Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | ONB |
Entity Registrant Name | Old National Bancorp /IN/ |
Entity Central Index Key | 707,179 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 135,523,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets | |||
Cash and due from banks | $ 202,652 | $ 209,381 | $ 224,893 |
Money market and other interest-earning investments | 49,715 | 46,138 | 36,147 |
Total cash and cash equivalents | 252,367 | 255,519 | 261,040 |
Trading securities, at fair value | 5,351 | 4,982 | 4,973 |
Investment securities-available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 2,775,837 | 2,797,174 | 2,758,678 |
Investment securities-held-to-maturity, at amortized cost (fair value $740,564; $784,172; and $922,311, respectively) | 688,951 | 745,090 | 850,803 |
Federal Home Loan Bank/Federal Reserve Bank stock, at cost | 117,354 | 101,716 | 101,716 |
Loans held for sale, at fair value | 30,221 | 90,682 | 60,465 |
Loans: | |||
Commercial | 2,049,054 | 1,917,099 | 1,836,380 |
Commercial real estate | 3,370,211 | 3,130,853 | 3,092,575 |
Residential real estate | 2,119,120 | 2,087,530 | 2,105,232 |
Consumer credit, net of unearned income | 1,859,739 | 1,875,030 | 1,870,798 |
Total loans | 9,398,124 | 9,010,512 | 8,904,985 |
Allowance for loan losses | (50,169) | (49,808) | (51,547) |
Net loans | 9,347,955 | 8,960,704 | 8,853,438 |
Premises and equipment, net | 412,488 | 429,622 | 333,266 |
Accrued interest receivable | 75,342 | 81,381 | 77,689 |
Goodwill | 655,018 | 655,018 | 655,210 |
Other intangible assets | 29,235 | 37,677 | 40,918 |
Company-owned life insurance | 356,897 | 352,956 | 351,431 |
Net deferred tax assets | 137,951 | 181,863 | 169,466 |
Loan servicing rights | 24,900 | 25,561 | 25,920 |
Assets held for sale | 8,196 | 5,970 | 4,217 |
Other real estate owned and repossessed personal property | 10,259 | 18,546 | 23,719 |
Other assets | 137,478 | 115,776 | 130,122 |
Total assets | 15,065,800 | 14,860,237 | 14,703,071 |
Deposits: | |||
Noninterest-bearing demand | 3,034,696 | 3,016,093 | 2,944,331 |
Interest-bearing: | |||
NOW | 2,539,233 | 2,596,595 | 2,486,190 |
Savings | 2,932,488 | 2,954,709 | 2,963,637 |
Money market | 648,378 | 707,748 | 687,895 |
Time | 1,451,989 | 1,468,108 | 1,564,655 |
Total deposits | 10,606,784 | 10,743,253 | 10,646,708 |
Federal funds purchased and interbank borrowings | 317,021 | 213,003 | 125,121 |
Securities sold under agreements to repurchase | 285,409 | 367,052 | 347,804 |
Federal Home Loan Bank advances | 1,589,367 | 1,353,092 | 1,331,379 |
Other borrowings | 219,314 | 218,939 | 218,795 |
Accrued expenses and other liabilities | 141,082 | 150,481 | 198,807 |
Total liabilities | 13,158,977 | 13,045,820 | 12,868,614 |
Shareholders' Equity | |||
Preferred stock, 2,000 shares authorized, no shares issued or outstanding | |||
Common stock, $1.00 per share stated value, 300,000 shares authorized, 135,523; 135,159; and 134,985 shares issued and outstanding, respectively | 135,523 | 135,159 | 134,985 |
Capital surplus | 1,354,036 | 1,348,338 | 1,343,740 |
Retained earnings | 451,461 | 390,292 | 374,561 |
Accumulated other comprehensive income (loss), net of tax | (34,197) | (59,372) | (18,829) |
Total shareholders' equity | 1,906,823 | 1,814,417 | 1,834,457 |
Total liabilities and shareholders' equity | 15,065,800 | 14,860,237 | 14,703,071 |
U.S. Treasury [Member] | |||
Investment securities-available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 5,615 | 7,103 | 9,265 |
U.S. Government-Sponsored Entities and Agencies [Member] | |||
Investment securities-available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 576,436 | 493,956 | 473,070 |
Mortgage-Backed Securities - Agency [Member] | |||
Investment securities-available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 1,450,736 | 1,525,019 | 1,483,840 |
States and Political Subdivisions [Member] | |||
Investment securities-available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 414,673 | 436,684 | 449,578 |
Other Debt Securities Including Pooled Trust Preferred Securities [Member] | |||
Investment securities-available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | $ 328,377 | $ 334,412 | $ 342,925 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | |||
Investment securities - held-to-maturity, fair value | $ 740,564 | $ 784,172 | $ 922,311 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, stated value | $ 1 | $ 1 | $ 1 |
Authorized and unissued common shares reserved for issuance | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 135,523,000 | 135,159,000 | 134,985,000 |
Common stock, shares outstanding | 135,523,000 | 135,159,000 | 134,985,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loans including fees: | ||||
Taxable | $ 97,685 | $ 94,866 | $ 282,075 | $ 252,965 |
Nontaxable | 3,373 | 3,004 | 9,788 | 8,999 |
Investment securities: | ||||
Taxable | 15,330 | 14,612 | 46,516 | 41,919 |
Nontaxable | 7,052 | 7,208 | 21,652 | 21,309 |
Money market and other interest-earning investments | 85 | 23 | 171 | 93 |
Total interest income | 123,525 | 119,713 | 360,202 | 325,285 |
Interest Expense | ||||
Deposits | 5,125 | 4,819 | 14,232 | 12,566 |
Federal funds purchased and interbank borrowings | 655 | 226 | 1,433 | 566 |
Securities sold under agreements to repurchase | 280 | 375 | 870 | 1,139 |
Federal Home Loan Bank advances | 6,618 | 4,137 | 17,947 | 11,164 |
Other borrowings | 2,369 | 2,353 | 7,108 | 7,064 |
Total interest expense | 15,047 | 11,910 | 41,590 | 32,499 |
Net interest income | 108,478 | 107,803 | 318,612 | 292,786 |
Provision for loan losses | 311 | 1,306 | 2,013 | 2,716 |
Net interest income after provision for loan losses | 108,167 | 106,497 | 316,599 | 290,070 |
Noninterest Income | ||||
Wealth management fees | 8,837 | 8,572 | 27,515 | 26,048 |
Service charges on deposit accounts | 10,535 | 11,054 | 30,418 | 31,130 |
Debit card and ATM fees | 4,248 | 4,330 | 12,920 | 12,586 |
Mortgage banking revenue | 5,104 | 7,718 | 14,516 | 15,841 |
Insurance premiums and commissions | 170 | 132 | 437 | 20,375 |
Investment product fees | 5,193 | 5,038 | 15,186 | 13,667 |
Capital markets income | 1,843 | 849 | 5,621 | 2,262 |
Company-owned life insurance | 2,022 | 2,163 | 6,288 | 6,281 |
Net securities gains (losses) | 2,972 | 1,647 | 7,547 | 4,609 |
Recognition of deferred gain on sale leaseback transactions | 537 | 235 | 1,612 | 2,325 |
Gain on sale of ONB Insurance Group, Inc. | 41,864 | |||
Change in FDIC indemnification asset | 233 | |||
Other income | 4,905 | 5,505 | 16,497 | 12,858 |
Total noninterest income | 46,366 | 47,243 | 138,557 | 190,079 |
Noninterest Expense | ||||
Salaries and employee benefits | 57,783 | 60,861 | 171,953 | 180,548 |
Occupancy | 11,670 | 12,944 | 34,343 | 39,356 |
Equipment | 3,485 | 3,564 | 10,062 | 9,773 |
Marketing | 2,646 | 3,528 | 9,369 | 11,125 |
Data processing | 7,696 | 8,242 | 23,530 | 24,041 |
Communication | 2,163 | 2,755 | 6,865 | 7,154 |
Professional fees | 4,589 | 3,252 | 11,317 | 11,801 |
Loan expense | 1,542 | 2,213 | 4,866 | 5,669 |
Supplies | 547 | 799 | 1,720 | 1,980 |
FDIC assessment | 2,197 | 2,149 | 6,814 | 6,098 |
Other real estate owned expense | 511 | 728 | 2,635 | 3,251 |
Amortization of intangibles | 2,641 | 3,233 | 8,442 | 9,245 |
Other expense | 6,232 | 3,794 | 16,488 | 17,848 |
Total noninterest expense | 103,702 | 108,062 | 308,404 | 327,889 |
Income before income taxes | 50,831 | 45,678 | 146,752 | 152,260 |
Income tax expense | 11,459 | 10,969 | 32,534 | 51,452 |
Net income | $ 39,372 | $ 34,709 | $ 114,218 | $ 100,808 |
Net income per common share-basic | $ 0.30 | $ 0.25 | $ 0.85 | $ 0.80 |
Net income per common share-diluted | $ 0.29 | $ 0.25 | $ 0.84 | $ 0.80 |
Weighted average number of common shares outstanding-basic | 135,120 | 134,492 | 135,040 | 125,366 |
Weighted average number of common shares outstanding-diluted | 135,796 | 135,011 | 135,693 | 125,839 |
Dividends per common share | $ 0.13 | $ 0.13 | $ 0.39 | $ 0.39 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 39,372 | $ 34,709 | $ 114,218 | $ 100,808 |
Change in securities available-for-sale: | ||||
Unrealized holding gains (losses) for the period | (3,955) | 3,428 | 42,452 | 33,956 |
Reclassification adjustment for securities gains realized in income | (2,972) | (1,647) | (7,547) | (4,609) |
Income tax effect | 2,513 | (693) | (12,764) | (10,670) |
Unrealized gains (losses) on available-for-sale securities | (4,414) | 1,088 | 22,141 | 18,677 |
Change in securities held-to-maturity: | ||||
Amortization of fair value for securities held-to-maturity previously recognized into accumulated other comprehensive income | 456 | 439 | 1,358 | 1,370 |
Income tax effect | (156) | (150) | (465) | (468) |
Changes from securities held-to-maturity | 300 | 289 | 893 | 902 |
Cash flow hedges: | ||||
Net unrealized derivative gains (losses) on cash flow hedges | 217 | 3,133 | (1,590) | (12,480) |
Reclassification adjustment for losses realized in net income | 1,429 | 1,865 | 4,962 | 4,723 |
Income tax effect | (625) | (1,899) | (1,281) | 2,948 |
Changes from cash flow hedges | 1,021 | 3,099 | 2,091 | (4,809) |
Defined benefit pension plans: | ||||
Amortization of net loss recognized in income | 27 | 503 | 81 | 1,933 |
Income tax effect | (11) | (191) | (31) | (735) |
Changes from defined benefit pension plans | 16 | 312 | 50 | 1,198 |
Other comprehensive income (loss), net of tax | (3,077) | 4,788 | 25,175 | 15,968 |
Comprehensive income | $ 36,295 | $ 39,497 | $ 139,393 | $ 116,776 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Anchor BanCorp Wisconsin Inc. [Member] | Common Stock [Member] | Common Stock [Member]Anchor BanCorp Wisconsin Inc. [Member] | Capital Surplus [Member] | Capital Surplus [Member]Anchor BanCorp Wisconsin Inc. [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2015 | $ 1,491,170 | $ 114,297 | $ 1,087,911 | $ 323,759 | $ (34,797) | |||
Net income | 100,808 | 100,808 | ||||||
Other comprehensive income | 15,968 | 15,968 | ||||||
Acquisition | $ 273,565 | $ 20,415 | $ 253,150 | |||||
Dividends-common stock | (49,962) | (49,962) | ||||||
Common stock issued | 296 | 24 | 272 | |||||
Common stock repurchased | (1,905) | (146) | (1,759) | |||||
Stock-based compensation expense | 5,070 | 5,070 | ||||||
Stock activity under incentive compensation plans | (553) | 395 | (904) | (44) | ||||
Ending Balance at Sep. 30, 2016 | 1,834,457 | 134,985 | 1,343,740 | 374,561 | (18,829) | |||
Beginning Balance at Jun. 30, 2016 | (23,617) | |||||||
Net income | 34,709 | |||||||
Other comprehensive income | 4,788 | |||||||
Ending Balance at Sep. 30, 2016 | 1,834,457 | 134,985 | 1,343,740 | 374,561 | (18,829) | |||
Beginning Balance at Dec. 31, 2016 | 1,814,417 | 135,159 | 1,348,338 | 390,292 | (59,372) | |||
Net income | 114,218 | 114,218 | ||||||
Other comprehensive income | 25,175 | 25,175 | ||||||
Dividends-common stock | (52,841) | (52,841) | ||||||
Common stock issued | 303 | 18 | 285 | |||||
Common stock repurchased | (1,917) | (108) | (1,809) | |||||
Stock-based compensation expense | 4,684 | 4,684 | ||||||
Stock activity under incentive compensation plans | 2,784 | 454 | 2,538 | (208) | ||||
Ending Balance at Sep. 30, 2017 | 1,906,823 | 135,523 | 1,354,036 | 451,461 | (34,197) | |||
Beginning Balance at Jun. 30, 2017 | (31,120) | |||||||
Net income | 39,372 | |||||||
Other comprehensive income | (3,077) | |||||||
Ending Balance at Sep. 30, 2017 | $ 1,906,823 | $ 135,523 | $ 1,354,036 | $ 451,461 | $ (34,197) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Common stock, dividends per share | $ 0.39 | $ 0.39 |
Common Stock [Member] | ||
Common stock, dividends per share | $ 0.39 | $ 0.39 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net income | $ 114,218 | $ 100,808 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 16,178 | 11,399 |
Amortization of other intangible assets | 8,442 | 9,245 |
Net premium amortization on investment securities | 11,263 | 14,331 |
Amortization of and net gains on termination of FDIC indemnification asset | (458) | |
Stock-based compensation expense | 4,684 | 5,070 |
Excess tax (benefit) expense on stock-based compensation | 126 | |
Provision for loan losses | 2,013 | 2,716 |
Net securities (gains) losses | (7,547) | (4,609) |
Recognition of deferred gain on sale leaseback transactions | (1,612) | (2,325) |
Gain on sale of ONB Insurance Group, Inc. | (41,864) | |
Net gains on sales of loans and other assets | (5,082) | (6,019) |
Increase in cash surrender value of company-owned life insurance | (6,288) | (6,281) |
Residential real estate loans originated for sale | (336,238) | (447,191) |
Proceeds from sale of residential real estate loans | 403,128 | 416,208 |
(Increase) decrease in interest receivable | 6,039 | (1,283) |
(Increase) decrease in other real estate owned | 8,287 | 7,022 |
(Increase) decrease in other assets | 8,498 | 22,153 |
Increase (decrease) in accrued expenses and other liabilities | (4,370) | (11,059) |
Total adjustments | 107,521 | (32,945) |
Net cash flows provided by (used in) operating activities | 221,739 | 67,863 |
Cash Flows From Investing Activities | ||
Cash portion of bank purchase price, net of cash acquired | (62,532) | |
Proceeds from sale of ONB Insurance Group, Inc. | 91,771 | |
Purchases of investment securities available-for-sale | (566,089) | (1,281,062) |
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock | (15,647) | (10,974) |
Proceeds from maturities, prepayments, and calls of investment securities available-for-sale | 337,766 | 1,043,014 |
Proceeds from sales of investment securities available-for-sale | 284,315 | 157,819 |
Proceeds from maturities, prepayments, and calls of investment securities held-to-maturity | 53,586 | 16,324 |
Proceeds from redemption of Federal Home Loan Bank/Federal Reserve Bank stock | 9 | |
Proceeds from sales of trading securities | 127 | |
Reimbursements under FDIC loss share agreements | 10,000 | |
Net principal collected from (loans made to) loan customers | (389,264) | (322,876) |
Proceeds from settlements on company-owned life insurance | 2,347 | 3,422 |
Proceeds from sale of premises and equipment and other assets | 15,058 | 6,332 |
Purchases of premises and equipment and other assets | (17,675) | (117,899) |
Net cash flows provided by (used in) investing activities | (295,467) | (466,661) |
Cash Flows From Financing Activities | ||
Deposits | (136,469) | 393,135 |
Federal funds purchased and interbank borrowings | 104,018 | (165,970) |
Securities sold under agreements to repurchase | (81,643) | (42,737) |
Payments for maturities of Federal Home Loan Bank advances | (893,363) | (592,877) |
Payments for maturities of other borrowings | (116) | (50) |
Proceeds from Federal Home Loan Bank advances | 1,130,000 | 900,000 |
Cash dividends paid on common stock | (52,841) | (49,962) |
Common stock repurchased | (1,917) | (1,905) |
Proceeds from exercise of stock options | 2,604 | 90 |
Common stock issued | 303 | 296 |
Net cash flows provided by (used in) financing activities | 70,576 | 440,020 |
Net increase (decrease) in cash and cash equivalents | (3,152) | 41,222 |
Cash and cash equivalents at beginning of period | 255,519 | 219,818 |
Cash and cash equivalents at end of period | 252,367 | 261,040 |
Supplemental cash flow information: | ||
Total interest paid | 43,205 | 33,394 |
Total taxes paid (net of refunds) | $ 2,958 | $ 25,900 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1—BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned affiliates (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of September 30, 2017 and 2016, and December 31, 2016, and the results of its operations for the three and nine months ended September 30, 2017 and 2016. Interim results do not necessarily represent annual results. These financial statements should be read in conjunction with Old National’s Annual Report for the year ended December 31, 2016. All significant intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the 2017 presentation. Such reclassifications had no effect on net income or shareholders’ equity and were insignificant amounts. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2—RECENT ACCOUNTING PRONOUNCEMENTS FASB ASC 606 — Revenue from Contracts with Customers Revenue from Contracts with Customers In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In December 2016, the FASB issued ASU No. 2016-20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements FASB ASC 944 — Disclosures about Short-Duration Contracts FASB ASC 825 Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities) FASB ASC 842 — Leases (Topic 842) FASB ASC 405 Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products FASB ASC 815 Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. FASB ASC 323 Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting FASB ASC 718 — Compensation—Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. FASB ASC 326 — Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments FASB ASC 740 — Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory FASB ASC 810 Consolidation (Topic 810): Interests Held through Related Parties that are under Common Control FASB ASC 805 Business Combinations (Topic 805): Clarifying the Definition of a Business FASB ASC 350 — Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment FASB ASC 610 — Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets FASB ASC 715— Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost FASB ASC 310— Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities |
Acquisition and Divestiture Act
Acquisition and Divestiture Activity | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition and Divestiture Activity | NOTE 3—ACQUISITION AND DIVESTITURE ACTIVITY Acquisitions Anchor BanCorp Wisconsin Inc. Effective May 1, 2016 (the “Closing Date”), Old National completed the acquisition of Madison, Wisconsin-based Anchor (WI) through a stock and cash merger. Anchor (WI) was a savings and loan holding company with AnchorBank (WI) as its wholly-owned subsidiary. AnchorBank (WI) operated 46 banking centers, including 32 banking centers in the Madison, Milwaukee, and Fox Valley triangle. Old National achieved cost savings by integrating the two companies and combining accounting, data processing, retail and lending support, and other administrative functions after the merger, which enabled Old National to achieve economies of scale in these areas. Pursuant to the merger agreement, shareholders of Anchor (WI) could elect to receive either 3.5505 shares of Old National common stock or $48.50 in cash for each share of Anchor (WI) they held, subject to a maximum of 40% of the purchase price in cash. The total fair value of consideration paid for Anchor (WI) was $459.8 million, consisting of $186.2 million of cash and the issuance of 20.4 million shares of Old National Common Stock valued at $273.6 million. This acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while $15.9 million of transaction and integration costs were expensed as incurred. As of April 30, 2017, the Company finalized its valuation of all assets acquired and liabilities assumed, resulting in no material change to acquisition accounting adjustments. A summary of the consideration paid was allocated as follows (in thousands): Cash and cash equivalents $ 123,657 Investment securities 235,240 Federal Home Loan Bank stock 4,596 Loans held for sale 9,334 Loans 1,637,806 Premises and equipment 35,721 Accrued interest receivable 7,308 Other real estate owned 17,349 Company-owned life insurance 7,278 Other assets 126,210 Deposits (1,852,713 ) Securities sold under agreements to repurchase (3,132 ) Other borrowings (123 ) Accrued expenses and other liabilities (36,957 ) Net tangible assets acquired 311,574 Definite-lived intangible assets acquired 21,559 Loan servicing rights 15,274 Goodwill 111,347 Total consideration paid $ 459,754 The portion of the consideration paid allocated to goodwill will not be deductible for tax purposes. The estimated fair value of the core deposit intangible is $21.6 million and is being amortized over an estimated useful life of 7 years. Acquired loan data for Anchor (WI) can be found in the table below: (in thousands) Fair Value of Gross Contractual Best Estimate at Acquired receivables subject to ASC 310-30 $ 20,174 $ 29,544 $ 6,153 Acquired receivables not subject to ASC 310-30 $ 1,617,632 $ 2,143,532 $ 274,155 Divestitures On May 31, 2016, the Company sold its insurance operations, ONI. The Company received approximately $91.8 million in cash resulting in a pre-tax gain of $41.9 million and an after-tax gain of $17.6 million. Goodwill and intangible assets of approximately $47.5 million were eliminated as part of this transaction. ONI was an ancillary business and did not meet the criteria to be treated as a discontinued operation as defined in Accounting Standards Update 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. Based on an ongoing assessment of our service and delivery network, the Company consolidated five branches during 2016 and an additional fifteen in January 2017. The Company plans to consolidate another fourteen branches in the fourth quarter of 2017. Pending Acquisition On August 7, 2017, Old National entered into an agreement to acquire St. Paul, Minnesota-based Anchor (MN) through a stock and cash merger. Anchor (MN) is a bank holding company with Anchor Bank (MN) as its wholly-owned subsidiary. Founded in 1967 and with 18 total branches, Anchor Bank (MN) is one of the largest community banks headquartered in the Twin Cities, and also serves Mankato, Minnesota. Anchor Bank (MN) has no affiliation with the former AnchorBank (WI) in Madison, Wisconsin, which Old National acquired in 2016. At June 30, 2017, Anchor Bank (MN) had total assets of $2.1 billion and $1.7 billion of deposit liabilities. Pursuant to the merger agreement, each holder of Anchor (MN) common stock will receive $2.625 in cash and 1.350 shares of Old National common stock per share of Anchor (MN) common stock such holder owns. Based on Old National’s September 29, 2017 closing price of $18.30 per share, this represents a total transaction value of approximately $334.2 million. The transaction value is likely to change up to the closing date, due to fluctuations in the price of Old National common stock and is also subject to adjustment under certain circumstances as provided in the merger agreement. The transaction has received regulatory and shareholder approval and closed on November 1, 2017. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NOTE 4—NET INCOME PER SHARE Basic and diluted net income per share are calculated using the two-class method. Net income is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income is then divided by the weighted-average number of common shares and common share equivalents during the period. The following table reconciles basic and diluted net income per share for the three and nine months ended September 30, 2017 and 2016: (dollars and shares in thousands, except per share data) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings Per Share Net income $ 39,372 $ 34,709 $ 114,218 $ 100,808 Weighted average common shares outstanding 135,120 134,492 135,040 125,366 Basic Net Income Per Share $ 0.30 $ 0.25 $ 0.85 $ 0.80 Diluted Earnings Per Share Net income $ 39,372 $ 34,709 $ 114,218 $ 100,808 Weighted average common shares outstanding 135,120 134,492 135,040 125,366 Effect of dilutive securities: Restricted stock 589 465 558 432 Stock options (1) 87 54 95 41 Weighted average shares outstanding 135,796 135,011 135,693 125,839 Diluted Net Income Per Share $ 0.29 $ 0.25 $ 0.84 $ 0.80 (1) Options to purchase 0.1 million shares and 0.9 million shares outstanding at September 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the three months ended September 30, 2017 and 2016 because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive. Options to purchase 0.1 million shares and 0.8 million shares outstanding at September 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the nine months ended September 30, 2017 and 2016, respectively, because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 5—INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolio at September 30, 2017 and December 31, 2016 and the corresponding amounts of unrealized gains and losses therein: (dollars in thousands) Amortized Unrealized Unrealized Fair Value September 30, 2017 Available-for-Sale U.S. Treasury $ 5,472 $ 143 $ — $ 5,615 U.S. government-sponsored entities and agencies 583,151 86 (6,801 ) 576,436 Mortgage-backed securities—Agency 1,466,636 3,862 (19,762 ) 1,450,736 States and political subdivisions 410,856 6,569 (2,752 ) 414,673 Pooled trust preferred securities 16,651 — (8,381 ) 8,270 Other securities 319,669 2,086 (1,648 ) 320,107 Total available-for-sale securities $ 2,802,435 $ 12,746 $ (39,344 ) $ 2,775,837 Held-to-Maturity Mortgage-backed securities—Agency $ 7,649 $ 254 $ — $ 7,903 States and political subdivisions 681,302 51,359 — 732,661 Total held-to-maturity securities $ 688,951 $ 51,613 $ — $ 740,564 December 31, 2016 Available-for-Sale U.S. Treasury $ 6,963 $ 140 $ — $ 7,103 U.S. government-sponsored entities and agencies 506,234 113 (12,391 ) 493,956 Mortgage-backed securities—Agency 1,551,465 6,923 (33,369 ) 1,525,019 States and political subdivisions 446,003 4,183 (13,502 ) 436,684 Pooled trust preferred securities 17,011 — (8,892 ) 8,119 Other securities 331,001 1,074 (5,782 ) 326,293 Total available-for-sale securities $ 2,858,677 $ 12,433 $ (73,936 ) $ 2,797,174 Held-to-Maturity U.S. government-sponsored entities and agencies $ 40,131 $ 427 $ — $ 40,558 Mortgage-backed securities—Agency 10,640 300 — 10,940 States and political subdivisions 694,319 38,915 (560 ) 732,674 Total held-to-maturity securities $ 745,090 $ 39,642 $ (560 ) $ 784,172 Proceeds from sales or calls of available-for-sale investment securities, the resulting realized gains and realized losses, and other securities gains or losses were as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended (dollars in thousands) 2017 2016 2017 2016 Proceeds from sales of available-for-sale securities $ 98,038 $ 50,368 $ 284,315 $ 157,819 Proceeds from calls of available-for-sale securities 2,303 160,805 73,423 525,114 Total $ 100,341 $ 211,173 $ 357,738 $ 682,933 Realized gains on sales of available-for-sale securities $ 2,891 $ 1,062 $ 7,174 $ 4,213 Realized gains on calls of available-for-sale securities 13 477 13 848 Realized losses on sales of available-for-sale securities (36 ) (2 ) (79 ) (450 ) Realized losses on calls of available-for-sale securities — (15 ) (8 ) (103 ) Other securities gains (losses) (1) 104 125 447 101 Net securities gains (losses) $ 2,972 $ 1,647 $ 7,547 $ 4,609 (1) Other securities gains (losses) includes net realized gains or losses associated with trading securities and mutual funds. Trading securities, which consist of mutual funds held in trusts associated with deferred compensation plans for former directors and executives, are recorded at fair value and totaled $5.4 million at September 30, 2017 and $5.0 million at December 31, 2016. All of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities. The amortized cost and fair value of the investment securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost. At September 30, 2017 (dollars in thousands) Weighted Average Maturity Amortized Fair Value Available-for-Sale Within one year $ 34,563 $ 34,686 2.36 % One to five years 338,424 339,100 2.11 Five to ten years 302,515 305,146 2.85 Beyond ten years 2,126,933 2,096,905 2.43 Total $ 2,802,435 $ 2,775,837 2.44 % Held-to-Maturity Within one year $ 23,751 $ 24,064 6.15 % One to five years 89,739 94,617 4.88 Five to ten years 172,648 183,505 4.88 Beyond ten years 402,813 438,378 5.75 Total $ 688,951 $ 740,564 5.43 % The following table summarizes the investment securities with unrealized losses at September 30, 2017 and December 31, 2016 by aggregated major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized September 30, 2017 Available-for-Sale U.S. government-sponsored entities and agencies $ 406,906 $ (3,708 ) $ 89,907 $ (3,093 ) $ 496,813 $ (6,801 ) Mortgage-backed securities—Agency 985,209 (12,903 ) 190,224 (6,859 ) 1,175,433 (19,762 ) States and political subdivisions 104,214 (1,612 ) 35,715 (1,140 ) 139,929 (2,752 ) Pooled trust preferred securities — — 8,270 (8,381 ) 8,270 (8,381 ) Other securities 80,290 (848 ) 85,583 (800 ) 165,873 (1,648 ) Total available-for-sale $ 1,576,619 $ (19,071 ) $ 409,699 $ (20,273 ) $ 1,986,318 $ (39,344 ) Held-to-Maturity States and political subdivisions $ 465 $ — $ — $ — $ 465 $ — Total held-to-maturity $ 465 $ — $ — $ — $ 465 $ — December 31, 2016 Available-for-Sale U.S. government-sponsored entities and agencies $ 432,192 $ (12,391 ) $ — $ — $ 432,192 $ (12,391 ) Mortgage-backed securities—Agency 1,177,093 (30,295 ) 57,636 (3,074 ) 1,234,729 (33,369 ) States and political subdivisions 286,351 (13,247 ) 4,919 (255 ) 291,270 (13,502 ) Pooled trust preferred securities — — 8,119 (8,892 ) 8,119 (8,892 ) Other securities 121,498 (2,734 ) 126,539 (3,048 ) 248,037 (5,782 ) Total available-for-sale $ 2,017,134 $ (58,667 ) $ 197,213 $ (15,269 ) $ 2,214,347 $ (73,936 ) Held-to-Maturity States and political subdivisions $ 59,481 $ (560 ) $ — $ — $ 59,481 $ (560 ) Total held-to-maturity $ 59,481 $ (560 ) $ — $ — $ 59,481 $ (560 ) Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under FASB ASC 320, Investments—Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-10 (EITF Issue No. 99-20, Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests that Continue to be Held by a Transfer in Securitized Financial Assets . In determining OTTI under the FASB ASC 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. The second segment of the portfolio uses the OTTI guidance provided by FASB ASC 325-10 (EITF 99-20) that is specific to purchased beneficial interests that, on the purchase date, were rated below AA. Under the FASB ASC 325-10 model, we compare the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. Otherwise, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors shall be recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings shall become the new amortized cost basis of the investment. There was no OTTI recorded during the nine months ended September 30, 2017 or 2016. At September 30, 2017, Old National’s securities portfolio consisted of 1,495 securities, 317 of which were in an unrealized loss position. The unrealized losses attributable to our U.S. government-sponsored entities and agencies, agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates. Our pooled trust preferred securities are discussed below. At September 30, 2017, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell any securities. Pooled Trust Preferred Securities At September 30, 2017, our securities portfolio contained three pooled trust preferred securities with a fair value of $8.3 million and unrealized losses of $8.4 million. One of the pooled trust preferred securities in our portfolio falls within the scope of FASB ASC 325-10 (EITF 99-20) and has a fair value of $0.3 million with an unrealized loss of $2.5 million at September 30, 2017. This security was rated A3 at inception, but is rated D at September 30, 2017. The issuers in this security are banks. We use the OTTI evaluation model to compare the present value of expected cash flows to the previous estimate to determine whether an adverse change in cash flows has occurred during the quarter. The OTTI model considers the structure and term of the CDO and the financial condition of the underlying issuers. Specifically, the model details interest rates, principal balances of note classes and underlying issuers, the timing and amount of interest and principal payments of the underlying issuers, and the allocation of the payments to the note classes. The current estimate of expected cash flows is based on the most recent trustee reports and any other relevant market information including announcements of interest payment deferrals or defaults of underlying trust preferred securities. Assumptions used in the model include expected future default rates and prepayments. We assume no recoveries on defaults and a limited number of recoveries on current or projected interest payment deferrals. In addition, we use the model to “stress” this CDO, or make assumptions more severe than expected activity, to determine the degree to which assumptions could deteriorate before the CDO could no longer fully support repayment of Old National’s note class. For the nine months ended September 30, 2017 and 2016, our model indicated no OTTI losses on this security. Two of our pooled trust preferred securities with a fair value of $8.0 million and unrealized losses of $5.9 million at September 30, 2017 are not subject to FASB ASC 325-10. These securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. For the nine months ended September 30, 2017 and 2016, our analysis indicated no OTTI on these securities. The table below summarizes the relevant characteristics of our pooled trust preferred securities as well as our single issuer trust preferred securities that are included in the “other securities” category in this footnote. Each of the pooled trust preferred securities support a more senior tranche of security holders. All three pooled trust preferred securities have experienced credit defaults. However, two of these securities have excess subordination and are not other-than-temporarily-impaired as a result of their class hierarchy, which provides more loss protection. Trust preferred securities (dollars in thousands) Class Lowest Amortized Fair Unrealized Realized # of Issuers Actual Expected Excess Pooled trust preferred securities: Reg Div Funding 2004 B-2 D $ 2,738 $ 262 $ (2,476 ) $ — 21/36 32.1% 7.5% 0.0% Pretsl XXVII LTD B B 4,422 2,451 (1,971 ) — 35/44 16.7% 3.8% 47.9% Trapeza Ser 13A A2A BBB 9,491 5,557 (3,934 ) — 50/55 4.5% 4.6% 45.2% 16,651 8,270 (8,381 ) — Single Issuer trust preferred securities: Fleet Cap Tr V (BOA) BB+ 3,403 3,325 (78 ) — JP Morgan Chase Cap XIII BBB- 4,775 4,609 (166 ) — NB-Global BB+ 799 949 150 — Chase Cap II BBB- 833 935 102 — 9,810 9,818 8 — Total $ 26,461 $ 18,088 $ (8,373 ) $ — (1) Lowest rating for the security provided by any nationally recognized credit rating agency. |
