Operating Lease Payments (Dollar amounts in thousands) Total One year or less $ 18,809 After one year to two years 16,591 After two years to three years 16,800 After three years to four years 16,276 After four years to five years 16,190 After five years 124,340 Total minimum lease payments $ 209,006 |
Scheduled Accretion of Operating Lease Intangible | 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 One year or less $ 1,180 After one year to two years 829 After two years to three years 658 After three years to four years 648 After four years to five years 648 After five years 3,835 Total accretion $ 7,798 |
Schedule Of Net Operating Lease Expense | The following table presents net operating lease expense for the quarters ended March 31, 2017 and 2016 . Net Operating Lease Expense (Dollar amounts in thousands) Quarters Ended 2017 2016 Lease expense charged to operations $ 4,559 $ 1,727 Accretion of operating lease intangible (1) (295 ) (286 ) Accretion of deferred gain on sale-leaseback transaction (1) (1,473 ) â Rental income from premises leased to others (1) (181 ) (158 ) Net operating lease expense $ 2,610 $ 1,283 (1) Included as reductions to net occupancy and equipment expense in the Condensed Consolidated Statements of Income. |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in the carrying amount of goodwill for the quarters ended March 31, 2017 and 2016 . Changes in the Carrying Amount of Goodwill (Dollar amounts in thousands) Quarters Ended March 31, 2017 2016 Beginning balance $ 340,879 $ 319,007 Acquisitions 350,693 20,761 Ending balance $ 691,572 $ 339,768 |
Schedule of Finite-Lived Intangible Assets | Other Intangible Assets (Dollar amounts in thousands) Three Months Ended March 31, 2017 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Beginning balance $ 58,959 $ 32,962 $ 25,997 $ 48,550 $ 28,280 $ 20,270 Additions 39,017 â 39,017 10,925 â 10,925 Amortization expense â 1,965 (1,965 ) â 985 (985 ) Ending balance $ 97,976 $ 34,927 $ 63,049 $ 59,475 $ 29,265 $ 30,210 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Scheduled Amortization of Other Intangible Assets (Dollar amounts in thousands) Total Year Ending March 31, 2017 2018 $ 7,702 2019 7,108 2020 7,064 2021 7,009 2022 6,922 2023 and thereafter 27,244 Total $ 63,049 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deposits [Abstract] | |
Schedule Of Deposits | The following table presents the Company's deposits by type. Summary of Deposits (Dollar amounts in thousands) As of March 31, December 31, Demand deposits $ 3,492,987 $ 2,766,748 Savings deposits 2,073,518 1,615,833 NOW accounts 1,876,215 1,675,421 Money market deposits 1,972,566 1,577,316 Time deposits less than $100,000 918,092 755,558 Time deposits greater than $100,000 623,163 437,727 Total deposits $ 10,956,541 $ 8,828,603 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below displays the calculation of basic and diluted earnings per common share (" EPS "). Basic and Diluted EPS (Amounts in thousands, except per share data) Quarters Ended 2017 2016 Net income $ 22,855 $ 17,962 Net income applicable to non-vested restricted shares (234 ) (212 ) Net income applicable to common shares $ 22,621 $ 17,750 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 100,411 77,980 Dilutive effect of common stock equivalents 21 12 Weighted-average diluted common shares outstanding 100,432 77,992 Basic EPS $ 0.23 $ 0.23 Diluted EPS $ 0.23 $ 0.23 Anti-dilutive shares not included in the computation of diluted EPS (1) 343 608 (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. |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | Fair Value Hedges (Dollar amounts in thousands) As of March 31, 2017 December 31, 2016 Gross notional amount outstanding $ 5,833 $ 5,958 Derivative liability fair value (226 ) (282 ) Weighted-average interest rate received 2.83 % 2.63 % Weighted-average interest rate paid 5.96 % 5.96 % Weighted-average maturity (in years) 1.60 1.84 Fair value of derivative (1) $ 240 $ 296 (1) This amount represents the fair value if credit risk related contingent features were triggered. Cash Flow Hedges (Dollar amounts in thousands) As of March 31, 2017 December 31, 2016 Gross notional amount outstanding $ 1,960,000 $ 1,470,000 Derivative asset fair value 4,078 5,402 Derivative liability fair value (8,286 ) (7,390 ) Weighted-average interest rate received 1.42 % 1.37 % Weighted-average interest rate paid 1.23 % 1.11 % Weighted-average maturity (in years) 3.00 2.83 |
Schedule of Derivative Instruments | Other Derivative Instruments (Dollar amounts in thousands) As of March 31, 2017 December 31, 2016 Gross notional amount outstanding $ 2,100,325 $ 1,656,612 Derivative asset fair value 15,722 13,478 Derivative liability fair value (15,722 ) (13,478 ) Fair value of derivative (1) 16,340 13,753 (1) This amount represents the fair value if credit risk related contingent features were triggered. |
Offsetting Assets | The following table presents the fair value of the Company's derivatives and offsetting positions as of March 31, 2017 and December 31, 2016 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 Assets Liabilities Assets Liabilities Gross amounts recognized $ 19,800 $ 24,234 $ 18,880 $ 21,150 Less: amounts offset in the Consolidated Statements of Financial Condition â â â â Net amount presented in the Consolidated Statements of Financial Condition (1) 19,800 24,234 18,880 21,150 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (11,293 ) (11,293 ) (10,889 ) (10,889 ) Cash collateral pledged â (12,941 ) â (10,261 ) Net credit exposure $ 8,507 $ â $ 7,991 $ â (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 March 31, 2017 and December 31, 2016 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of March 31, 2017 As of December 31, 2016 Assets Liabilities Assets Liabilities Gross amounts recognized $ 19,800 $ 24,234 $ 18,880 $ 21,150 Less: amounts offset in the Consolidated Statements of Financial Condition â â â â Net amount presented in the Consolidated Statements of Financial Condition (1) 19,800 24,234 18,880 21,150 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (11,293 ) (11,293 ) (10,889 ) (10,889 ) Cash collateral pledged â (12,941 ) â (10,261 ) Net credit exposure $ 8,507 $ â $ 7,991 $ â (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and 34
Commitments, Guarantees, and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure | Contractual or Notional Amounts of Financial Instruments (Dollar amounts in thousands) As of March 31, 2017 December 31, 2016 Commitments to extend credit: Commercial, industrial, and agricultural $ 1,737,410 $ 1,522,152 Commercial real estate 427,425 397,423 Home equity 486,880 426,384 Other commitments (1) 250,123 214,943 Total commitments to extend credit $ 2,901,838 $ 2,560,902 Letters of credit $ 146,632 $ 100,430 Recourse on assets sold: Unpaid principal balance of loans sold $ 185,101 $ 187,158 Carrying value of recourse obligation (2) 150 142 (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) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Trading securities: Money market funds $ 1,768 $ â $ â $ 1,645 $ â $ â Mutual funds 17,362 â â 16,275 â â Total trading securities 19,130 â â 17,920 â â Securities available-for-sale: U.S. treasury securities 48,516 â â 48,541 â â U.S. agency securities â 181,030 â â 183,637 â CMOs â 1,051,364 â â 1,047,446 â MBSs â 352,966 â â 332,655 â Municipal securities â 262,710 â â 270,846 â CDOs â â 33,436 â â 33,260 Equity securities â 7,102 â â 3,065 â Total securities available-for-sale 48,516 1,855,172 33,436 48,541 1,837,649 33,260 Mortgage servicing rights ("MSRs") (1) â â 6,245 6,120 Derivative assets (1) â 19,800 â â 18,880 â Liabilities: Derivative liabilities (2) $ â $ 24,234 $ â $ â $ 21,150 $ â (1) Included in other assets in the Consolidated Statements of Financial Condition. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. |
Significant Unobservable Inputs Used in the Valuation of CDOs | The following table presents the ranges of significant, unobservable inputs calculated using the weighted-average of the Issuers used by the Company as of March 31, 2017 and December 31, 2016. Significant Unobservable Inputs Used in the Valuation of CDOs As of March 31, 2017 December 31, 2016 Probability of prepayment 0.0 % - 10.9% 0.0 % - 10.9% Probability of default 16.6 % - 44.1% 16.7 % - 46.8% Loss given default 93.3 % - 99.1% 93.3 % - 98.9% Probability of deferral cure 0.0 % - 100.0% 7.6 % - 100.0% The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSR s as of March 31, 2017 . Significant Unobservable Inputs Used in the Valuation of MSR s As of March 31, 2017 December 31, 2016 Prepayment speed 7.7 % - 25.5% 7.7 % - 22.8% Maturity (months) 10 - 102 12 - 103 Discount rate 9.5 % - 13.0% 9.5 % - 13.0% |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | A rollforward of the carrying value of CDOs for the quarters ended March 31, 2017 and 2016 is presented in the following table. Carrying Value of CDOs (Dollar amounts in thousands) Quarters Ended 2017 2016 Beginning balance $ 33,260 $ 31,529 Change in other comprehensive income (1) 129 (786 ) Other 47 14 Ending balance $ 33,436 $ 30,757 (1) Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income. |
Significant Unobservable Inputs Used in the Valuation of MSRs | The following table presents the ranges of significant, unobservable inputs calculated using the weighted-average of the Issuers used by the Company as of March 31, 2017 and December 31, 2016. Significant Unobservable Inputs Used in the Valuation of CDOs As of March 31, 2017 December 31, 2016 Probability of prepayment 0.0 % - 10.9% 0.0 % - 10.9% Probability of default 16.6 % - 44.1% 16.7 % - 46.8% Loss given default 93.3 % - 99.1% 93.3 % - 98.9% Probability of deferral cure 0.0 % - 100.0% 7.6 % - 100.0% The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSR s as of March 31, 2017 . Significant Unobservable Inputs Used in the Valuation of MSR s As of March 31, 2017 December 31, 2016 Prepayment speed 7.7 % - 25.5% 7.7 % - 22.8% Maturity (months) 10 - 102 12 - 103 Discount rate 9.5 % - 13.0% 9.5 % - 13.0% |
