Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 08, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Period Period Focus | Q2 | |
Trading Symbol | VLY | |
Entity Registrant Name | VALLEY NATIONAL BANCORP | |
Entity CIK | 714,310 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 331,469,947 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 307,428 | $ 243,310 |
Interest bearing deposits with banks | 164,838 | 172,800 |
Investment securities: | ||
Held to maturity (fair value of $1,988,782 at June 30, 2018 and $1,837,620 at December 31, 2017) | 2,030,194 | 1,842,691 |
Available for sale | 1,833,467 | 1,493,905 |
Total investment securities | 3,863,661 | 3,336,596 |
Loans held for sale, at fair value | 32,670 | 15,119 |
Loans | 23,234,716 | 18,331,580 |
Less: Allowance for loan losses | (138,762) | (120,856) |
Net loans | 23,095,954 | 18,210,724 |
Premises and equipment, net | 348,396 | 287,705 |
Bank owned life insurance | 437,037 | 386,079 |
Accrued interest receivable | 88,155 | 73,990 |
Goodwill | 1,078,892 | 690,637 |
Other intangible assets, net | 83,966 | 42,507 |
Other assets | 681,982 | 542,839 |
Total Assets | 30,182,979 | 24,002,306 |
Deposits: | ||
Non-interest bearing | 6,217,420 | 5,224,928 |
Interest bearing: | ||
Savings, NOW and money market | 10,769,940 | 9,365,013 |
Time | 4,653,412 | 3,563,521 |
Total deposits | 21,640,772 | 18,153,462 |
Short-term borrowings | 2,877,912 | 748,628 |
Long-term borrowings | 2,103,993 | 2,315,819 |
Junior subordinated debentures issued to capital trusts | 55,196 | 41,774 |
Accrued expenses and other liabilities | 227,794 | 209,458 |
Total Liabilities | 26,905,667 | 21,469,141 |
Shareholders’ Equity | ||
Common stock (no par value, authorized 450,000,000 shares; issued 331,538,971 shares at June 30, 2018 and 264,498,643 shares at December 31, 2017) | 116,027 | 92,727 |
Surplus | 2,789,190 | 2,060,356 |
Retained earnings | 232,593 | 216,733 |
Accumulated other comprehensive loss | (69,124) | (46,005) |
Treasury stock, at cost (84,946 common shares at June 30, 2018 and 29,792 common shares at December 31, 2017) | (1,065) | (337) |
Total Shareholders’ Equity | 3,277,312 | 2,533,165 |
Total Liabilities and Shareholders’ Equity | 30,182,979 | 24,002,306 |
Series A Preferred Stock | ||
Shareholders’ Equity | ||
Preferred stock, no par value; authorized 50,000,000 | 111,590 | 111,590 |
Series B Preferred Stock | ||
Shareholders’ Equity | ||
Preferred stock, no par value; authorized 50,000,000 | $ 98,101 | $ 98,101 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value | $ 1,988,782 | $ 1,837,620 |
Preferred stock, par value (usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 50,000,000 | |
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 450,000,000 | |
Common stock, shares issued (in shares) | 331,538,971 | 264,498,643 |
Treasury stock, shares (in shares) | 84,946 | 29,792 |
Series A Preferred Stock | ||
Preferred stock, shares issued (in shares) | 4,600,000 | 4,600,000 |
Series B Preferred Stock | ||
Preferred stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Income | ||||
Interest and fees on loans | $ 247,690 | $ 181,720 | $ 485,276 | $ 356,073 |
Interest and dividends on investment securities: | ||||
Taxable | 22,222 | 18,928 | 43,545 | 36,517 |
Tax-exempt | 5,639 | 3,943 | 11,360 | 7,974 |
Dividends | 3,728 | 2,137 | 5,667 | 4,288 |
Interest on federal funds sold and other short-term investments | 839 | 279 | 1,765 | 610 |
Total interest income | 280,118 | 207,007 | 547,613 | 405,462 |
Interest on deposits: | ||||
Savings, NOW and money market | 24,756 | 12,714 | 47,073 | 22,897 |
Time | 16,635 | 10,166 | 31,251 | 19,719 |
Interest on short-term borrowings | 10,913 | 5,516 | 16,645 | 9,417 |
Interest on long-term borrowings and junior subordinated debentures | 17,062 | 13,791 | 34,294 | 26,741 |
Total interest expense | 69,366 | 42,187 | 129,263 | 78,774 |
Net Interest Income | 210,752 | 164,820 | 418,350 | 326,688 |
Provision for credit losses | 7,142 | 3,632 | 18,090 | 6,102 |
Net Interest Income After Provision for Credit Losses | 203,610 | 161,188 | 400,260 | 320,586 |
Non-Interest Income | ||||
Trust and investment services | 3,262 | 2,800 | 6,492 | 5,544 |
Insurance commissions | 4,026 | 4,358 | 7,847 | 9,419 |
Service charges on deposit accounts | 6,679 | 5,342 | 13,932 | 10,578 |