Loans Held for Sale
Loans Held for Sale | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Loans Held for Sale | NOTE 6—LOANS HELD FOR SALE Mortgage loans held for immediate sale in the secondary market were $30.2 million at September 30, 2017, compared to $90.7 million at December 31, 2016. Residential loans that Old National has originated with the intent to sell are recorded at fair value in accordance with FASB ASC 825-10, Financial Instruments |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 7—LOANS AND ALLOWANCE FOR LOAN LOSSES Old National’s finance receivables consist primarily of loans made to consumers and commercial clients in various industries including manufacturing, agribusiness, transportation, mining, wholesaling, and retailing. Most of Old National’s lending activity occurs within our principal geographic markets of Indiana, Kentucky, Michigan, and Wisconsin. Old National manages concentrations of credit exposure by industry, product, geography, customer relationship, and loan size, with no concentration of loans exceeding 10% of its portfolio. The composition of loans by lending classification was as follows: (dollars in thousands) September 30, December 31, Commercial (1) $ 2,049,054 $ 1,917,099 Commercial real estate: Construction (2) 276,226 357,802 Other (2) 3,093,985 2,773,051 Residential real estate 2,119,120 2,087,530 Consumer credit: Home equity 477,100 476,439 Auto 1,165,289 1,167,737 Other 217,350 230,854 Total loans 9,398,124 9,010,512 Allowance for loan losses (50,169 ) (49,808 ) Net loans $ 9,347,955 $ 8,960,704 (1) Includes direct finance leases of $8.7 million at September 30, 2017 and $10.8 million at December 31, 2016. (2) Certain commercial real estate construction loans were reclassified from commercial real estate—other due to a misclassification at December 31, 2016. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing Old National’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Included with commercial real estate are construction loans, which are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, financial analysis of the developers and property owners, and feasibility studies, if available. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders (including Old National), sales of developed property, or an interim loan commitment from Old National until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing. The acquisition of Anchor (WI) on May 1, 2016 added $926.2 million of commercial real estate loans to our portfolio. At 188%, Old National Bank’s commercial real estate loans as a percentage of its risk-based capital remained well below the regulatory guideline limit of 300% at September 30, 2017. Residential With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, Old National typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Consumer Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. We assumed student loans in the acquisition of Anchor (WI) in May 2016. At September 30, 2017, student loans totaled $70.2 million and are guaranteed by the government from 97% to 100%. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property or other collateral values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable losses incurred in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, pools of homogeneous loans, assessments of the impact of current and anticipated economic conditions on the portfolio, and historical loss experience. The allowance is increased through a provision charged to operating expense. Loans deemed to be uncollectible are charged to the allowance. Recoveries of loans previously charged-off are added to the allowance. We utilize a PD and LGD model as a tool to determine the adequacy of the allowance for loan losses for performing commercial and commercial real estate loans. The PD is forecast using a transition matrix to determine the likelihood of a customer’s AQR migrating from its current AQR to any other status within the time horizon. Transition rates are measured using Old National’s own historical experience. The model assumes that recent historical transition rates will continue into the future. The LGD is defined as credit loss incurred when an obligor of the bank defaults. The sum of all net charge-offs for a particular portfolio segment are divided by all loans that have defaulted over a given period of time. The expected loss derived from the model considers the PD, LGD, and exposure at default. Additionally, qualitative factors, such as changes in lending policies or procedures, and economic business conditions are also considered. We use historic loss ratios adjusted for economic conditions to determine the appropriate level of allowance for residential real estate and consumer loans. No allowance was brought forward on any of the acquired loans as any credit deterioration evident in the loans was included in the determination of the fair value of the loans at the acquisition date. An allowance for loan losses will be established for any subsequent credit deterioration or adverse changes in expected cash flows. Old National’s activity in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016 was as follows: (dollars in thousands) Commercial Commercial Residential Consumer Total Three Months Ended September 30, 2017 Balance at beginning of period $ 20,365 $ 20,654 $ 1,811 $ 8,156 $ 50,986 Charge-offs (70 ) (1,148 ) (227 ) (1,376 ) (2,821 ) Recoveries 255 339 89 1,010 1,693 Provision (23 ) 180 236 (82 ) 311 Balance at end of period $ 20,527 $ 20,025 $ 1,909 $ 7,708 $ 50,169 Three Months Ended September 30, 2016 Balance at beginning of period $ 24,156 $ 18,208 $ 1,459 $ 7,981 $ 51,804 Charge-offs (1,681 ) (1,378 ) (140 ) (1,320 ) (4,519 ) Recoveries 594 1,548 2,174 (1,360 ) 2,956 Provision 1,461 (1,033 ) (1,963 ) 2,841 1,306 Balance at end of period $ 24,530 $ 17,345 $ 1,530 $ 8,142 $ 51,547 Nine Months Ended September 30, 2017 Balance at beginning of period $ 21,481 $ 18,173 $ 1,643 $ 8,511 $ 49,808 Charge-offs (951 ) (2,784 ) (954 ) (4,751 ) (9,440 ) Recoveries 1,647 3,086 196 2,859 7,788 Provision (1,650 ) 1,550 1,024 1,089 2,013 Balance at end of period $ 20,527 $ 20,025 $ 1,909 $ 7,708 $ 50,169 Nine Months Ended September 30, 2016 Balance at beginning of period $ 26,347 $ 15,993 $ 2,051 $ 7,842 $ 52,233 Charge-offs (3,640 ) (2,440 ) (360 ) (4,698 ) (11,138 ) Recoveries 2,288 2,935 2,387 126 7,736 Provision (465 ) 857 (2,548 ) 4,872 2,716 Balance at end of period $ 24,530 $ 17,345 $ 1,530 $ 8,142 $ 51,547 The following table provides Old National’s recorded investment in financing receivables by portfolio segment at September 30, 2017 and December 31, 2016 and other information regarding the allowance: (dollars in thousands) Commercial Commercial Residential Consumer Total September 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 4,456 $ 6,486 $ — $ — $ 10,942 Collectively evaluated for impairment 16,048 13,520 1,909 7,552 39,029 Loans acquired with deteriorated credit quality 23 19 — 156 198 Total allowance for loan losses $ 20,527 $ 20,025 $ 1,909 $ 7,708 $ 50,169 Loans and leases outstanding: Individually evaluated for impairment $ 33,275 $ 62,442 $ — $ — $ 95,717 Collectively evaluated for impairment 2,015,185 3,287,914 2,107,253 1,853,875 9,264,227 Loans acquired with deteriorated credit quality 594 19,855 11,867 5,864 38,180 Total loans and leases outstanding $ 2,049,054 $ 3,370,211 $ 2,119,120 $ 1,859,739 $ 9,398,124 December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 4,561 $ 3,437 $ — $ — $ 7,998 Collectively evaluated for impairment 16,838 14,717 1,643 8,334 41,532 Loans acquired with deteriorated credit quality 82 19 — 177 278 Total allowance for loan losses $ 21,481 $ 18,173 $ 1,643 $ 8,511 $ 49,808 Loans and leases outstanding: Individually evaluated for impairment $ 45,960 $ 57,230 $ — $ — $ 103,190 Collectively evaluated for impairment 1,870,289 3,040,849 2,073,950 1,866,815 8,851,903 Loans acquired with deteriorated credit quality 850 32,774 13,580 8,215 55,419 Total loans and leases outstanding $ 1,917,099 $ 3,130,853 $ 2,087,530 $ 1,875,030 $ 9,010,512 Credit Quality Old National’s management monitors the credit quality of its financing receivables in an on-going manner. Internally, management assigns an AQR to each non-homogeneous commercial and commercial real estate loan in the portfolio, with the exception of certain FICO-scored small business loans. The primary determinants of the AQR are based upon the reliability of the primary source of repayment and the past, present, and projected financial condition of the borrower. The AQR will also consider current industry conditions. Major factors used in determining the AQR can vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Old National uses the following definitions for risk ratings: Criticized Classified—Substandard Classified—Nonaccrual Classified—Doubtful Pass rated loans are those loans that are other than criticized, classified—substandard, classified—nonaccrual, or classified—doubtful. The risk category of commercial and commercial real estate loans by class of loans at September 30, 2017 and December 31, 2016 was as follows: (dollars in thousands) Commercial Commercial Corporate Credit Exposure Commercial Real Estate— Construction Real Estate— Other Credit Risk Profile by Internally Assigned Grade September 30, December 31, September 30, December 31, September 30, December 31, Grade: Pass $ 1,944,997 $ 1,750,923 $ 261,500 $ 347,325 $ 2,911,548 $ 2,669,890 Criticized 41,004 45,614 14,726 9,258 74,467 40,590 Classified—substandard 33,524 63,978 — 49 50,842 19,715 Classified—nonaccrual 26,981 53,062 — 1,170 30,693 33,833 Classified—doubtful 2,548 3,522 — — 26,435 9,023 Total $ 2,049,054 $ 1,917,099 $ 276,226 $ 357,802 $ 3,093,985 $ 2,773,051 Old National considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, Old National also evaluates credit quality based on the aging status of the loan and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity at September 30, 2017 and December 31, 2016: Consumer (dollars in thousands) Residential Home Auto Other September 30, 2017 Performing $ 2,099,585 $ 471,827 $ 1,162,634 $ 212,214 Nonperforming 19,535 5,273 2,655 5,136 Total $ 2,119,120 $ 477,100 $ 1,165,289 $ 217,350 December 31, 2016 Performing $ 2,069,856 $ 472,008 $ 1,166,114 $ 223,786 Nonperforming 17,674 4,431 1,623 7,068 Total $ 2,087,530 $ 476,439 $ 1,167,737 $ 230,854 Impaired Loans Large commercial credits are subject to individual evaluation for impairment. Retail credits and other small balance credits that are part of a homogeneous group are not tested for individual impairment unless they are modified as a TDR. A loan is considered impaired when it is probable that contractual interest and principal payments will not be collected either for the amounts or by the dates as scheduled in the loan agreement. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Old National’s policy, for all but PCI loans, is to recognize interest income on impaired loans unless the loan is placed on nonaccrual status. The following table shows Old National’s impaired loans at September 30, 2017 and December 31, 2016, respectively. Only purchased loans that have experienced subsequent impairment since the date acquired are included in the table below. (dollars in thousands) Recorded Unpaid Related September 30, 2017 With no related allowance recorded: Commercial $ 25,393 $ 26,374 $ — Commercial Real Estate—Other 31,928 33,687 — Residential 2,464 2,485 — Consumer 1,924 2,140 — With an allowance recorded: Commercial 7,882 7,882 4,456 Commercial Real Estate—Other 30,514 30,770 6,486 Residential 882 882 44 Consumer 2,269 2,269 112 Total $ 103,256 $ 106,489 $ 11,098 December 31, 2016 With no related allowance recorded: Commercial $ 29,001 $ 29,634 $ — Commercial Real Estate—Other 30,585 32,413 — Residential 1,610 1,631 — Consumer 827 946 — With an allowance recorded: Commercial 16,959 17,283 4,561 Commercial Real Estate—Other 26,645 27,177 3,437 Residential 1,081 1,081 54 Consumer 1,924 1,924 96 Total $ 108,632 $ 112,089 $ 8,148 The average balance of impaired loans during the three and nine months ended September 30, 2017 and 2016 are included in the table below. Three Months Ended Nine Months Ended (dollars in thousands) 2017 2016 2017 2016 Average Recorded Investment With no related allowance recorded: Commercial $ 24,234 $ 35,513 $ 27,197 $ 37,581 Commercial Real Estate—Other 33,268 40,971 31,258 37,937 Residential 2,482 1,233 2,405 1,270 Consumer 1,755 878 1,786 865 With an allowance recorded: Commercial 7,792 17,334 8,086 16,072 Commercial Real Estate—Construction — — — 119 Commercial Real Estate—Other 30,846 15,119 28,580 15,977 Residential 1,011 1,099 1,059 1,072 Consumer 2,163 2,385 2,136 2,515 Total $ 103,551 $ 114,532 $ 102,507 $ 113,408 The Company does not record interest on nonaccrual loans until principal is recovered. Interest income recognized on impaired loans during the three and nine months ended September 30, 2017 and 2016 was immaterial. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectibility of principal or interest. Interest accrued during the current year on such loans is reversed against earnings. Interest accrued in the prior year, if any, is charged to the allowance for loan losses. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured. Loans accounted for under FASB ASC Topic 310-30 accrue interest, even though they may be contractually past due, as any nonpayment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period loan loss provision or prospective yield adjustments. Old National’s past due financing receivables at September 30, 2017 and December 31, 2016 were as follows: (dollars in thousands) 30-59 Days 60-89 Days Recorded Nonaccrual Total Current September 30, 2017 Commercial $ 296 $ 100 $ 251 $ 29,529 $ 30,176 $ 2,018,878 Commercial Real Estate: Construction — — — — — 276,226 Other 150 — — 57,128 57,278 3,036,707 Residential 16,091 3,235 232 19,535 39,093 2,080,027 Consumer: Home equity 939 314 88 5,273 6,614 470,486 Auto 5,535 977 282 2,655 9,449 1,155,840 Other 2,864 1,159 26 5,136 9,185 208,165 Total loans $ 25,875 $ 5,785 $ 879 $ 119,256 $ 151,795 $ 9,246,329 December 31, 2016 Commercial $ 847 $ 279 $ 23 $ 56,585 $ 57,734 $ 1,859,365 Commercial Real Estate: Construction — — — 1,170 1,170 356,632 Other 1,652 150 — 42,856 44,658 2,728,393 Residential 17,786 3,770 2 17,674 39,232 2,048,298 Consumer: Home equity 1,511 423 — 4,431 6,365 470,074 Auto 5,903 1,037 242 1,623 8,805 1,158,932 Other 3,561 1,919 61 7,068 12,609 218,245 Total loans $ 31,260 $ 7,578 $ 328 $ 131,407 $ 170,573 $ 8,839,939 Loan Participations Old National has loan participations, which qualify as participating interests, with other financial institutions. At September 30, 2017, these loans totaled $541.6 million, of which $271.7 million had been sold to other financial institutions and $269.9 million was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree. Troubled Debt Restructurings Old National may choose to restructure the contractual terms of certain loans. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Old National by increasing the ultimate probability of collection. Any loans that are modified are reviewed by Old National to identify if a TDR has occurred, which is when for economic or legal reasons related to a borrower’s financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status. The modification of the terms of such loans include one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate of new debt with similar risk, or a permanent reduction of the recorded investment of the loan. Loans modified in a TDR are typically placed on nonaccrual status until we determine the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate a period of performance according to the restructured terms for six months. If we are unable to resolve a nonperforming loan issue, the credit will be charged off when it is apparent there will be a loss. For large commercial type loans, each relationship is individually analyzed for evidence of apparent loss based on quantitative benchmarks or subjectively based upon certain events or particular circumstances. Generally, Old National charges off small commercial loans scored through our small business credit center with contractual balances under $250,000 that have been placed on nonaccrual status or became 90 days or more delinquent, without regard to the collateral position. For residential and consumer loans, a charge off is recorded at the time foreclosure is initiated or when the loan becomes 120 to 180 days past due, whichever is earlier. For commercial TDRs, an allocated reserve is established within the allowance for loan losses for the difference between the carrying value of the loan and its computed value. To determine the value of the loan, one of the following methods is selected: (1) the present value of expected cash flows discounted at the loan’s original effective interest rate, (2) the loan’s observable market price, or (3) the fair value of the collateral value, if the loan is collateral dependent. The allocated reserve is established as the difference between the carrying value of the loan and the collectable value. If there are significant changes in the amount or timing of the loan’s expected future cash flows, impairment is recalculated and the valuation allowance is adjusted accordingly. When a residential or consumer loan is identified as a TDR, the loan is typically written down to its collateral value less selling costs. The following table presents activity in TDRs for the nine months ended September 30, 2017 and 2016: (dollars in thousands) Commercial Commercial Residential Consumer Total Nine Months Ended September 30, 2017 Balance at beginning of period $ 16,802 $ 18,327 $ 2,985 $ 2,602 $ 40,716 (Charge-offs)/recoveries (5 ) 366 — (58 ) 303 Payments (10,024 ) (3,849 ) (589 ) (970 ) (15,432 ) Additions 12,599 17,429 937 2,568 33,533 Interest collected on nonaccrual loans 2,420 431 13 51 2,915 Balance at end of period $ 21,792 $ 32,704 $ 3,346 $ 4,193 $ 62,035 Nine Months Ended September 30, 2016 Balance at beginning of period $ 23,354 $ 14,602 $ 2,693 $ 3,602 $ 44,251 (Charge-offs)/recoveries (1,098 ) 148 42 (27 ) (935 ) Payments (17,517 ) (6,050 ) (482 ) (1,273 ) (25,322 ) Additions 12,367 10,581 335 385 23,668 Interest collected on nonaccrual loans 1,569 523 — — 2,092 Balance at end of period $ 18,675 $ 19,804 $ 2,588 $ 2,687 $ 43,754 Approximately $43.7 million of the TDRs at September 30, 2017 were included with nonaccrual loans, compared to $26.3 million at December 31, 2016. Old National has allocated specific reserves to customers whose loan terms have been modified in TDRs totaling $6.5 million at September 30, 2017 and $4.0 million at December 31, 2016. At September 30, 2017, Old National had committed to lend an additional $3.9 million to customers with outstanding loans that are classified as TDRs. The pre-modification and post-modification outstanding recorded investments of loans modified as TDRs during the nine months ended September 30, 2017 and 2016 are the same except for when the loan modifications involve the forgiveness of principal. The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2017 and 2016: (dollars in thousands) Number Pre-modification Post-modification Nine Months Ended September 30, 2017 TDR: Commercial 9 $ 12,599 $ 12,599 Commercial Real Estate—Other 10 17,429 17,429 Residential 6 937 937 Consumer 7 2,568 2,568 Total 32 $ 33,533 $ 33,533 Nine Months Ended September 30, 2016 TDR: Commercial 17 $ 12,367 $ 12,367 Commercial Real Estate—Other 9 10,581 10,581 Residential 3 335 335 Consumer 8 385 385 Total 37 $ 23,668 $ 23,668 The TDRs that occurred during the nine months ended September 30, 2017 increased the allowance for loan losses by $3.2 million and resulted in no charge-offs during the nine months ended September 30, 2017. The TDRs that occurred during the nine months ended September 30, 2016 decreased the allowance for loan losses by $0.3 million due to a change in collateral position on a large commercial loan and resulted in $0.8 million of charge-offs during the nine months ended September 30, 2016. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans that were modified as TDRs within the preceding twelve months, and for which there was a payment default during the nine months ended September 30, 2017. There were 6 commercial loans and 1 commercial real estate loan totaling $0.6 million that were modified as TDRs within the preceding twelve months, and for which there was a payment default during the nine months ended September 30, 2016. The terms of certain other loans were modified during the nine months ended September 30, 2017 that did not meet the definition of a TDR. It is our process to review all classified and criticized loans that, during the period, have been renewed, have entered into a forbearance agreement, have gone from principal and interest to interest only, or have extended the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on its debt in the foreseeable future without the modification. The evaluation is performed under our internal underwriting policy. We also evaluate whether a concession has been granted or if we were adequately compensated through a market interest rate, additional collateral or a bona fide guarantee. We also consider whether the modification was insignificant relative to the other terms of the agreement or the delay in a payment. PCI loans are not considered impaired until after the point at which there has been a degradation of cash flows below our expected cash flows at acquisition. If a PCI loan is subsequently modified, and meets the definition of a TDR, it will be removed from PCI accounting and accounted for as a TDR only if the PCI loan was being accounted for individually. If the PCI loan is being accounted for as part of a pool, it will not be removed from the pool. As of September 30, 2017, it has not been necessary to remove any loans from PCI accounting. In general, once a modified loan is considered a TDR, the loan will always be considered a TDR, and therefore impaired, until it is paid in full, otherwise settled, sold or charged off. However, guidance also permits for loans to be removed from TDR status when subsequently restructured under these circumstances: (1) at the time of the subsequent restructuring, the borrower is not experiencing financial difficulties, and this is documented by a current credit evaluation at the time of the restructuring, (2) under the terms of the subsequent restructuring agreement, the institution has granted no concession to the borrower; and (3) the subsequent restructuring agreement includes market terms that are no less favorable than those that would be offered for a comparable new loan. For loans subsequently restructured that have cumulative principal forgiveness, the loan should continue to be measured in accordance with ASC 310-10, Receivables—Overall Troubled Debt Restructurings by Creditors, Creditor Disclosure of Troubled Debt Restructurings Purchased Credit Impaired Loans Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan and lease losses. In determining the estimated fair value of purchased loans, management considers a number of factors including, among others, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, and net present value of cash flows expected to be received. Purchased loans are accounted for in accordance with guidance for certain loans acquired in a transfer (ASC 310-30), when the loans have evidence of credit deterioration since origination and it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. Subsequent decreases to the expected cash flows will generally result in a provision for loan and lease losses. Subsequent increases in expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. Old National has purchased loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. For these loans that meet the criteria of ASC 310-30 treatment, the carrying amount was as follows: (dollars in thousands) September 30, December 31, Commercial $ 594 $ 850 Commercial real estate 19,855 32,774 Residential 11,867 13,580 Consumer 5,864 8,215 Carrying amount 38,180 55,419 Allowance for loan losses (198 ) (278 ) Carrying amount, net of allowance $ 37,982 $ 55,141 The outstanding balance of loans accounted for under ASC 310-30, including contractual principal, interest, fees and penalties, was $241.1 million at September 30, 2017 and $268.0 million at December 31, 2016. The accretable difference on purchased loans acquired in a business combination is the difference between the expected cash flows and the net present value of expected cash flows with such difference accreted into earnings using the effective yield method over the term of the loans. Accretion recorded as loan interest income totaled $12.8 million during the nine months ended September 30, 2017 and $18.2 million during the nine months ended September 30, 2016. Improvement in cash flow expectations has resulted in a reclassification from nonaccretable difference to accretable yield as shown in the table below. Accretable yield of PCI loans, or income expected to be collected, is as follows: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 33,603 $ 45,310 New loans purchased (1) — 3,217 Accretion of income (12,775 ) (18,202 ) Reclassifications from (to) nonaccretable difference 6,567 7,538 Disposals/other adjustments 277 961 Balance at end of period $ 27,672 $ 38,824 (1) Old National acquired Anchor (WI) effective May 1, 2016. Included in Old National’s allowance for loan losses is $0.2 million related to the purchased loans disclosed above at September 30, 2017, compared to $0.3 million at December 31, 2016. PCI loans purchased during 2016 for which it was probable at acquisition that all contractually required payments would not be collected were as follows: (dollars in thousands) Anchor (WI) (1) Contractually required payments $ 29,544 Nonaccretable difference (6,153 ) Cash flows expected to be collected at acquisition 23,391 Accretable yield (3,217 ) Fair value of acquired loans at acquisition $ 20,174 (1) Old National acquired Anchor (WI) effective May 1, 2016. Income would not be recognized on certain purchased loans if Old National could not reasonably estimate cash flows to be collected. Old National had no purchased loans for which it could not reasonably estimate cash flows to be collected. |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned | NOTE 8—OTHER REAL ESTATE OWNED The following table presents activity in other real estate owned for the nine months ended September 30, 2017 and 2016: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 18,546 $ 12,498 Additions (1) 2,695 24,337 Sales (8,695 ) (10,503 ) Impairment (2,287 ) (2,613 ) Balance at end of period (2) $ 10,259 $ 23,719 (1) Additions for the nine months ended September 30, 2016 include other real estate owned of $17.3 million acquired from Anchor (WI) in May 2016. (2) Includes repossessed personal property of $0.1 million at September 30, 2017 and $0.2 million at September 30, 2016. At September 30, 2017, foreclosed residential real estate property included in the table above totaled $0.7 million. At September 30, 2017, consumer mortgage loans collateralized by residential real property that were in the process of foreclosure totaled $3.9 million. |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | NOTE 9—PREMISES AND EQUIPMENT The composition of premises and equipment at September 30, 2017 and December 31, 2016 was as follows: September 30, December 31, (dollars in thousands) 2017 2016 Land $ 66,806 $ 71,769 Buildings 319,371 322,165 Furniture, fixtures, and equipment 100,756 102,631 Leasehold improvements 29,270 28,555 Total 516,203 525,120 Accumulated depreciation (103,715 ) (95,498 ) Premises and equipment, net $ 412,488 $ 429,622 Depreciation expense was $5.8 million for the three months ended September 30, 2017 and $16.2 million for the nine months ended September 30, 2017, compared to $3.9 million for the three months ended September 30, 2016 and $11.4 million for the nine months ended September 30, 2016. Operating Leases Old National rents certain premises and equipment under operating leases, which expire at various dates. Many of these leases require the payment of property taxes, insurance premiums, maintenance, and other costs. In some cases, rentals are subject to increase in relation to a cost-of-living index. The leases have original terms ranging from less than one year to twenty-four years, and Old National has the right, at its option, to extend the terms of certain leases for four additional successive terms of five years. Old National does not have any material sub-lease agreements. Rent expense was $3.9 million for the three months ended September 30, 2017 and $11.6 million for the nine months ended September 30, 2017, compared to $6.4 million for the three months ended September 30, 2016 and $20.1 million for the nine months ended September 30, 2016. Old National had deferred gains remaining associated with prior sale leaseback transactions totaling $8.6 million at September 30, 2017 and $10.3 million at December 31, 2016. The gains will be recognized over the remaining term of the leases. The leases had original terms ranging from five to twenty-four years. Capital Leases Old National leases a branch building and certain equipment under capital leases. See Note 15 to the consolidated financial statements for detail regarding these leases. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 10—GOODWILL AND OTHER INTANGIBLE ASSETS The following table shows the changes in the carrying amount of goodwill for the nine months ended September 30, 2017 and 2016: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 655,018 $ 584,634 Acquisitions — 111,539 Divestitures — (40,963 ) Balance at end of period $ 655,018 $ 655,210 Goodwill is reviewed annually for impairment. No events or circumstances since the August 31, 2017 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. The gross carrying amount and accumulated amortization of other intangible assets at September 30, 2017 and December 31, 2016 were as follows: (dollars in thousands) Gross Accumulated Net September 30, 2017 Core deposit $ 81,663 $ (60,002 ) $ 21,661 Customer trust relationships 16,547 (9,106 ) 7,441 Customer loan relationships 4,413 (4,280 ) 133 Total intangible assets $ 102,623 $ (73,388 ) $ 29,235 December 31, 2016 Core deposit $ 81,663 $ (53,214 ) $ 28,449 Customer trust relationships 16,547 (7,753 ) 8,794 Customer loan relationships 4,413 (3,979 ) 434 Total intangible assets $ 102,623 $ (64,946 ) $ 37,677 Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years. Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the nine months ended September 30, 2017 or 2016. Total amortization expense associated with intangible assets was $8.4 million for the nine months ended September 30, 2017 and $9.2 million for the nine months ended September 30, 2016. Estimated amortization expense for future years is as follows: (dollars in thousands) 2017 remaining $ 2,573 2018 8,687 2019 6,737 2020 4,883 2021 3,111 Thereafter 3,244 Total $ 29,235 |