Schedule of Servicing Assets at Fair Value | A rollforward of the carrying value of MSR s for the quarters ended March 31, 2017 and 2016 is presented in the following table. Carrying Value of MSR s (Dollar amounts in thousands) Quarters Ended 2017 2016 Beginning balance $ 6,120 $ 1,853 Additions from acquisition â 3,092 New MSRs 156 185 Total gains (losses) included in earnings (1) : Changes in valuation inputs and assumptions 172 (40 ) Other changes in fair value (2) (203 ) (68 ) Ending balance $ 6,245 $ 5,022 Contractual servicing fees earned (1) $ 395 $ 183 (1) Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of March 31, 2017 and 2016 . (2) Primarily represents changes in expected future cash flows due to payoffs and paydowns. |
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 March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ â $ â $ 11,528 $ â $ â $ 22,019 OREO (2) â â 780 â â 8,624 Loans held-for-sale (3) â â 9,144 â â 10,484 Assets held-for-sale (4) â â 17,146 â â 4,075 (1) Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. (2) Includes 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 March 31, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and due from banks 1 $ 174,268 $ 174,268 $ 155,055 $ 155,055 Interest-bearing deposits in other banks 2 74,892 74,892 107,093 107,093 Securities held-to-maturity 2 17,742 15,118 22,291 18,212 FHLB and FRB stock 2 46,306 46,306 59,131 59,131 Loans 3 9,970,427 9,712,763 8,172,584 7,973,845 Investment in BOLI 3 276,960 276,960 219,746 219,746 Accrued interest receivable 3 39,868 39,868 34,384 34,384 Other interest-earning assets 3 635 635 834 834 Liabilities: Deposits 2 $ 10,956,541 $ 10,945,331 $ 8,828,603 $ 8,820,572 Borrowed funds 2 547,923 547,923 879,008 879,008 Senior and subordinated debt 2 194,745 202,522 194,603 197,888 Accrued interest payable 2 2,564 2,564 3,416 3,416 |
Recent Accounting Pronounceme36
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Share-based compensation tax benefit | $ 638 | |
Deferred gain, net | $ 79,500 | $ 82,500 |
Acquisitions (Details) - Narrat
Acquisitions (Details) - Narrative $ / shares in Units, $ in Thousands | Jan. 06, 2017USD ($)$ / sharesshares | Mar. 08, 2016USD ($)locationshares | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 691,572 | $ 339,768 | $ 340,879 | $ 319,007 | ||||
Acquisition and integration related expenses | 18,565 | $ 5,020 | ||||||
Standard Bancshares, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Fixed exchange ratio (in shares) | shares | 0.4350 | |||||||
Consideration transferred | $ 580,715 | |||||||
Common stock, shares issued (in shares) | shares | 21,057,085 | |||||||
Cash paid | $ 47,125 | |||||||
Goodwill | $ 339,298 | |||||||
Acquisition and integration related expenses | 17,500 | |||||||
Standard Bancshares, Inc. | Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition and integration related expenses | $ 27,000 | |||||||
Premier Asset Management LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets under management acquired | $ 550,000 | |||||||
NI Bancshares Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration transferred | $ 70,082 | |||||||
Common stock, shares issued (in shares) | shares | 3,042,494 | |||||||
Cash paid | $ 15,186 | |||||||
Goodwill | $ 22,174 | |||||||
Number of retail branches acquired | location | 10 | |||||||
Minimum value of trust assets under management acquired | $ 700,000 | |||||||
Goodwill adjustment | $ 423 | |||||||
Standard Bancshares, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 11.02 | |||||||
First Midwest Bancorp, Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 25.34 |
Acquisitions (Details) - Acquis
Acquisitions (Details) - Acquisition Activity - USD ($) $ / shares in Units, $ in Thousands | Jan. 06, 2017 | Mar. 08, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||||||
Goodwill | $ 691,572 | $ 340,879 | $ 339,768 | $ 319,007 | ||
Liabilities | ||||||
Intangible liabilities | $ 7,798 | |||||
Standard Bancshares, Inc. | ||||||
Assets | ||||||
Cash and due from banks and interest-bearing deposits in other banks | $ 102,149 | |||||
Securities available-for-sale | 214,107 | |||||
Securities held-to-maturity | 0 | |||||
FHLB and FRB stock | 3,247 | |||||
Loans | 1,769,709 | |||||
OREO | 8,427 | |||||
Investment in BOLI | 55,629 | |||||
Goodwill | 339,298 | |||||
Other intangible assets | 31,072 | |||||
Premises, furniture, and equipment | 59,163 | |||||
Accrued interest receivable and other assets | 56,077 | |||||
Total assets | 2,638,878 | |||||
Liabilities | ||||||
Noninterest-bearing deposits | 675,354 | |||||
Interest-bearing deposits | 1,348,520 | |||||
Total deposits | 2,023,874 | |||||
Borrowed funds | 0 | |||||
Intangible liabilities | 0 | |||||
Accrued interest payable and other liabilities | 34,289 | |||||
Total liabilities | 2,058,163 | |||||
Consideration Paid | ||||||
Common stock (2017 - 21,057,085 shares issued at $25.34 per share, 2016 - 3,042,494 shares issued at $18.059 per share), net of issuance costs | 533,590 | |||||
Cash paid | 47,125 | |||||
Total consideration paid | $ 580,715 | |||||
Common stock, shares issued (in shares) | 21,057,085 | |||||
Shares issued (in Dollars per share) | $ 25.34 | |||||
NI Bancshares Corporation | ||||||
Assets | ||||||
Cash and due from banks and interest-bearing deposits in other banks | $ 72,533 | |||||
Securities available-for-sale | 125,843 | |||||
Securities held-to-maturity | 1,864 | |||||
FHLB and FRB stock | 1,549 | |||||
Loans | 396,181 | |||||
OREO | 2,863 | |||||
Investment in BOLI | 8,384 | |||||
Goodwill | 22,174 | |||||
Other intangible assets | 10,408 | |||||
Premises, furniture, and equipment | 19,636 | |||||
Accrued interest receivable and other assets | 16,453 | |||||
Total assets | 677,888 | |||||
Liabilities | ||||||
Noninterest-bearing deposits | 130,909 | |||||
Interest-bearing deposits | 464,012 | |||||
Total deposits | 594,921 | |||||
Borrowed funds | 2,416 | |||||
Intangible liabilities | 230 | |||||
Accrued interest payable and other liabilities | 10,239 | |||||
Total liabilities | 607,806 | |||||
Consideration Paid | ||||||
Common stock (2017 - 21,057,085 shares issued at $25.34 per share, 2016 - 3,042,494 shares issued at $18.059 per share), net of issuance costs | 54,896 | |||||
Cash paid | 15,186 | |||||
Total consideration paid | $ 70,082 | |||||
Common stock, shares issued (in shares) | 3,042,494 | |||||
Shares issued (in Dollars per share) | $ 18.059 |
Acquisitions (Details) - Unaudi
Acquisitions (Details) - Unaudited Pro Forma Combined Results of Operations (Details) - Standard Bancshares, Inc. - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Business Acquisition [Line Items] | |||
Total revenues | [1] | $ 156,757 | $ 143,345 |
Net income | $ 32,734 | $ 22,950 | |
[1] | Includes net interest income and total noninterest income. |
Acquisitions (Details) - Acquir
Acquisitions (Details) - Acquired Loans - Acquired loans - Standard Bancshares, Inc. $ in Thousands | Jan. 06, 2017USD ($) | |
Business Acquisition [Line Items] | ||
Fair value of acquired loans | $ 1,646,066 | |
Contractually required principal and interest payments | 1,940,459 | |
Best estimate of contractual cash flows not expected to be collected | 100,918 | [1] |
Best estimate of contractual cash flows expected to be collected | 1,839,541 | |
Receivables acquired with deteriorated credit quality | ||
Business Acquisition [Line Items] | ||
Fair value of acquired loans | 123,643 | |
Contractually required principal and interest payments | 208,586 | |
Best estimate of contractual cash flows not expected to be collected | 57,626 | [1] |
Best estimate of contractual cash flows expected to be collected | $ 150,960 | |
[1] | Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default. |
Securities (Details) - Securiti
Securities (Details) - Securities Portfolio - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading Securities | $ 19,130 | $ 17,920 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,971,960 | 1,957,584 |
Gross Unrealized Gains | 5,310 | 4,562 |
Gross Unrealized Losses | (40,146) | (42,696) |
Fair Value | 1,937,124 | 1,919,450 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 17,742 | 22,291 |
Municipal securities, Fair Value | 15,118 | |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 48,574 | 48,581 |
Gross Unrealized Gains | 23 | 26 |
Gross Unrealized Losses | (81) | (66) |
Fair Value | 48,516 | 48,541 |
U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 180,894 | 183,528 |
Gross Unrealized Gains | 518 | 519 |
Gross Unrealized Losses | (382) | (410) |
Fair Value | 181,030 | 183,637 |
Collateralized mortgage obligations (CMOs) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,066,439 | 1,064,130 |
Gross Unrealized Gains | 1,039 | 969 |
Gross Unrealized Losses | (16,114) | (17,653) |
Fair Value | 1,051,364 | 1,047,446 |
Other mortgage-backed securities (MBSs) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 357,473 | 337,139 |
Gross Unrealized Gains | 1,230 | 1,395 |
Gross Unrealized Losses | (5,737) | (5,879) |
Fair Value | 352,966 | 332,655 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 263,606 | 273,319 |
Gross Unrealized Gains | 2,092 | 1,245 |
Gross Unrealized Losses | (2,988) | (3,718) |
Fair Value | 262,710 | 270,846 |
Trust-preferred collateralized debt obligations (CDOs) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 47,728 | 47,681 |
Gross Unrealized Gains | 260 | 261 |
Gross Unrealized Losses | (14,552) | (14,682) |
Fair Value | 33,436 | 33,260 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,246 | 3,206 |
Gross Unrealized Gains | 148 | 147 |
Gross Unrealized Losses | (292) | (288) |
Fair Value | 7,102 | 3,065 |
Trading Securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading Securities | 19,130 | 17,920 |
Municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 17,742 | 22,291 |
Municipal securities, Gross Unrealized Gains | 0 | 0 |
Municipal securities, Gross Unrealized Losses | (2,624) | (4,079) |
Municipal securities, Fair Value | $ 15,118 | $ 18,212 |
Securities (Details) - Remainin
Securities (Details) - Remaining Contractual Maturity of Securities - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
One year or less | $ 90,123 | |
After one year to five years | 399,483 | |