(Losses) gains on securities transactions, net | (36) | 22 | (801) | (1) |
Fees from loan servicing | 2,045 | 1,831 | 4,268 | 3,646 |
Gains on sales of loans, net | 7,642 | 4,791 | 14,395 | 8,919 |
Bank owned life insurance | 2,652 | 1,701 | 4,415 | 4,164 |
Other | 11,799 | 7,985 | 19,772 | 12,281 |
Total non-interest income | 38,069 | 28,830 | 70,320 | 54,550 |
Non-Interest Expense | ||||
Salary and employee benefits expense | 78,944 | 63,564 | 172,236 | 129,491 |
Net occupancy and equipment expense | 26,901 | 22,609 | 54,825 | 45,644 |
FDIC insurance assessment | 8,044 | 4,928 | 13,542 | 10,055 |
Amortization of other intangible assets | 4,617 | 2,562 | 8,910 | 5,098 |
Professional and legal fees | 5,337 | 4,302 | 22,384 | 8,997 |
Amortization of tax credit investments | 4,470 | 7,732 | 9,744 | 13,056 |
Telecommunication expense | 3,015 | 2,707 | 6,609 | 5,366 |
Other | 18,588 | 10,835 | 35,418 | 22,484 |
Total non-interest expense | 149,916 | 119,239 | 323,668 | 240,191 |
Income Before Income Taxes | 91,763 | 70,779 | 146,912 | 134,945 |
Income tax expense | 18,961 | 20,714 | 32,145 | 38,785 |
Net Income | 72,802 | 50,065 | 114,767 | 96,160 |
Dividends on preferred stock | 3,172 | 1,797 | 6,344 | 3,594 |
Net Income Available to Common Shareholders | $ 69,630 | $ 48,268 | $ 108,423 | $ 92,566 |
Earnings Per Common Share: | ||||
Basic (usd per share) | $ 0.21 | $ 0.18 | $ 0.33 | $ 0.35 |
Diluted (usd per share) | 0.21 | 0.18 | 0.33 | 0.35 |
Cash Dividends Declared per Common Share (usd per share) | $ 0.11 | $ 0.11 | $ 0.22 | $ 0.22 |
Weighted Average Number of Common Shares Outstanding: | ||||
Basic (in shares) | 331,318,381 | 263,958,292 | 331,024,531 | 263,878,103 |
Diluted (in shares) | 332,895,483 | 264,778,242 | 332,599,991 | 264,662,863 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 72,802 | $ 50,065 | $ 114,767 | $ 96,160 |
Unrealized gains and losses on available for sale securities | ||||
Net (losses) gains arising during the period | (6,461) | 1,896 | (27,390) | 3,203 |
Less reclassification adjustment for net losses (gains) included in net income | 30 | (13) | 578 | 0 |
Total | (6,431) | 1,883 | (26,812) | 3,203 |
Non-credit impairment losses on available for sale securities | ||||
Net change in non-credit impairment losses on securities | 212 | 21 | (56) | 134 |
Less reclassification adjustment for accretion of credit impairment losses included in net income | 12 | (39) | (4) | (126) |
Total | 224 | (18) | (60) | 8 |
Unrealized gains and losses on derivatives (cash flow hedges) | ||||
Net gains (losses) on derivatives arising during the period | 455 | (873) | 2,415 | (746) |
Less reclassification adjustment for net losses included in net income | 619 | 1,356 | 1,655 | 2,831 |
Total | 1,074 | 483 | 4,070 | 2,085 |
Defined benefit pension plan | ||||
Amortization of net loss | 112 | 59 | 224 | 118 |
Total other comprehensive (loss) income | (5,021) | 2,407 | (22,578) | 5,414 |
Total comprehensive income | $ 67,781 | $ 52,472 | $ 92,189 | $ 101,574 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 114,767 | $ 96,160 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 13,783 | 12,549 |
Stock-based compensation | 12,153 | 6,872 |
Provision for credit losses | 18,090 | 6,102 |
Net amortization of premiums and accretion of discounts on securities and borrowings | 17,212 | 11,366 |
Amortization of other intangible assets | 8,910 | 5,098 |
Losses on securities transactions, net | 801 | 1 |
Proceeds from sales of loans held for sale | 437,876 | 303,268 |
Gains on sales of loans, net | (14,395) | (8,919) |
Originations of loans held for sale | (446,849) | (154,475) |
Losses on sales of assets, net | 222 | 453 |
Net change in | ||
Cash surrender value of bank owned life insurance | (4,415) | (4,164) |
Accrued interest receivable | (2,042) | (2,916) |
Other assets | (55,464) | (1,521) |
Accrued expenses and other liabilities | (16,281) | (20,709) |
Net cash provided by operating activities | 84,368 | 249,165 |
Cash flows from investing activities | ||
Net loan originations and purchases | (1,158,514) | (707,654) |
Investment securities held to maturity | ||
Purchases | (100,160) | (60,230) |
Maturities, calls and principal repayments | 120,876 | 157,351 |
Investment securities available for sale | ||
Purchases | (239,226) | (252,770) |
Sales | 38,625 | 0 |