Loan Servicing Rights
Loan Servicing Rights | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Loan Servicing Rights | NOTE 11—LOAN SERVICING RIGHTS At September 30, 2017, loan servicing rights derived from loans sold with servicing retained totaled $24.9 million, compared to $25.6 million at December 31, 2016. Loans serviced for others are not reported as assets. The principal balance of loans serviced for others was $3.334 billion at September 30, 2017, compared to $3.385 billion at December 31, 2016. Approximately 99% of the loans serviced for others at September 30, 2017 were residential mortgage loans. Custodial escrow balances maintained in connection with serviced loans were $42.5 million at September 30, 2017 and $5.3 million at December 31, 2016. The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance for the nine months ended September 30, 2017 and 2016: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 25,629 $ 10,502 Additions (1) 3,180 18,965 Amortization (3,855 ) (3,537 ) Balance before valuation allowance at end of period 24,954 25,930 Valuation allowance: Balance at beginning of period (68 ) (34 ) (Additions)/recoveries 14 24 Balance at end of period (54 ) (10 ) Loan servicing rights, net $ 24,900 $ 25,920 (1) Additions for the nine months ended September 30, 2016 include loan servicing rights of $15.3 million acquired from Anchor (WI) in May 2016. At September 30, 2017, the fair value of servicing rights was $26.0 million, which was determined using a discount rate of 13% and a weighted average prepayment speed of 138% PSA. At December 31, 2016, the fair value of servicing rights was $26.8 million, which was determined using a discount rate of 13% and a weighted average prepayment speed of 136% PSA. |
Qualified Affordable Housing Pr
Qualified Affordable Housing Projects and Other Tax Credit Investments | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Qualified Affordable Housing Projects and Other Tax Credit Investments | NOTE 12—QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS The Company is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. Certain of these assets qualify for the proportional amortization method and are amortized over the period that the Company expects to receive the tax credits, with the expense included within income tax expense on the consolidated statements of income. The other investments are accounted for under the equity method, with the expense included within pre-tax income on the consolidated statements of income. All of the Company’s tax credit investments are evaluated for impairment at the end of each reporting period. As of September 30, 2017, the Company expects to recover its remaining investments through the use of the tax credits that were generated by the investments. The following table summarizes Old National’s investments in LIHTCs, FHTCs, and CReEDs at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, 2017 December 31, 2016 Investment Accounting Investment Unfunded Investment Unfunded LIHTC and other qualifying investments Proportional $ 32,649 $ 19,607 $ 29,110 $ 16,210 FHTC Equity 17,411 11,591 4,434 3,104 CReED Equity 1,504 1,502 1,504 1,502 Total $ 51,564 $ 32,700 $ 35,048 $ 20,816 (1) All commitments will be paid by the Company by 2027. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments for the three and nine months ended September 30, 2017 and 2016: (dollars in thousands) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 2017 2016 2017 2016 2017 2016 2017 2016 Investment Amortization Tax Benefit Amortization Tax Benefit LIHTC and other qualifying investments $ 940 $ 201 $ (1,297 ) $ (281 ) $ 2,822 $ 603 $ (3,892 ) $ (843 ) FHTC — — (1,520 ) — — — (4,559 ) — CReED (2) — — (303 ) — — — (909 ) — Total $ 940 $ 201 $ (3,120 ) $ (281 ) $ 2,822 $ 603 $ (9,360 ) $ (843 ) (1) Tax credit investments are included in the Company’s estimate of the effective annual tax rate. (2) The CReED tax credit investment qualifies for an Indiana state tax credit. |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Securities Sold Under Agreements to Repurchase | NOTE 13—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase are secured borrowings. The Company pledges investment securities to secure these borrowings. The following table presents securities sold under agreements to repurchase and related weighted-average interest rates at or for the nine months ended September 30: (dollars in thousands) 2017 2016 Outstanding at September 30, $ 285,409 $ 347,804 Average amount outstanding 325,230 373,474 Maximum amount outstanding at any month-end 351,897 396,695 Weighted average interest rate: During the nine months ended September 30, 0.36 % 0.41 % At September 30, 0.34 0.42 The following table presents the contractual maturity of our secured borrowings and class of collateral pledged: At September 30, 2017 Remaining Contractual Maturity of the Agreements (dollars in thousands) Overnight and Up to 30-90 Days Greater Than Total Repurchase Agreements: U.S. Treasury and agency securities $ 260,409 $ — $ — $ 25,000 $ 285,409 Total $ 260,409 $ — $ — $ 25,000 $ 285,409 The fair value of securities pledged to secure repurchase agreements may decline. The Company has pledged securities valued at 126% of the gross outstanding balance of repurchase agreements at September 30, 2017 to manage this risk. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Federal Home Loan Bank Advances | NOTE 14—FEDERAL HOME LOAN BANK ADVANCES The following table summarizes Old National Bank’s FHLB advances at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, December 31, Federal Home Loan Bank advances (fixed rates 1.01% to 6.08% and variable rates 1.22% to 1.47%) maturing October 2017 to August 2027 $ 1,589,862 $ 1,353,225 ASC 815 fair value hedge and other basis adjustments (495 ) (133 ) Total other borrowings $ 1,589,367 $ 1,353,092 FHLB advances had weighted-average rates of 1.40% at September 30, 2017 and 0.94% at December 31, 2016. These borrowings are collateralized by investment securities and residential real estate loans up to 143% of outstanding debt. Contractual maturities of FHLB advances at September 30, 2017 were as follows: (dollars in thousands) Due in 2017 $ 752,752 Due in 2018 274,956 Due in 2019 201,981 Due in 2020 50,000 Due in 2021 — Thereafter 310,173 ASC 815 fair value hedge and other basis adjustments (495 ) Total $ 1,589,367 |
Other Borrowings
Other Borrowings | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Borrowings | NOTE 15—OTHER BORROWINGS The following table summarizes Old National and its subsidiaries’ other borrowings at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, December 31, Old National Bancorp: Senior unsecured bank notes (fixed rate 4.125%) maturing August 2024 $ 175,000 $ 175,000 Unamortized debt issuance costs related to Senior unsecured bank notes (1,066 ) (1,182 ) Junior subordinated debentures (variable rates of 2.68% to 3.07%) maturing March 2035 to September 2037 45,000 45,000 Other basis adjustments (3,597 ) (3,971 ) Old National Bank: Capital lease obligation 3,977 4,092 Total other borrowings $ 219,314 $ 218,939 Contractual maturities of other borrowings at September 30, 2017 were as follows: (dollars in thousands) Due in 2017 $ 19 Due in 2018 141 Due in 2019 85 Due in 2020 91 Due in 2021 99 Thereafter 223,542 Unamortized debt issuance costs and other basis adjustments (4,663 ) Total $ 219,314 Senior Notes In August 2014, Old National issued $175.0 million of senior unsecured notes with a 4.125% interest rate. These notes pay interest on February 15 and August 15. The notes mature on August 15, 2024. Junior Subordinated Debentures Junior subordinated debentures related to trust preferred securities are classified in “other borrowings”. These securities qualify as Tier 1 capital for regulatory purposes, subject to certain limitations. In 2007, Old National acquired St. Joseph Capital Trust II in conjunction with its acquisition of St. Joseph Capital Corporation. Old National guarantees the payment of distributions on the trust preferred securities issued by St. Joseph Capital Trust II. St. Joseph Capital Trust II issued $5.0 million in preferred securities in March 2005. The preferred securities have a variable rate of interest priced at the three-month LIBOR plus 175 basis points. Proceeds from the issuance of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by St. Joseph Capital Trust II. In 2011, Old National acquired Monroe Bancorp Capital Trust I and Monroe Bancorp Statutory Trust II in conjunction with its acquisition of Monroe Bancorp. Old National guarantees the payment of distributions on the trust preferred securities issued by Monroe Bancorp Capital Trust I and Monroe Bancorp Statutory Trust II. Monroe Bancorp Capital Trust I issued $3.0 million in preferred securities in July 2006. The preferred securities have a variable rate of interest priced at the three-month LIBOR plus 160 basis points. Proceeds from the issuance of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by Monroe Bancorp Capital Trust I. Monroe Bancorp Statutory Trust II issued $5.0 million in preferred securities in March 2007. The preferred securities have a variable rate of interest priced at the three-month LIBOR plus 160 basis points. Proceeds from the issuance of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by Monroe Bancorp Statutory Trust II. In 2012, Old National acquired Home Federal Statutory Trust I in conjunction with its acquisition of Indiana Community Bancorp. Old National guarantees the payment of distributions on the trust preferred securities issued by Home Federal Statutory Trust I. Home Federal Statutory Trust I issued $15.0 million in preferred securities in September 2006. The preferred securities carry a variable rate of interest priced at the three-month LIBOR plus 165 basis points. Proceeds from the issuance of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by Home Federal Statutory Trust I. In 2014, Old National acquired Tower Capital Trust 2 and Tower Capital Trust 3 in conjunction with its acquisition of Tower Financial Corporation. Old National guarantees the payment of distributions on the trust preferred securities issued by Tower Capital Trust 2 and Tower Capital Trust 3. Tower Capital Trust 2 issued $8.0 million in preferred securities in December 2005. The preferred securities carry a variable rate of interest priced at the three-month LIBOR plus 134 basis points. Proceeds from the issuance of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by Tower Capital Trust 2. Tower Capital Trust 3 issued $9.0 million in preferred securities in December 2006. The preferred securities carry a variable rate of interest priced at the three-month LIBOR plus 169 basis points. Proceeds from the issuance of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by Tower Capital Trust 3. Old National, at any time, may redeem the junior subordinated debentures at par and thereby cause a redemption of the trust preferred securities in whole or in part. Capital Lease Obligation On January 1, 2004, Old National entered into a long-term capital lease obligation for a branch office building in Owensboro, Kentucky, which extends for 25 years with one renewal option for 10 years. The economic substance of this lease is that Old National is financing the acquisition of the building through the lease and accordingly, the building is recorded as an asset and the lease is recorded as a liability. The fair value of the capital lease obligation was estimated using a discounted cash flow analysis based on Old National’s current incremental borrowing rate for similar types of borrowing arrangements. On May 1, 2016, Old National acquired Anchor (WI), assuming a five year capital lease obligation for equipment. At September 30, 2017, the future minimum lease payments under the capital lease arrangements were as follows: (dollars in thousands) 2017 remaining $ 102 2018 472 2019 430 2020 430 2021 430 Thereafter 7,977 Total minimum lease payments 9,841 Less amounts representing interest (5,864 ) Present value of net minimum lease payments $ 3,977 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 16—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes within each classification of AOCI, net of tax, for the three and nine months ended September 30, 2017 and 2016: (dollars in thousands) Unrealized Gains Available-for-Sale Unrealized Gains Held-to-Maturity Gains and Defined Total Three Months Ended September 30, 2017 Balance at beginning of period $ (12,457 ) $ (12,717 ) $ (5,645 ) $ (301 ) $ (31,120 ) Other comprehensive income (loss) before reclassifications (2,531 ) — 134 — (2,397 ) Amounts reclassified from AOCI (a) (1,883 ) 300 887 16 (680 ) Net other comprehensive income (loss) (4,414 ) 300 1,021 16 (3,077 ) Balance at end of period $ (16,871 ) $ (12,417 ) $ (4,624 ) $ (285 ) $ (34,197 ) Three Months Ended September 30, 2016 Balance at beginning of period $ 13,783 $ (13,867 ) $ (17,184 ) $ (6,349 ) $ (23,617 ) Other comprehensive income (loss) before reclassifications 2,094 — 1,943 — 4,037 Amounts reclassified from AOCI (a) (1,006 ) 289 1,156 312 751 Net other comprehensive income (loss) 1,088 289 3,099 312 4,788 Balance at end of period $ 14,871 $ (13,578 ) $ (14,085 ) $ (6,037 ) $ (18,829 ) Nine Months Ended September 30, 2017 Balance at beginning of period $ (39,012 ) $ (13,310 ) $ (6,715 ) $ (335 ) $ (59,372 ) Other comprehensive income (loss) before reclassifications 26,928 — (986 ) — 25,942 Amounts reclassified from AOCI (a) (4,787 ) 893 3,077 50 (767 ) Net other comprehensive income (loss) 22,141 893 2,091 50 25,175 Balance at end of period $ (16,871 ) $ (12,417 ) $ (4,624 ) $ (285 ) $ (34,197 ) Nine Months Ended September 30, 2016 Balance at beginning of period $ (3,806 ) $ (14,480 ) $ (9,276 ) $ (7,235 ) $ (34,797 ) Other comprehensive income (loss) before reclassifications 21,584 — (8,446 ) — 13,138 Amounts reclassified from AOCI (a) (2,907 ) 902 3,637 1,198 2,830 Net other comprehensive income (loss) 18,677 902 (4,809 ) 1,198 15,968 Balance at end of period $ 14,871 $ (13,578 ) $ (14,085 ) $ (6,037 ) $ (18,829 ) (a) See table below for details about reclassifications. The following table summarizes the significant amounts reclassified out of each component of AOCI for the three months ended September 30, 2017 and 2016: Details about AOCI Components Amount Reclassified Affected Line Item in the Three Months Ended (dollars in thousands) 2017 2016 Unrealized gains and losses on available-for-sale securities $ 2,972 $ 1,647 Net securities gains (1,089 ) (641 ) Income tax (expense) benefit $ 1,883 $ 1,006 Net income Unrealized gains and losses on held-to-maturity securities $ (456 ) $ (439 ) Interest income (expense) 156 150 Income tax (expense) benefit $ (300 ) $ (289 ) Net income Gains and losses on cash flow hedges Interest rate contracts $ (1,429 ) $ (1,865 ) Interest income (expense) 542 709 Income tax (expense) benefit $ (887 ) $ (1,156 ) Net income Amortization of defined benefit pension items Actuarial gains (losses) $ (27 ) $ (503 ) Salaries and employee benefits 11 191 Income tax (expense) benefit $ (16 ) $ (312 ) Net income Total reclassifications for the period $ 680 $ (751 ) Net income The following table summarizes the significant amounts reclassified out of each component of AOCI for the nine months ended September 30, 2017 and 2016: Details about AOCI Components Amount Reclassified Affected Line Item in the Nine Months Ended (dollars in thousands) 2017 2016 Unrealized gains and losses on available-for-sale securities $ 7,547 $ 4,609 Net securities gains (2,760 ) (1,702 ) Income tax (expense) benefit $ 4,787 $ 2,907 Net income Unrealized gains and losses on held-to-maturity securities $ (1,358 ) $ (1,370 ) Interest income/(expense) 465 468 Income tax (expense) benefit $ (893 ) $ (902 ) Net income Gains and losses on cash flow hedges Interest rate contracts $ (4,962 ) $ (4,723 ) Interest income/(expense) 1,885 1,086 Income tax (expense) benefit $ (3,077 ) $ (3,637 ) Net income Amortization of defined benefit pension items Actuarial gains/(losses) $ (81 ) $ (1,933 ) Salaries and employee benefits 31 735 Income tax (expense) benefit $ (50 ) $ (1,198 ) Net income Total reclassifications for the period $ 767 $ (2,830 ) Net income |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 17—EMPLOYEE BENEFIT PLANS Retirement Plan Old National had a funded noncontributory defined benefit plan (the “Retirement Plan”) that had been frozen since December 31, 2005. During the first quarter of 2016, the Company notified plan participants of its intent to terminate the Retirement Plan effective May 15, 2016. During October 2016, the Retirement Plan settled plan liabilities through either lump sum distributions to plan participants or annuity contracts purchased from a third-party insurance company that provided for the payment of vested benefits to those participants that did not elect the lump sum option. At September 30, 2017, there were no remaining plan assets. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 18—STOCK-BASED COMPENSATION At September 30, 2017, Old National had 4.8 million shares remaining available for issuance under the Company’s Amended and Restated 2008 Incentive Compensation Plan. The granting of awards to key employees is typically in the form of restricted stock awards or units. Restricted Stock Awards The Company granted 202 thousand time-based restricted stock awards to certain key officers during the nine months ended September 30, 2017, with shares vesting generally over a thirty-six month period. Compensation expense is recognized on a straight-line basis over the vesting period. Shares are subject to certain restrictions and risk of forfeiture by the participants. At September 30, 2017, unrecognized compensation expense was estimated to be $4.5 million for unvested restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.1 years. Old National recorded expense of $1.4 million, net of tax, during the nine months ended September 30, 2017, compared to $2.2 million, net of tax, during the nine months ended September 30, 2016 related to the vesting of restricted stock awards. Restricted Stock Units The Company granted 277 thousand shares of performance based restricted stock units to certain key officers during the nine months ended September 30, 2017, with shares vesting at the end of a thirty-six month period based on the achievement of certain targets. For certain awards, the level of performance could increase or decrease the percentage of shares earned. Compensation expense is recognized on a straight-line basis over the vesting period. Shares are subject to certain restrictions and risk of forfeiture by the participants. At September 30, 2017, unrecognized compensation expense was estimated to be $4.6 million. The cost is expected to be recognized over a weighted-average period of 1.9 years. Old National recorded stock based compensation expense, net of tax, related to restricted stock units of $2.5 million during the nine months ended September 30, 2017, compared to $1.0 million during the nine months ended September 30, 2016. Stock Options Old National has not granted stock options since 2009. However, Old National did acquire stock options through prior year acquisitions. Old National did not record any stock based compensation expense related to these stock options during the nine months ended September 30, 2017 or 2016. Stock Appreciation Rights Old National has never granted stock appreciation rights. However, Old National did acquire stock appreciation rights through a prior year acquisition. Old National did not record any incremental expense associated with the conversion of these stock appreciation rights during the nine months ended September 30, 2017 or 2016. At September 30, 2017, 71 thousand stock appreciation rights remained outstanding. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 19—INCOME TAXES Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2017 2016 2017 2016 Provision at statutory rate of 35% $ 17,791 $ 15,987 $ 51,363 $ 53,291 Tax-exempt income (4,290 ) (4,297 ) (13,036 ) (12,698 ) State income taxes 506 749 1,553 3,396 Interim period effective rate adjustment (861 ) (1,418 ) (1,602 ) (1,603 ) Tax credit investments—federal (1,684 ) (80 ) (5,431 ) (240 ) ONI nondeductible goodwill — 23 — 8,328 Other, net (3 ) 5 (313 ) 978 Income tax expense $ 11,459 $ 10,969 $ 32,534 $ 51,452 Effective tax rate 22.5 % 24.0 % 22.2 % 33.8 % In accordance with ASC 740-270, Accounting for Interim Reporting Tax credit investments are included in the Company’s estimate of the effective annual tax rate. The lower effective tax rate during the three and nine months ended September 30, 2017 when compared to the three and nine months ended September 30, 2016 is the result of an increase in federal tax credits available. The lower effective tax rate during the nine months ended September 30, 2017 when compared to the nine months ended September 30, 2016 also reflected the sale of ONI in May 2016 and the associated tax expense of $8.3 million to record a deferred tax liability relating to ONI’s nondeductible goodwill. Unrecognized Tax Benefits The Company and its subsidiaries file a consolidated U.S. federal income tax return, as well as filing various state returns. Unrecognized state income tax benefits are reported net of their related deferred federal income tax benefit. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 777 $ 124 Additions based on tax positions related to the current year 109 85 Additions based on tax positions related to prior years — 584 Reductions due to statute of limitations expiring (174 ) (2 ) Balance at end of period $ 712 $ 791 If recognized, approximately $0.7 million of unrecognized tax benefits, net of interest, would favorably affect the effective income tax rate in future periods. Net Deferred Tax Assets Significant components of net deferred tax assets (liabilities) were as follows at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, December 31, Deferred Tax Assets Allowance for loan losses, net of recapture $ 19,637 $ 19,773 Benefit plan accruals 19,403 23,846 Alternative minimum tax credit 20,350 19,523 Unrealized losses on benefit plans 174 205 Net operating loss carryforwards 55,096 66,917 Federal tax credits 35 35 Other-than-temporary impairment 2,168 3,606 Acquired loans 29,866 40,522 Lease exit obligation 2,178 2,060 Unrealized losses on available-for-sale investment securities 10,509 23,365 Unrealized losses on held-to-maturity investment securities 6,653 7,118 Unrealized losses on hedges 2,835 4,116 Other real estate owned 1,829 3,310 Other, net 2,004 2,675 Total deferred tax assets 172,737 217,071 Deferred Tax Liabilities Accretion on investment securities (736 ) (700 ) Purchase accounting (16,009 ) (17,552 ) Loan servicing rights (9,310 ) (9,627 ) Premises and equipment (3,725 ) (4,800 ) Other, net (5,006 ) (2,529 ) Total deferred tax liabilities (34,786 ) (35,208 ) Net deferred tax assets $ 137,951 $ 181,863 Through the acquisition of Anchor (WI) in the second quarter of 2016 and Lafayette Savings Bank in the fourth quarter of 2014, both former thrifts, Old National Bank’s retained earnings at September 30, 2017 include base-year bad debt reserves, created for tax purposes prior to 1988, totaling $52.8 million. Of this total, $50.9 million was acquired from Anchor (WI), and $1.9 million was acquired from Lafayette Savings Bank. Base-year reserves are subject to recapture in the unlikely event that Old National Bank (1) makes distributions in excess of current and accumulated earnings and profits, as calculated for federal income tax purposes, (2) redeems its stock, or (3) liquidates. Old National Bank has no intention of making such a nondividend distribution. Accordingly, under current accounting principles, a related deferred income tax liability of $19.8 million has not been recognized. No valuation allowance was recorded at September 30, 2017 or December 31, 2016 because, based on current expectations, Old National believes it will generate sufficient income in future years to realize deferred tax assets. Old National has federal net operating loss carryforwards totaling $130.7 million at September 30, 2017 and $162.9 million at December 31, 2016. This federal net operating loss was acquired from the acquisition of Anchor (WI) in 2016. If not used, the federal net operating loss carryforwards will begin to expire in 2028. Old National has alternative minimum tax credit carryforwards totaling $20.3 million at September 30, 2017 and $19.5 million at December 31, 2016. The alternative minimum tax credit carryforward does not expire. Old National has federal tax credit carryforwards of $35 thousand at September 30, 2017 and December 31, 2016. The federal tax credits consist mainly of low income housing credits and research and development credits that, if not used, will expire from 2027 to 2037. Old National has state net operating loss carryforwards totaling $192.2 million at September 30, 2017 and $206.3 million at December 31, 2016. If not used, the state net operating loss carryforwards will expire from 2024 to 2037. Old National has state tax credits totaling $0.6 million at September 30, 2017. The state tax credits will not expire. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 20—DERIVATIVE FINANCIAL INSTRUMENTS As part of our overall interest rate risk management, Old National uses derivative instruments, including interest rate swaps, caps, and floors. The notional amount of these derivative instruments was $760.0 million at September 30, 2017 and $660.0 million at December 31, 2016. These derivative financial instruments at September 30, 2017 consisted of $35.0 million notional amount of receive-fixed, pay-variable interest rate swaps on certain of its FHLB advances and $725.0 million notional amount of pay-fixed, receive-variable interest rate swaps on certain of its FHLB advances. Derivative financial instruments at December 31, 2016 consisted of $35.0 million notional amount of receive-fixed, pay-variable interest rate swaps on certain of its FHLB advances and $625.0 million notional amount of pay-fixed, receive-variable interest rate swaps on certain of its FHLB advances. These hedges were entered into to manage interest rate risk. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis. In addition, commitments to fund certain mortgage loans (interest rate lock commitments) and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. At September 30, 2017, the notional amount of the interest rate lock commitments was $57.9 million and forward commitments were $75.5 million. At December 31, 2016, the notional amount of the interest rate lock commitments was $40.3 million and forward commitments were $86.1 million. It is our practice to enter into forward commitments for the future delivery of residential mortgage loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans. Old National also enters into derivative instruments for the benefit of its customers. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $801.2 million at September 30, 2017. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $582.7 million at December 31, 2016. These derivative contracts do not qualify for hedge accounting. These instruments include interest rate swaps, caps and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business needs of its customers. Old National does not designate these foreign currency forward contracts for hedge accounting treatment. The notional amounts of these foreign currency forward contracts and the offsetting counterparty derivative instruments were $0.7 million at September 30, 2017. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National’s exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures. Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on the Company’s derivative instruments. During the next 12 months, the Company estimates that $0.2 million will be reclassified to interest income and $3.9 million will be reclassified to interest expense. On the balance sheet, asset derivatives are included in other assets, and liability derivatives are included in other liabilities. The following table summarizes the fair value of derivative financial instruments utilized by Old National: September 30, 2017 December 31, 2016 (dollars in thousands) Asset Liability Asset Liability Derivatives designated as hedging instruments Interest rate contracts $ 2,962 $ 8,266 $ 3,056 $ 11,582 Total derivatives designated as hedging instruments $ 2,962 $ 8,266 $ 3,056 $ 11,582 Derivatives not designated as hedging instruments Interest rate contracts $ 12,893 $ 9,096 $ 11,903 $ 11,992 Mortgage contracts 1,406 — 2,742 — Foreign currency contracts 6 6 — — Total derivatives not designated as hedging instruments $ 14,305 $ 9,102 $ 14,645 $ 11,992 Total $ 17,267 $ 17,368 $ 17,701 $ 23,574 Beginning in 2017, the relevant agreements that allow us to access the central clearing organizations to clear derivative transactions were amended to characterize variation margin payments as settlements of the derivative contract rather than collateral against the exposures. Netting cash collateral exchanged with all central clearing organizations and applying variation margin payments as settlement of derivative transactions resulted in a reduction of net derivative assets on our balance sheet of $2.5 million and a reduction of net derivative liabilities of $6.3 million at September 30, 2017. The effect of derivative instruments on the consolidated statements of income for the three and nine months ended September 30, 2017 and 2016 are as follows: Three Months Ended September 30, (dollars in thousands) 2017 2016 Derivatives in Fair Value Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ (1,325 ) $ (1,588 ) Interest rate contracts (2) Other income / (expense) 33 36 Total $ (1,292 ) $ (1,552 ) Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ 81 $ 81 Total $ 81 $ 81 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (3) Other income / (expense) $ 9 $ 36 Mortgage contracts Mortgage banking revenue (293 ) 256 Total $ (284 ) $ 292 Nine Months Ended September 30, (dollars in thousands) 2017 2016 Derivatives in Fair Value Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ (4,610 ) $ (3,941 ) Interest rate contracts (2) Other income / (expense) 107 137 Total $ (4,503 ) $ (3,804 ) Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ 243 $ 248 Total $ 243 $ 248 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (3) Other income / (expense) $ 45 $ (48 ) Mortgage contracts Mortgage banking revenue (1,336 ) 682 Foreign currency contracts Other income (13 ) — Total $ (1,304 ) $ 634 (1) Amounts represent the net interest payments as stated in the contractual agreements. (2) Amounts represent ineffectiveness on derivatives designated as fair value hedges. (3) Includes the valuation differences between the customer and offsetting counterparty swaps. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 21—COMMITMENTS AND CONTINGENCIES Litigation In the normal course of business, Old National Bancorp and its subsidiaries have been named, from time to time, as defendants in various legal actions. Certain of the actual or threatened legal actions may include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Old National contests liability and/or the amount of damages as appropriate in each pending matter. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, Old National cannot predict with certainty the loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, or other relief, if any, might be. Subject to the foregoing, Old National believes, based on current knowledge and after consultation with counsel, that the outcome of such pending matters will not have a material adverse effect on the consolidated financial condition of Old National, although the outcome of such matters could be material to Old National’s operating results and cash flows for a particular future period, depending on, among other things, the level of Old National’s revenues or income for such period. Old National will accrue for a loss contingency if (1) it is probable that a future event will occur and confirm the loss and (2) the amount of the loss can be reasonably estimated. Old National is not currently involved in any material litigation. Credit-Related Financial Instruments In the normal course of business, Old National’s banking affiliates have entered into various agreements to extend credit, including loan commitments of $2.430 billion and standby letters of credit of $50.2 million at September 30, 2017. At September 30, 2017, approximately $2.288 billion of the loan commitments had fixed rates and $141.6 million had floating rates, with the floating interest rates ranging from 0% to 25%. At December 31, 2016, loan commitments totaled $2.354 billion and standby letters of credit totaled $51.7 million. These commitments are not reflected in the consolidated financial statements. The allowance for unfunded loan commitments totaled $3.0 million at September 30, 2017 and $3.2 million at December 31, 2016. Old National had credit extensions with various unaffiliated banks related to letter of credit commitments issued on behalf of Old National’s clients totaling $13.3 million at September 30, 2017 and December 31, 2016. Old National provided collateral to the unaffiliated banks to secure credit extensions totaling $12.4 million at September 30, 2017 and $12.6 million at December 31, 2016. Old National did not provide collateral for the remaining credit extensions. |