After five years to ten years | 3,470 | |
After ten years | 47,726 | |
Securities that do not have a single contractual maturity date | 1,431,158 | |
Amortized Cost | 1,971,960 | $ 1,957,584 |
Available-for-sale Securities, Fair Value [Abstract] | ||
One year or less | 87,605 | |
After one year to five years | 388,321 | |
After five years to ten years | 3,373 | |
After ten years | 46,393 | |
Securities that do not have a single contractual maturity date | 1,411,432 | |
Fair Value | 1,937,124 | 1,919,450 |
Held-to-maturity Securities, Amortized Cost [Abstract] | ||
One year or less | 1,926 | |
After one year to five years | 6,834 | |
After five years to ten years | 2,975 | |
After ten years | 6,007 | |
Securities that do not have a single contractual maturity date | 0 | |
Amortized Cost | 17,742 | $ 22,291 |
Held-to-maturity Securities, Fair Value [Abstract] | ||
One year or less | 1,641 | |
After one year to five years | 5,823 | |
After five years to ten years | 2,535 | |
After ten years | 5,119 | |
Securities that do not have a single contractual maturity date | 0 | |
Fair Value | $ 15,118 |
Securities (Details) - Narrativ
Securities (Details) - Narrative - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Jan. 06, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Available-for-sale securities pledged as collateral | $ 1,100,000,000 | $ 1,100,000,000 | |
Held-to-maturity securities pledged as collateral | 0 | $ 0 | |
Carrying value of securities sold | $ 210,200,000 | ||
Standard Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Securities available-for-sale | $ 214,107,000 |
Securities (Details) - Securi44
Securities (Details) - Securities Gains (Losses) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Gains on sales of securities: | ||
Gross realized gains | $ 0 | $ 930 |
Gross realized losses | 0 | (43) |
Net realized gains on sales of securities | 0 | 887 |
Non-cash impairment charges: | ||
Other-than-temporary securities impairment (OTTI) | 0 | 0 |
Net realized gains | $ 0 | $ 887 |
Securities (Details) - Changes
Securities (Details) - Changes In Credit Losses Recognized In Earnings - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Changes in Credit Losses Recognized in Earnings [Roll Forward] | |||
Beginning balance | $ 23,345 | $ 23,709 | |
OTTI included in earnings: | |||
Reduction for sales of securities | [1] | 0 | 0 |
Ending balance | $ 23,345 | $ 23,709 | |
[1] | Included in net securities gains in the Condensed Consolidated Statements of Income. |
Securities (Details) - Securi46
Securities (Details) - Securities In An Unrealized Loss Position $ in Thousands | Mar. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 597 | 695 |
Fair Value - Less Than 12 Months | $ 1,271,882 | $ 974,337 |
Unrealized Losses - Less Than 12 Months | 20,243 | 18,720 |
Fair Value - 12 Months or Longer | 215,369 | 567,538 |
Unrealized Losses - 12 Months or Longer | 19,903 | 23,976 |
Fair Value - Total | 1,487,251 | 1,541,875 |
Unrealized Losses - Total | $ 40,146 | $ 42,696 |
U.S. treasury securities | ||
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 17 | 16 |
Fair Value - Less Than 12 Months | $ 35,481 | $ 33,505 |
Unrealized Losses - Less Than 12 Months | 75 | 61 |
Fair Value - 12 Months or Longer | 3,995 | 3,995 |
Unrealized Losses - 12 Months or Longer | 6 | 5 |
Fair Value - Total | 39,476 | 37,500 |
Unrealized Losses - Total | $ 81 | $ 66 |
U.S. agency securities | ||
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 30 | 28 |
Fair Value - Less Than 12 Months | $ 70,426 | $ 62,064 |
Unrealized Losses - Less Than 12 Months | 358 | 364 |
Fair Value - 12 Months or Longer | 6,928 | 11,814 |
Unrealized Losses - 12 Months or Longer | 24 | 46 |
Fair Value - Total | 77,354 | 73,878 |
Unrealized Losses - Total | $ 382 | $ 410 |
CMOs | ||
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 196 | 194 |
Fair Value - Less Than 12 Months | $ 781,003 | $ 523,233 |
Unrealized Losses - Less Than 12 Months | 12,259 | 10,309 |
Fair Value - 12 Months or Longer | 128,464 | 411,758 |
Unrealized Losses - 12 Months or Longer | 3,855 | 7,344 |
Fair Value - Total | 909,467 | 934,991 |
Unrealized Losses - Total | $ 16,114 | $ 17,653 |
MBSs | ||
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 73 | 68 |
Fair Value - Less Than 12 Months | $ 290,278 | $ 221,174 |
Unrealized Losses - Less Than 12 Months | 5,180 | 4,726 |
Fair Value - 12 Months or Longer | 17,013 | 77,780 |
Unrealized Losses - 12 Months or Longer | 557 | 1,154 |
Fair Value - Total | 307,291 | 298,954 |
Unrealized Losses - Total | $ 5,737 | $ 5,880 |
Municipal securities | ||
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 272 | 380 |
Fair Value - Less Than 12 Months | $ 94,694 | $ 133,957 |
Unrealized Losses - Less Than 12 Months | 2,371 | 3,059 |
Fair Value - 12 Months or Longer | 21,520 | 29,280 |
Unrealized Losses - 12 Months or Longer | 617 | 659 |
Fair Value - Total | 116,214 | 163,237 |
Unrealized Losses - Total | $ 2,988 | $ 3,718 |
CDOs | ||
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 7 | 7 |
Fair Value - Less Than 12 Months | $ 0 | $ 0 |
Unrealized Losses - Less Than 12 Months | 0 | 0 |
Fair Value - 12 Months or Longer | 30,762 | 30,592 |
Unrealized Losses - 12 Months or Longer | 14,552 | 14,682 |
Fair Value - Total | 30,762 | 30,592 |
Unrealized Losses - Total | $ 14,552 | $ 14,682 |
Equity securities | ||
Securities (Details) - Securities In An Unrealized Loss Position [Line Items] | ||
Number of Securities | security | 2 | 2 |
Fair Value - Less Than 12 Months | $ 0 | $ 404 |
Unrealized Losses - Less Than 12 Months | 0 | 201 |
Fair Value - 12 Months or Longer | 6,687 | 2,319 |
Unrealized Losses - 12 Months or Longer | 292 | 86 |
Fair Value - Total | 6,687 | 2,723 |
Unrealized Losses - Total | $ 292 | $ 287 |
Municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of Securities | security | 13 | 14 |
Fair Value - Less Than 12 Months | $ 0 | $ 0 |
Unrealized Loss - Less Than 12 Months | 0 | 0 |
Fair Value - 12 Months or Longer | 15,118 | 18,212 |
Unrealized Losses - 12 Months or Longer | 2,624 | 4,079 |
Fair Value - Total | 15,118 | 18,212 |
Unrealized Losses - Total | $ 2,624 | $ 4,079 |
Loans (Details) - Loan Portfoli
Loans (Details) - Loan Portfolio - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 10,054,370 | $ 8,254,145 |
Deferred loan fees included in total loans | 4,429 | 3,838 |
Overdrawn demand deposits included in total loans | 6,303 | 7,836 |
Commercial, industrial, and agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 3,793,564 | 3,217,154 |
Commercial, industrial, and agricultural | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,370,780 | 2,827,658 |
Total Loans | 3,370,780 | 2,827,658 |
Commercial, industrial, and agricultural | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 422,784 | 389,496 |
Total Loans | 422,784 | 389,496 |
Commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,586,930 | 3,627,087 |
Total Loans | 4,586,930 | 3,627,087 |
Commercial real estate loans | Office, retail, and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,988,979 | 1,581,967 |
Total Loans | 1,988,979 | 1,581,967 |
Commercial real estate loans | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 671,710 | 614,052 |
Total Loans | 671,710 | 614,052 |
Commercial real estate loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 568,460 | 451,540 |
Total Loans | 568,460 | 451,540 |
Commercial real estate loans | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,357,781 | 979,528 |
Total Loans | 1,357,781 | 979,528 |
Total corporate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,380,494 | 6,844,241 |
Total Loans | 8,380,494 | 6,844,241 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,673,876 | 1,409,904 |
Total Loans | 1,673,876 | 1,409,904 |
Consumer loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 880,667 | 747,983 |
Total Loans | 880,667 | 747,983 |
Consumer loans | 1-4 family mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 540,148 | 423,922 |
Total Loans | 540,148 | 423,922 |
Consumer loans | Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 253,061 | 237,999 |
Total Loans | $ 253,061 | $ 237,999 |
Loans (Details) - Loans Sales
Loans (Details) - Loans Sales - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total net gains on loan sales | $ 1,414 | $ 1,285 | |
Corporate loan sales | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sales | 15,368 | 9,588 | |
Less book value of loans sold | 15,117 | 9,130 | |
Total net gains on loan sales | [1] | 251 | 458 |
1-4 family mortgage loan sales | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sales | 55,761 | 39,507 | |
Less book value of loans sold | 54,598 | 38,680 | |
Total net gains on loan sales | [2] | $ 1,163 | $ 827 |
[1] | Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income. | ||
[2] | Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed Consolidated Statements of Income. |
Acquired and Covered Loans (Det
Acquired and Covered Loans (Details) - Acquired Loans - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
Non-PCI | [1] | $ 2,116,697 | $ 628,718 |
Total | [1] | 2,294,404 | 690,385 |
Acquired loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
Non-PCI | [1] | 2,101,985 | 613,339 |
Total | [1] | 2,271,946 | 667,111 |
Covered loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
Non-PCI | [1] | 14,712 | 15,379 |
Total | [1] | 22,458 | 23,274 |
Receivables acquired with deteriorated credit quality | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
PCI | [1] | 177,707 | 61,667 |
Receivables acquired with deteriorated credit quality | Acquired loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
PCI | [1] | 169,961 | 53,772 |
Receivables acquired with deteriorated credit quality | Covered loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
PCI | [1] | $ 7,746 | $ 7,895 |
[1] | Included in loans in the Consolidated Statements of Condition. |
Acquired and Covered Loans (D50
Acquired and Covered Loans (Details) - Narrative - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Acquired Loans [Abstract] | |||
Outstanding balance of PCI loans | $ 251,200 | $ 84,800 | |