Maturities, calls and principal repayments | 124,635 | 87,188 |
Death benefit proceeds from bank owned life insurance | 2,652 | 1,998 |
Proceeds from sales of real estate property and equipment | 9,773 | 6,822 |
Purchases of real estate property and equipment | (12,811) | (12,976) |
Cash and cash equivalents acquired in acquisition | 156,612 | 0 |
Net cash used in investing activities | (1,057,538) | (780,271) |
Cash flows from financing activities | ||
Net change in deposits | (77,533) | (480,690) |
Net change in short-term borrowings | 1,479,305 | 653,484 |
Proceeds from issuance of long-term borrowings, net | 0 | 560,000 |
Repayments of long-term borrowings | (300,027) | (175,000) |
Cash dividends paid to preferred shareholders | (6,344) | (3,594) |
Cash dividends paid to common shareholders | (65,989) | (58,000) |
Purchase of common shares to treasury | (2,598) | (2,183) |
Common stock issued, net | 2,512 | 2,377 |
Net cash provided by financing activities | 1,029,326 | 496,394 |
Net change in cash and cash equivalents | 56,156 | (34,712) |
Cash and cash equivalents at beginning of year | 416,110 | 392,501 |
Cash and cash equivalents at end of period | 472,266 | 357,789 |
Cash payments for | ||
Interest on deposits and borrowings | 124,816 | 100,380 |
Federal and state income taxes | 29,280 | 7,683 |
Supplemental schedule of non-cash investing activities | ||
Transfer of loans to other real estate owned | 672 | 5,865 |
Transfer of loans to loans held for sale | 263,324 | 225,541 |
Non-cash assets acquired: | ||
Loans | 3,744,682 | 0 |
Premises and equipment | 62,066 | 0 |
Bank owned life insurance | 49,052 | 0 |
Accrued interest receivable | 12,123 | 0 |
Goodwill | 388,255 | 0 |
Other intangible assets | 45,906 | 0 |
Other assets | 98,134 | 0 |
Total non-cash assets acquired | 4,922,820 | 0 |
Liabilities assumed: | ||
Deposits | 3,564,843 | 0 |
Short-term borrowings | 649,979 | 0 |
Long-term borrowings | 87,283 | 0 |
Junior subordinated debentures issued to capital trusts | 13,249 | 0 |
Accrued expenses and other liabilities | 26,848 | 0 |
Total liabilities assumed | 4,342,202 | 0 |
Net non-cash assets acquired | 580,618 | 0 |
Common stock issued in acquisition | 737,230 | 0 |
Held-to-maturity Securities | ||
Non-cash assets acquired: | ||
Investment securities | 214,217 | 0 |
Available for Sale Securities | ||
Non-cash assets acquired: | ||
Investment securities | $ 308,385 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey corporation ("Valley"), include the accounts of its commercial bank subsidiary, Valley National Bank (the “Bank”), and all of Valley’s direct or indirect wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to U.S. generally accepted accounting principles (U.S. GAAP) and general practices within the financial services industry. In accordance with applicable accounting standards, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. Certain prior period amounts have been reclassified to conform to the current presentation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations and cash flows at June 30, 2018 and for all periods presented have been made. The results of operations for the three and six months ended on June 30, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year. In preparing the unaudited consolidated financial statements in conformity with U.S. GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change are: the allowance for loan losses; estimated cash flows from purchased credit impaired loans, the evaluation of goodwill and other intangible assets, and investment securities for impairment; fair value measurements of assets and liabilities; and income taxes. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On January 1, 2018, Valley completed its acquisition of USAmeriBancorp, Inc. (USAB) and its wholly-owned subsidiary, USAmeriBank, headquartered in Clearwater, Florida. USAB had approximately $5.1 billion in assets, $3.7 billion in net loans and $3.6 billion in deposits, after purchase accounting adjustments, and maintained a branch network of 29 offices. The acquisition represents a significant addition to Valley’s Florida franchise, specifically in the Tampa Bay market. The acquisition also brought Valley to the Birmingham, Montgomery, and Tallapoosa areas in Alabama, where Valley now operates 15 of its