Financial Guarantees
Financial Guarantees | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Financial Guarantees | NOTE 22—FINANCIAL GUARANTEES Old National holds instruments, in the normal course of business with clients, that are considered financial guarantees in accordance with FASB ASC 460-10 (FIN 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others , Old National is a party in three separate risk participation transactions of interest rate swaps, which had total notional amount of $19.2 million at September 30, 2017. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 23—SEGMENT INFORMATION During the second quarter of 2016, Old National sold its insurance operations, ONI. During the year ended December 31, 2015, the insurance segment’s net income was $2.1 million and its assets totaled $61.8 million at December 31, 2015. In conjunction with the divestiture, Old National re-evaluated its business segments. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Old National Bank, Old National’s bank subsidiary, is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of Old National Bank provide a group of similar community banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts, cash management, brokerage, trust, and investment advisory services. The individual bank branches located throughout our Midwest footprint have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services, and regional locations, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the community banking services and branch locations are considered by management to be aggregated into one reportable operating segment, community banking. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 24—FAIR VALUE FASB ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: • Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Old National used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment securities Residential loans held for sale Derivative financial instruments Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: Fair Value Measurements at September 30, 2017 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant (Level 3) Financial Assets Trading securities $ 5,351 $ 5,351 $ — $ — Investment securities available-for-sale: U.S. Treasury 5,615 5,615 — — U.S. government-sponsored entities and agencies 576,436 — 576,436 — Mortgage-backed securities—Agency 1,450,736 — 1,450,736 — States and political subdivisions 414,673 — 414,673 Pooled trust preferred securities 8,270 — — 8,270 Other securities 320,107 31,374 288,733 — Residential loans held for sale 30,221 — 30,221 — Derivative assets 17,267 — 17,267 — Financial Liabilities Derivative liabilities 17,368 — 17,368 — Fair Value Measurements at December 31, 2016 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant Financial Assets Trading securities $ 4,982 $ 4,982 $ — $ — Investment securities available-for-sale: U.S. Treasury 7,103 7,103 — — U.S. government-sponsored entities and agencies 493,956 — 493,956 — Mortgage-backed securities—Agency 1,525,019 — 1,525,019 — States and political subdivisions 436,684 — 436,684 Pooled trust preferred securities 8,119 — — 8,119 Other securities 326,293 30,905 295,388 — Residential loans held for sale 90,682 — 90,682 — Derivative assets 17,701 — 17,701 — Financial Liabilities Derivative liabilities 23,574 — 23,574 — The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 8,119 $ 7,900 Accretion of discount 13 14 Sales/payments received (373 ) (327 ) Increase (decrease) in fair value of securities 511 (813 ) Balance at end of period $ 8,270 $ 6,774 The accretion of discounts on securities in the table above is included in interest income. The increase in fair value for the nine months ended September 30, 2017 is reflected in the balance sheet as an increase in the fair value of investment securities available-for-sale, an increase in accumulated other comprehensive income, which is included in shareholders’ equity, and a decrease in other assets related to the tax impact. The decrease in fair value for the nine months ended September 30, 2016 is reflected in the balance sheet as a decrease in the fair value of investment securities available-for-sale, a decrease in accumulated other comprehensive income, which is included in shareholders’ equity, and an increase in other assets related to the tax impact. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy at September 30, 2017 and December 31, 2016: (dollars in thousands) Fair Valuation Techniques Unobservable Input Range (Weighted September 30, 2017 Pooled trust preferred securities $ 8,270 Discounted cash flow Constant prepayment rate (a) 0.00% Additional asset defaults (b) 3.1%—4.4% (4.0%) Expected asset recoveries (c) 0.0%—4.1% (0.6%) December 31, 2016 Pooled trust preferred securities $ 8,119 Discounted cash flow Constant prepayment rate (a) 0.00% Additional asset defaults (b) 4.5%—10.0% (7.9%) Expected asset recoveries (c) 0.0%—6.1% (0.9%) (a) Assuming no prepayments. (b) Each currently performing pool asset is assigned a default probability based on the banking environment, which is adjusted for specific issuer evaluation, of 0%, 50%, or 100%. (c) Each currently defaulted pool asset is assigned a recovery probability based on specific issuer evaluation of 0%, 25%, or 100%. Significant changes in any of the unobservable inputs used in the fair value measurement in isolation would result in a significant change to the fair value measurement. The pooled trust preferred securities Old National owns are subordinate note classes that rely on an ongoing cash flow stream to support their values. The senior note classes receive the benefit of prepayments to the detriment of subordinate note classes since the ongoing interest cash flow stream is reduced by the early redemption. Generally, a change in prepayment rates or additional pool asset defaults has an impact that is directionally opposite from a change in the expected recovery of a defaulted pool asset. Assets measured at fair value on a non-recurring basis at September 30, 2017 are summarized below: Fair Value Measurements at September 30, 2017 Using (dollars in thousands) Carrying Quoted Prices in Active Markets for (Level 1) Significant Significant (Level 3) Collateral Dependent Impaired Loans: Commercial loans $ 3,438 $ — $ — $ 3,438 Commercial real estate loans 29,464 — — 29,464 Foreclosed Assets: Commercial real estate 56 — — 56 Loan servicing rights 2,719 — 2,719 — Impaired commercial and commercial real estate loans that are deemed collateral dependent are valued based on the fair value of the underlying collateral. These estimates are based on the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. These impaired commercial and commercial real estate loans had a principal amount of $43.9 million, with a valuation allowance of $11.0 million at September 30, 2017. Old National recorded provision recapture associated with these loans totaling $0.8 million for the three months ended September 30, 2017 and provision expense of $5.4 million for the nine months ended September 30, 2017. Old National recorded provision expense associated with impaired commercial and commercial real estate loans that were deemed collateral dependent totaling $0.1 million for the three months ended September 30, 2016 and $1.8 million for the nine months ended September 30, 2016. Other real estate owned and other repossessed property is measured at fair value less costs to sell and had a net carrying amount of $56 thousand at September 30, 2017. The estimates of fair value are based on the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. There were write-downs of other real estate owned of $0.3 million for the three months ended September 30, 2017 and $2.0 million for the nine months ended September 30, 2017. There were write-downs of other real estate owned of $0.4 million for the three months ended September 30, 2016 and $2.5 million for the nine months ended September 30, 2016. Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes a discount rate, weighted average prepayment speed, and other economic factors that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2). The valuation allowance for loan servicing rights with impairments at September 30, 2017 totaled $54 thousand. Old National recorded recoveries associated with these loan servicing rights totaling $20 thousand for the three months ended September 30, 2017 and $14 thousand for the nine months ended September 30, 2017. There were impairments on loan servicing rights of $4 thousand for the three months ended September 30, 2016 and recoveries of loan servicing rights totaling $24 thousand for the nine months ended September 30, 2016. Assets measured at fair value on a non-recurring basis at December 31, 2016 are summarized below: Fair Value Measurements at December 31, 2016 Using (dollars in thousands) Carrying Quoted Prices in (Level 1) Significant Significant Collateral Dependent Impaired Loans: Commercial loans $ 6,771 $ — $ — $ 6,771 Commercial real estate loans 11,632 — — 11,632 Foreclosed Assets: Commercial real estate 1,352 — — 1,352 Residential 394 — — 394 Loan servicing rights 2,181 — 2,181 — At December 31, 2016, impaired commercial and commercial real estate loans had a principal amount of $26.4 million, with a valuation allowance of $8.0 million. Other real estate owned and other repossessed property is measured at fair value less costs to sell and had a net carrying amount of $1.7 million at December 31, 2016. The valuation allowance for loan servicing rights with impairments at December 31, 2016 totaled $68 thousand. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Valuation Unobservable Input Range (Weighted September 30, 2017 Collateral Dependent Impaired Loans Commercial loans $ 3,438 Fair value of Discount for type of property, 20%—88% (51%) Commercial real estate loans 29,464 Fair value of Discount for type of property, 10%—50% (27%) Foreclosed Assets Commercial real estate (1) 56 Fair value of Discount for type of property, 83% (1) There was only one foreclosed commercial real estate asset at September 30, 2017, so no range or weighted average rate is reported. December 31, 2016 Collateral Dependent Impaired Loans Commercial loans $ 6,771 Fair value of Discount for type of property, 0%—99% (53%) Commercial real estate loans 11,632 Fair value of Discount for type of property, 10%—67% (36%) Foreclosed Assets Commercial real estate 1,352 Fair value of Discount for type of property, 4%—80% (39%) Residential 394 Fair value of Discount for type of property, 7%—60% (30%) Financial instruments recorded using fair value option Under FASB ASC 825-10, we may elect to report most financial instruments and certain other items at fair value on an instrument-by instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made. We have elected the fair value option for residential loans held for sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Included in the income statement is interest income for loans held for sale totaling $56 thousand for the three months ended September 30, 2017 and $125 thousand for the nine months ended September 30, 2017. Included in the income statement is interest income for loans held for sale totaling $35 thousand for the three months ended September 30, 2016 and $84 thousand for the nine months ended September 30, 2016. Residential loans held for sale Old National has elected the fair value option for newly originated conforming fixed-rate and adjustable-rate first mortgage loans held for sale. These loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment. The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected at September 30, 2017 and December 31, 2016 was as follows: (dollars in thousands) Aggregate Difference Contractual September 30, 2017 Residential loans held for sale $ 30,221 $ 890 $ 29,331 December 31, 2016 Residential loans held for sale $ 90,682 $ 133 $ 90,549 Accrued interest at period end is included in the fair value of the instruments. The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value: (dollars in thousands) Other Interest Interest Total Changes Three months ended September 30, 2017 Residential loans held for sale $ 58 $ — $ — $ 58 Three months ended September 30, 2016 Residential loans held for sale $ 234 $ 4 $ — $ 238 Nine months ended September 30, 2017 Residential loans held for sale $ 755 $ 2 $ — $ 757 Nine months ended September 30, 2016 Residential loans held for sale $ 1,451 $ 4 $ — $ 1,455 The carrying amounts and estimated fair values of financial instruments, not previously presented in this note, at September 30, 2017 and December 31, 2016 were as follows: Fair Value Measurements at September 30, 2017 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant (Level 3) Financial Assets Cash, due from banks, federal funds sold, and money market investments $ 252,367 $ 252,367 $ — $ — Investment securities held-to-maturity: Mortgage-backed securities—Agency 7,649 — 7,903 — State and political subdivisions 681,302 — 732,661 — Federal Home Loan Bank/Federal Reserve Bank stock 117,354 N/A N/A N/A Loans, net: Commercial 2,028,527 — — 2,110,928 Commercial real estate 3,350,186 — — 3,639,565 Residential real estate 2,117,211 — — 2,236,000 Consumer credit 1,852,031 — — 1,969,384 Accrued interest receivable 75,342 47 18,759 56,536 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 3,034,696 $ 3,034,696 $ — $ — NOW, savings, and money market deposits 6,120,099 6,120,099 — — Time deposits 1,451,989 — 1,443,473 — Federal funds purchased and interbank borrowings 317,021 317,021 Securities sold under agreements to repurchase 285,409 260,409 25,209 — Federal Home Loan Bank advances 1,589,367 — — 1,593,997 Other borrowings 219,314 — 221,739 — Accrued interest payable 4,364 — 4,364 — Standby letters of credit 334 — 334 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 3,067 N/A = not applicable Fair Value Measurements at December 31, 2016 Using (dollars in thousands) Carrying Quoted Prices in (Level 1) Significant Significant (Level 3) Financial Assets Cash, due from banks, federal funds sold, and money market investments $ 255,519 $ 255,519 $ — $ — Investment securities held-to-maturity: U.S. government-sponsored entities and agencies 40,131 — 40,558 — Mortgage-backed securities—Agency 10,640 — 10,940 — State and political subdivisions 694,319 — 732,674 — Federal Home Loan Bank/Federal Reserve Bank stock 101,716 N/A N/A N/A Loans, net: Commercial 1,895,618 — — 1,971,296 Commercial real estate 3,112,680 — — 3,400,365 Residential real estate 2,085,887 — — 2,228,542 Consumer credit 1,866,519 — — 1,974,180 Accrued interest receivable 81,381 16 22,880 58,485 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 3,016,093 $ 3,016,093 $ — $ — NOW, savings, and money market deposits 6,259,052 6,259,052 — — Time deposits 1,468,108 — 1,460,778 — Federal funds purchased and interbank borrowings 213,003 213,003 Securities sold under agreements to repurchase 367,052 317,052 50,612 — Federal Home Loan Bank advances 1,353,092 — — 1,360,599 Other borrowings 218,939 — 217,647 — Accrued interest payable 5,979 — 5,979 — Standby letters of credit 315 — — 315 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 2,527 N/A = not applicable The following methods and assumptions were used to estimate the fair value of each type of financial instrument. Cash, due from banks, federal funds sold, and money market investments: Investment securities: Federal Home Loan Bank and Federal Reserve Bank stock: Loans Accrued interest receivable and payable: Deposits Federal funds purchased and interbank borrowings Securities sold under agreements to repurchase Federal Home Loan Bank advances Other borrowings Standby letters of credit Off-balance sheet financial instruments |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned affiliates (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of September 30, 2017 and 2016, and December 31, 2016, and the results of its operations for the three and nine months ended September 30, 2017 and 2016. Interim results do not necessarily represent annual results. These financial statements should be read in conjunction with Old National’s Annual Report for the year ended December 31, 2016. All significant intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the 2017 presentation. Such reclassifications had no effect on net income or shareholders’ equity and were insignificant amounts. |
Recent Accounting Pronouncements | FASB ASC 606 — Revenue from Contracts with Customers Revenue from Contracts with Customers In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In December 2016, the FASB issued ASU No. 2016-20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements FASB ASC 944 — Disclosures about Short-Duration Contracts FASB ASC 825 Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities) FASB ASC 842 — Leases (Topic 842) FASB ASC 405 Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products FASB ASC 815 Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. FASB ASC 323 Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting FASB ASC 718 — Compensation—Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. FASB ASC 326 — Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments FASB ASC 740 — Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory FASB ASC 810 Consolidation (Topic 810): Interests Held through Related Parties that are under Common Control FASB ASC 805 Business Combinations (Topic 805): Clarifying the Definition of a Business FASB ASC 350 — Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment FASB ASC 610 — Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets FASB ASC 715— Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost FASB ASC 310— Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities |
Acquisition and Divestiture A34
Acquisition and Divestiture Activity (Tables) - AnchorBank WI [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Consideration Paid Allocation | A summary of the consideration paid was allocated as follows (in thousands): Cash and cash equivalents $ 123,657 Investment securities 235,240 Federal Home Loan Bank stock 4,596 Loans held for sale 9,334 Loans 1,637,806 Premises and equipment 35,721 Accrued interest receivable 7,308 Other real estate owned 17,349 Company-owned life insurance 7,278 Other assets 126,210 Deposits (1,852,713 ) Securities sold under agreements to repurchase (3,132 ) Other borrowings (123 ) Accrued expenses and other liabilities (36,957 ) Net tangible assets acquired 311,574 Definite-lived intangible assets acquired 21,559 Loan servicing rights 15,274 Goodwill 111,347 Total consideration paid $ 459,754 |
Summary of Acquired Loan Data | Acquired loan data for Anchor (WI) can be found in the table below: (in thousands) Fair Value of Gross Contractual Best Estimate at Acquired receivables subject to ASC 310-30 $ 20,174 $ 29,544 $ 6,153 Acquired receivables not subject to ASC 310-30 $ 1,617,632 $ 2,143,532 $ 274,155 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Table Reconciling Basic and Diluted Net Income Per Share | The following table reconciles basic and diluted net income per share for the three and nine months ended September 30, 2017 and 2016: (dollars and shares in thousands, except per share data) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings Per Share Net income $ 39,372 $ 34,709 $ 114,218 $ 100,808 Weighted average common shares outstanding 135,120 134,492 135,040 125,366 Basic Net Income Per Share $ 0.30 $ 0.25 $ 0.85 $ 0.80 Diluted Earnings Per Share Net income $ 39,372 $ 34,709 $ 114,218 $ 100,808 Weighted average common shares outstanding 135,120 134,492 135,040 125,366 Effect of dilutive securities: Restricted stock 589 465 558 432 Stock options (1) 87 54 95 41 Weighted average shares outstanding 135,796 135,011 135,693 125,839 Diluted Net Income Per Share $ 0.29 $ 0.25 $ 0.84 $ 0.80 (1) Options to purchase 0.1 million shares and 0.9 million shares outstanding at September 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the three months ended September 30, 2017 and 2016 because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive. Options to purchase 0.1 million shares and 0.8 million shares outstanding at September 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the nine months ended September 30, 2017 and 2016, respectively, because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities Portfolio | The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolio at September 30, 2017 and December 31, 2016 and the corresponding amounts of unrealized gains and losses therein: (dollars in thousands) Amortized Unrealized Unrealized Fair Value September 30, 2017 Available-for-Sale U.S. Treasury $ 5,472 $ 143 $ — $ 5,615 U.S. government-sponsored entities and agencies 583,151 86 (6,801 ) 576,436 Mortgage-backed securities—Agency 1,466,636 3,862 (19,762 ) 1,450,736 States and political subdivisions 410,856 6,569 (2,752 ) 414,673 Pooled trust preferred securities 16,651 — (8,381 ) 8,270 Other securities 319,669 2,086 (1,648 ) 320,107 Total available-for-sale securities $ 2,802,435 $ 12,746 $ (39,344 ) $ 2,775,837 Held-to-Maturity Mortgage-backed securities—Agency $ 7,649 $ 254 $ — $ 7,903 States and political subdivisions 681,302 51,359 — 732,661 Total held-to-maturity securities $ 688,951 $ 51,613 $ — $ 740,564 December 31, 2016 Available-for-Sale U.S. Treasury $ 6,963 $ 140 $ — $ 7,103 U.S. government-sponsored entities and agencies 506,234 113 (12,391 ) 493,956 Mortgage-backed securities—Agency 1,551,465 6,923 (33,369 ) 1,525,019 States and political subdivisions 446,003 4,183 (13,502 ) 436,684 Pooled trust preferred securities 17,011 — (8,892 ) 8,119 Other securities 331,001 1,074 (5,782 ) 326,293 Total available-for-sale securities $ 2,858,677 $ 12,433 $ (73,936 ) $ 2,797,174 Held-to-Maturity U.S. government-sponsored entities and agencies $ 40,131 $ 427 $ — $ 40,558 Mortgage-backed securities—Agency 10,640 300 — 10,940 States and political subdivisions 694,319 38,915 (560 ) 732,674 Total held-to-maturity securities $ 745,090 $ 39,642 $ (560 ) $ 784,172 |
Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-Sale Investment Securities and Other Securities | Proceeds from sales or calls of available-for-sale investment securities, the resulting realized gains and realized losses, and other securities gains or losses were as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended (dollars in thousands) 2017 2016 2017 2016 Proceeds from sales of available-for-sale securities $ 98,038 $ 50,368 $ 284,315 $ 157,819 Proceeds from calls of available-for-sale securities 2,303 160,805 73,423 525,114 Total $ 100,341 $ 211,173 $ 357,738 $ 682,933 Realized gains on sales of available-for-sale securities $ 2,891 $ 1,062 $ 7,174 $ 4,213 Realized gains on calls of available-for-sale securities 13 477 13 848 Realized losses on sales of available-for-sale securities (36 ) (2 ) (79 ) (450 ) Realized losses on calls of available-for-sale securities — (15 ) (8 ) (103 ) Other securities gains (losses) (1) 104 125 447 101 Net securities gains (losses) $ 2,972 $ 1,647 $ 7,547 $ 4,609 (1) Other securities gains (losses) includes net realized gains or losses associated with trading securities and mutual funds. |
Expected Maturities of Investment Securities Portfolio | Weighted average yield is based on amortized cost. At September 30, 2017 (dollars in thousands) Weighted Average Maturity Amortized Fair Value Available-for-Sale Within one year $ 34,563 $ 34,686 2.36 % One to five years 338,424 339,100 2.11 Five to ten years 302,515 305,146 2.85 Beyond ten years 2,126,933 2,096,905 2.43 Total $ 2,802,435 $ 2,775,837 2.44 % Held-to-Maturity Within one year $ 23,751 $ 24,064 6.15 % One to five years 89,739 94,617 4.88 Five to ten years 172,648 183,505 4.88 Beyond ten years 402,813 438,378 5.75 Total $ 688,951 $ 740,564 5.43 % |
Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position | The following table summarizes the investment securities with unrealized losses at September 30, 2017 and December 31, 2016 by aggregated major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized September 30, 2017 Available-for-Sale U.S. government-sponsored entities and agencies $ 406,906 $ (3,708 ) $ 89,907 $ (3,093 ) $ 496,813 $ (6,801 ) Mortgage-backed securities—Agency 985,209 (12,903 ) 190,224 (6,859 ) 1,175,433 (19,762 ) States and political subdivisions 104,214 (1,612 ) 35,715 (1,140 ) 139,929 (2,752 ) Pooled trust preferred securities — — 8,270 (8,381 ) 8,270 (8,381 ) Other securities 80,290 (848 ) 85,583 (800 ) 165,873 (1,648 ) Total available-for-sale $ 1,576,619 $ (19,071 ) $ 409,699 $ (20,273 ) $ 1,986,318 $ (39,344 ) Held-to-Maturity States and political subdivisions $ 465 $ — $ — $ — $ 465 $ — Total held-to-maturity $ 465 $ — $ — $ — $ 465 $ — December 31, 2016 Available-for-Sale U.S. government-sponsored entities and agencies $ 432,192 $ (12,391 ) $ — $ — $ 432,192 $ (12,391 ) Mortgage-backed securities—Agency 1,177,093 (30,295 ) 57,636 (3,074 ) 1,234,729 (33,369 ) States and political subdivisions 286,351 (13,247 ) 4,919 (255 ) 291,270 (13,502 ) Pooled trust preferred securities — — 8,119 (8,892 ) 8,119 (8,892 ) Other securities 121,498 (2,734 ) 126,539 (3,048 ) 248,037 (5,782 ) Total available-for-sale $ 2,017,134 $ (58,667 ) $ 197,213 $ (15,269 ) $ 2,214,347 $ (73,936 ) Held-to-Maturity States and political subdivisions $ 59,481 $ (560 ) $ — $ — $ 59,481 $ (560 ) Total held-to-maturity $ 59,481 $ (560 ) $ — $ — $ 59,481 $ (560 ) |
Trust Preferred Securities | The table below summarizes the relevant characteristics of our pooled trust preferred securities as well as our single issuer trust preferred securities that are included in the “other securities” category in this footnote. Each of the pooled trust preferred securities support a more senior tranche of security holders. All three pooled trust preferred securities have experienced credit defaults. However, two of these securities have excess subordination and are not other-than-temporarily-impaired as a result of their class hierarchy, which provides more loss protection. Trust preferred securities (dollars in thousands) Class Lowest Amortized Fair Unrealized Realized # of Issuers Actual Expected Excess Pooled trust preferred securities: Reg Div Funding 2004 B-2 D $ 2,738 $ 262 $ (2,476 ) $ — 21/36 32.1% 7.5% 0.0% Pretsl XXVII LTD B B 4,422 2,451 (1,971 ) — 35/44 16.7% 3.8% 47.9% Trapeza Ser 13A A2A BBB 9,491 5,557 (3,934 ) — 50/55 4.5% 4.6% 45.2% 16,651 8,270 (8,381 ) — Single Issuer trust preferred securities: Fleet Cap Tr V (BOA) BB+ 3,403 3,325 (78 ) — JP Morgan Chase Cap XIII BBB- 4,775 4,609 (166 ) — NB-Global BB+ 799 949 150 — Chase Cap II BBB- 833 935 102 — 9,810 9,818 8 — Total $ 26,461 $ 18,088 $ (8,373 ) $ — (1) Lowest rating for the security provided by any nationally recognized credit rating agency. |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Schedule of Composition of Loans | The composition of loans by lending classification was as follows: (dollars in thousands) September 30, December 31, Commercial (1) $ 2,049,054 $ 1,917,099 Commercial real estate: Construction (2) 276,226 357,802 Other (2) 3,093,985 2,773,051 Residential real estate 2,119,120 2,087,530 Consumer credit: Home equity 477,100 476,439 Auto 1,165,289 1,167,737 Other 217,350 230,854 Total loans 9,398,124 9,010,512 Allowance for loan losses (50,169 ) (49,808 ) Net loans $ 9,347,955 $ 8,960,704 (1) Includes direct finance leases of $8.7 million at September 30, 2017 and $10.8 million at December 31, 2016. (2) Certain commercial real estate construction loans were reclassified from commercial real estate—other due to a misclassification at December 31, 2016. |