Renewed non-purchased credit impaired loans | 170,900 | $ 117,600 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Accretable Yield Movement Schedule [Line Items] | |||
Accretion on acquired loans | 3,955 | $ 1,546 | |
Acquired and Covered Receivables | |||
Certain Loans Acquired in Transfer Accounted for as Debt Securities Accretable Yield Movement Schedule [Line Items] | |||
Accretion on acquired loans | $ 11,300 | $ 2,400 |
Acquired and Covered Loans (D51
Acquired and Covered Loans (Details) - Changes in FDIC Indemnification Asset - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
FDIC Indemnification Asset [Roll Forward] | ||
Beginning balance | $ 4,522 | $ 3,903 |
Amortization | (302) | (280) |
Change in expected reimbursements from the FDIC for changes in expected credit losses | (328) | 216 |
Net payments to the FDIC | 328 | 1,841 |
Ending balance | $ 4,220 | $ 5,680 |
Acquired and Covered Loans (D52
Acquired and Covered Loans (Details) - Changes in Accretable Yield - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Changes in Accretable Yield [Roll Forward] | |||
Beginning balances | $ 19,385 | $ 24,912 | |
Additions | 27,316 | 3,981 | |
Accretion | (3,955) | (1,546) | |
Other | [1] | (1,497) | (89) |
Ending balance | $ 41,249 | $ 27,258 | |
[1] | Decreases result from the resolution of certain loans occurring earlier than anticipated while increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio. |
Past Due Loans, Allowance For53
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Aging Analysis of Past Due Loans and Non-Performing Loans by Class - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | $ 10,000,857,000 | $ 8,204,440,000 |
Total Past Due | 53,513,000 | 49,705,000 | |
Total Loans | 10,054,370,000 | 8,254,145,000 | |
Non- accrual | [2] | 54,294,000 | 59,289,000 |
90 Days or More Past Due, Still Accruing Interest | 2,633,000 | 5,009,000 | |
30-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 26,779,000 | 22,923,000 | |
90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 26,734,000 | 26,782,000 | |
Commercial, industrial, and agricultural | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 3,793,564,000 | 3,217,154,000 | |
Commercial, industrial, and agricultural | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 3,359,919,000 | 2,816,442,000 |
Total Past Due | 10,861,000 | 11,216,000 | |
Total Loans | 3,370,780,000 | 2,827,658,000 | |
Non- accrual | [2] | 21,514,000 | 29,938,000 |
90 Days or More Past Due, Still Accruing Interest | 1,251,000 | 374,000 | |
Commercial, industrial, and agricultural | Agricultural | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 420,692,000 | 388,596,000 |
Total Past Due | 2,092,000 | 900,000 | |
Total Loans | 422,784,000 | 389,496,000 | |
Non- accrual | [2] | 1,283,000 | 181,000 |
90 Days or More Past Due, Still Accruing Interest | 0 | 736,000 | |
Commercial, industrial, and agricultural | 30-89 Days Past Due | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,165,000 | 6,426,000 | |
Commercial, industrial, and agricultural | 30-89 Days Past Due | Agricultural | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,434,000 | 0 | |
Commercial, industrial, and agricultural | 90 Days or More Past Due | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,696,000 | 4,790,000 | |
Commercial, industrial, and agricultural | 90 Days or More Past Due | Agricultural | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 658,000 | 900,000 | |
Commercial real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 4,556,307,000 | 3,601,955,000 |
Total Past Due | 30,623,000 | 25,132,000 | |
Total Loans | 4,586,930,000 | 3,627,087,000 | |
Non- accrual | [2] | 23,724,000 | 20,766,000 |
90 Days or More Past Due, Still Accruing Interest | 67,000 | 3,259,000 | |
Commercial real estate loans | Office, retail, and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 1,971,050,000 | 1,564,007,000 |
Total Past Due | 17,929,000 | 17,960,000 | |
Total Loans | 1,988,979,000 | 1,581,967,000 | |
Non- accrual | [2] | 19,505,000 | 17,277,000 |
90 Days or More Past Due, Still Accruing Interest | 52,000 | 1,129,000 | |
Commercial real estate loans | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 666,914,000 | 612,446,000 |
Total Past Due | 4,796,000 | 1,606,000 | |
Total Loans | 671,710,000 | 614,052,000 | |
Non- accrual | [2] | 163,000 | 311,000 |
90 Days or More Past Due, Still Accruing Interest | 14,000 | 604,000 | |
Commercial real estate loans | Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 565,710,000 | 450,927,000 |
Total Past Due | 2,750,000 | 613,000 | |
Total Loans | 568,460,000 | 451,540,000 | |
Non- accrual | [2] | 198,000 | 286,000 |
90 Days or More Past Due, Still Accruing Interest | 0 | 0 | |
Commercial real estate loans | Other commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 1,352,633,000 | 974,575,000 |
Total Past Due | 5,148,000 | 4,953,000 | |
Total Loans | 1,357,781,000 | 979,528,000 | |
Non- accrual | [2] | 3,858,000 | 2,892,000 |
90 Days or More Past Due, Still Accruing Interest | 1,000 | 1,526,000 | |
Commercial real estate loans | 30-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12,182,000 | 7,824,000 | |
Commercial real estate loans | 30-89 Days Past Due | Office, retail, and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,281,000 | 5,327,000 | |
Commercial real estate loans | 30-89 Days Past Due | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,782,000 | 858,000 | |
Commercial real estate loans | 30-89 Days Past Due | Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,556,000 | 332,000 | |
Commercial real estate loans | 30-89 Days Past Due | Other commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,563,000 | 1,307,000 | |
Commercial real estate loans | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 18,441,000 | 17,308,000 | |
Commercial real estate loans | 90 Days or More Past Due | Office, retail, and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 16,648,000 | 12,633,000 | |
Commercial real estate loans | 90 Days or More Past Due | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14,000 | 748,000 | |
Commercial real estate loans | 90 Days or More Past Due | Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 194,000 | 281,000 | |
Commercial real estate loans | 90 Days or More Past Due | Other commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,585,000 | 3,646,000 | |
Total corporate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 8,336,918,000 | 6,806,993,000 |
Total Past Due | 43,576,000 | 37,248,000 | |
Total Loans | 8,380,494,000 | 6,844,241,000 | |
Non- accrual | [2] | 46,521,000 | 50,885,000 |
90 Days or More Past Due, Still Accruing Interest | 1,318,000 | 4,369,000 | |
Total corporate loans | 30-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 20,781,000 | 14,250,000 | |
Total corporate loans | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 22,795,000 | 22,998,000 | |
Consumer loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 1,663,939,000 | 1,397,447,000 |
Total Past Due | 9,937,000 | 12,457,000 | |
Total Loans | 1,673,876,000 | 1,409,904,000 | |
Non- accrual | [2] | 7,773,000 | 8,404,000 |
90 Days or More Past Due, Still Accruing Interest | 1,315,000 | 640,000 | |
Consumer loans | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 874,810,000 | 740,919,000 |
Total Past Due | 5,857,000 | 7,064,000 | |
Total Loans | 880,667,000 | 747,983,000 | |
Non- accrual | [2] | 4,799,000 | 5,465,000 |
90 Days or More Past Due, Still Accruing Interest | 864,000 | 109,000 | |
Consumer loans | 1-4 family mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 538,177,000 | 420,264,000 |
Total Past Due | 1,971,000 | 3,658,000 | |
Total Loans | 540,148,000 | 423,922,000 | |
Non- accrual | [2] | 2,974,000 | 2,939,000 |
90 Days or More Past Due, Still Accruing Interest | 41,000 | 272,000 | |
Consumer loans | Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 250,952,000 | 236,264,000 |
Total Past Due | 2,109,000 | 1,735,000 | |
Total Loans | 253,061,000 | 237,999,000 | |
Non- accrual | [2] | 0 | 0 |
90 Days or More Past Due, Still Accruing Interest | 410,000 | 259,000 | |
Consumer loans | 30-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,998,000 | 8,673,000 | |
Consumer loans | 30-89 Days Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,045,000 | 4,545,000 | |
Consumer loans | 30-89 Days Past Due | 1-4 family mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,254,000 | 2,652,000 | |
Consumer loans | 30-89 Days Past Due | Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,699,000 | 1,476,000 | |
Consumer loans | 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,939,000 | 3,784,000 | |
Consumer loans | 90 Days or More Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,812,000 | 2,519,000 | |
Consumer loans | 90 Days or More Past Due | 1-4 family mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 717,000 | 1,006,000 | |
Consumer loans | 90 Days or More Past Due | Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 410,000 | 259,000 | |
Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
PCI | [3] | 177,707,000 | 61,667,000 |
Receivables acquired with deteriorated credit quality | Commercial, industrial, and agricultural | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
PCI | 30,388,000 | 3,182,000 | |
Receivables acquired with deteriorated credit quality | Commercial real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
PCI | 123,208,000 | 41,461,000 | |
Receivables acquired with deteriorated credit quality | Total corporate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
PCI | 153,596,000 | 44,643,000 | |
Receivables acquired with deteriorated credit quality | Consumer loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
PCI | 24,111,000 | 17,024,000 | |
Receivables acquired with deteriorated credit quality | Non-accrual | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
PCI | $ 387,000 | $ 682,000 | |
[1] | PCI loans with an accretable yield are considered current. | ||
[2] | Includes PCI loans of $387,000 and $682,000 as of March 31, 2017 and December 31, 2016, respectively, which no longer have an accretable yield as estimates of expected future cash flows have decreased since the acquisition due to credit deterioration. | ||