branches. The common shareholders of USAB received 6.1 shares of Valley common stock for each USAB share they owned. The total consideration for the acquisition was approximately $737 million . Merger expenses totaled $3.2 million and $16.8 million for the three and six months ended June 30, 2018 , respectively, which primarily related to salary and employee benefits and other expense included in non-interest expense on the consolidated statements of income. The following table sets forth assets acquired and liabilities assumed in the USAB acquisition, at their estimated fair values as of the closing date of the transaction: January 1, 2018 (in thousands) Assets acquired: Cash and cash equivalents $ 156,612 Investment securities held to maturity 214,217 Investment securities available for sale 308,385 Loans 3,744,682 Premises and equipment 62,066 Bank owned life insurance 49,052 Accrued interest receivable 12,123 Goodwill 388,255 Other intangible assets 45,906 Other assets: Deferred taxes 8,698 Other real estate owned 4,073 FHLB and FRB stock 38,809 Tax credit investments 20,138 Other 26,416 Total other assets 98,134 Total assets acquired $ 5,079,432 Liabilities assumed: Deposits: Non-interest bearing $ 887,083 Savings, NOW and money market 1,678,115 Time 999,645 Total deposits 3,564,843 Short-term borrowings 649,979 Long-term borrowings 87,283 Junior subordinated debentures issued to capital trusts 13,249 Accrued expenses and other liabilities 26,848 Total liabilities assumed $ 4,342,202 Common stock issued in acquisition 737,230 The determination of the fair value of the assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. The fair value estimates are subject to change for up to one year after the closing date of the transaction if additional information (existing at the date of closing) relative to closing date fair values becomes available. As Valley continues to analyze the acquired assets and liabilities, there may be adjustments to the recorded carrying values. However, Valley does not expect significant future adjustments to the recorded amounts at January 1, 2018. Fair Value Measurement of Assets Acquired and Liabilities Assumed Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the USAB acquisition. Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities. Investment securities. The estimated fair values of the investment securities were calculated utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service when available, or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. The prices are derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviewed the data and assumptions used in pricing the securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data. Loans. The acquired loan portfolio was segregated into categories for valuation purposes primarily based on loan type (commercial, commercial real estate, residential and consumer) and credit risk rating. The estimated fair values were computed by discounting the expected cash flows from the respective portfolios. Management estimated the contractual cash flows expected to be collected at the acquisition date by using valuation models that incorporated estimates of current key assumptions, such as prepayment speeds, default rates, and loss severity rates. Prepayment assumptions were developed by reference to recent or historical prepayment speeds observed for loans with similar underlying characteristics. Prepayment assumptions were influenced by many factors, including, but not limited to, forward interest rates, loan and collateral types, payment status, and current loan-to-value ratios. Default and loss severity rates were developed by reference to recent or historical default and loss rates observed for loans with similar underlying characteristics. Default and loss severity assumptions were influenced by many factors, including, but not limited to, underwriting processes and documentation, vintages, collateral types, collateral locations, estimated collateral values, loan-to-value ratios, and debt-to-income ratios. The expected cash flows from the acquired loan portfolios were discounted to present value based on the estimated market rates. The market rates were estimated using a buildup approach based on the following components: funding cost, servicing cost and consideration of liquidity