Schedule of Activity in Allowance for Loan Losses | Old National’s activity in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016 was as follows: (dollars in thousands) Commercial Commercial Residential Consumer Total Three Months Ended September 30, 2017 Balance at beginning of period $ 20,365 $ 20,654 $ 1,811 $ 8,156 $ 50,986 Charge-offs (70 ) (1,148 ) (227 ) (1,376 ) (2,821 ) Recoveries 255 339 89 1,010 1,693 Provision (23 ) 180 236 (82 ) 311 Balance at end of period $ 20,527 $ 20,025 $ 1,909 $ 7,708 $ 50,169 Three Months Ended September 30, 2016 Balance at beginning of period $ 24,156 $ 18,208 $ 1,459 $ 7,981 $ 51,804 Charge-offs (1,681 ) (1,378 ) (140 ) (1,320 ) (4,519 ) Recoveries 594 1,548 2,174 (1,360 ) 2,956 Provision 1,461 (1,033 ) (1,963 ) 2,841 1,306 Balance at end of period $ 24,530 $ 17,345 $ 1,530 $ 8,142 $ 51,547 Nine Months Ended September 30, 2017 Balance at beginning of period $ 21,481 $ 18,173 $ 1,643 $ 8,511 $ 49,808 Charge-offs (951 ) (2,784 ) (954 ) (4,751 ) (9,440 ) Recoveries 1,647 3,086 196 2,859 7,788 Provision (1,650 ) 1,550 1,024 1,089 2,013 Balance at end of period $ 20,527 $ 20,025 $ 1,909 $ 7,708 $ 50,169 Nine Months Ended September 30, 2016 Balance at beginning of period $ 26,347 $ 15,993 $ 2,051 $ 7,842 $ 52,233 Charge-offs (3,640 ) (2,440 ) (360 ) (4,698 ) (11,138 ) Recoveries 2,288 2,935 2,387 126 7,736 Provision (465 ) 857 (2,548 ) 4,872 2,716 Balance at end of period $ 24,530 $ 17,345 $ 1,530 $ 8,142 $ 51,547 |
Schedule of Recorded Investment in Financing Receivables | The following table provides Old National’s recorded investment in financing receivables by portfolio segment at September 30, 2017 and December 31, 2016 and other information regarding the allowance: (dollars in thousands) Commercial Commercial Residential Consumer Total September 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 4,456 $ 6,486 $ — $ — $ 10,942 Collectively evaluated for impairment 16,048 13,520 1,909 7,552 39,029 Loans acquired with deteriorated credit quality 23 19 — 156 198 Total allowance for loan losses $ 20,527 $ 20,025 $ 1,909 $ 7,708 $ 50,169 Loans and leases outstanding: Individually evaluated for impairment $ 33,275 $ 62,442 $ — $ — $ 95,717 Collectively evaluated for impairment 2,015,185 3,287,914 2,107,253 1,853,875 9,264,227 Loans acquired with deteriorated credit quality 594 19,855 11,867 5,864 38,180 Total loans and leases outstanding $ 2,049,054 $ 3,370,211 $ 2,119,120 $ 1,859,739 $ 9,398,124 December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 4,561 $ 3,437 $ — $ — $ 7,998 Collectively evaluated for impairment 16,838 14,717 1,643 8,334 41,532 Loans acquired with deteriorated credit quality 82 19 — 177 278 Total allowance for loan losses $ 21,481 $ 18,173 $ 1,643 $ 8,511 $ 49,808 Loans and leases outstanding: Individually evaluated for impairment $ 45,960 $ 57,230 $ — $ — $ 103,190 Collectively evaluated for impairment 1,870,289 3,040,849 2,073,950 1,866,815 8,851,903 Loans acquired with deteriorated credit quality 850 32,774 13,580 8,215 55,419 Total loans and leases outstanding $ 1,917,099 $ 3,130,853 $ 2,087,530 $ 1,875,030 $ 9,010,512 |
Schedule of Risk Category of Commercial and Commercial Real Estate Loans | The risk category of commercial and commercial real estate loans by class of loans at September 30, 2017 and December 31, 2016 was as follows: (dollars in thousands) Commercial Commercial Corporate Credit Exposure Commercial Real Estate— Construction Real Estate— Other Credit Risk Profile by Internally Assigned Grade September 30, December 31, September 30, December 31, September 30, December 31, Grade: Pass $ 1,944,997 $ 1,750,923 $ 261,500 $ 347,325 $ 2,911,548 $ 2,669,890 Criticized 41,004 45,614 14,726 9,258 74,467 40,590 Classified—substandard 33,524 63,978 — 49 50,842 19,715 Classified—nonaccrual 26,981 53,062 — 1,170 30,693 33,833 Classified—doubtful 2,548 3,522 — — 26,435 9,023 Total $ 2,049,054 $ 1,917,099 $ 276,226 $ 357,802 $ 3,093,985 $ 2,773,051 |
Schedule of Recorded Investment in Residential and Consumer Loans Based on Payment Activity | The following table presents the recorded investment in residential and consumer loans based on payment activity at September 30, 2017 and December 31, 2016: Consumer (dollars in thousands) Residential Home Auto Other September 30, 2017 Performing $ 2,099,585 $ 471,827 $ 1,162,634 $ 212,214 Nonperforming 19,535 5,273 2,655 5,136 Total $ 2,119,120 $ 477,100 $ 1,165,289 $ 217,350 December 31, 2016 Performing $ 2,069,856 $ 472,008 $ 1,166,114 $ 223,786 Nonperforming 17,674 4,431 1,623 7,068 Total $ 2,087,530 $ 476,439 $ 1,167,737 $ 230,854 |
Schedule of Impaired Loans | The following table shows Old National’s impaired loans at September 30, 2017 and December 31, 2016, respectively. Only purchased loans that have experienced subsequent impairment since the date acquired are included in the table below. (dollars in thousands) Recorded Unpaid Related September 30, 2017 With no related allowance recorded: Commercial $ 25,393 $ 26,374 $ — Commercial Real Estate—Other 31,928 33,687 — Residential 2,464 2,485 — Consumer 1,924 2,140 — With an allowance recorded: Commercial 7,882 7,882 4,456 Commercial Real Estate—Other 30,514 30,770 6,486 Residential 882 882 44 Consumer 2,269 2,269 112 Total $ 103,256 $ 106,489 $ 11,098 December 31, 2016 With no related allowance recorded: Commercial $ 29,001 $ 29,634 $ — Commercial Real Estate—Other 30,585 32,413 — Residential 1,610 1,631 — Consumer 827 946 — With an allowance recorded: Commercial 16,959 17,283 4,561 Commercial Real Estate—Other 26,645 27,177 3,437 Residential 1,081 1,081 54 Consumer 1,924 1,924 96 Total $ 108,632 $ 112,089 $ 8,148 |
Schedule of Average Balance of Impaired Loans | The average balance of impaired loans during the three and nine months ended September 30, 2017 and 2016 are included in the table below. Three Months Ended Nine Months Ended (dollars in thousands) 2017 2016 2017 2016 Average Recorded Investment With no related allowance recorded: Commercial $ 24,234 $ 35,513 $ 27,197 $ 37,581 Commercial Real Estate—Other 33,268 40,971 31,258 37,937 Residential 2,482 1,233 2,405 1,270 Consumer 1,755 878 1,786 865 With an allowance recorded: Commercial 7,792 17,334 8,086 16,072 Commercial Real Estate—Construction — — — 119 Commercial Real Estate—Other 30,846 15,119 28,580 15,977 Residential 1,011 1,099 1,059 1,072 Consumer 2,163 2,385 2,136 2,515 Total $ 103,551 $ 114,532 $ 102,507 $ 113,408 |
Schedule of Past Due Financing Receivables | Old National’s past due financing receivables at September 30, 2017 and December 31, 2016 were as follows: (dollars in thousands) 30-59 Days 60-89 Days Recorded Nonaccrual Total Current September 30, 2017 Commercial $ 296 $ 100 $ 251 $ 29,529 $ 30,176 $ 2,018,878 Commercial Real Estate: Construction — — — — — 276,226 Other 150 — — 57,128 57,278 3,036,707 Residential 16,091 3,235 232 19,535 39,093 2,080,027 Consumer: Home equity 939 314 88 5,273 6,614 470,486 Auto 5,535 977 282 2,655 9,449 1,155,840 Other 2,864 1,159 26 5,136 9,185 208,165 Total loans $ 25,875 $ 5,785 $ 879 $ 119,256 $ 151,795 $ 9,246,329 December 31, 2016 Commercial $ 847 $ 279 $ 23 $ 56,585 $ 57,734 $ 1,859,365 Commercial Real Estate: Construction — — — 1,170 1,170 356,632 Other 1,652 150 — 42,856 44,658 2,728,393 Residential 17,786 3,770 2 17,674 39,232 2,048,298 Consumer: Home equity 1,511 423 — 4,431 6,365 470,074 Auto 5,903 1,037 242 1,623 8,805 1,158,932 Other 3,561 1,919 61 7,068 12,609 218,245 Total loans $ 31,260 $ 7,578 $ 328 $ 131,407 $ 170,573 $ 8,839,939 |
Schedule of Activity in Trouble Debt Restructurings | The following table presents activity in TDRs for the nine months ended September 30, 2017 and 2016: (dollars in thousands) Commercial Commercial Residential Consumer Total Nine Months Ended September 30, 2017 Balance at beginning of period $ 16,802 $ 18,327 $ 2,985 $ 2,602 $ 40,716 (Charge-offs)/recoveries (5 ) 366 — (58 ) 303 Payments (10,024 ) (3,849 ) (589 ) (970 ) (15,432 ) Additions 12,599 17,429 937 2,568 33,533 Interest collected on nonaccrual loans 2,420 431 13 51 2,915 Balance at end of period $ 21,792 $ 32,704 $ 3,346 $ 4,193 $ 62,035 Nine Months Ended September 30, 2016 Balance at beginning of period $ 23,354 $ 14,602 $ 2,693 $ 3,602 $ 44,251 (Charge-offs)/recoveries (1,098 ) 148 42 (27 ) (935 ) Payments (17,517 ) (6,050 ) (482 ) (1,273 ) (25,322 ) Additions 12,367 10,581 335 385 23,668 Interest collected on nonaccrual loans 1,569 523 — — 2,092 Balance at end of period $ 18,675 $ 19,804 $ 2,588 $ 2,687 $ 43,754 |
Schedule of Loans by Class Modified as Troubled Debt Restructuring | The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2017 and 2016: (dollars in thousands) Number Pre-modification Post-modification Nine Months Ended September 30, 2017 TDR: Commercial 9 $ 12,599 $ 12,599 Commercial Real Estate—Other 10 17,429 17,429 Residential 6 937 937 Consumer 7 2,568 2,568 Total 32 $ 33,533 $ 33,533 Nine Months Ended September 30, 2016 TDR: Commercial 17 $ 12,367 $ 12,367 Commercial Real Estate—Other 9 10,581 10,581 Residential 3 335 335 Consumer 8 385 385 Total 37 $ 23,668 $ 23,668 |
Schedule of Activity of Purchased Impaired Loans | For these loans that meet the criteria of ASC 310-30 treatment, the carrying amount was as follows: (dollars in thousands) September 30, December 31, Commercial $ 594 $ 850 Commercial real estate 19,855 32,774 Residential 11,867 13,580 Consumer 5,864 8,215 Carrying amount 38,180 55,419 Allowance for loan losses (198 ) (278 ) Carrying amount, net of allowance $ 37,982 $ 55,141 |
Schedule of Accretable Yield of PCI Loans, or Income Expected to be Collected | Accretable yield of PCI loans, or income expected to be collected, is as follows: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 33,603 $ 45,310 New loans purchased (1) — 3,217 Accretion of income (12,775 ) (18,202 ) Reclassifications from (to) nonaccretable difference 6,567 7,538 Disposals/other adjustments 277 961 Balance at end of period $ 27,672 $ 38,824 (1) Old National acquired Anchor (WI) effective May 1, 2016. |
Schedule of Receivables for which Contractually Required Payments would not be Collected | PCI loans purchased during 2016 for which it was probable at acquisition that all contractually required payments would not be collected were as follows: (dollars in thousands) Anchor (WI) (1) Contractually required payments $ 29,544 Nonaccretable difference (6,153 ) Cash flows expected to be collected at acquisition 23,391 Accretable yield (3,217 ) Fair value of acquired loans at acquisition $ 20,174 (1) Old National acquired Anchor (WI) effective May 1, 2016. |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Activity in Other Real Estate Owned | The following table presents activity in other real estate owned for the nine months ended September 30, 2017 and 2016: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 18,546 $ 12,498 Additions (1) 2,695 24,337 Sales (8,695 ) (10,503 ) Impairment (2,287 ) (2,613 ) Balance at end of period (2) $ 10,259 $ 23,719 (1) Additions for the nine months ended September 30, 2016 include other real estate owned of $17.3 million acquired from Anchor (WI) in May 2016. (2) Includes repossessed personal property of $0.1 million at September 30, 2017 and $0.2 million at September 30, 2016. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | The composition of premises and equipment at September 30, 2017 and December 31, 2016 was as follows: September 30, December 31, (dollars in thousands) 2017 2016 Land $ 66,806 $ 71,769 Buildings 319,371 322,165 Furniture, fixtures, and equipment 100,756 102,631 Leasehold improvements 29,270 28,555 Total 516,203 525,120 Accumulated depreciation (103,715 ) (95,498 ) Premises and equipment, net $ 412,488 $ 429,622 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table shows the changes in the carrying amount of goodwill for the nine months ended September 30, 2017 and 2016: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 655,018 $ 584,634 Acquisitions — 111,539 Divestitures — (40,963 ) Balance at end of period $ 655,018 $ 655,210 |
Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets | The gross carrying amount and accumulated amortization of other intangible assets at September 30, 2017 and December 31, 2016 were as follows: (dollars in thousands) Gross Accumulated Net September 30, 2017 Core deposit $ 81,663 $ (60,002 ) $ 21,661 Customer trust relationships 16,547 (9,106 ) 7,441 Customer loan relationships 4,413 (4,280 ) 133 Total intangible assets $ 102,623 $ (73,388 ) $ 29,235 |
Schedule of Estimated Amortization Expense for Future Years | Estimated amortization expense for future years is as follows: (dollars in thousands) 2017 remaining $ 2,573 2018 8,687 2019 6,737 2020 4,883 2021 3,111 Thereafter 3,244 Total $ 29,235 |
Loan Servicing Rights (Tables)
Loan Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Components of Loan Servicing Rights and Valuation Allowance | The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance for the nine months ended September 30, 2017 and 2016: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 25,629 $ 10,502 Additions (1) 3,180 18,965 Amortization (3,855 ) (3,537 ) Balance before valuation allowance at end of period 24,954 25,930 Valuation allowance: Balance at beginning of period (68 ) (34 ) (Additions)/recoveries 14 24 Balance at end of period (54 ) (10 ) Loan servicing rights, net $ 24,900 $ 25,920 (1) Additions for the nine months ended September 30, 2016 include loan servicing rights of $15.3 million acquired from Anchor (WI) in May 2016. |
Qualified Affordable Housing 42
Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments | The following table summarizes Old National’s investments in LIHTCs, FHTCs, and CReEDs at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, 2017 December 31, 2016 Investment Accounting Investment Unfunded Investment Unfunded LIHTC and other qualifying investments Proportional $ 32,649 $ 19,607 $ 29,110 $ 16,210 FHTC Equity 17,411 11,591 4,434 3,104 CReED Equity 1,504 1,502 1,504 1,502 Total $ 51,564 $ 32,700 $ 35,048 $ 20,816 (1) All commitments will be paid by the Company by 2027. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments for the three and nine months ended September 30, 2017 and 2016: (dollars in thousands) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 2017 2016 2017 2016 2017 2016 2017 2016 Investment Amortization Tax Benefit Amortization Tax Benefit LIHTC and other qualifying investments $ 940 $ 201 $ (1,297 ) $ (281 ) $ 2,822 $ 603 $ (3,892 ) $ (843 ) FHTC — — (1,520 ) — — — (4,559 ) — CReED (2) — — (303 ) — — — (909 ) — Total $ 940 $ 201 $ (3,120 ) $ (281 ) $ 2,822 $ 603 $ (9,360 ) $ (843 ) (1) Tax credit investments are included in the Company’s estimate of the effective annual tax rate. (2) The CReED tax credit investment qualifies for an Indiana state tax credit. |
Securities Sold Under Agreeme43
Securities Sold Under Agreements to Repurchase (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of Securities Sold under Agreements to Repurchase and Related Weighted-Average Interest Rates | The following table presents securities sold under agreements to repurchase and related weighted-average interest rates at or for the nine months ended September 30: (dollars in thousands) 2017 2016 Outstanding at September 30, $ 285,409 $ 347,804 Average amount outstanding 325,230 373,474 Maximum amount outstanding at any month-end 351,897 396,695 Weighted average interest rate: During the nine months ended September 30, 0.36 % 0.41 % At September 30, 0.34 0.42 |
Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements | The following table presents the contractual maturity of our secured borrowings and class of collateral pledged: At September 30, 2017 Remaining Contractual Maturity of the Agreements (dollars in thousands) Overnight and Up to 30-90 Days Greater Than Total Repurchase Agreements: U.S. Treasury and agency securities $ 260,409 $ — $ — $ 25,000 $ 285,409 Total $ 260,409 $ — $ — $ 25,000 $ 285,409 |
Federal Home Loan Bank Advanc44
Federal Home Loan Bank Advances (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Summary of FHLB Advances | The following table summarizes Old National Bank’s FHLB advances at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, December 31, Federal Home Loan Bank advances (fixed rates 1.01% to 6.08% and variable rates 1.22% to 1.47%) maturing October 2017 to August 2027 $ 1,589,862 $ 1,353,225 ASC 815 fair value hedge and other basis adjustments (495 ) (133 ) Total other borrowings $ 1,589,367 $ 1,353,092 |
Summary of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at September 30, 2017 were as follows: (dollars in thousands) Due in 2017 $ 752,752 Due in 2018 274,956 Due in 2019 201,981 Due in 2020 50,000 Due in 2021 — Thereafter 310,173 ASC 815 fair value hedge and other basis adjustments (495 ) Total $ 1,589,367 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Borrowings | The following table summarizes Old National and its subsidiaries’ other borrowings at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, December 31, Old National Bancorp: Senior unsecured bank notes (fixed rate 4.125%) maturing August 2024 $ 175,000 $ 175,000 Unamortized debt issuance costs related to Senior unsecured bank notes (1,066 ) (1,182 ) Junior subordinated debentures (variable rates of 2.68% to 3.07%) maturing March 2035 to September 2037 45,000 45,000 Other basis adjustments (3,597 ) (3,971 ) Old National Bank: Capital lease obligation 3,977 4,092 Total other borrowings $ 219,314 $ 218,939 |
Contractual Maturities of Other Borrowings | Contractual maturities of other borrowings at September 30, 2017 were as follows: (dollars in thousands) Due in 2017 $ 19 Due in 2018 141 Due in 2019 85 Due in 2020 91 Due in 2021 99 Thereafter 223,542 Unamortized debt issuance costs and other basis adjustments (4,663 ) Total $ 219,314 |
Future Minimum Lease Payments under Capital Lease Arrangements | At September 30, 2017, the future minimum lease payments under the capital lease arrangements were as follows: (dollars in thousands) 2017 remaining $ 102 2018 472 2019 430 2020 430 2021 430 Thereafter 7,977 Total minimum lease payments 9,841 Less amounts representing interest (5,864 ) Present value of net minimum lease payments $ 3,977 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of AOCI | The following table summarizes the changes within each classification of AOCI, net of tax, for the three and nine months ended September 30, 2017 and 2016: (dollars in thousands) Unrealized Gains Available-for-Sale Unrealized Gains Held-to-Maturity Gains and Defined Total Three Months Ended September 30, 2017 Balance at beginning of period $ (12,457 ) $ (12,717 ) $ (5,645 ) $ (301 ) $ (31,120 ) Other comprehensive income (loss) before reclassifications (2,531 ) — 134 — (2,397 ) Amounts reclassified from AOCI (a) (1,883 ) 300 887 16 (680 ) Net other comprehensive income (loss) (4,414 ) 300 1,021 16 (3,077 ) Balance at end of period $ (16,871 ) $ (12,417 ) $ (4,624 ) $ (285 ) $ (34,197 ) Three Months Ended September 30, 2016 Balance at beginning of period $ 13,783 $ (13,867 ) $ (17,184 ) $ (6,349 ) $ (23,617 ) Other comprehensive income (loss) before reclassifications 2,094 — 1,943 — 4,037 Amounts reclassified from AOCI (a) (1,006 ) 289 1,156 312 751 Net other comprehensive income (loss) 1,088 289 3,099 312 4,788 Balance at end of period $ 14,871 $ (13,578 ) $ (14,085 ) $ (6,037 ) $ (18,829 ) Nine Months Ended September 30, 2017 Balance at beginning of period $ (39,012 ) $ (13,310 ) $ (6,715 ) $ (335 ) $ (59,372 ) Other comprehensive income (loss) before reclassifications 26,928 — (986 ) — 25,942 Amounts reclassified from AOCI (a) (4,787 ) 893 3,077 50 (767 ) Net other comprehensive income (loss) 22,141 893 2,091 50 25,175 Balance at end of period $ (16,871 ) $ (12,417 ) $ (4,624 ) $ (285 ) $ (34,197 ) Nine Months Ended September 30, 2016 Balance at beginning of period $ (3,806 ) $ (14,480 ) $ (9,276 ) $ (7,235 ) $ (34,797 ) Other comprehensive income (loss) before reclassifications 21,584 — (8,446 ) — 13,138 Amounts reclassified from AOCI (a) (2,907 ) 902 3,637 1,198 2,830 Net other comprehensive income (loss) 18,677 902 (4,809 ) 1,198 15,968 Balance at end of period $ 14,871 $ (13,578 ) $ (14,085 ) $ (6,037 ) $ (18,829 ) (a) See table below for details about reclassifications. |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the significant amounts reclassified out of each component of AOCI for the three months ended September 30, 2017 and 2016: Details about AOCI Components Amount Reclassified Affected Line Item in the Three Months Ended (dollars in thousands) 2017 2016 Unrealized gains and losses on available-for-sale securities $ 2,972 $ 1,647 Net securities gains (1,089 ) (641 ) Income tax (expense) benefit $ 1,883 $ 1,006 Net income Unrealized gains and losses on held-to-maturity securities $ (456 ) $ (439 ) Interest income (expense) 156 150 Income tax (expense) benefit $ (300 ) $ (289 ) Net income Gains and losses on cash flow hedges Interest rate contracts $ (1,429 ) $ (1,865 ) Interest income (expense) 542 709 Income tax (expense) benefit $ (887 ) $ (1,156 ) Net income Amortization of defined benefit pension items Actuarial gains (losses) $ (27 ) $ (503 ) Salaries and employee benefits 11 191 Income tax (expense) benefit $ (16 ) $ (312 ) Net income Total reclassifications for the period $ 680 $ (751 ) Net income The following table summarizes the significant amounts reclassified out of each component of AOCI for the nine months ended September 30, 2017 and 2016: Details about AOCI Components Amount Reclassified Affected Line Item in the Nine Months Ended (dollars in thousands) 2017 2016 Unrealized gains and losses on available-for-sale securities $ 7,547 $ 4,609 Net securities gains (2,760 ) (1,702 ) Income tax (expense) benefit $ 4,787 $ 2,907 Net income Unrealized gains and losses on held-to-maturity securities $ (1,358 ) $ (1,370 ) Interest income/(expense) 465 468 Income tax (expense) benefit $ (893 ) $ (902 ) Net income Gains and losses on cash flow hedges Interest rate contracts $ (4,962 ) $ (4,723 ) Interest income/(expense) 1,885 1,086 Income tax (expense) benefit $ (3,077 ) $ (3,637 ) Net income Amortization of defined benefit pension items Actuarial gains/(losses) $ (81 ) $ (1,933 ) Salaries and employee benefits 31 735 Income tax (expense) benefit $ (50 ) $ (1,198 ) Net income Total reclassifications for the period $ 767 $ (2,830 ) Net income |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate | Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2017 2016 2017 2016 Provision at statutory rate of 35% $ 17,791 $ 15,987 $ 51,363 $ 53,291 Tax-exempt income (4,290 ) (4,297 ) (13,036 ) (12,698 ) State income taxes 506 749 1,553 3,396 Interim period effective rate adjustment (861 ) (1,418 ) (1,602 ) (1,603 ) Tax credit investments—federal (1,684 ) (80 ) (5,431 ) (240 ) ONI nondeductible goodwill — 23 — 8,328 Other, net (3 ) 5 (313 ) 978 Income tax expense $ 11,459 $ 10,969 $ 32,534 $ 51,452 Effective tax rate 22.5 % 24.0 % 22.2 % 33.8 % |
Summary of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 777 $ 124 Additions based on tax positions related to the current year 109 85 Additions based on tax positions related to prior years — 584 Reductions due to statute of limitations expiring (174 ) (2 ) Balance at end of period $ 712 $ 791 |
Schedule of Significant Components of Net Deferred Tax Assets (Liabilities) | Significant components of net deferred tax assets (liabilities) were as follows at September 30, 2017 and December 31, 2016: (dollars in thousands) September 30, December 31, Deferred Tax Assets Allowance for loan losses, net of recapture $ 19,637 $ 19,773 Benefit plan accruals 19,403 23,846 Alternative minimum tax credit 20,350 19,523 Unrealized losses on benefit plans 174 205 Net operating loss carryforwards 55,096 66,917 Federal tax credits 35 35 Other-than-temporary impairment 2,168 3,606 Acquired loans 29,866 40,522 Lease exit obligation 2,178 2,060 Unrealized losses on available-for-sale investment securities 10,509 23,365 Unrealized losses on held-to-maturity investment securities 6,653 7,118 Unrealized losses on hedges 2,835 4,116 Other real estate owned 1,829 3,310 Other, net 2,004 2,675 Total deferred tax assets 172,737 217,071 Deferred Tax Liabilities Accretion on investment securities (736 ) (700 ) Purchase accounting (16,009 ) (17,552 ) Loan servicing rights (9,310 ) (9,627 ) Premises and equipment (3,725 ) (4,800 ) Other, net (5,006 ) (2,529 ) Total deferred tax liabilities (34,786 ) (35,208 ) Net deferred tax assets $ 137,951 $ 181,863 |
Derivative Financial Instrume48
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Financial Instruments | The following table summarizes the fair value of derivative financial instruments utilized by Old National: September 30, 2017 December 31, 2016 (dollars in thousands) Asset Liability Asset Liability Derivatives designated as hedging instruments Interest rate contracts $ 2,962 $ 8,266 $ 3,056 $ 11,582 Total derivatives designated as hedging instruments $ 2,962 $ 8,266 $ 3,056 $ 11,582 Derivatives not designated as hedging instruments Interest rate contracts $ 12,893 $ 9,096 $ 11,903 $ 11,992 Mortgage contracts 1,406 — 2,742 — Foreign currency contracts 6 6 — — Total derivatives not designated as hedging instruments $ 14,305 $ 9,102 $ 14,645 $ 11,992 Total $ 17,267 $ 17,368 $ 17,701 $ 23,574 |
Schedule of Effect of Derivative Instruments on the Consolidated Statements of Income | The effect of derivative instruments on the consolidated statements of income for the three and nine months ended September 30, 2017 and 2016 are as follows: Three Months Ended September 30, (dollars in thousands) 2017 2016 Derivatives in Fair Value Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ (1,325 ) $ (1,588 ) Interest rate contracts (2) Other income / (expense) 33 36 Total $ (1,292 ) $ (1,552 ) Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ 81 $ 81 Total $ 81 $ 81 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (3) Other income / (expense) $ 9 $ 36 Mortgage contracts Mortgage banking revenue (293 ) 256 Total $ (284 ) $ 292 Nine Months Ended September 30, (dollars in thousands) 2017 2016 Derivatives in Fair Value Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ (4,610 ) $ (3,941 ) Interest rate contracts (2) Other income / (expense) 107 137 Total $ (4,503 ) $ (3,804 ) Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (1) Interest income / (expense) $ 243 $ 248 Total $ 243 $ 248 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Interest rate contracts (3) Other income / (expense) $ 45 $ (48 ) Mortgage contracts Mortgage banking revenue (1,336 ) 682 Foreign currency contracts Other income (13 ) — Total $ (1,304 ) $ 634 (1) Amounts represent the net interest payments as stated in the contractual agreements. (2) Amounts represent ineffectiveness on derivatives designated as fair value hedges. (3) Includes the valuation differences between the customer and offsetting counterparty swaps. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: Fair Value Measurements at September 30, 2017 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant (Level 3) Financial Assets Trading securities $ 5,351 $ 5,351 $ — $ — Investment securities available-for-sale: U.S. Treasury 5,615 5,615 — — U.S. government-sponsored entities and agencies 576,436 — 576,436 — Mortgage-backed securities—Agency 1,450,736 — 1,450,736 — States and political subdivisions 414,673 — 414,673 Pooled trust preferred securities 8,270 — — 8,270 Other securities 320,107 31,374 288,733 — Residential loans held for sale 30,221 — 30,221 — Derivative assets 17,267 — 17,267 — Financial Liabilities Derivative liabilities 17,368 — 17,368 — Fair Value Measurements at December 31, 2016 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant Financial Assets Trading securities $ 4,982 $ 4,982 $ — $ — Investment securities available-for-sale: U.S. Treasury 7,103 7,103 — — U.S. government-sponsored entities and agencies 493,956 — 493,956 — Mortgage-backed securities—Agency 1,525,019 — 1,525,019 — States and political subdivisions 436,684 — 436,684 Pooled trust preferred securities 8,119 — — 8,119 Other securities 326,293 30,905 295,388 — Residential loans held for sale 90,682 — 90,682 — Derivative assets 17,701 — 17,701 — Financial Liabilities Derivative liabilities 23,574 — 23,574 — |
Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Nine Months Ended (dollars in thousands) 2017 2016 Balance at beginning of period $ 8,119 $ 7,900 Accretion of discount 13 14 Sales/payments received (373 ) (327 ) Increase (decrease) in fair value of securities 511 (813 ) Balance at end of period $ 8,270 $ 6,774 |
Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements | The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy at September 30, 2017 and December 31, 2016: (dollars in thousands) Fair Valuation Techniques Unobservable Input Range (Weighted September 30, 2017 Pooled trust preferred securities $ 8,270 Discounted cash flow Constant prepayment rate (a) 0.00% Additional asset defaults (b) 3.1%—4.4% (4.0%) Expected asset recoveries (c) 0.0%—4.1% (0.6%) December 31, 2016 Pooled trust preferred securities $ 8,119 Discounted cash flow Constant prepayment rate (a) 0.00% Additional asset defaults (b) 4.5%—10.0% (7.9%) Expected asset recoveries (c) 0.0%—6.1% (0.9%) (a) Assuming no prepayments. (b) Each currently performing pool asset is assigned a default probability based on the banking environment, which is adjusted for specific issuer evaluation, of 0%, 50%, or 100%. (c) Each currently defaulted pool asset is assigned a recovery probability based on specific issuer evaluation of 0%, 25%, or 100%. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Valuation Unobservable Input Range (Weighted September 30, 2017 Collateral Dependent Impaired Loans Commercial loans $ 3,438 Fair value of Discount for type of property, 20%—88% (51%) Commercial real estate loans 29,464 Fair value of Discount for type of property, 10%—50% (27%) Foreclosed Assets Commercial real estate (1) 56 Fair value of Discount for type of property, 83% (1) There was only one foreclosed commercial real estate asset at September 30, 2017, so no range or weighted average rate is reported. December 31, 2016 Collateral Dependent Impaired Loans Commercial loans $ 6,771 Fair value of Discount for type of property, 0%—99% (53%) Commercial real estate loans 11,632 Fair value of Discount for type of property, 10%—67% (36%) Foreclosed Assets Commercial real estate 1,352 Fair value of Discount for type of property, 4%—80% (39%) Residential 394 Fair value of Discount for type of property, 7%—60% (30%) |
Assets Measured at Fair Value on a Non-Recurring Basis | Assets measured at fair value on a non-recurring basis at September 30, 2017 are summarized below: Fair Value Measurements at September 30, 2017 Using (dollars in thousands) Carrying Quoted Prices in Active Markets for (Level 1) Significant Significant (Level 3) Collateral Dependent Impaired Loans: Commercial loans $ 3,438 $ — $ — $ 3,438 Commercial real estate loans 29,464 — — 29,464 Foreclosed Assets: Commercial real estate 56 — — 56 Loan servicing rights 2,719 — 2,719 — Assets measured at fair value on a non-recurring basis at December 31, 2016 are summarized below: Fair Value Measurements at December 31, 2016 Using (dollars in thousands) Carrying Quoted Prices in (Level 1) Significant Significant Collateral Dependent Impaired Loans: Commercial loans $ 6,771 $ — $ — $ 6,771 Commercial real estate loans 11,632 — — 11,632 Foreclosed Assets: Commercial real estate 1,352 — — 1,352 Residential 394 — — 394 Loan servicing rights 2,181 — 2,181 — |
Schedule of Difference Between the Aggregate Fair Value and the Aggregate Remaining Principal Balance | The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected at September 30, 2017 and December 31, 2016 was as follows: (dollars in thousands) Aggregate Difference Contractual September 30, 2017 Residential loans held for sale $ 30,221 $ 890 $ 29,331 December 31, 2016 Residential loans held for sale $ 90,682 $ 133 $ 90,549 Accrued interest at period end is included in the fair value of the instruments. The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value: (dollars in thousands) Other Interest Interest Total Changes Three months ended September 30, 2017 Residential loans held for sale $ 58 $ — $ — $ 58 Three months ended September 30, 2016 Residential loans held for sale $ 234 $ 4 $ — $ 238 Nine months ended September 30, 2017 Residential loans held for sale $ 755 $ 2 $ — $ 757 Nine months ended September 30, 2016 Residential loans held for sale $ 1,451 $ 4 $ — $ 1,455 |