[3] | Included in loans in the Consolidated Statements of Condition. |
Past Due Loans, Allowance For54
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Allowance for Credit Losses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | $ 87,083 | $ 74,855 |
Charge-offs | (6,278) | (5,189) |
Recoveries | 3,440 | 1,116 |
Net charge-offs | (2,838) | (4,073) |
Provision for loan losses and other | 4,918 | 7,593 |
Ending balance | 89,163 | 78,375 |
Reserve for Unfunded Commitments | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 1,000 | 1,225 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 0 |
Provision for loan losses and other | 0 | 0 |
Ending balance | 1,000 | 1,225 |
Commercial, industrial, and agricultural | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 40,709 | 37,074 |
Charge-offs | (4,074) | (1,898) |
Recoveries | 1,666 | 502 |
Net charge-offs | (2,408) | (1,396) |
Provision for loan losses and other | 3,485 | 2,058 |
Ending balance | 41,786 | 37,736 |
Commercial real estate loans | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 32,040 | |
Ending balance | 31,593 | |
Commercial real estate loans | Office, Retail, and Industrial | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 17,595 | 13,124 |
Charge-offs | (127) | (524) |
Recoveries | 975 | 103 |
Net charge-offs | 848 | (421) |
Provision for loan losses and other | (742) | 1,717 |
Ending balance | 17,701 | 14,420 |
Commercial real estate loans | Multi-family | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 3,261 | 2,469 |
Charge-offs | 0 | (204) |
Recoveries | 28 | 25 |
Net charge-offs | 28 | (179) |
Provision for loan losses and other | (429) | 257 |
Ending balance | 2,860 | 2,547 |
Commercial real estate loans | Construction | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 3,444 | 1,440 |
Charge-offs | (5) | (126) |
Recoveries | 227 | 15 |
Net charge-offs | 222 | (111) |
Provision for loan losses and other | 444 | 1,104 |
Ending balance | 4,110 | 2,433 |
Commercial real estate loans | Other commercial real estate | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 7,739 | 6,109 |
Charge-offs | (408) | (1,445) |
Recoveries | 101 | 151 |
Net charge-offs | (307) | (1,294) |
Provision for loan losses and other | (510) | 1,773 |
Ending balance | 6,922 | 6,588 |
Consumer loans | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 13,335 | |
Ending balance | 14,784 | |
Consumer loans | Consumer loans | ||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||
Beginning balance | 13,335 | 13,414 |
Charge-offs | (1,664) | (992) |
Recoveries | 443 | 320 |
Net charge-offs | (1,221) | (672) |
Provision for loan losses and other | 2,670 | 684 |
Ending balance | $ 14,784 | $ 13,426 |
Past Due Loans, Allowance For55
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Loans and Related Allowance for Credit Losses by Portfolio Segment - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | $ 34,498 | $ 42,650 | |||
Loans Collectively Evaluated for Impairment | 9,842,165 | 8,149,828 | |||
Loans | 10,054,370 | 8,254,145 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 158 | 525 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 84,445 | 81,864 | |||
Total Allowance for Credit Losses | 89,163 | 87,083 | $ 78,375 | $ 74,855 | |
Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | [1] | 177,707 | 61,667 | ||
Total Allowance for Credit Losses | 4,560 | 4,694 | |||
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 | |||
Loans | 0 | 0 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 1,000 | 1,000 | |||
Total Allowance for Credit Losses | 1,000 | 1,000 | |||
Reserve for unfunded commitments | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 0 | 0 | |||
Total Allowance for Credit Losses | 0 | 0 | |||
Commercial, industrial, and agricultural | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 18,167 | 24,645 | |||
Loans Collectively Evaluated for Impairment | 3,745,009 | 3,189,327 | |||
Loans | 3,793,564 | 3,217,154 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 109 | 507 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 41,133 | 39,554 | |||
Total Allowance for Credit Losses | 41,786 | 40,709 | $ 37,736 | $ 37,074 | |
Commercial, industrial, and agricultural | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 30,388 | 3,182 | |||
Total Allowance for Credit Losses | 544 | 648 | |||
Commercial real estate loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 16,331 | 18,005 | |||
Loans Collectively Evaluated for Impairment | 4,447,391 | 3,567,621 | |||
Loans | 4,586,930 | 3,627,087 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 49 | 18 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 28,762 | 29,100 | |||
Total Allowance for Credit Losses | 31,593 | 32,040 | |||
Commercial real estate loans | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 123,208 | 41,461 | |||
Total Allowance for Credit Losses | 2,782 | 2,922 | |||
Commercial real estate loans | Office, retail, and industrial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 13,442 | 16,287 | |||
Loans Collectively Evaluated for Impairment | 1,956,042 | 1,553,234 | |||
Loans | 1,988,979 | 1,581,967 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 31 | 0 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 16,200 | 16,148 | |||
Total Allowance for Credit Losses | 17,701 | 17,596 | |||
Commercial real estate loans | Office, retail, and industrial | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 19,495 | 12,446 | |||
Total Allowance for Credit Losses | 1,470 | 1,448 | |||
Commercial real estate loans | Multi-family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 396 | 398 | |||
Loans Collectively Evaluated for Impairment | 656,769 | 601,429 | |||
Loans | 671,710 | 614,052 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 2,784 | 3,059 | |||
Total Allowance for Credit Losses | 2,860 | 3,261 | |||
Commercial real estate loans | Multi-family | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 14,545 | 12,225 | |||
Total Allowance for Credit Losses | 76 | 202 | |||
Commercial real estate loans | Construction | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 0 | 34 | |||
Loans Collectively Evaluated for Impairment | 548,280 | 447,058 | |||
Loans | 568,460 | 451,540 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 3,946 | 3,280 | |||
Total Allowance for Credit Losses | 4,110 | 3,444 | |||
Commercial real estate loans | Construction | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 20,180 | 4,448 | |||
Total Allowance for Credit Losses | 164 | 164 | |||
Commercial real estate loans | Other commercial real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 2,493 | 1,286 | |||
Loans Collectively Evaluated for Impairment | 1,286,300 | 965,900 | |||
Loans | 1,357,781 | 979,528 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 18 | 18 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 5,832 | 6,613 | |||
Total Allowance for Credit Losses | 6,922 | 7,739 | |||
Commercial real estate loans | Other commercial real estate | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 68,988 | 12,342 | |||
Total Allowance for Credit Losses | 1,072 | 1,108 | |||
Total corporate loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 34,498 | 42,650 | |||
Loans Collectively Evaluated for Impairment | 8,192,400 | 6,756,948 | |||
Loans | 8,380,494 | 6,844,241 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 158 | 525 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 69,895 | 68,654 | |||
Total Allowance for Credit Losses | 73,379 | 72,748 | |||
Total corporate loans | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 153,596 | 44,643 | |||
Total Allowance for Credit Losses | 3,326 | 3,569 | |||
Consumer loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans Individually Evaluated for Impairment | 0 | 0 | |||
Loans Collectively Evaluated for Impairment | 1,649,765 | 1,392,880 | |||
Loans | 1,673,876 | 1,409,904 | |||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Credit Losses Collectively Evaluated for Impairment | 13,550 | 12,210 | |||
Total Allowance for Credit Losses | 14,784 | 13,335 | |||
Consumer loans | Receivables acquired with deteriorated credit quality | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
PCI | 24,111 | 17,024 | |||
Total Allowance for Credit Losses | $ 1,234 | $ 1,125 | |||
[1] | Included in loans in the Consolidated Statements of Condition. |
Past Due Loans, Allowance For56
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Impaired Loans Individually Evaluated by Class - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | $ 33,281 | $ 29,314 |
Recorded Investment in Loans with a Specific Reserve | 1,217 | 13,336 |
Unpaid Principal Balance | 50,300 | 53,144 |
Specific Reserve | 158 | 525 |
Commercial, industrial, and agricultural | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 16,781 | 11,579 |
Recorded Investment in Loans with a Specific Reserve | 272 | 13,066 |
Unpaid Principal Balance | 25,299 | 29,514 |
Specific Reserve | 109 | 507 |
Commercial, industrial, and agricultural | Agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 1,114 | 0 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 1,817 | 0 |
Specific Reserve | 0 | 0 |
Commercial real estate loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 16,500 | 17,735 |
Recorded Investment in Loans with a Specific Reserve | 945 | 270 |
Unpaid Principal Balance | 25,001 | 23,630 |
Specific Reserve | 49 | 18 |
Commercial real estate loans | Office, retail, and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 12,732 | 16,287 |
Recorded Investment in Loans with a Specific Reserve | 710 | 0 |
Unpaid Principal Balance | 17,723 | 21,057 |
Specific Reserve | 31 | 0 |
Commercial real estate loans | Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 396 | 398 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 596 | 398 |
Specific Reserve | 0 | 0 |
Commercial real estate loans | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 0 | 34 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 315 | 34 |
Specific Reserve | 0 | 0 |
Commercial real estate loans | Other commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 2,258 | 1,016 |
Recorded Investment in Loans with a Specific Reserve | 235 | 270 |
Unpaid Principal Balance | 4,550 | 2,141 |
Specific Reserve | $ 18 | $ 18 |
Past Due Loans, Allowance For57
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Impaired Loans Individually Evaluated by Class (Continued) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 38,575 | $ 15,243 | ||
Interest Income Recognized | [1] | 483 | 106 | |
Commercial, industrial, and agricultural | Commercial and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 20,849 | 2,794 | ||
Interest Income Recognized | 214 | 38 | [1] | |
Commercial, industrial, and agricultural | Agricultural | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 557 | 0 | ||
Interest Income Recognized | 0 | 0 | [1] | |
Commercial real estate loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 17,169 | 12,449 | ||
Interest Income Recognized | [1] | 269 | 68 | |
Commercial real estate loans | Office, retail, and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 14,865 | 7,923 | ||
Interest Income Recognized | 93 | 48 | [1] | |
Commercial real estate loans | Multi-family | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 397 | 601 | ||
Interest Income Recognized | 28 | 1 | [1] | |
Commercial real estate loans | Construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 17 | 106 | ||
Interest Income Recognized | 136 | 0 | [1] | |
Commercial real estate loans | Other commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 1,890 | 3,819 | ||
Interest Income Recognized | $ 12 | $ 19 | [1] | |
[1] | Recorded using the cash basis of accounting. |
Past Due Loans, Allowance For58
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Credit Quality Indicators by Class - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Accruing | $ 2,112,000 | $ 2,291,000 | |
Special Mention and Substandard Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Accruing | 674,000 | 834,000 | |
Commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 8,380,494,000 | 6,843,914,000 | |
Commercial loans | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 7,948,402,000 | 6,493,630,000 | |
Commercial loans | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 198,224,000 | 159,675,000 |
Commercial loans | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 187,347,000 | 139,724,000 |
Commercial loans | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 46,521,000 | 50,885,000 |
Commercial, industrial, and agricultural | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 3,370,780,000 | 2,827,658,000 | |
Accruing | 278,000 | 281,000 | |
Commercial, industrial, and agricultural | Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 3,134,827,000 | 2,638,833,000 | |
Commercial, industrial, and agricultural | Commercial and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 113,944,000 | 92,340,000 |
Commercial, industrial, and agricultural | Commercial and industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 100,495,000 | 66,547,000 |
Commercial, industrial, and agricultural | Commercial and industrial | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 21,514,000 | 29,938,000 |
Commercial, industrial, and agricultural | Agricultural | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 422,784,000 | 389,496,000 | |
Accruing | 0 | 0 | |
Commercial, industrial, and agricultural | Agricultural | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 405,354,000 | 366,382,000 | |
Commercial, industrial, and agricultural | Agricultural | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 9,873,000 | 17,039,000 |
Commercial, industrial, and agricultural | Agricultural | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 6,274,000 | 5,894,000 |
Commercial, industrial, and agricultural | Agricultural | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 1,283,000 | 181,000 |
Commercial real estate loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 4,586,930,000 | 3,626,760,000 | |
Accruing | 845,000 | 1,009,000 | |
Commercial real estate loans | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 4,408,221,000 | 3,488,415,000 | |
Commercial real estate loans | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 74,407,000 | 50,296,000 |
Commercial real estate loans | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 80,578,000 | 67,283,000 |
Commercial real estate loans | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 23,724,000 | 20,766,000 |
Commercial real estate loans | Office, retail, and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 1,988,979,000 | 1,581,827,000 | |
Accruing | 0 | 155,000 | |
Commercial real estate loans | Office, retail, and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 1,887,699,000 | 1,491,030,000 | |
Commercial real estate loans | Office, retail, and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 39,545,000 | 34,007,000 |
Commercial real estate loans | Office, retail, and industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 42,230,000 | 39,513,000 |
Commercial real estate loans | Office, retail, and industrial | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 19,505,000 | 17,277,000 |
Commercial real estate loans | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 671,710,000 | 614,034,000 | |
Accruing | 582,000 | 586,000 | |
Commercial real estate loans | Multi-family | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 665,313,000 | 607,324,000 | |
Commercial real estate loans | Multi-family | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 4,336,000 | 4,370,000 |
Commercial real estate loans | Multi-family | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 1,898,000 | 2,029,000 |
Commercial real estate loans | Multi-family | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 163,000 | 311,000 |
Commercial real estate loans | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 568,460,000 | 451,540,000 | |
Accruing | 0 | 0 | |
Commercial real estate loans | Construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 542,862,000 | 438,946,000 | |
Commercial real estate loans | Construction | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 8,927,000 | 111,000 |
Commercial real estate loans | Construction | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 16,473,000 | 12,197,000 |
Commercial real estate loans | Construction | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 198,000 | 286,000 |
Commercial real estate loans | Other commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 1,357,781,000 | 979,359,000 | |
Accruing | 263,000 | 268,000 | |
Commercial real estate loans | Other commercial real estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 1,312,347,000 | 951,115,000 | |
Commercial real estate loans | Other commercial real estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 21,599,000 | 11,808,000 |
Commercial real estate loans | Other commercial real estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 19,977,000 | 13,544,000 |
Commercial real estate loans | Other commercial real estate | Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | $ 3,858,000 | $ 2,892,000 |
[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 $674,000 as of March 31, 2017 and $834,000 as of December 31, 2016. | ||
[3] | Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured and collection of principal and interest is expected within a reasonable time. | ||
[4] | Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. |
Past Due Loans, Allowance For59
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Credit Quality Indicators by Class (Continued) - Consumer loans - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | $ 1,673,876 | $ 1,386,957 |
Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 1,666,103 | 1,379,032 |
Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 7,773 | 7,925 |
Home equity | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 880,667 | 732,604 |
Home equity | Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 875,868 | 727,618 |
Home equity | Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 4,799 | 4,986 |
1-4 family mortgages | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 540,148 | 416,354 |
1-4 family mortgages | Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 537,174 | 413,415 |
1-4 family mortgages | Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 2,974 | 2,939 |
Installment | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 253,061 | 237,999 |
Installment | Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 253,061 | 237,999 |
Installment | Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | $ 0 | $ 0 |
Past Due Loans, Allowance For60
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - TDRs By Class - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | $ 2,112 | $ 2,291 | ||
Non-accrual | [1] | 3,112 | 6,297 | |
Total | 5,224 | 8,588 | $ 4,970 | |
Commercial, industrial, and agricultural | Commercial and industrial | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 278 | 281 | ||
Non-accrual | [1] | 922 | 150 | |
Total | 1,200 | 431 | ||
Commercial, industrial, and agricultural | Agricultural | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Commercial real estate loans | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 845 | 1,009 | ||
Non-accrual | [1] | 1,027 | 4,949 | |
Total | 1,872 | 5,958 | ||
Commercial real estate loans | Office, retail, and industrial | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 0 | 155 | ||
Non-accrual | [1] | 864 | 4,733 | |
Total | 864 | 4,888 | ||
Commercial real estate loans | Multi-family | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 582 | 586 | ||
Non-accrual | [1] | 163 | 168 | |
Total | 745 | 754 | ||
Commercial real estate loans | Construction | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Commercial real estate loans | Other commercial real estate | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 263 | 268 | ||
Non-accrual | [1] | 0 | 48 | |
Total | 263 | 316 | ||
Total corporate loans | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 1,123 | 1,290 | ||
Non-accrual | [1] | 1,949 | 5,099 | |
Total | 3,072 | 6,389 | ||