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented | The carrying amounts and estimated fair values of financial instruments, not previously presented in this note, at September 30, 2017 and December 31, 2016 were as follows: Fair Value Measurements at September 30, 2017 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant (Level 3) Financial Assets Cash, due from banks, federal funds sold, and money market investments $ 252,367 $ 252,367 $ — $ — Investment securities held-to-maturity: Mortgage-backed securities—Agency 7,649 — 7,903 — State and political subdivisions 681,302 — 732,661 — Federal Home Loan Bank/Federal Reserve Bank stock 117,354 N/A N/A N/A Loans, net: Commercial 2,028,527 — — 2,110,928 Commercial real estate 3,350,186 — — 3,639,565 Residential real estate 2,117,211 — — 2,236,000 Consumer credit 1,852,031 — — 1,969,384 Accrued interest receivable 75,342 47 18,759 56,536 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 3,034,696 $ 3,034,696 $ — $ — NOW, savings, and money market deposits 6,120,099 6,120,099 — — Time deposits 1,451,989 — 1,443,473 — Federal funds purchased and interbank borrowings 317,021 317,021 Securities sold under agreements to repurchase 285,409 260,409 25,209 — Federal Home Loan Bank advances 1,589,367 — — 1,593,997 Other borrowings 219,314 — 221,739 — Accrued interest payable 4,364 — 4,364 — Standby letters of credit 334 — 334 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 3,067 N/A = not applicable Fair Value Measurements at December 31, 2016 Using (dollars in thousands) Carrying Quoted Prices in (Level 1) Significant Significant (Level 3) Financial Assets Cash, due from banks, federal funds sold, and money market investments $ 255,519 $ 255,519 $ — $ — Investment securities held-to-maturity: U.S. government-sponsored entities and agencies 40,131 — 40,558 — Mortgage-backed securities—Agency 10,640 — 10,940 — State and political subdivisions 694,319 — 732,674 — Federal Home Loan Bank/Federal Reserve Bank stock 101,716 N/A N/A N/A Loans, net: Commercial 1,895,618 — — 1,971,296 Commercial real estate 3,112,680 — — 3,400,365 Residential real estate 2,085,887 — — 2,228,542 Consumer credit 1,866,519 — — 1,974,180 Accrued interest receivable 81,381 16 22,880 58,485 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 3,016,093 $ 3,016,093 $ — $ — NOW, savings, and money market deposits 6,259,052 6,259,052 — — Time deposits 1,468,108 — 1,460,778 — Federal funds purchased and interbank borrowings 213,003 213,003 Securities sold under agreements to repurchase 367,052 317,052 50,612 — Federal Home Loan Bank advances 1,353,092 — — 1,360,599 Other borrowings 218,939 — 217,647 — Accrued interest payable 5,979 — 5,979 — Standby letters of credit 315 — — 315 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 2,527 N/A = not applicable |
Recent Accounting Pronounceme50
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Stock-based compensation expense | $ 4,684,000 | $ 5,070,000 |
Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Stock-based compensation expense | 100,000 | |
Minimum [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Anticipated increase in assets and liabilities | 80,000,000 | |
Maximum [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Anticipated increase in assets and liabilities | $ 100,000,000 |
Acquisition and Divestiture A51
Acquisition and Divestiture Activity - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | May 01, 2016BankingCenters | Jan. 31, 2017Branch | May 31, 2016USD ($) | Dec. 31, 2017Branch | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Dec. 31, 2016Branch | Sep. 29, 2017USD ($)$ / shares | Aug. 07, 2017Branch | Jun. 30, 2017USD ($)$ / shares |
Business Acquisition [Line Items] | ||||||||||
Cash received in acquisition | $ 91,771 | |||||||||
Goodwill and intangible assets eliminated | $ 0 | $ 40,963 | ||||||||
Number of banking centers consolidated | Branch | 15 | 5 | ||||||||
Closing price per share | $ / shares | $ 18.30 | |||||||||
Transaction value | $ 334,200 | |||||||||
Scenario, Forecast [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of banking centers consolidated | Branch | 14 | |||||||||
ONB Insurance Group, Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash received in acquisition | $ 91,800 | |||||||||
Gain on sale of assets before tax | 41,900 | |||||||||
Gain on sale of assets after tax | 17,600 | |||||||||
Goodwill and intangible assets eliminated | $ 47,500 | |||||||||
AnchorBank WI [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of banking centers | BankingCenters | 46 | |||||||||
Portion of share received by merged entity | 3.5505 | |||||||||
Consideration received in cash by merged entity | $ / shares | $ 48.50 | |||||||||
Total fair value of consideration paid | $ 459,800 | |||||||||
Purchase price of acquisition, cash | $ 186,200 | |||||||||
Issuance of common stock shares for acquisitions of business | shares | 20.4 | |||||||||
Value of issuance common stock shares | $ 273,600 | |||||||||
Transaction and integration costs associated with the acquisition | $ 15,900 | |||||||||
AnchorBank WI [Member] | Maximum [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum percentage of purchase price in cash | 40.00% | |||||||||
AnchorBank WI [Member] | Core Deposit [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated useful life of intangible assets | 7 years | |||||||||
Estimated fair value of intangible assets acquired | $ 21,600 | |||||||||
AnchorBank WI [Member] | Madison Milwaukee and Fox Valley Triangle [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of banking centers | BankingCenters | 32 | |||||||||
Anchor Bank (MN) [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Portion of share received by merged entity | 1.350 | |||||||||
Consideration received in cash by merged entity | $ / shares | $ 2.625 | |||||||||
Number of branches | Branch | 18 | |||||||||
Reported total assets of acquiree | $ 2,100,000 | |||||||||
Total deposit liabilities held by acquiree | $ 1,700,000 |
Acquisition and Divestiture A52
Acquisition and Divestiture Activity - Schedule of Consideration Paid Allocation (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Deposits | $ (10,606,784) | $ (10,743,253) | $ (10,646,708) | |
Securities sold under agreements to repurchase | (285,409) | (367,052) | (347,804) | |
Goodwill | 655,018 | $ 655,018 | $ 655,210 | $ 584,634 |
AnchorBank WI [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 123,657 | |||
Investment securities | 235,240 | |||
Federal Home Loan Bank stock | 4,596 | |||
Loans held for sale | 9,334 | |||
Loans | 1,637,806 | |||
Premises and equipment | 35,721 | |||
Accrued interest receivable | 7,308 | |||
Other real estate owned | 17,349 | |||
Company-owned life insurance | 7,278 | |||
Other assets | 126,210 | |||
Deposits | (1,852,713) | |||
Securities sold under agreements to repurchase | (3,132) | |||
Other borrowings | (123) | |||
Accrued expenses and other liabilities | (36,957) | |||
Net tangible assets acquired | 311,574 | |||
Definite-lived intangible assets acquired | 21,559 | |||
Loan servicing rights | 15,274 | |||
Goodwill | 111,347 | |||
Total consideration paid | $ 459,754 |
Acquisition and Divestiture A53
Acquisition and Divestiture Activity - Schedule of Acquired Loan Data (Detail) - AnchorBank WI [Member] $ in Thousands | Sep. 30, 2017USD ($) |
Loans at Acquisition Date [Line Items] | |
Fair Value of Acquired Loans at Acquisition Date | $ 1,637,806 |
Acquired Receivables Subject to ASC 310-30 [Member] | |
Loans at Acquisition Date [Line Items] | |
Fair Value of Acquired Loans at Acquisition Date | 20,174 |
Gross Contractual Amounts Receivable at Acquisition Date | 29,544 |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected | 6,153 |
Acquired Receivables Not Subject to ASC 310-30 [Member] | |
Loans at Acquisition Date [Line Items] | |
Fair Value of Acquired Loans at Acquisition Date | 1,617,632 |
Gross Contractual Amounts Receivable at Acquisition Date | 2,143,532 |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected | $ 274,155 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Table Reconciling Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 39,372 | $ 34,709 | $ 114,218 | $ 100,808 |
Basic Earnings Per Share, Weighted average common shares outstanding | 135,120 | 134,492 | 135,040 | 125,366 |
Basic Net Income Per Share | $ 0.30 | $ 0.25 | $ 0.85 | $ 0.80 |
Net income | $ 39,372 | $ 34,709 | $ 114,218 | $ 100,808 |
Diluted Earnings Per Share, Weighted average common shares outstanding | 135,120 | 134,492 | 135,040 | 125,366 |
Effect of dilutive securities: Restricted stock | 589 | 465 | 558 | 432 |
Effect of dilutive securities: Stock options | 87 | 54 | 95 | 41 |
Diluted Earnings Per Share, Weighted average shares outstanding | 135,796 | 135,011 | 135,693 | 125,839 |
Diluted Net Income Per Share | $ 0.29 | $ 0.25 | $ 0.84 | $ 0.80 |
Net Income Per Share - Summar55
Net Income Per Share - Summary of Table Reconciling Basic and Diluted Net Income Per Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Options [Member] | ||||
Summary Of Computation Of Basic And Diluted Earnings Per Share [Line Items] | ||||
Antidilutive securities not included in the computation of net income per diluted share | 0.1 | 0.9 | 0.1 | 0.8 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities Portfolio (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale, Amortized Cost | $ 2,802,435 | $ 2,858,677 | |
Available-for-Sale, Unrealized Gains | 12,746 | 12,433 | |
Available-for-Sale, Unrealized Losses | (39,344) | (73,936) | |
Available-for-Sale securities, Fair Value | 2,775,837 | 2,797,174 | $ 2,758,678 |
Held-to-Maturity, Amortized Cost | 688,951 | 745,090 | 850,803 |
Held-to-Maturity, Unrealized Gains | 51,613 | 39,642 | |
Held-to-Maturity, Unrealized Losses | (560) | ||
Held-to-Maturity, Fair Value | 740,564 | 784,172 | $ 922,311 |
U.S. Treasury [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale, Amortized Cost | 5,472 | 6,963 | |
Available-for-Sale, Unrealized Gains | 143 | 140 | |
Available-for-Sale securities, Fair Value | 5,615 | 7,103 | |
U.S. Government-Sponsored Entities and Agencies [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale, Amortized Cost | 583,151 | 506,234 | |
Available-for-Sale, Unrealized Gains | 86 | 113 | |
Available-for-Sale, Unrealized Losses | (6,801) | (12,391) | |
Available-for-Sale securities, Fair Value | 576,436 | 493,956 | |
Held-to-Maturity, Amortized Cost | 40,131 | ||
Held-to-Maturity, Unrealized Gains | 427 | ||
Held-to-Maturity, Fair Value | 40,558 | ||
Mortgage-Backed Securities - Agency [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale, Amortized Cost | 1,466,636 | 1,551,465 | |
Available-for-Sale, Unrealized Gains | 3,862 | 6,923 | |
Available-for-Sale, Unrealized Losses | (19,762) | (33,369) | |
Available-for-Sale securities, Fair Value | 1,450,736 | 1,525,019 | |
Held-to-Maturity, Amortized Cost | 7,649 | 10,640 | |
Held-to-Maturity, Unrealized Gains | 254 | 300 | |
Held-to-Maturity, Fair Value | 7,903 | 10,940 | |
States and Political Subdivisions [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale, Amortized Cost | 410,856 | 446,003 | |
Available-for-Sale, Unrealized Gains | 6,569 | 4,183 | |
Available-for-Sale, Unrealized Losses | (2,752) | (13,502) | |
Available-for-Sale securities, Fair Value | 414,673 | 436,684 | |
Held-to-Maturity, Amortized Cost | 681,302 | 694,319 | |
Held-to-Maturity, Unrealized Gains | 51,359 | 38,915 | |
Held-to-Maturity, Unrealized Losses | (560) | ||
Held-to-Maturity, Fair Value | 732,661 | 732,674 | |
Pooled Trust Preferred Securities [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale, Amortized Cost | 16,651 | 17,011 | |
Available-for-Sale, Unrealized Losses | (8,381) | (8,892) | |
Available-for-Sale securities, Fair Value | 8,270 | 8,119 | |
Other Securities [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale, Amortized Cost | 319,669 | 331,001 | |
Available-for-Sale, Unrealized Gains | 2,086 | 1,074 | |
Available-for-Sale, Unrealized Losses | (1,648) | (5,782) | |
Available-for-Sale securities, Fair Value | $ 320,107 | $ 326,293 |
Investment Securities - Schedul
Investment Securities - Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-sale Investment Securities and Other Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from sales of available-for-sale securities | $ 98,038 | $ 50,368 | $ 284,315 | $ 157,819 |
Proceeds from calls of available-for-sale securities | 337,766 | 1,043,014 | ||
Total | 100,341 | 211,173 | 357,738 | 682,933 |
Realized gains on sales of available-for-sale securities | 2,891 | 1,062 | 7,174 | 4,213 |
Realized losses on sales of available-for-sale securities | (36) | (2) | (79) | (450) |
Other securities gains (losses) | 104 | 125 | 447 | 101 |
Net securities gains (losses) | 2,972 | 1,647 | 7,547 | 4,609 |
Calls [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from calls of available-for-sale securities | 2,303 | 160,805 | 73,423 | 525,114 |
Realized gains on calls of available-for-sale securities | $ 13 | 477 | 13 | 848 |
Realized losses on calls of available-for-sale securities | $ (15) | $ (8) | $ (103) |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2017USD ($)SecuritySegment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Investment [Line Items] | |||
Trading securities that consist of mutual funds | $ 5,351,000 | $ 4,973,000 | $ 4,982,000 |
Number of segments | Segment | 2 | ||
OTTI losses on securities | $ 0 | 0 | |
Number of securities in security portfolio | Security | 1,495 | ||
Number of securities in unrealized loss position | Security | 317 | ||
Unrealized losses | $ 39,344,000 | 73,936,000 | |
Former Directors and Executives [Member] | |||
Investment [Line Items] | |||
Trading securities that consist of mutual funds | $ 5,400,000 | 5,000,000 | |
Pooled Trust Preferred Securities, Not Subject to FASB ASC 325-10 [Member] | |||
Investment [Line Items] | |||
Number of trust preferred securities | Security | 2 | ||
Securities portfolio at fair value | $ 8,000,000 | ||
Unrealized losses | $ 5,900,000 | ||
Pooled Trust Preferred Securities, Subject To FASB ASC 325-10 [Member] | |||
Investment [Line Items] | |||
Number of trust preferred securities | Security | 1 | ||
Securities portfolio at fair value | $ 300,000 | ||
Unrealized losses | $ 2,500,000 | ||
Pooled Trust Preferred Securities [Member] | |||
Investment [Line Items] | |||
Number of trust preferred securities | Security | 3 | ||
Securities portfolio at fair value | $ 8,300,000 | ||
Unrealized losses | 8,400,000 | ||
Unrealized losses | 8,381,000 | $ 8,892,000 | |
OTTI losses | $ 0 | $ 0 |
Investment Securities - Expecte
Investment Securities - Expected Maturities of Investment Securities Portfolio (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-Sale, Maturity, Within one year, Amortized Cost | $ 34,563 | ||
Available-for-Sale, Maturity, One to five years, Amortized Cost | 338,424 | ||
Available-for-Sale, Maturity, Five to ten years, Amortized Cost | 302,515 | ||
Available-for-Sale, Maturity, Beyond ten years, Amortized Cost | 2,126,933 | ||
Available-for-Sale, Amortized Cost | 2,802,435 | $ 2,858,677 | |
Held-to-Maturity, Maturity, Within one year, Amortized Cost | 23,751 | ||
Held-to-Maturity, Maturity, One to five years, Amortized Cost | 89,739 | ||
Held-to-Maturity, Maturity, Five to ten years, Amortized Cost | 172,648 | ||
Held-to-Maturity, Maturity, Beyond ten years, Amortized Cost | 402,813 | ||
Held-to-Maturity, Amortized Cost | 688,951 | 745,090 | $ 850,803 |
Available-for-Sale, Maturity, Within one year, Fair Value | 34,686 | ||
Available-for-Sale, Maturity, One to five years, Fair Value | 339,100 | ||
Available-for-Sale, Maturity, Five to ten years, Fair Value | 305,146 | ||
Available-for-Sale, Maturity, Beyond ten years, Fair Value | 2,096,905 | ||
Available-for-Sale securities, Fair Value | 2,775,837 | 2,797,174 | 2,758,678 |
Held-to-Maturity, Maturity, Within one year, Fair Value | 24,064 | ||
Held-to-Maturity, Maturity, One to five years, Fair Value | 94,617 | ||
Held-to-Maturity, Maturity, Five to ten years, Fair Value | 183,505 | ||
Held-to-Maturity, Maturity, Beyond ten years, Fair Value | 438,378 | ||
Held-to-Maturity, Fair Value | $ 740,564 | $ 784,172 | $ 922,311 |
Available-for-Sale, Maturity, Within one year, Weighted Average Yield | 2.36% | ||
Available-for-Sale, Maturity, One to five years, Weighted Average Yield | 2.11% | ||
Available-for-Sale, Maturity, Five to ten years, Weighted Average Yield | 2.85% | ||
Available-for-Sale, Maturity, Beyond ten years, Weighted Average Yield | 2.43% | ||
Available-for-Sale, Weighted Average Yield | 2.44% | ||
Held-to-Maturity, Maturity, Within one year, Weighted Average Yield | 6.15% | ||
Held-to-Maturity, Maturity, One to five years, Weighted Average Yield | 4.88% | ||
Held-to-Maturity, Maturity, Five to ten years, Weighted Average Yield | 4.88% | ||
Held-to-Maturity, Maturity, Beyond ten years, Weighted Average Yield | 5.75% | ||
Held-to-Maturity, Weighted Average Yield | 5.43% |
Investment Securities - Investm
Investment Securities - Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | $ 1,576,619 | $ 2,017,134 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (19,071) | (58,667) |
Available-for-Sale, 12 months or longer, Fair Value | 409,699 | 197,213 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (20,273) | (15,269) |
Available-for-Sale, Fair Value | 1,986,318 | 2,214,347 |
Available-for-Sale, Unrealized Losses | (39,344) | (73,936) |
Held-to-Maturity, Less than 12 Months, Fair Value | 465 | 59,481 |
Held-to-Maturity, Less than 12 Months, Unrealized Losses | (560) | |
Held-to-Maturity, 12 months or longer, Fair Value | 0 | 0 |
Held-to-Maturity, 12 months or longer, Unrealized Losses | 0 | 0 |
Held-to-Maturity, Fair Value | 465 | 59,481 |
Held-to-Maturity, Unrealized Losses | (560) | |
U.S. Government-Sponsored Entities and Agencies [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 406,906 | 432,192 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (3,708) | (12,391) |
Available-for-Sale, 12 months or longer, Fair Value | 89,907 | |
Available-for-Sale, 12 months or longer, Unrealized Losses | (3,093) | |
Available-for-Sale, Fair Value | 496,813 | 432,192 |
Available-for-Sale, Unrealized Losses | (6,801) | (12,391) |
Mortgage-Backed Securities - Agency [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 985,209 | 1,177,093 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (12,903) | (30,295) |
Available-for-Sale, 12 months or longer, Fair Value | 190,224 | 57,636 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (6,859) | (3,074) |
Available-for-Sale, Fair Value | 1,175,433 | 1,234,729 |
Available-for-Sale, Unrealized Losses | (19,762) | (33,369) |
States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 104,214 | 286,351 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (1,612) | (13,247) |
Available-for-Sale, 12 months or longer, Fair Value | 35,715 | 4,919 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (1,140) | (255) |
Available-for-Sale, Fair Value | 139,929 | 291,270 |
Available-for-Sale, Unrealized Losses | (2,752) | (13,502) |
Held-to-Maturity, Less than 12 Months, Fair Value | 465 | 59,481 |
Held-to-Maturity, Less than 12 Months, Unrealized Losses | (560) | |
Held-to-Maturity, 12 months or longer, Fair Value | 0 | 0 |
Held-to-Maturity, 12 months or longer, Unrealized Losses | 0 | 0 |
Held-to-Maturity, Fair Value | 465 | 59,481 |
Held-to-Maturity, Unrealized Losses | (560) | |
Pooled Trust Preferred Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-Sale, 12 months or longer, Fair Value | 8,270 | 8,119 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (8,381) | (8,892) |
Available-for-Sale, Fair Value | 8,270 | 8,119 |
Available-for-Sale, Unrealized Losses | (8,381) | (8,892) |
Other Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 80,290 | 121,498 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (848) | (2,734) |
Available-for-Sale, 12 months or longer, Fair Value | 85,583 | 126,539 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (800) | (3,048) |
Available-for-Sale, Fair Value | 165,873 | 248,037 |
Available-for-Sale, Unrealized Losses | $ (1,648) | $ (5,782) |
Investment Securities - Trust P
Investment Securities - Trust Preferred Securities (Detail) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017USD ($)Item | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-Sale securities, Fair Value | $ 2,775,837 | $ 2,797,174 | $ 2,758,678 |
Pooled Trust Preferred Securities One [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Amortized Cost | 16,651 | ||
Available-for-Sale securities, Fair Value | 8,270 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | (8,381) | ||
Realized Losses 2017 | $ 0 | ||
Pooled Trust Preferred Securities One [Member] | Reg Div Funding 2004 [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Pooled trust preferred securities, Class | B2 | ||
Lowest Credit Rating | D | ||
Amortized Cost | $ 2,738 | ||
Available-for-Sale securities, Fair Value | 262 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | (2,476) | ||
Realized Losses 2017 | $ 0 | ||
# of Issuers Currently Performing | Item | 21 | ||
# of Issuers Currently Remaining | Item | 36 | ||
Actual Deferrals and Defaults as a Percent of Original Collateral | 32.10% | ||
Expected Defaults as a % of Remaining Performing Collateral | 7.50% | ||
Excess Subordination as a % of Current Performing Collateral | 0.00% | ||
Pooled Trust Preferred Securities One [Member] | Pretsl XXVII LTD [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Pooled trust preferred securities, Class | B | ||
Lowest Credit Rating | B | ||
Amortized Cost | $ 4,422 | ||
Available-for-Sale securities, Fair Value | 2,451 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | (1,971) | ||
Realized Losses 2017 | $ 0 | ||
# of Issuers Currently Performing | Item | 35 | ||
# of Issuers Currently Remaining | Item | 44 | ||
Actual Deferrals and Defaults as a Percent of Original Collateral | 16.70% | ||
Expected Defaults as a % of Remaining Performing Collateral | 3.80% | ||
Excess Subordination as a % of Current Performing Collateral | 47.90% | ||
Pooled Trust Preferred Securities One [Member] | Trapeza Ser 13A [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Pooled trust preferred securities, Class | A2A | ||
Lowest Credit Rating | BBB | ||
Amortized Cost | $ 9,491 | ||
Available-for-Sale securities, Fair Value | 5,557 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | (3,934) | ||
Realized Losses 2017 | $ 0 | ||
# of Issuers Currently Performing | Item | 50 | ||
# of Issuers Currently Remaining | Item | 55 | ||
Actual Deferrals and Defaults as a Percent of Original Collateral | 4.50% | ||
Expected Defaults as a % of Remaining Performing Collateral | 4.60% | ||
Excess Subordination as a % of Current Performing Collateral | 45.20% | ||
Single Issuer Trust Preferred Securities [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Amortized Cost | $ 9,810 | ||
Available-for-Sale securities, Fair Value | 9,818 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | 8 | ||
Realized Losses 2017 | $ 0 | ||
Single Issuer Trust Preferred Securities [Member] | Fleet Cap Tr V (BOA) [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Lowest Credit Rating | BB+ | ||
Amortized Cost | $ 3,403 | ||
Available-for-Sale securities, Fair Value | 3,325 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | (78) | ||
Realized Losses 2017 | $ 0 | ||
Single Issuer Trust Preferred Securities [Member] | J P Morgan Chase Cap XIII [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Lowest Credit Rating | BBB- | ||
Amortized Cost | $ 4,775 | ||
Available-for-Sale securities, Fair Value | 4,609 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | (166) | ||
Realized Losses 2017 | $ 0 | ||
Single Issuer Trust Preferred Securities [Member] | NB-Global [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Lowest Credit Rating | BB+ | ||
Amortized Cost | $ 799 | ||
Available-for-Sale securities, Fair Value | 949 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | 150 | ||
Realized Losses 2017 | $ 0 | ||
Single Issuer Trust Preferred Securities [Member] | Chase Cap II [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Lowest Credit Rating | BBB- | ||
Amortized Cost | $ 833 | ||
Available-for-Sale securities, Fair Value | 935 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | 102 | ||
Realized Losses 2017 | 0 | ||
Trust Preferred Securities [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Amortized Cost | 26,461 | ||
Available-for-Sale securities, Fair Value | 18,088 | ||
Available-for-Sale, Unrealized Gain/ (Loss) | (8,373) | ||
Realized Losses 2017 | $ 0 |
Loans Held for Sale - Additiona
Loans Held for Sale - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Residential Mortgage Loans [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage loans held for sale | $ 30.2 | $ 90.7 |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses - Additional Information (Detail) | 9 Months Ended | |||
Sep. 30, 2017USD ($)SecurityLoan | Sep. 30, 2016USD ($)SecurityLoan | Dec. 31, 2016USD ($) | May 01, 2016USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Commercial real estate | $ 3,370,211,000 | $ 3,092,575,000 | $ 3,130,853,000 | |
Total loans | $ 9,398,124,000 | 8,904,985,000 | 9,010,512,000 | |
Loan placed on nonaccrual when past due, number of days | 90 days | |||
Loan participations | $ 541,600,000 | |||
Loan participations sold | 271,700,000 | |||
Loan participations retained | $ 269,900,000 | |||
Troubled debt restructuring term | 6 months | |||
Minimum number of days for loan charge off to be recorded | 120 days | |||
Maximum number of days for loan charge off to be recorded | 180 days | |||
Nonaccrual period for loans | 90 days | |||
Financing receivable TDR's included with non-accrual loans | $ 43,700,000 | 26,300,000 | ||
Financing receivable troubled debt restructurings specific reserves | 6,500,000 | 4,000,000 | ||
Unfunded commitments on TDRs | 3,900,000 | |||
Increase (decrease) in allowance for loan losses | 3,200,000 | (300,000) | ||
Allowance for loan losses charge-offs | $ 0 | 800,000 | ||
Number of days for a loan to be considered to be in payment default | 90 days | |||
Number of loans modified as TDRs | SecurityLoan | 0 | |||
Troubled debt restructurings which was a payment default | 600,000 | |||
Outstanding loans including principal, interest, fees and penalties | $ 241,100,000 | 268,000,000 | ||
Accretion recorded as loan interest income | 12,800,000 | $ 18,200,000 | ||
Financing receivable allowance for loan losses related to purchased loans | 200,000 | 300,000 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 3,370,211,000 | 3,130,853,000 | ||
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | $ 1,859,739,000 | 1,875,030,000 | ||
Credit Concentration Risk [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Concentration Risk Percentage | 10.00% | |||
Maximum [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Value of small commercial loans on nonaccrual status or 90 days or more delinquent | $ 250,000 | |||
AnchorBank WI [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Commercial real estate | $ 926,200,000 | |||
AnchorBank WI [Member] | Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Percentage of risk-based capital | 188.00% | |||
Regulatory guideline limit | 300.00% | |||
AnchorBank WI [Member] | Consumer [Member] | Student Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | $ 70,200,000 | |||
AnchorBank WI [Member] | Maximum [Member] | Consumer [Member] | Student Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loan guarantee percentage | 100.00% | |||
AnchorBank WI [Member] | Minimum [Member] | Consumer [Member] | Student Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loan guarantee percentage | 97.00% | |||
Commercial Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | $ 2,049,054,000 | $ 1,917,099,000 | ||
Number of loans modified as TDRs | SecurityLoan | 6 | |||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Number of loans modified as TDRs | SecurityLoan | 1 |
Loans and Allowance for Loan 64
Loans and Allowance for Loan Losses - Schedule of Composition of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | $ 9,398,124 | $ 9,010,512 | $ 8,904,985 | |||
Allowance for loan losses | (50,169) | $ (50,986) | (49,808) | (51,547) | $ (51,804) | $ (52,233) |
Net loans | 9,347,955 | 8,960,704 | 8,853,438 | |||
Commercial Loan [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 2,049,054 | 1,917,099 | ||||
Allowance for loan losses | (20,527) | $ (20,365) | (21,481) | $ (24,530) | $ (24,156) | $ (26,347) |
Residential Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 2,119,120 | 2,087,530 | ||||
Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 1,859,739 | 1,875,030 | ||||
Consumer [Member] | Consumer Credit - Home Equity [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 477,100 | 476,439 | ||||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 3,370,211 | 3,130,853 | ||||
Construction [Member] | Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 276,226 | 357,802 | ||||
Other [Member] | Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 217,350 | 230,854 | ||||
Other [Member] | Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | 3,093,985 | 2,773,051 | ||||
Consumer Credit - Auto [Member] | Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans by lending classification | $ 1,165,289 | $ 1,167,737 |
Loans and Allowance for Loan 65
Loans and Allowance for Loan Losses - Schedule of Composition of Loans (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Direct finance leases | $ 8.7 | $ 10.8 |
Loans and Allowance for Loan 66
Loans and Allowance for Loan Losses - Schedule of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | $ 50,986 | $ 51,804 | $ 49,808 | $ 52,233 |
Charge-offs | (2,821) | (4,519) | (9,440) | (11,138) |
Recoveries | 1,693 | 2,956 | 7,788 | 7,736 |
Provision | 311 | 1,306 | 2,013 | 2,716 |
Ending balance | 50,169 | 51,547 | 50,169 | 51,547 |
Commercial Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 20,365 | 24,156 | 21,481 | 26,347 |
Charge-offs | (70) | (1,681) | (951) | (3,640) |
Recoveries | 255 | 594 | 1,647 | 2,288 |
Provision | (23) | 1,461 | (1,650) | (465) |
Ending balance | 20,527 | 24,530 | 20,527 | 24,530 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 20,654 | 18,208 | 18,173 | 15,993 |
Charge-offs | (1,148) | (1,378) | (2,784) | (2,440) |
Recoveries | 339 | 1,548 | 3,086 | 2,935 |
Provision | 180 | (1,033) | 1,550 | 857 |
Ending balance | 20,025 | 17,345 | 20,025 | 17,345 |
Residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 1,811 | 1,459 | 1,643 | 2,051 |
Charge-offs | (227) | (140) | (954) | (360) |
Recoveries | 89 | 2,174 | 196 | 2,387 |
Provision | 236 | (1,963) | 1,024 | (2,548) |
Ending balance | 1,909 | 1,530 | 1,909 | 1,530 |
Consumer Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning balance | 8,156 | 7,981 | 8,511 | 7,842 |
Charge-offs | (1,376) | (1,320) | (4,751) | (4,698) |
Recoveries | 1,010 | (1,360) | 2,859 | 126 |
Provision | (82) | 2,841 | 1,089 | 4,872 |
Ending balance | $ 7,708 | $ 8,142 | $ 7,708 | $ 8,142 |
Loans and Allowance for Loan 67
Loans and Allowance for Loan Losses - Schedule of Recorded Investment in Financing Receivables (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, Individually evaluated for impairment | $ 10,942 | $ 7,998 | |