Consumer loans | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 989 | 1,001 | ||
Non-accrual | [1] | 1,163 | 1,198 | |
Total | 2,152 | 2,199 | ||
Consumer loans | Home equity | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 172 | 177 | ||
Non-accrual | [1] | 795 | 820 | |
Total | 967 | 997 | ||
Consumer loans | 1-4 family mortgages | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 817 | 824 | ||
Non-accrual | [1] | 368 | 378 | |
Total | 1,185 | 1,202 | ||
Consumer loans | Installment | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | $ 0 | $ 0 | ||
[1] | These TDRs are included in non-accrual loans in the preceding tables. |
Past Due Loans, Allowance For61
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - Narrative - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Valuation allowance on TDR loans | $ 32,000 | $ 0 |
Commitments to lend additional funds on TDRs loans | $ 0 | $ 0 |
Past Due Loans, Allowance For62
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Details) - TDR Rollforward - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Troubled Debt Restructuring Activity Rollforward [Rollforward] | ||
Beginning balance | $ 8,588 | |
Ending balance | 5,224 | $ 4,970 |
Accruing | ||
Troubled Debt Restructuring Activity Rollforward [Rollforward] | ||
Beginning balance | 2,291 | 2,743 |
Additions | 922 | 0 |
Net payments received | (24) | (41) |
Net transfers to non-accrual | (1,077) | 0 |
Ending balance | 2,112 | 2,702 |
Non-accrual | ||
Troubled Debt Restructuring Activity Rollforward [Rollforward] | ||
Beginning balance | 6,297 | 2,324 |
Net payments received | (4,150) | (56) |
Charge-offs | (112) | 0 |
Net transfers from accruing | 1,077 | 0 |
Ending balance | $ 3,112 | $ 2,268 |
Premises, Furniture, and Equi63
Premises, Furniture, and Equipment (Details) - Premises, Furniture, and Equipment - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 29,942 | $ 18,304 |
Premises | 138,748 | 94,369 |
Furniture and equipment | 133,618 | 105,859 |
Total cost | 302,308 | 218,532 |
Accumulated depreciation | (178,801) | (140,030) |
Net book value of premises, furniture, and equipment | 123,507 | 78,502 |
Assets held-for-sale | 17,146 | 4,075 |
Total premises, furniture, and equipment | $ 140,653 | $ 82,577 |
Premises, Furniture, and Equi64
Premises, Furniture, and Equipment (Details) - Narrative $ in Millions | Sep. 27, 2016 | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)renewal_optionretail_branch |
Property, Plant and Equipment [Line Items] | ||||
Aggregate cash purchase price | $ 150.3 | |||
Number of branches sold | retail_branch | 55 | |||
Net book value of properties | $ 58.8 | |||
Initial term of lease for sale-leaseback transaction | 14 years | |||
Number of lease renewal options | renewal_option | 5 | |||
Pre-tax gain on sale-leaseback transaction | $ 88 | |||
Deferred gain, net | $ 79.5 | $ 82.5 | ||
Depreciation of premises, furniture, and equipment | $ 3.5 | $ 3.2 | ||
Five Year Renewal Period | ||||
Property, Plant and Equipment [Line Items] | ||||
Renewal lease periods for sale-leaseback transactions | 5 years |
Premises, Furniture, and Equi65
Premises, Furniture, and Equipment (Details) - Operating Leases $ in Thousands | Mar. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
One year or less | $ 18,809 |
After one year to two years | 16,591 |
After two years to three years | 16,800 |
After three years to four years | 16,276 |
After four years to five years | 16,190 |
After five years | 124,340 |
Total minimum lease payments | $ 209,006 |
Premises, Furniture, and Equi66
Premises, Furniture, and Equipment (Details) - Accretion of Operating Leases $ in Thousands | Mar. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
One year or less | $ 1,180 |
After one year to two years | 829 |
After two years to three years | 658 |
After three years to four years | 648 |
After four years to five years | 648 |
After five years | 3,835 |
Total accretion | $ 7,798 |
Premises, Furniture, and Equi67
Premises, Furniture, and Equipment (Details) - Rental Expense - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Property, Plant and Equipment [Abstract] | |||
Lease expense charged to operations | $ 4,559 | $ 1,727 | |
Accretion of operating lease intangible | [1] | (295) | (286) |
Accretion of deferred gain on sale-leaseback transaction | [1] | (1,473) | 0 |
Rental income from premises leased to others | [1] | (181) | (158) |
Net operating lease expense | $ 2,610 | $ 1,283 | |
[1] | Included as reductions to net occupancy and equipment expense in the Condensed Consolidated Statements of Income. |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets (Details) - Changes in Carrying Amount of Goodwill - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 340,879 | $ 319,007 |
Acquisitions | 350,693 | 20,761 |
Ending balance | $ 691,572 | $ 339,768 |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets (Details) - Other Intangible Assets - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Balance at the beginning of the year, gross | $ 58,959 | $ 48,550 |
Balance at the beginning of the year, accumulated amortization | 32,962 | 28,280 |
Balance at the beginning of the year, net | 25,997 | 20,270 |
Additions | 39,017 | 10,925 |
Amortization expense | 1,965 | 985 |
Balance at the end of the year, gross | 97,976 | 59,475 |
Balance at the end of the year, accumulated amortization | 34,927 | 29,265 |
Balance at the end of the year, net | $ 63,049 | $ 30,210 |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets (Details) - Amortization of Other Intangible Assets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
2,018 | $ 7,702 | |||
2,019 | 7,108 | |||
2,020 | 7,064 | |||
2,021 | 7,009 | |||
2,022 | 6,922 | |||
2023 and thereafter | 27,244 | |||
Total | $ 63,049 | $ 25,997 | $ 30,210 | $ 20,270 |
Deposits (Details) - Summary of
Deposits (Details) - Summary of Deposits - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 3,492,987 | $ 2,766,748 |
Savings deposits | 2,073,518 | 1,615,833 |
NOW accounts | 1,876,215 | 1,675,421 |
Money market deposits | 1,972,566 | 1,577,316 |
Time deposits less than $100,000 | 918,092 | 755,558 |
Time deposits greater than $100,000 | 623,163 | 437,727 |
Total deposits | $ 10,956,541 | $ 8,828,603 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - Basic and Diluted Earnings Per Common Share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Earnings Per Share [Abstract] | |||
Net income | $ 22,855 | $ 17,962 | |
Net income applicable to non-vested restricted shares | (234) | (212) | |
Net income applicable to common shares | $ 22,621 | $ 17,750 | |
Weighted-average common shares outstanding (basic) (in Shares) | 100,411 | 77,980 | |
Dilutive effect of common stock equivalents (in Shares) | 21 | 12 | |
Weighted-average diluted common shares outstanding (in Shares) | 100,432 | 77,992 | |
Basic EPS (in Dollars per share) | $ 0.23 | $ 0.23 | |
Diluted EPS (in Dollars per share) | $ 0.23 | $ 0.23 | |
Anti-dilutive shares not included in the computation of diluted EPS (in Shares) | [1] | 343 | 608 |
[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. |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities (Details) - Fair Value Hedges - Fair Value Hedging - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gross notional amount outstanding | $ 5,833 | $ 5,958 | |
Derivative liability fair value | $ (226) | $ (282) | |
Weighted-average interest rate received | 2.83% | 2.63% | |
Weighted-average interest rate paid | 5.96% | 5.96% | |
Weighted-average maturity (in years) | 1 year 7 months 7 days | 1 year 10 months 2 days | |
Fair value of derivative | [1] | $ 240 | $ 296 |
[1] | This amount represents the fair value if credit risk related contingent features were triggered. |
Derivative Instruments and He74
Derivative Instruments and Hedging Activities (Details) - Narrative - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Amount of variable rate loans hedged using interest rate swaps | $ 980,000 | |||
Amount hedged of borrowed funds using forward starting interest rate swaps | 980,000 | $ 415,000 | ||
Interest rate cash flow hedge loss (gain) to be reclassified during the next 12 months, net | 7,600 | |||
Capital market products income | $ 1,376 | $ 3,215 | ||
Portion of fair value of outstanding interest rate swaps covered by collateral agreements (percent) | 100.00% | 100.00% |
Derivative Instruments and He75
Derivative Instruments and Hedging Activities (Details) - Cash Flow Hedges - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount outstanding | $ 1,960,000 | $ 1,470,000 |
Derivative asset fair value | 4,078 | 5,402 |
Derivative liability fair value | $ (8,286) | $ (7,390) |
Weighted-average interest rate received | 1.42% | 1.37% |
Weighted-average interest rate paid | 1.23% | 1.11% |
Weighted-average maturity (in years) | 3 years | 2 years 9 months 28 days |
Derivative Instruments and He76
Derivative Instruments and Hedging Activities (Details) - Other Derivative Instruments - Other Derivative Instruments - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Gross notional amount outstanding | $ 2,100,325 | $ 1,656,612 | |
Derivative asset fair value | 15,722 | 13,478 | |
Derivative liability fair value | (15,722) | (13,478) | |
Fair value of derivative | [1] | $ 16,340 | $ 13,753 |
[1] | This amount represents the fair value if credit risk related contingent features were triggered. |
Derivative Instruments and He77
Derivative Instruments and Hedging Activities (Details) - Offsetting Derivatives - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Gross amounts recognized | $ 19,800 | $ 18,880 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 19,800 | 18,880 |
Offsetting derivative positions | (11,293) | (10,889) | |
Cash collateral pledged | 0 | 0 | |
Derivative Asset, Net credit exposure | 8,507 | 7,991 | |
Liabilities | |||
Gross amounts recognized | 24,234 | 21,150 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 24,234 | 21,150 |
Offsetting derivative positions | (11,293) | (10,889) | |
Cash collateral pledged | (12,941) | (10,261) | |
Derivative Liability, Net credit exposure | $ 0 | $ 0 | |
[1] | Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and 78