Allowance for loan losses, Collectively evaluated for impairment | 39,029 | 41,532 | |
Allowance for loan losses, Loans acquired with deteriorated credit quality | 198 | 278 | |
Total allowance for loan losses | 50,169 | 49,808 | |
Loans and leases outstanding, Individually evaluated for impairment | 95,717 | 103,190 | |
Loans and leases outstanding, Collectively evaluated for impairment | 9,264,227 | 8,851,903 | |
Loans and leases outstanding, Loans acquired with deteriorated credit quality | 38,180 | 55,419 | |
Total loans | 9,398,124 | 9,010,512 | $ 8,904,985 |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, Individually evaluated for impairment | 4,456 | 4,561 | |
Allowance for loan losses, Collectively evaluated for impairment | 16,048 | 16,838 | |
Allowance for loan losses, Loans acquired with deteriorated credit quality | 23 | 82 | |
Total allowance for loan losses | 20,527 | 21,481 | |
Loans and leases outstanding, Individually evaluated for impairment | 33,275 | 45,960 | |
Loans and leases outstanding, Collectively evaluated for impairment | 2,015,185 | 1,870,289 | |
Loans and leases outstanding, Loans acquired with deteriorated credit quality | 594 | 850 | |
Total loans | 2,049,054 | 1,917,099 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, Individually evaluated for impairment | 6,486 | 3,437 | |
Allowance for loan losses, Collectively evaluated for impairment | 13,520 | 14,717 | |
Allowance for loan losses, Loans acquired with deteriorated credit quality | 19 | 19 | |
Total allowance for loan losses | 20,025 | 18,173 | |
Loans and leases outstanding, Individually evaluated for impairment | 62,442 | 57,230 | |
Loans and leases outstanding, Collectively evaluated for impairment | 3,287,914 | 3,040,849 | |
Loans and leases outstanding, Loans acquired with deteriorated credit quality | 19,855 | 32,774 | |
Total loans | 3,370,211 | 3,130,853 | |
Residential [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, Collectively evaluated for impairment | 1,909 | 1,643 | |
Total allowance for loan losses | 1,909 | 1,643 | |
Loans and leases outstanding, Collectively evaluated for impairment | 2,107,253 | 2,073,950 | |
Loans and leases outstanding, Loans acquired with deteriorated credit quality | 11,867 | 13,580 | |
Total loans | 2,119,120 | 2,087,530 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses, Collectively evaluated for impairment | 7,552 | 8,334 | |
Allowance for loan losses, Loans acquired with deteriorated credit quality | 156 | 177 | |
Total allowance for loan losses | 7,708 | 8,511 | |
Loans and leases outstanding, Collectively evaluated for impairment | 1,853,875 | 1,866,815 | |
Loans and leases outstanding, Loans acquired with deteriorated credit quality | 5,864 | 8,215 | |
Total loans | $ 1,859,739 | $ 1,875,030 |
Loans and Allowance for Loan 68
Loans and Allowance for Loan Losses - Schedule of Risk Category of Commercial and Commercial Real Estate Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Risk Category Of Loans [Line Items] | |||
Total | $ 2,049,054 | $ 1,917,099 | $ 1,836,380 |
Commercial [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 2,049,054 | 1,917,099 | |
Commercial [Member] | Pass [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 1,944,997 | 1,750,923 | |
Commercial [Member] | Criticized [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 41,004 | 45,614 | |
Commercial [Member] | Classified - Substandard [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 33,524 | 63,978 | |
Commercial [Member] | Classified - Nonaccrual [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 26,981 | 53,062 | |
Commercial [Member] | Classified - Doubtful [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 2,548 | 3,522 | |
Commercial Real Estate [Member] | Construction [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 276,226 | 357,802 | |
Commercial Real Estate [Member] | Other [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 3,093,985 | 2,773,051 | |
Commercial Real Estate [Member] | Pass [Member] | Construction [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 261,500 | 347,325 | |
Commercial Real Estate [Member] | Pass [Member] | Other [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 2,911,548 | 2,669,890 | |
Commercial Real Estate [Member] | Criticized [Member] | Construction [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 14,726 | 9,258 | |
Commercial Real Estate [Member] | Criticized [Member] | Other [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 74,467 | 40,590 | |
Commercial Real Estate [Member] | Classified - Substandard [Member] | Construction [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 49 | ||
Commercial Real Estate [Member] | Classified - Substandard [Member] | Other [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 50,842 | 19,715 | |
Commercial Real Estate [Member] | Classified - Nonaccrual [Member] | Construction [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 1,170 | ||
Commercial Real Estate [Member] | Classified - Nonaccrual [Member] | Other [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | 30,693 | 33,833 | |
Commercial Real Estate [Member] | Classified - Doubtful [Member] | Other [Member] | |||
Risk Category Of Loans [Line Items] | |||
Total | $ 26,435 | $ 9,023 |
Loans and Allowance for Loan 69
Loans and Allowance for Loan Losses - Schedule of Recorded Investment in Residential and Consumer Loans Based on Payment Activity (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment | $ 1,859,739 | $ 1,875,030 | $ 1,870,798 |
Residential real estate | 2,119,120 | 2,087,530 | $ 2,105,232 |
Consumer Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment | 477,100 | 476,439 | |
Consumer Home Equity [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Performing | 471,827 | 472,008 | |
Consumer Home Equity [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Nonperforming | 5,273 | 4,431 | |
Consumer Auto [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment | 1,165,289 | 1,167,737 | |
Consumer Auto [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Performing | 1,162,634 | 1,166,114 | |
Consumer Auto [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Nonperforming | 2,655 | 1,623 | |
Consumer - Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment | 217,350 | 230,854 | |
Consumer - Other [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Performing | 212,214 | 223,786 | |
Consumer - Other [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Nonperforming | 5,136 | 7,068 | |
Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Residential real estate | 2,119,120 | 2,087,530 | |
Residential [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Performing | 2,099,585 | 2,069,856 | |
Residential [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Finance receivable recorded investment, Nonperforming | $ 19,535 | $ 17,674 |
Loans and Allowance for Loan 70
Loans and Allowance for Loan Losses - Schedule of Impaired Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Total | $ 103,256 | $ 108,632 |
Unpaid Principal Balance, Total | 106,489 | 112,089 |
Related Allowance | 11,098 | 8,148 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no related allowance | 25,393 | 29,001 |
Unpaid Principal Balance with no related allowance | 26,374 | 29,634 |
Recorded Investment with related allowance | 7,882 | 16,959 |
Unpaid Principal Balance with related allowance | 7,882 | 17,283 |
Related Allowance | 4,456 | 4,561 |
Commercial Real Estate - Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no related allowance | 31,928 | 30,585 |
Unpaid Principal Balance with no related allowance | 33,687 | 32,413 |
Recorded Investment with related allowance | 30,514 | 26,645 |
Unpaid Principal Balance with related allowance | 30,770 | 27,177 |
Related Allowance | 6,486 | 3,437 |
Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no related allowance | 2,464 | 1,610 |
Unpaid Principal Balance with no related allowance | 2,485 | 1,631 |
Recorded Investment with related allowance | 882 | 1,081 |
Unpaid Principal Balance with related allowance | 882 | 1,081 |
Related Allowance | 44 | 54 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment with no related allowance | 1,924 | 827 |
Unpaid Principal Balance with no related allowance | 2,140 | 946 |
Recorded Investment with related allowance | 2,269 | 1,924 |
Unpaid Principal Balance with related allowance | 2,269 | 1,924 |
Related Allowance | $ 112 | $ 96 |
Loans and Allowance for Loan 71
Loans and Allowance for Loan Losses - Schedule of Average Balance of Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Average Recorded Investment, Total | $ 103,551 | $ 114,532 | $ 102,507 | $ 113,408 |
Commercial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment with no related allowance | 24,234 | 35,513 | 27,197 | 37,581 |
Average Recorded Investment with an allowance recorded | 7,792 | 17,334 | 8,086 | 16,072 |
Commercial Real Estate - Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment with no related allowance | 33,268 | 40,971 | 31,258 | 37,937 |
Average Recorded Investment with an allowance recorded | 30,846 | 15,119 | 28,580 | 15,977 |
Residential [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment with no related allowance | 2,482 | 1,233 | 2,405 | 1,270 |
Average Recorded Investment with an allowance recorded | 1,011 | 1,099 | 1,059 | 1,072 |
Consumer [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment with no related allowance | 1,755 | 878 | 1,786 | 865 |
Average Recorded Investment with an allowance recorded | $ 2,163 | $ 2,385 | $ 2,136 | 2,515 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment with an allowance recorded | $ 119 |
Loans and Allowance for Loan 72
Loans and Allowance for Loan Losses - Schedule of Past Due Financing Receivables (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment > 90 Days and Accruing | $ 879 | $ 328 |
Nonaccrual | 119,256 | 131,407 |
Financing Receivables, Past Due | 151,795 | 170,573 |
Current | 9,246,329 | 8,839,939 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 25,875 | 31,260 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 5,785 | 7,578 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment > 90 Days and Accruing | 251 | 23 |
Nonaccrual | 29,529 | 56,585 |
Financing Receivables, Past Due | 30,176 | 57,734 |
Current | 2,018,878 | 1,859,365 |
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 296 | 847 |
Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 100 | 279 |
Construction [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,170 | |
Financing Receivables, Past Due | 1,170 | |
Current | 276,226 | 356,632 |
Other [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 57,128 | 42,856 |
Financing Receivables, Past Due | 57,278 | 44,658 |
Current | 3,036,707 | 2,728,393 |
Other [Member] | Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 150 | 1,652 |
Other [Member] | Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 150 | |
Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment > 90 Days and Accruing | 232 | 2 |
Nonaccrual | 19,535 | 17,674 |
Financing Receivables, Past Due | 39,093 | 39,232 |
Current | 2,080,027 | 2,048,298 |
Residential [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 16,091 | 17,786 |
Residential [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 3,235 | 3,770 |
Consumer Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment > 90 Days and Accruing | 88 | |
Nonaccrual | 5,273 | 4,431 |
Financing Receivables, Past Due | 6,614 | 6,365 |
Current | 470,486 | 470,074 |
Consumer Home Equity [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 939 | 1,511 |
Consumer Home Equity [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 314 | 423 |
Consumer Auto [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment > 90 Days and Accruing | 282 | 242 |
Nonaccrual | 2,655 | 1,623 |
Financing Receivables, Past Due | 9,449 | 8,805 |
Current | 1,155,840 | 1,158,932 |
Consumer Auto [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 5,535 | 5,903 |
Consumer Auto [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 977 | 1,037 |
Consumer - Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment > 90 Days and Accruing | 26 | 61 |
Nonaccrual | 5,136 | 7,068 |
Financing Receivables, Past Due | 9,185 | 12,609 |
Current | 208,165 | 218,245 |
Consumer - Other [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | 2,864 | 3,561 |
Consumer - Other [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivables, Past Due | $ 1,159 | $ 1,919 |
Loans and Allowance for Loan 73
Loans and Allowance for Loan Losses - Schedule of Activity in Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Balance at beginning of period | $ 40,716 | $ 44,251 |
(Charge-offs)/recoveries | 303 | (935) |
Payments | (15,432) | (25,322) |
Additions | 33,533 | 23,668 |
Interest collected on nonaccrual loans | 2,915 | 2,092 |
Balance at end of period | 62,035 | 43,754 |
Commercial Loan [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Balance at beginning of period | 16,802 | 23,354 |
(Charge-offs)/recoveries | (5) | (1,098) |
Payments | (10,024) | (17,517) |
Additions | 12,599 | 12,367 |
Interest collected on nonaccrual loans | 2,420 | 1,569 |
Balance at end of period | 21,792 | 18,675 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Balance at beginning of period | 18,327 | 14,602 |
(Charge-offs)/recoveries | 366 | 148 |
Payments | (3,849) | (6,050) |
Additions | 17,429 | 10,581 |
Interest collected on nonaccrual loans | 431 | 523 |
Balance at end of period | 32,704 | 19,804 |
Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Balance at beginning of period | 2,985 | 2,693 |
(Charge-offs)/recoveries | 42 | |
Payments | (589) | (482) |
Additions | 937 | 335 |
Interest collected on nonaccrual loans | 13 | |
Balance at end of period | 3,346 | 2,588 |
Consumer Loan [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Balance at beginning of period | 2,602 | 3,602 |
(Charge-offs)/recoveries | (58) | (27) |
Payments | (970) | (1,273) |
Additions | 2,568 | 385 |
Interest collected on nonaccrual loans | 51 | |
Balance at end of period | $ 4,193 | $ 2,687 |
Loans and Allowance for Loan 74
Loans and Allowance for Loan Losses - Schedule of Loans by Class Modified as Troubled Debt Restructuring (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)SecurityLoan | Sep. 30, 2016USD ($)SecurityLoan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 32 | 37 |
Pre-modification Outstanding Recorded Investment | $ 33,533 | $ 23,668 |
Post-modification Outstanding Recorded Investment | $ 33,533 | $ 23,668 |
Commercial Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 9 | 17 |
Pre-modification Outstanding Recorded Investment | $ 12,599 | $ 12,367 |
Post-modification Outstanding Recorded Investment | $ 12,599 | $ 12,367 |
Other [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 10 | 9 |
Pre-modification Outstanding Recorded Investment | $ 17,429 | $ 10,581 |
Post-modification Outstanding Recorded Investment | $ 17,429 | $ 10,581 |
Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 6 | 3 |
Pre-modification Outstanding Recorded Investment | $ 937 | $ 335 |
Post-modification Outstanding Recorded Investment | $ 937 | $ 335 |
Consumer - Other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 7 | 8 |
Pre-modification Outstanding Recorded Investment | $ 2,568 | $ 385 |
Post-modification Outstanding Recorded Investment | $ 2,568 | $ 385 |
Loans and Allowance for Loan 75
Loans and Allowance for Loan Losses - Schedule of Activity of Purchased Impaired Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Purchased impaired loans | $ 38,180 | $ 55,419 |
Allowance for loan losses | (198) | (278) |
Carrying amount, net of allowance | 37,982 | 55,141 |
Commercial Loan [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Purchased impaired loans | 594 | 850 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Purchased impaired loans | 19,855 | 32,774 |
Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Purchased impaired loans | 11,867 | 13,580 |
Consumer Loan [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Purchased impaired loans | $ 5,864 | $ 8,215 |
Loans and Allowance for Loan 76
Loans and Allowance for Loan Losses - Schedule of Accretable Yield of Noncovered PCI Loans, or Income Expected to be Collected (Detail) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | $ 33,603 | $ 45,310 |
New loans purchased | 3,217 | |
Accretion of income | (12,775) | (18,202) |
Reclassifications from (to) nonaccretable difference | 6,567 | 7,538 |
Disposals/other adjustments | 277 | 961 |
Balance at end of period | $ 27,672 | $ 38,824 |
Loans and Allowance for Loan 77
Loans and Allowance for Loan Losses - Schedule of Accretable Yield of Noncovered PCI Loans, or Income Expected to be Collected (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
AnchorBank WI [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Effective date of acquisition | May 1, 2016 |
Loans and Allowance for Loan 78
Loans and Allowance for Loan Losses - Schedule of Receivables for which Contractually Required Payments would not be Collected (Detail) - AnchorBank WI [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Contractually required payments | $ 29,544 |
Nonaccretable difference | (6,153) |
Cash flows expected to be collected at acquisition | 23,391 |
Accretable yield | (3,217) |
Fair value of acquired loans at acquisition | $ 20,174 |
Loans and Allowance for Loan 79
Loans and Allowance for Loan Losses - Schedule of Receivables for which Contractually Required Payments would not be Collected (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
AnchorBank WI [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Effective date of acquisition | May 1, 2016 |
Other Real Estate Owned - Activ
Other Real Estate Owned - Activity in Other Real Estate Owned (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Regulatory Assets [Abstract] | ||
Balance at beginning of period | $ 18,546 | $ 12,498 |
Additions | 2,695 | 24,337 |
Sales | (8,695) | (10,503) |
Impairment | (2,287) | (2,613) |
Balance at end of period | $ 10,259 | $ 23,719 |
Other Real Estate Owned - Act81
Other Real Estate Owned - Activity in Other Real Estate Owned (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | ||||
Othe real estate | $ 10,259 | $ 18,546 | $ 23,719 | $ 12,498 |
Repossessed personal property | $ 100 | 200 | ||
AnchorBank WI [Member] | Other Real Estate Owned [Member] | ||||
Real Estate Properties [Line Items] | ||||
Othe real estate | $ 17,300 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Regulatory Assets [Abstract] | |
Value of foreclosed residential real estate property | $ 0.7 |
Value of mortgage loans in process of foreclosure | $ 3.9 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | |||
Total | $ 516,203 | $ 525,120 | |
Accumulated depreciation | (103,715) | (95,498) | |
Premises and equipment, net | 412,488 | 429,622 | $ 333,266 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 66,806 | 71,769 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 319,371 | 322,165 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 100,756 | 102,631 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 29,270 | $ 28,555 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Terms | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 5,800 | $ 3,900 | $ 16,178 | $ 11,399 | |
Number of additional successive terms extendable at the option | Terms | 4 | ||||
Period of extendable lease term, in years | 5 years | ||||
Lease term, description | Less than one year | ||||
Rent expense | 3,900 | $ 6,400 | $ 11,600 | $ 20,100 | |
Sale leaseback transaction, gain recognized over lease term | $ 8,600 | $ 8,600 | $ 10,300 | ||
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Lease Term | 1 year | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Lease Term | 24 years | ||||
Prior Sale Leaseback Transactions [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Lease Term | 5 years | ||||
Prior Sale Leaseback Transactions [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Lease Term | 24 years |
Goodwill and Other Intangible85
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of period | $ 655,018 | $ 584,634 |
Acquisitions | 0 | 111,539 |
Divestitures | 0 | (40,963) |
Balance at end of period | $ 655,018 | $ 655,210 |
Goodwill and Other Intangible86
Goodwill and Other Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 102,623 | $ 102,623 | |
Accumulated Amortization and Impairment | (73,388) | (64,946) | |
Net Carrying Amount | 29,235 | 37,677 | $ 40,918 |
Core Deposit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 81,663 | 81,663 | |
Accumulated Amortization and Impairment | (60,002) | (53,214) | |
Net Carrying Amount | 21,661 | 28,449 | |
Customer Trust Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 16,547 | 16,547 | |
Accumulated Amortization and Impairment | (9,106) | (7,753) | |
Net Carrying Amount | 7,441 | 8,794 | |
Customer Loan Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,413 | 4,413 | |
Accumulated Amortization and Impairment | (4,280) | (3,979) | |
Net Carrying Amount | $ 133 | $ 434 |
Goodwill and Other Intangible87
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Line Items] | ||||
Amortization expense of other intangible assets | $ 2,641,000 | $ 3,233,000 | $ 8,442,000 | $ 9,245,000 |
Impairment charges | $ 0 | $ 0 | ||
Core Deposits and Other Intangible Assets [Member] | Minimum [Member] | ||||
Goodwill [Line Items] | ||||
Estimated useful lives of core deposits and customer relationships | 5 years | |||
Core Deposits and Other Intangible Assets [Member] | Maximum [Member] | ||||
Goodwill [Line Items] | ||||
Estimated useful lives of core deposits and customer relationships | 15 years |
Goodwill and Other Intangible88
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Years (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2017 remaining | $ 2,573 | ||
2,018 | 8,687 | ||
2,019 | 6,737 | ||
2,020 | 4,883 | ||
2,021 | 3,111 | ||
Thereafter | 3,244 | ||
Net Carrying Amount | $ 29,235 | $ 37,677 | $ 40,918 |
Loan Servicing Rights - Additio
Loan Servicing Rights - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |||
Loan servicing rights | $ 24,900 | $ 25,561 | $ 25,920 |
Principal balance of loans serviced for others | 3,334,000 | 3,385,000 | |
Funds held in escrow | $ 42,500 | 5,300 | |
Percentage of mortgage loan | 99.00% | ||
Fair value of servicing rights | $ 26,000 | $ 26,800 | |
Fair value at discount rate | 13.00% | 13.00% | |
Fair value inputs weighted average prepayment speed | 138.00% | 136.00% |
Loan Servicing Rights - Compone
Loan Servicing Rights - Components of Loan Servicing Rights and Valuation Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |||||
Balance at beginning of period | $ 25,629 | $ 10,502 | |||
Additions | 3,180 | 18,965 | |||
Amortization | (3,855) | (3,537) | |||
Balance before valuation allowance at end of period | $ 24,954 | $ 25,930 | 24,954 | 25,930 | |
Valuation allowance: | |||||
Balance at beginning of period | (68) | (34) | |||
(Additions)/recoveries | 20 | (4) | 14 | 24 | |
Balance at end of period | (54) | (10) | (54) | (10) | |
Loan servicing rights, net | $ 24,900 | $ 25,920 | $ 24,900 | $ 25,920 | $ 25,561 |
Loan Servicing Rights - Compo91
Loan Servicing Rights - Components of Loan Servicing Rights and Valuation Allowance (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Servicing Assets And Liabilities At Fair Value [Line Items] | |||
Loan servicing rights | $ 24,900 | $ 25,561 | $ 25,920 |
AnchorBank WI [Member] | |||
Servicing Assets And Liabilities At Fair Value [Line Items] | |||
Loan servicing rights | $ 15,300 |
Qualified Affordable Housing 92
Qualified Affordable Housing Projects and Other Tax Credit Investments - Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investment Holdings [Line Items] | |||||
Total | $ 51,564 | $ 51,564 | $ 35,048 | ||
Total | 32,700 | 32,700 | 20,816 | ||
Amortization Expense | 940 | $ 201 | 2,822 | $ 603 | |
Tax Benefit Recognized | (3,120) | (281) | (9,360) | (843) | |
LIHTC and Other Qualifying Investments [Member] | |||||
Investment Holdings [Line Items] | |||||
Proportional amortization method of investment | 32,649 | 32,649 | 29,110 | ||
Unfunded commitment, Proportional amortization | 19,607 | 19,607 | 16,210 | ||
Amortization Expense | 940 | 201 | 2,822 | 603 | |
Tax Benefit Recognized | (1,297) | $ (281) | (3,892) | $ (843) | |
FHTC [Member] | |||||
Investment Holdings [Line Items] | |||||
Equity method investment | 17,411 | 17,411 | 4,434 | ||
Unfunded commitment, Equity | 11,591 | 11,591 | 3,104 | ||
Tax Benefit Recognized | (1,520) | (4,559) | |||
CReED [Member] | |||||
Investment Holdings [Line Items] | |||||
Equity method investment | 1,504 | 1,504 | 1,504 | ||
Unfunded commitment, Equity | 1,502 | 1,502 | $ 1,502 | ||
Tax Benefit Recognized | $ (303) | $ (909) |
Securities Sold Under Agreeme93
Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold under Agreements to Repurchase and Related Weighted-Average Interest Rates (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Securities Sold under Agreements to Repurchase [Abstract] | |||
Outstanding at end of period | $ 285,409,000 | $ 347,804,000 | $ 367,052,000 |
Average amount outstanding | 325,230,000 | 373,474,000 | |
Maximum amount outstanding at any month-end | $ 351,897,000 | $ 396,695,000 | |
Weighted average interest rate during period | 0.36% | 0.41% | |
Weighted average interest rate at end of period | 0.34% | 0.42% |
Securities Sold Under Agreeme94
Securities Sold Under Agreements to Repurchase - Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | $ 285,409 | $ 367,052 | $ 347,804 |
U.S. Treasury [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 285,409 | ||
Overnight and Continuous [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 260,409 | ||
Overnight and Continuous [Member] | U.S. Treasury [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 260,409 | ||
Maturity Greater than 90 Days [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 25,000 | ||
Maturity Greater than 90 Days [Member] | U.S. Treasury [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | $ 25,000 |
Securities Sold Under Agreeme95
Securities Sold Under Agreements to Repurchase - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Gross outstanding balance of repurchase agreements collateralized by securities percentage | 126.00% |
Federal Home Loan Bank Advanc96
Federal Home Loan Bank Advances - Summary of FHLB Advances (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank, Advances [Line Items] | ||
ASC 815 fair value hedge and other basis adjustments | $ (495) | |
Total other borrowings | 1,589,367 | $ 1,353,092 |
Old National Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank advances (fixed rates 1.01% to 6.08% and variable rates 1.22% to 1.47%) maturing October 2017 to August 2027 | 1,589,862 | 1,353,225 |
ASC 815 fair value hedge and other basis adjustments | $ (495) | $ (133) |
Federal Home Loan Bank Advanc97
Federal Home Loan Bank Advances - Summary of FHLB Advances (Parenthetical) (Detail) - Old National Bank [Member] - Federal Home Loan Bank Advances [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Federal Home Loan Bank, Advances [Line Items] | |
Maturity, Start date | Oct. 31, 2017 |
Maturity, End date | Aug. 31, 2027 |
Minimum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Fixed rates | 1.01% |
Variable rates | 1.22% |
Maximum [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Fixed rates | 6.08% |
Variable rates | 1.47% |
Federal Home Loan Bank Advanc98
Federal Home Loan Bank Advances - Additional Information (Detail) | Sep. 30, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted-average rates of FHLB advances | 1.40% | 0.94% |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Percentage of borrowings collateralized by investment securities and residential real estate loans | 143.00% |
Federal Home Loan Bank Advanc99
Federal Home Loan Bank Advances - Summary of Contractual Maturities of FHLB Advances (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Federal Home Loan Banks [Abstract] | |||
Due in 2017 | $ 752,752 | ||
Due in 2018 | 274,956 | ||
Due in 2019 | 201,981 | ||
Due in 2020 | 50,000 | ||
Due in 2021 | 0 | ||
Thereafter | 310,173 | ||
ASC 815 fair value hedge and other basis adjustments | (495) | ||
Total | $ 1,589,367 | $ 1,353,092 | $ 1,331,379 |
Other Borrowings - Other Borrow
Other Borrowings - Other Borrowings (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Total other borrowings | $ 219,314 | $ 218,939 | $ 218,795 | |
Old National Bancorp [Member] | ||||
Debt Instrument [Line Items] | ||||
Other basis adjustments | (3,597) | (3,971) | ||
Old National Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital lease obligation | 3,977 | 4,092 | ||
Senior Unsecured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured bank notes (fixed rate 4.125%) maturing August 2024 | $ 175,000 | |||
Senior Unsecured Notes [Member] | Old National Bancorp [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured bank notes (fixed rate 4.125%) maturing August 2024 | 175,000 | 175,000 | ||
Unamortized debt issuance costs related to Senior unsecured bank notes | (1,066) | (1,182) | ||
Junior Subordinated Debt [Member] | Old National Bancorp [Member] | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debentures (variable rates of 2.68% to 3.07%) maturing March 2035 to September 2037 | $ 45,000 | $ 45,000 |
Other Borrowings - Other Bor101
Other Borrowings - Other Borrowings (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2017 | Aug. 31, 2014 | |
Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rates | 4.125% | |
Maturity date | Aug. 15, 2024 | |
Old National Bancorp [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rates | 4.125% | |
Maturity date | Aug. 15, 2024 | |
Old National Bancorp [Member] | Trust Preferred Securities [Member] | Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity, Start date | Mar. 31, 2035 | |
Maturity, End date | Sep. 30, 2037 | |
Old National Bancorp [Member] | Trust Preferred Securities [Member] | Junior Subordinated Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Variable rates | 2.68% | |
Old National Bancorp [Member] | Trust Preferred Securities [Member] | Junior Subordinated Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Variable rates | 3.07% |
Other Borrowings - Contractual
Other Borrowings - Contractual Maturities of Other Borrowings (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Disclosure [Abstract] | |
Due in 2017 | $ 19 |
Due in 2018 | 141 |
Due in 2019 | 85 |
Due in 2020 | 91 |
Due in 2021 | 99 |
Thereafter | 223,542 |
Unamortized debt issuance costs and other basis adjustments | (4,663) |
Total | $ 219,314 |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Detail) $ in Millions | May 01, 2016 | Dec. 31, 2006USD ($) | Sep. 30, 2006USD ($) | Dec. 31, 2005USD ($) | Jan. 01, 2004Item | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Aug. 31, 2014USD ($) | Mar. 31, 2007USD ($) | Jul. 31, 2006USD ($) | Mar. 31, 2005USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Preferred securities | ||||||||||||
Long-term capital lease obligation period, in years | 25 years | |||||||||||
Long-term capital lease obligation renewal period, in years | 10 years | |||||||||||
Number of renewal option for 10 years period | Item | 1 | |||||||||||
St Joseph Capital Trust II [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Preferred securities | $ 5 | |||||||||||
Reference rate of the variable interest rate for preferred securities | Three-month LIBOR plus 175 basis points | |||||||||||
Home Federal Statutory Trust I [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Preferred securities | $ 15 | |||||||||||
Reference rate of the variable interest rate for preferred securities | Three-month LIBOR plus 165 basis points | |||||||||||
Tower Capital Trust 2 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Preferred securities | $ 8 | |||||||||||
Reference rate of the variable interest rate for preferred securities | Three-month LIBOR plus 134 basis points | |||||||||||
Tower Capital Trust 3 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Preferred securities | $ 9 | |||||||||||
Reference rate of the variable interest rate for preferred securities | Three-month LIBOR plus 169 basis points | |||||||||||
AnchorBank WI [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Capital lease obligation period | 5 years | |||||||||||
Junior Subordinated Debt [Member] | St Joseph Capital Trust II [Member] | Trust Preferred Securities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
LIBOR rate | 1.75% | |||||||||||
Junior Subordinated Debt [Member] | Home Federal Statutory Trust I [Member] | Trust Preferred Securities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
LIBOR rate | 1.65% | |||||||||||
Junior Subordinated Debt [Member] | Tower Capital Trust 2 [Member] | Trust Preferred Securities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
LIBOR rate | 1.34% | |||||||||||
Junior Subordinated Debt [Member] | Tower Capital Trust 3 [Member] | Trust Preferred Securities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
LIBOR rate | 1.69% | |||||||||||
Senior Unsecured Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior unsecured notes | $ 175 | |||||||||||
Fixed rates | 4.125% | |||||||||||
Maturity date | Aug. 15, 2024 | |||||||||||
Monroe Bancorp Capital Trust I [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Preferred securities | $ 3 | |||||||||||
Reference rate of the variable interest rate for preferred securities | Three-month LIBOR plus 160 basis points | |||||||||||
Monroe Bancorp Capital Trust I [Member] | Junior Subordinated Debt [Member] | Trust Preferred Securities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
LIBOR rate | 1.60% | |||||||||||
Monroe Bancorp Statutory Trust II [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Preferred securities | $ 5 | |||||||||||
Reference rate of the variable interest rate for preferred securities | Three-month LIBOR plus 160 basis points | |||||||||||
Monroe Bancorp Statutory Trust II [Member] | Junior Subordinated Debt [Member] | Trust Preferred Securities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
LIBOR rate | 1.60% |
Other Borrowings - Future Minim
Other Borrowings - Future Minimum Lease Payments under Capital Lease Arrangements (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2017 remaining | $ 102 |
2,018 | 472 |
2,019 | 430 |
2,020 | 430 |
2,021 | 430 |
Thereafter | 7,977 |
Total minimum lease payments | 9,841 |
Less amounts representing interest | (5,864) |
Present value of net minimum lease payments | $ 3,977 |
Accumulated Other Comprehens105
Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 1,814,417 | $ 1,491,170 | ||
Other comprehensive income (loss) before reclassifications | $ (2,397) | $ 4,037 | 25,942 | 13,138 |
Amounts reclassified from AOCI | (680) | 751 | (767) | 2,830 |
Net other comprehensive income (loss) | (3,077) | 4,788 | 25,175 | 15,968 |
Ending Balance | 1,906,823 | 1,834,457 | 1,906,823 | 1,834,457 |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (12,457) | 13,783 | (39,012) | (3,806) |
Other comprehensive income (loss) before reclassifications | (2,531) | 2,094 | 26,928 | 21,584 |
Amounts reclassified from AOCI | (1,883) | (1,006) | (4,787) | (2,907) |
Net other comprehensive income (loss) | (4,414) | 1,088 | 22,141 | 18,677 |
Ending Balance | (16,871) | 14,871 | (16,871) | 14,871 |
Accumulated Unrealized Gains and Losses on Held-to-Maturity Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (12,717) | (13,867) | (13,310) | (14,480) |
Amounts reclassified from AOCI | 300 | 289 | 893 | 902 |
Net other comprehensive income (loss) | 300 | 289 | 893 | 902 |
Ending Balance | (12,417) | (13,578) | (12,417) | (13,578) |
Gains and Losses on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (5,645) | (17,184) | (6,715) | (9,276) |
Other comprehensive income (loss) before reclassifications | 134 | 1,943 | (986) | (8,446) |
Amounts reclassified from AOCI | 887 | 1,156 | 3,077 | 3,637 |
Net other comprehensive income (loss) | 1,021 | 3,099 | 2,091 | (4,809) |
Ending Balance | (4,624) | (14,085) | (4,624) | (14,085) |
Defined Benefit Pension Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (301) | (6,349) | (335) | (7,235) |
Amounts reclassified from AOCI | 16 | 312 | 50 | 1,198 |
Net other comprehensive income (loss) | 16 | 312 | 50 | 1,198 |
Ending Balance | (285) | (6,037) | (285) | (6,037) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (31,120) | (23,617) | (59,372) | (34,797) |
Ending Balance | $ (34,197) | $ (18,829) | $ (34,197) | $ (18,829) |
Accumulated Other Comprehens106
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net securities gains | $ (2,972) | $ (1,647) | $ (7,547) | $ (4,609) |
Interest income (expense) | (108,478) | (107,803) | (318,612) | (292,786) |
Salaries and employee benefits | (27) | (503) | (81) | (1,933) |
Income tax (expense) benefit | 11,459 | 10,969 | 32,534 | 51,452 |
Net income | (39,372) | (34,709) | (114,218) | (100,808) |
Total reclassifications for Net income the period | 680 | (751) | 767 | (2,830) |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for Net income the period | 1,883 | 1,006 | 4,787 | 2,907 |
Accumulated Unrealized Gains and Losses on Held-to-Maturity Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for Net income the period | (300) | (289) | (893) | (902) |
Gains and Losses on Cash Flow Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for Net income the period | (887) | (1,156) | (3,077) | (3,637) |
Defined Benefit Pension Plans [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for Net income the period | (16) | (312) | (50) | (1,198) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gains and Losses on Available-for-Sale Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net securities gains | 2,972 | 1,647 | 7,547 | 4,609 |
Income tax (expense) benefit | (1,089) | (641) | (2,760) | (1,702) |
Net income | 1,883 | 1,006 | 4,787 | 2,907 |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Unrealized Gains and Losses on Held-to-Maturity Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income (expense) | (456) | (439) | (1,358) | (1,370) |
Income tax (expense) benefit | 156 | 150 | 465 | 468 |
Net income | (300) | (289) | (893) | (902) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Member] | Gains and Losses on Cash Flow Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax (expense) benefit | 542 | 709 | 1,885 | 1,086 |
Net income | (887) | (1,156) | (3,077) | (3,637) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Member] | Gains and Losses on Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income (expense) | (1,429) | (1,865) | (4,962) | (4,723) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Member] | Defined Benefit Pension Plans [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and employee benefits | (27) | (503) | (81) | (1,933) |
Income tax (expense) benefit | 11 | 191 | 31 | 735 |
Net income | $ (16) | $ (312) | $ (50) | $ (1,198) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Plan assets | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining shares available for issuance | 4,800,000 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 4,600,000 | |
Shares granted during period | 277,000 | |
Share-based compensation awards, vesting period | 36 months | |
Expected weighted-average period for cost recognition (in years) | 1 year 10 months 24 days | |
Stock-based compensation expense | $ 2,500,000 | $ 1,000,000 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 4,500,000 | |
Shares granted during period | 202,000 | |
Share-based compensation awards, vesting period | 36 months | |
Expected weighted-average period for cost recognition (in years) | 2 years 1 month 6 days | |
Stock-based compensation expense | $ 1,400,000 | 2,200,000 |
Stock Appreciation Rights (SARs) [Member] | Old National Bancorp [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock appreciation rights, Outstanding | 71,000 | |
Incremental expense associated with conversion of stock appreciation rights | $ 0 | 0 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0 | $ 0 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision at statutory rate of 35% | $ 17,791 | $ 15,987 | $ 51,363 | $ 53,291 |
Tax-exempt income | (4,290) | (4,297) | (13,036) | (12,698) |
State income taxes | 506 | 749 | 1,553 | 3,396 |
Interim period effective rate adjustment | (861) | (1,418) | (1,602) | (1,603) |
Tax credit investments-federal | (1,684) | (80) | (5,431) | (240) |
ONI nondeductible goodwill | 23 | 8,328 | ||
Other, net | (3) | 5 | (313) | 978 |
Income tax expense | $ 11,459 | $ 10,969 | $ 32,534 | $ 51,452 |
Effective tax rate | 22.50% | 24.00% | 22.20% | 33.80% |
Income Taxes - Summary of Di110
Income Taxes - Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | |
May 31, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits, if recognized, would favorably affect the effective tax rate | $ 700,000 | ||
Bad debt reserves, created for tax purposes | 52,800,000 | ||
Unrecognized deferred income tax liability | 19,800,000 | ||
Valuation allowance recorded | 0 | $ 0 | |
Operating loss carryforwards, federal | 130,700,000 | 162,900,000 | |
AMT carryforwards | 20,350,000 | 19,523,000 | |
Federal tax credits | 35,000 | 35,000 | |
Operating loss carryforwards, state | $ 192,200,000 | $ 206,300,000 | |
ONB Insurance Group, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Additional tax expense to record deferred tax liability | $ 8,300,000 | ||
Federal Net Operating Loss [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | 2,028 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Tax credit | $ 600,000 | ||
Minimum [Member] | State Net Operating Loss [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | 2,024 | ||
Minimum [Member] | Federal Tax Credits [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | 2,027 | ||
Maximum [Member] | State Net Operating Loss [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | 2,037 | ||
Maximum [Member] | Federal Tax Credits [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | 2,037 | ||
AnchorBank WI [Member] | |||
Income Taxes [Line Items] | |||
Bad debt reserves, created for tax purposes | $ 50,900,000 | ||
Lafayette Savings Bank [Member] | |||
Income Taxes [Line Items] | |||
Bad debt reserves, created for tax purposes | $ 1,900,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of period | $ 777 | $ 124 |
Additions based on tax positions related to the current year | 109 | 85 |
Additions based on tax positions related to prior years | 584 | |
Reductions due to statute of limitations expiring | (174) | (2) |
Balance at end of period | $ 712 | $ 791 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred Tax Assets | ||
Allowance for loan losses, net of recapture | $ 19,637 | $ 19,773 |
Benefit plan accruals | 19,403 | 23,846 |
Alternative minimum tax credit | 20,350 | 19,523 |
Unrealized losses on benefit plans | 174 | 205 |
Net operating loss carryforwards | 55,096 | 66,917 |
Federal tax credits | 35 | 35 |
Other-than-temporary impairment | 2,168 | 3,606 |
Acquired loans | 29,866 | 40,522 |
Lease exit obligation | 2,178 | 2,060 |
Unrealized losses on available-for-sale investment securities | 10,509 | 23,365 |
Unrealized losses on held-to-maturity investment securities | 6,653 | 7,118 |
Unrealized losses on hedges | 2,835 | 4,116 |
Other real estate owned | 1,829 | 3,310 |
Other, net | 2,004 | 2,675 |
Total deferred tax assets | 172,737 | 217,071 |
Deferred Tax Liabilities | ||
Accretion on investment securities | (736) | (700) |
Purchase accounting | (16,009) | (17,552) |
Loan servicing rights | (9,310) | (9,627) |
Premises and equipment | (3,725) | (4,800) |
Other, net | (5,006) | (2,529) |
Total deferred tax liabilities | (34,786) | (35,208) |
Net deferred tax assets | $ 137,951 | $ 181,863 |
Derivative Financial Instrum114
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||||||
Notional amount | $ 760,000,000 | $ 760,000,000 | $ 660,000,000 | |||
Reclassified interest income (expense) | 108,478,000 | $ 107,803,000 | 318,612,000 | $ 292,786,000 | ||
Increase (decrease) in derivative assets | 2,500,000 | |||||
Increase (decrease) in derivative liabilities | 6,300,000 | |||||
Scenario, Forecast [Member] | Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Member] | Interest Income [Member] | ||||||
Derivative [Line Items] | ||||||
Reclassified interest income (expense) | $ 200,000 | |||||
Scenario, Forecast [Member] | Reclassifications out of Accumulated Other Comprehensive Income (Loss) [Member] | Interest Expense [Member] | ||||||
Derivative [Line Items] | ||||||
Reclassified interest income (expense) | $ 3,900,000 | |||||
Fixed Interest Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 35,000,000 | 35,000,000 | 35,000,000 | |||
Variable Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 725,000,000 | 725,000,000 | 625,000,000 | |||
Interest Rate Lock Commitments [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 57,900,000 | 57,900,000 | 40,300,000 | |||
Forward Commitments [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 75,500,000 | 75,500,000 | 86,100,000 | |||
Customer Derivative Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 801,200,000 | 801,200,000 | 582,700,000 | |||
Offsetting Counter Party Derivative Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 801,200,000 | 801,200,000 | $ 582,700,000 | |||
Offsetting Counter Party Derivative Instrument [Member] | Foreign Currency Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 700,000 | 700,000 | ||||
Foreign Currency Forward Contract [Member] | Foreign Currency Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 700,000 | $ 700,000 |
Derivative Financial Instrum115
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total derivative assets | $ 17,267 | $ 17,701 |
Total derivative liabilities | 17,368 | 23,574 |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 2,962 | 3,056 |
Total derivative liabilities | 8,266 | 11,582 |
Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 2,962 | 3,056 |
Total derivative liabilities | 8,266 | 11,582 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 14,305 | 14,645 |
Total derivative liabilities | 9,102 | 11,992 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 12,893 | 11,903 |
Total derivative liabilities | 9,096 | 11,992 |
Not Designated as Hedging Instrument [Member] | Mortgage Contracts [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 1,406 | $ 2,742 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Contracts [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 6 | |
Total derivative liabilities | $ 6 |
Derivative Financial Instrum116
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on the Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (284) | $ 292 | $ (1,304) | $ 634 |
Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | (1,292) | (1,552) | (4,503) | (3,804) |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | 81 | 81 | 243 | 248 |
Interest Rate Contracts [Member] | Interest Income / (Expense) [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | (1,325) | (1,588) | (4,610) | (3,941) |
Interest Rate Contracts [Member] | Interest Income / (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | 81 | 81 | 243 | 248 |
Interest Rate Contracts [Member] | Other Income / (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | 9 | 36 | 45 | (48) |
Interest Rate Contracts [Member] | Other Income / (Expense) [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | 33 | 36 | 107 | 137 |
Mortgage Contracts [Member] | Mortgage Banking Revenue [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (293) | $ 256 | (1,336) | $ 682 |
Foreign Currency Contracts [Member] | Other Income [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (13) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loan commitments | $ 2,430 | $ 2,354 |
Fixed rate loan commitment | 2,288 | |
Floating rate loan commitment | 141.6 | |
Standby letters of credit | $ 50.2 | 51.7 |
Loan commitments floating rate, minimum | 0.00% | |
Loan commitments floating rate, maximum | 25.00% | |
Allowance for unfunded loan commitments | $ 3 | 3.2 |
Extended credit | 13.3 | 13.3 |
Credit extensions with collateral | $ 12.4 | $ 12.6 |
Financial Guarantees - Addition
Financial Guarantees - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Financial Guarantees [Line Items] | ||
Term of standby letters of credit, years | 1 year | |
Notional amount of standby letters of credit | $ 50,200,000 | $ 51,700,000 |
Carrying value of letters of credit | 300,000 | 300,000 |
Notional amount | 760,000,000 | $ 660,000,000 |
Interest Rate Swap [Member] | ||
Financial Guarantees [Line Items] | ||
Notional amount | $ 19,200,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Net income | $ 39,372 | $ 34,709 | $ 114,218 | $ 100,808 | ||
Total assets | $ 15,065,800 | $ 14,703,071 | $ 15,065,800 | $ 14,703,071 | $ 14,860,237 | |
Number of reportable operating segment | Segment | 2 | |||||
Community Banking Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of reportable operating segment | Segment | 1 | |||||
Insurance Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income | $ 2,100 | |||||
Total assets | $ 61,800 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Trading securities | $ 5,351 | $ 4,982 | $ 4,973 |
Investment securities available-for-sale | 2,775,837 | 2,797,174 | $ 2,758,678 |
Derivative assets | 17,267 | 17,701 | |
Derivative liabilities | 17,368 | 23,574 | |
U.S. Treasury [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 5,615 | 7,103 | |
U.S. Government-Sponsored Entities and Agencies [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 576,436 | 493,956 | |
Mortgage-Backed Securities - Agency [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 1,450,736 | 1,525,019 | |
States and Political Subdivisions [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 414,673 | 436,684 | |
Pooled Trust Preferred Securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 8,270 | 8,119 | |
Other Securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 320,107 | 326,293 | |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Trading securities | 5,351 | 4,982 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Residential loans held for sale | 30,221 | 90,682 | |
Derivative assets | 17,267 | 17,701 | |
Derivative liabilities | 17,368 | 23,574 | |
Estimate of Fair Value Measurement [Member] | U.S. Treasury [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 5,615 | 7,103 | |
Estimate of Fair Value Measurement [Member] | U.S. Government-Sponsored Entities and Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 576,436 | 493,956 | |
Estimate of Fair Value Measurement [Member] | Mortgage-Backed Securities - Agency [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 1,450,736 | 1,525,019 | |
Estimate of Fair Value Measurement [Member] | States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 414,673 | 436,684 | |
Estimate of Fair Value Measurement [Member] | Pooled Trust Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 8,270 | 8,119 | |
Estimate of Fair Value Measurement [Member] | Other Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 31,374 | 30,905 | |
Estimate of Fair Value Measurement [Member] | Other Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 288,733 | 295,388 | |
Carrying Value [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Trading securities | 5,351 | 4,982 | |
Residential loans held for sale | 30,221 | 90,682 | |
Derivative assets | 17,267 | 17,701 | |
Derivative liabilities | 17,368 | 23,574 | |
Carrying Value [Member] | U.S. Treasury [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 5,615 | 7,103 | |
Carrying Value [Member] | U.S. Government-Sponsored Entities and Agencies [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 576,436 | 493,956 | |
Carrying Value [Member] | Mortgage-Backed Securities - Agency [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 1,450,736 | 1,525,019 | |
Carrying Value [Member] | States and Political Subdivisions [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 414,673 | 436,684 | |
Carrying Value [Member] | Pooled Trust Preferred Securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | 8,270 | 8,119 | |
Carrying Value [Member] | Other Securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Investment securities available-for-sale | $ 320,107 | $ 326,293 |
Fair Value - Reconciliation of
Fair Value - Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | $ 8,119 | $ 7,900 |
Accretion of discount | 13 | 14 |
Sales/payments received | (373) | (327) |
Increase (decrease) in fair value of securities | 511 | (813) |
Balance at end of period | $ 8,270 | $ 6,774 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 13.00% | 13.00% |
Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,438 | $ 6,771 |
Valuation Techniques | Fair value of collateral | Fair value of collateral |
Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 29,464 | $ 11,632 |
Valuation Techniques | Fair value of collateral | Fair value of collateral |
Minimum [Member] | Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 20.00% | 0.00% |
Minimum [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 10.00% | 10.00% |
Maximum [Member] | Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 88.00% | 99.00% |
Maximum [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 50.00% | 67.00% |
Weighted Average [Member] | Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 51.00% | 53.00% |
Weighted Average [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 27.00% | 36.00% |
Pooled Trust Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 8,270 | $ 8,119 |
Valuation Techniques | Discounted cash flow | Discounted cash flow |
Pooled Trust Preferred Securities [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Additional asset defaults | 3.10% | 4.50% |
Expected asset recoveries | 0.00% | 0.00% |
Pooled Trust Preferred Securities [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Additional asset defaults | 4.40% | 10.00% |
Expected asset recoveries | 4.10% | 6.10% |
Pooled Trust Preferred Securities [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Additional asset defaults | 4.00% | 7.90% |
Expected asset recoveries | 0.60% | 0.90% |
Commercial Real Estate Foreclosed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 56 | $ 1,352 |
Valuation Techniques | Fair value of collateral | Fair value of collateral |
Discount for type of property, age of appraisal and current status | 83.00% | |
Commercial Real Estate Foreclosed Assets [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 4.00% | |
Commercial Real Estate Foreclosed Assets [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 80.00% | |
Commercial Real Estate Foreclosed Assets [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 39.00% | |
Residential Foreclosed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 394 | |
Valuation Techniques | Fair value of collateral | |
Residential Foreclosed Assets [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 7.00% | |
Residential Foreclosed Assets [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 60.00% | |
Residential Foreclosed Assets [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount for type of property, age of appraisal and current status | 30.00% |
Fair Value - Quantitative In123
Fair Value - Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of adjusted specific issuer evaluation defaults | 100.00% | 100.00% |
Percentage of adjusted specific issuer evaluation recoveries | 100.00% | 100.00% |
Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of adjusted specific issuer evaluation defaults | 0.00% | 0.00% |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of adjusted specific issuer evaluation defaults | 50.00% | 50.00% |
Pooled Trust Preferred Securities [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of adjusted specific issuer evaluation recoveries | 0.00% | 0.00% |
Pooled Trust Preferred Securities [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of adjusted specific issuer evaluation recoveries | 25.00% | 25.00% |
Fair Value - Assets Measured at
Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,438 | $ 6,771 |
Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,464 | 11,632 |
Commercial Real Estate Foreclosed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 56 | 1,352 |
Residential Foreclosed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 394 | |
Loan Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,719 | 2,181 |
Significant Other Observable Inputs (Level 2) [Member] | Loan Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,719 | 2,181 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,438 | 6,771 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,464 | 11,632 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate Foreclosed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 56 | 1,352 |
Significant Unobservable Inputs (Level 3) [Member] | Residential Foreclosed Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 394 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net carrying amount other real estate owned and other repossessed property | $ 1,700 | |||||
Other real estate owned property write-downs | $ 300 | $ 400 | $ 2,000 | $ 2,500 | ||
Valuation allowance for loan servicing rights with impairments | 54 | 10 | 54 | 10 | 68 | $ 34 |
(Additions)/recoveries on loan servicing rights | 20 | (4) | $ 14 | 24 | ||
Past due period of mortgage loans held for sale, days | 90 days | |||||
Interest income for residential loans held for sale | 56 | 35 | $ 125 | 84 | ||
Valuation Allowance, Real Estate Owned [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net carrying amount other real estate owned and other repossessed property | 56 | 56 | ||||
Impaired Commercial and Commercial Real Estate Loans [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Principal amount of impaired commercial and commercial real estate loans | 43,900 | 43,900 | 26,400 | |||
Valuation allowance | 11,000 | 11,000 | $ 8,000 | |||
Provision for loan losses expensed | $ 100 | $ 5,400 | $ 1,800 | |||
Recapture of provision loan | $ 800 |
Fair Value - Schedule of Differ
Fair Value - Schedule of Difference between the Aggregate Fair Value and the Aggregate Remaining Principal Balance (Detail) - Residential Loans Held for Sale [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 30,221 | $ 90,682 |
Difference | 890 | 133 |
Contractual Principal | $ 29,331 | $ 90,549 |
Fair Value - Changes in Fair Va
Fair Value - Changes in Fair Value for Items Measured at Fair Value Pursuant to Election of the Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Interest Income | $ 108,478 | $ 107,803 | $ 318,612 | $ 292,786 |
Interest (Expense) | (15,047) | (11,910) | (41,590) | (32,499) |
Residential Loans Held for Sale [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other Gains and (Losses) | 58 | 234 | 755 | 1,451 |
Interest Income | 4 | 2 | 4 | |
Interest (Expense) | 0 | 0 | 0 | 0 |
Total Changes in Fair Values Included in Current Period Earnings | $ 58 | $ 238 | $ 757 | $ 1,455 |
Fair Value - Carrying Amounts a
Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, due from banks, federal funds sold, and money market investments | $ 252,367 | $ 255,519 | $ 261,040 | $ 219,818 |
Investment securities - held-to-maturity | 688,951 | 745,090 | 850,803 | |
Federal Home Loan Bank/Federal Reserve Bank stock | 117,354 | 101,716 | 101,716 | |
Commercial | 2,049,054 | 1,917,099 | 1,836,380 | |
Commercial real estate | 3,370,211 | 3,130,853 | 3,092,575 | |
Residential real estate | 2,119,120 | 2,087,530 | 2,105,232 | |
Consumer credit | 1,859,739 | 1,875,030 | 1,870,798 | |
Accrued interest receivable | 75,342 | 81,381 | 77,689 | |
Noninterest-bearing demand deposits | 3,034,696 | 3,016,093 | 2,944,331 | |
Time deposits | 1,451,989 | 1,468,108 | 1,564,655 | |
Federal funds purchased and interbank borrowings | 317,021 | 213,003 | 125,121 | |
Securities sold under agreements to repurchase | 285,409 | 367,052 | $ 347,804 | |
Other borrowings | 1,589,367 | 1,353,092 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, due from banks, federal funds sold, and money market investments | 252,367 | 255,519 | ||
Accrued interest receivable | 47 | 16 | ||
Noninterest-bearing demand deposits | 3,034,696 | 3,016,093 | ||
NOW, savings, and money market deposits | 6,120,099 | 6,259,052 | ||
Federal funds purchased and interbank borrowings | 317,021 | 213,003 | ||
Securities sold under agreements to repurchase | 260,409 | 317,052 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accrued interest receivable | 18,759 | 22,880 | ||
Time deposits | 1,443,473 | 1,460,778 | ||
Securities sold under agreements to repurchase | 25,209 | 50,612 | ||
Other borrowings | 221,739 | 217,647 | ||
Accrued interest payable | 4,364 | 5,979 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Commercial | 2,110,928 | 1,971,296 | ||
Commercial real estate | 3,639,565 | 3,400,365 | ||
Residential real estate | 2,236,000 | 2,228,542 | ||
Consumer credit | 1,969,384 | 1,974,180 | ||
Accrued interest receivable | 56,536 | 58,485 | ||
Federal Home Loan Bank advances | 1,593,997 | 1,360,599 | ||
Standby letters of credit | 334 | 315 | ||
Commitments to extend credit | 3,067 | 2,527 | ||
U.S. Government-Sponsored Entities and Agencies [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 40,131 | |||
U.S. Government-Sponsored Entities and Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 40,558 | |||
Mortgage-Backed Securities - Agency [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 7,649 | 10,640 | ||
Mortgage-Backed Securities - Agency [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 7,903 | 10,940 | ||
States and Political Subdivisions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 681,302 | 694,319 | ||
States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 732,661 | 732,674 | ||
Carrying Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, due from banks, federal funds sold, and money market investments | 252,367 | 255,519 | ||
Federal Home Loan Bank/Federal Reserve Bank stock | 117,354 | 101,716 | ||
Commercial | 2,028,527 | 1,895,618 | ||
Commercial real estate | 3,350,186 | 3,112,680 | ||
Residential real estate | 2,117,211 | 2,085,887 | ||
Consumer credit | 1,852,031 | 1,866,519 | ||
Accrued interest receivable | 75,342 | 81,381 | ||
Noninterest-bearing demand deposits | 3,034,696 | 3,016,093 | ||
NOW, savings, and money market deposits | 6,120,099 | 6,259,052 | ||
Time deposits | 1,451,989 | 1,468,108 | ||
Federal funds purchased and interbank borrowings | 317,021 | 213,003 | ||
Securities sold under agreements to repurchase | 285,409 | 367,052 | ||
Federal Home Loan Bank advances | 1,589,367 | 1,353,092 | ||
Other borrowings | 219,314 | 218,939 | ||
Accrued interest payable | 4,364 | 5,979 | ||
Standby letters of credit | 334 | 315 | ||
Carrying Value [Member] | U.S. Government-Sponsored Entities and Agencies [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 40,131 | |||
Carrying Value [Member] | Mortgage-Backed Securities - Agency [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | 7,649 | 10,640 | ||
Carrying Value [Member] | States and Political Subdivisions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities - held-to-maturity | $ 681,302 | $ 694,319 |