Commitments, Guarantees, and Contingent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Other Commitments [Line Items] | |||
Letters of credit | $ 146,632 | $ 100,430 | |
Recourse on assets sold: | |||
Unpaid principal balance of loans sold | 185,101 | 187,158 | |
Carrying value of recourse obligation | [1] | 150 | 142 |
Commitments to extend credit | |||
Other Commitments [Line Items] | |||
Commercial, industrial, and agricultural | 1,737,410 | 1,522,152 | |
Commercial real estate | 427,425 | 397,423 | |
Home equity | 486,880 | 426,384 | |
Other commitments | [2] | 250,123 | 214,943 |
Total commitments to extend credit | $ 2,901,838 | $ 2,560,902 | |
[1] | Included in other liabilities in the Consolidated Statements of Financial Condition. | ||
[2] | Other commitments includes installment and overdraft protection program commitments. |
Fair Value (Details) - Fair Val
Fair Value (Details) - Fair Value Measurements - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Trading securities: | |||||
Total trading securities | $ 19,130 | $ 17,920 | |||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 1,937,124 | 1,919,450 | |||
Mortgage servicing rights (MSRs) | 6,245 | 6,120 | $ 5,022 | $ 1,853 | |
U.S. treasury securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 48,516 | 48,541 | |||
U.S. agency securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 181,030 | 183,637 | |||
MBSs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 352,966 | 332,655 | |||
Municipal securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 262,710 | 270,846 | |||
CDOs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 33,436 | 33,260 | |||
Equity securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 7,102 | 3,065 | |||
Recurring | Level 1 | |||||
Trading securities: | |||||
Money market funds | 1,768 | 1,645 | |||
Mutual funds | 17,362 | 16,275 | |||
Total trading securities | 19,130 | 17,920 | |||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 48,516 | 48,541 | |||
Mortgage servicing rights (MSRs) | [1] | 0 | |||
Derivative assets | [1] | 0 | 0 | ||
Liabilities: | |||||
Derivative liabilities | [2] | 0 | 0 | ||
Recurring | Level 1 | U.S. treasury securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 48,516 | 48,541 | |||
Recurring | Level 1 | U.S. agency securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 1 | CMOs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 1 | MBSs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 1 | Municipal securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 1 | CDOs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 1 | Equity securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 2 | |||||
Trading securities: | |||||
Money market funds | 0 | 0 | |||
Mutual funds | 0 | 0 | |||
Total trading securities | 0 | 0 | |||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 1,855,172 | 1,837,649 | |||
Mortgage servicing rights (MSRs) | [1] | 0 | |||
Derivative assets | [1] | 19,800 | 18,880 | ||
Liabilities: | |||||
Derivative liabilities | [2] | 24,234 | 21,150 | ||
Recurring | Level 2 | U.S. treasury securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 2 | U.S. agency securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 181,030 | 183,637 | |||
Recurring | Level 2 | CMOs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 1,051,364 | 1,047,446 | |||
Recurring | Level 2 | MBSs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 352,966 | 332,655 | |||
Recurring | Level 2 | Municipal securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 262,710 | 270,846 | |||
Recurring | Level 2 | CDOs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 2 | Equity securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 7,102 | 3,065 | |||
Recurring | Level 3 | |||||
Trading securities: | |||||
Money market funds | 0 | 0 | |||
Mutual funds | 0 | 0 | |||
Total trading securities | 0 | 0 | |||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 33,436 | 33,260 | |||
Mortgage servicing rights (MSRs) | [1] | 6,245 | 6,120 | ||
Derivative assets | [1] | 0 | 0 | ||
Liabilities: | |||||
Derivative liabilities | [2] | 0 | 0 | ||
Recurring | Level 3 | U.S. treasury securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 3 | U.S. agency securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 3 | CMOs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 3 | MBSs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 3 | Municipal securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 0 | 0 | |||
Recurring | Level 3 | CDOs | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | 33,436 | 33,260 | |||
Recurring | Level 3 | Equity securities | |||||
Securities Available-for-Sale | |||||
Securities available-for-sale, at fair value | $ 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 (Details) - Unobserv
Fair Value (Details) - Unobservable Inputs Used In The Valuation of CDOs - CDOs | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Minimum | ||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items] | ||
Probability of prepayment | 0.00% | 0.00% |
Probability of default | 16.60% | 16.70% |
Loss given default | 93.30% | 93.30% |
Probability of deferral cure | 0.00% | 7.60% |
Maximum | ||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items] | ||
Probability of prepayment | 10.90% | 10.90% |
Probability of default | 44.10% | 46.80% |
Loss given default | 99.10% | 98.90% |
Probability of deferral cure | 100.00% | 100.00% |
Fair Value (Details) - Carrying
Fair Value (Details) - Carrying Value of Level 3 Securities Available-for-Sale - CDOs - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Rollforward of the Carrying Value of CDOs [Roll Forward] | |||
Beginning balance | $ 33,260 | $ 31,529 | |
Change in other comprehensive income | [1] | 129 | (786) |
Other | 47 | 14 | |
Ending balance | $ 33,436 | $ 30,757 | |
[1] | Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income. |
Fair Value (Details) - Narrativ
Fair Value (Details) - Narrative - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Total amount of loans being serviced for the benefit of others at the end of the period | $ 632.7 | $ 640.5 |
Minimum | ||
Fair Value (Details) [Line Items] | ||
Appraisal adjustment (percent) | 0.00% | |
Maximum | ||
Fair Value (Details) [Line Items] | ||
Appraisal adjustment (percent) | 15.00% |
Fair Value (Details) - Signific
Fair Value (Details) - Significant Unobservable Inputs Used In the Valuation of MSRs | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Minimum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Prepayment speed | 7.70% | 7.70% |
Maturity (months) | 10 months | 12 months |
Discount rate | 9.50% | 9.50% |
Maximum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Prepayment speed | 25.50% | 22.80% |
Maturity (months) | 102 months | 103 months |
Discount rate | 13.00% | 13.00% |
Fair Value (Details) - Carryi84
Fair Value (Details) - Carrying Value of Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Beginning balance | $ 6,120 | $ 1,853 | |
Additions from acquisition | 0 | 3,092 | |
New MSRs | 156 | 185 | |
Total gains (losses) included in earnings: | |||
Changes in valuation inputs and assumptions | [1] | 172 | (40) |
Other changes in fair value | [1],[2] | (203) | (68) |
Ending balance | 6,245 | 5,022 | |
Contractual servicing fees earned | [1] | $ 395 | $ 183 |
[1] | Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of March 31, 2017 and 2016. | ||
[2] | Primarily represents changes in expected future cash flows due to payoffs and paydowns. |
Fair Value (Details) - Assets M
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items] | |||
OREO | $ 29,140 | $ 26,083 | |
Level 1 | Nonrecurring | |||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [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 | Nonrecurring | |||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [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 | Nonrecurring | |||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items] | |||
Collateral-dependent impaired loans | [1] | 11,528 | 22,019 |
OREO | [2] | 780 | 8,624 |
Loans held-for-sale | [3] | 9,144 | 10,484 |
Assets held-for-sale | [4] | $ 17,146 | $ 4,075 |
[1] | Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. | ||
[2] | Includes 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 (Details) - Financia
Fair Value (Details) - Financial Instruments - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 174,268 | $ 155,055 |
Interest-bearing deposits in other banks | 74,892 | 107,093 |
Securities held-to-maturity, at amortized cost | 17,742 | 22,291 |
FHLB and FRB stock | 46,306 | 59,131 |
Loans | 9,966,207 | 8,168,062 |
Investment in BOLI | 276,960 | 219,746 |
Liabilities: | ||
Deposits | 10,956,541 | 8,828,603 |
Borrowed funds | 547,923 | 879,008 |
Senior and subordinated debt | 194,745 | 194,603 |
Level 1 | ||
Assets: | ||
Cash and due from banks | 174,268 | 155,055 |
Level 2 | ||
Assets: | ||
Interest-bearing deposits in other banks | 74,892 | 107,093 |
Securities held-to-maturity, at amortized cost | 15,118 | 18,212 |
FHLB and FRB stock | 46,306 | 59,131 |
Liabilities: | ||
Deposits | 10,945,331 | 8,820,572 |
Borrowed funds | 547,923 | 879,008 |
Senior and subordinated debt | 202,522 | 197,888 |
Accrued interest payable | 2,564 | 3,416 |
Level 3 | ||
Assets: | ||
Loans | 9,712,763 | 7,973,845 |
Investment in BOLI | 276,960 | 219,746 |
Accrued interest receivable | 39,868 | 34,384 |
Other interest-earning assets | 635 | 834 |
Carrying Amount | Level 1 | ||
Assets: | ||
Cash and due from banks | 174,268 | 155,055 |
Carrying Amount | Level 2 | ||
Assets: | ||
Interest-bearing deposits in other banks | 74,892 | 107,093 |
Securities held-to-maturity, at amortized cost | 17,742 | 22,291 |
FHLB and FRB stock | 46,306 | 59,131 |
Liabilities: | ||
Deposits | 10,956,541 | 8,828,603 |
Borrowed funds | 547,923 | 879,008 |
Senior and subordinated debt | 194,745 | 194,603 |
Accrued interest payable | 2,564 | 3,416 |
Carrying Amount | Level 3 | ||
Assets: | ||
Loans | 9,970,427 | 8,172,584 |
Investment in BOLI | 276,960 | 219,746 |
Accrued interest receivable | 39,868 | 34,384 |
Other interest-earning assets | $ 635 | $ 834 |