premium. The funding cost estimated for the loans was based on a mix of wholesale borrowing and equity funding. The methods used to estimate the Level 3 fair values of loans are extremely sensitive to the assumptions and estimates used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in these values than in those determined in active markets. The difference between the fair value and the expected cash flows from the acquired loans will be accreted to interest income over the remaining term of the loans in accordance with Accounting Standards Codification (ASC) Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” See Note 8 for further details. Other intangible assets. Other intangible assets mostly consisting of core deposit intangibles (CDI) are measures of the value of non-maturity checking, savings, NOW and money market deposits that are acquired in a business combination. The fair value of the CDI is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI is amortized over an estimated useful life of 10 years to approximate the existing deposit relationships acquired. Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest bearing accounts and savings, NOW and money market accounts) are equal to the carrying amounts payable on demand. The fair values of certificates of deposit represent contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities. Short-term borrowings. The short-term borrowings consist of securities sold under agreements to repurchase and FHLB advances. The carrying amounts approximate their fair values because they frequently re-price to a market rate. Long-term borrowings. The fair values of long-term borrowings consisting of subordinated notes and FHLB advances were estimated by discounting the estimated future cash flows using market discount rates for borrowings with similar characteristics, terms and remaining maturities. Junior subordinated debentures issued to capital trusts. There is no active market for the trust preferred securities issued by Aliant Statutory Trust II; therefore, the fair value of junior subordinated debentures was estimated utilizing the income approach. Valuation methods under the income approach include those methods that provide for the direct capitalization of earnings estimates, as well as valuation methods calling for the forecasting of future benefits (earnings or cash flows) and then discounting those benefits to the present at an appropriate discount rate. Under the income approach, the expected cash flows over the remaining estimated life were discounted to the present at an appropriate discount rate. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table shows the calculation of both basic and diluted earnings per common share for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands, except for share data) Net income available to common shareholders $ 69,630 $ 48,268 $ 108,423 $ 92,566 Basic weighted average number of common shares outstanding 331,318,381 263,958,292 331,024,531 263,878,103 Plus: Common stock equivalents 1,577,102 819,950 1,575,460 784,760 Diluted weighted average number of common shares outstanding 332,895,483 264,778,242 332,599,991 264,662,863 Earnings per common share: Basic $ 0.21 $ 0.18 $ 0.33 $ 0.35 Diluted 0.21 0.18 0.33 0.35 Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of restricted stock units, common stock options and warrants to purchase Valley’s common shares. Common stock options and warrants with exercise prices that exceed the average market price of Valley’s common stock during the periods presented have an anti-dilutive effect on the diluted earnings per common share calculation and therefore are excluded from the diluted earnings per share calculation. Anti-dilutive warrants and, to a lesser extent, common stock options equaled approximately 2.9 million and 3.3 million shares for the three and six months ended June 30, 2018 and 2017 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the three and six months ended June 30, 2018 . Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at March 31, 2018 $ (32,865 ) $ (664 ) $ (5,403 ) $ (25,171 ) $ (64,103 ) Other comprehensive (loss) income before reclassifications (6,461 ) 212 455 — (5,794 ) Amounts reclassified from other comprehensive (loss) income 30 12 619 112 773 Other comprehensive (loss) income, net (6,431 ) 224 1,074 112 (5,021 ) Balance at June 30, 2018 $ (39,296 ) $ (440 ) $ (4,329 ) $ (25,059 ) $ (69,124 ) Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at December 31, 2017 $ (12,004 ) $ (380 ) $ (8,338 ) $ (25,283 ) $ (46,005 ) Reclassification due to the adoption of ASU No. 2016-01 (480 ) — — — (480 ) Reclassification due to the adoption of ASU No. 2017-12 — — (61 ) — (61 ) Balance at January 1, 2018 (12,484 ) (380 ) (8,399 ) (25,283 ) (46,546 ) Other comprehensive (loss) income before reclassification (27,390 ) (56 ) 2,415 — (25,031 ) Amounts reclassified from other comprehensive (loss) income 578 (4 ) 1,655 224 2,453 Other comprehensive (loss) income, net (26,812 ) (60 ) 4,070 224 (22,578 ) Balance at June 30, 2018 $ (39,296 ) $ (440 ) $ (4,329 ) $ (25,059 ) $ (69,124 ) The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three and six months ended June 30, 2018 and 2017 . Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2018 2017 2018 2017 Income Statement Line Item (in thousands) Unrealized (losses) gains on AFS securities before tax $ (36 ) $ 22 $ (801 ) $ (1 ) (Losses) gains on securities transactions, net Tax effect 6 (9 ) 223 1 Total net of tax (30 ) 13 (578 ) — Non-credit impairment losses on AFS securities before tax: Accretion of credit loss impairment due to an increase in expected cash flows (16 ) 67 6 215 Interest and dividends on investment securities (taxable) Tax effect 4 (28 ) (2 ) (89 ) Total net of tax (12 ) 39 4 126 Unrealized losses on derivatives (cash flow hedges) before tax (866 ) (2,314 ) (2,317 ) (4,832 ) Interest expense Tax effect 247 958 662 2,001 Total net of tax (619 ) (1,356 ) (1,655 ) (2,831 ) Defined benefit pension plan: Amortization of net loss (157 ) (101 ) (314 ) (202 ) * Tax effect 45 42 90 84 Total net of tax (112 ) (59 ) (224 ) (118 ) Total reclassifications, net of tax $ (773 ) $ (1,363 ) $ (2,453 ) $ (2,823 ) * Amortization of net loss is included in the computation of net periodic pension cost recognized within other non-interest expense. |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance New Accounting Guidance Adopted in 2018 Accounting Standards Update (ASU) No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" amends the hedge accounting recognition and presentation requirements to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU No. 2017-12 is effective for the annual and interim reporting periods beginning January 1, 2019 with early adoption permitted. Valley elected to early adopt ASU No. 2017-12 for annual and interim reporting periods beginning January 1, 2018. The adoption of ASU No. 2017-12 required a modified retrospective method to be used by Valley and resulted in an immaterial cumulative-effect adjustment to retained earnings as of January 1, 2018 to eliminate the separate measurement of ineffectiveness from accumulated comprehensive income (see Note 4). ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" requires service cost to be reported in the same financial statement line item(s) as other current employee compensation costs. All other components of expense must be presented separately from service cost, and outside any subtotal of income from operations. Only the service cost component of expense is eligible to be capitalized. ASU No. 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. ASU No. 2017-07 was effective for Valley for its annual and interim reporting periods beginning January 1, 2018. ASU No. 2017-07 did not have a significant impact on the presentation of Valley's consolidated financial statements. ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Asset Transfers of Assets Other than Inventory”. Under current GAAP, the tax effects of intercompany sales are deferred until the transferred asset is sold to a third party or otherwise recovered through amortization. This is an exception to the accounting for income taxes that generally requires recognition of current and deferred income taxes. ASU No. 2016-16 eliminates the exception for intercompany sales of assets. ASU No. 2016-16 was effective for Valley on January 1, 2018 and it was applied using the modified retrospective method. As a result, Valley recorded a $15.4 million cumulative effect adjustment that reduced retained earnings effective January 1, 2018 to record net deferred tax liabilities related to pre-existing transactions. ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" clarifies how certain cash receipts and cash payments should be classified and presented in the statement of cash flows. ASU No. 2016-15 includes guidance on eight specific cash flow issues with the objective of reducing the existing diversity of practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 was effective for Valley for annual and interim reporting periods beginning January 1, 2018 and it was applied using a retrospective transition method to each period presented. ASU No. 2016-15 did not have a significant impact on the presentation of Valley's consolidated statements of cash flows. ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” requires that: (i) equity investments with readily determinable fair values must be measured at fair value with changes in fair value recognized in net income, (ii) equity investments without readily determinable fair values must be measured at either fair value or at cost adjusted for changes in observable prices minus impairment with changes in value under either of these methods recognized in net income, (iii) entities that record financial liabilities at fair value due to a fair value option election must recognize changes in fair value caused by a change in instrument-specific credit risk in other comprehensive income, (iv) entities must assess whether a valuation allowance is required for deferred tax assets related to available-for-sale debt securities, and (v) entities are required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ASU No. 2016-01 also eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet (see Note 6). ASU No. 2016-01 was effective for Valley for reporting periods beginning January 1, 2018 and did not have a material effect on Valley’s consolidated financial statements. ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)" and subsequent related updates modify the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. The updates also require new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. Valley adopted the guidance on January 1, 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings. The guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP. Accordingly, the new revenue recognition standard was not expected to have a material impact on Valley’s consolidated financial statements. Valley has completed its review of non-interest income revenue streams within the scope of the guidance and an assessment of its revenue contracts and did not identify material changes related to the timing or amount of revenue recognition. Therefore, Valley did not record an adjustment to opening retained earnings at January 1, 2018 due to the adoption of this standard. Valley has also concluded that additional disaggregation of revenue categories (as reported herein and consistent with the Annual Report on Form 10-K for the year ended December 31, 2017 ) that are within the scope of the new guidance is not necessary. Qualitative disclosures regarding such revenues, as required by the new guidance, are presented in Note 12. New Accounting Guidance Not Yet Adopted ASU No. 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" shortens the amortization period for certain callable debt securities held at a premium. ASU No. 2017-08 requires the premium to be amortized to the earliest call date. The accounting for securities held at a discount does not change and the discount continues to be amortized as an adjustment to yield over the contractual life (to maturity) of the instrument. ASU No. 2017-08 is effective for Valley for the annual and interim reporting periods beginning January 1, 2019 with early adoption permitted, and is to be applied using the modified retrospective method. Additionally, in the period of adoption, entities should provide disclosures about a change in accounting principle. ASU No. 2017-08 is not expected to have a significant impact on Valley's consolidated financial statements. ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test guidance) to measure a goodwill impairment charge. Instead, an entity will be required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1 of the current guidance). In addition, ASU No. 2017-04 eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. However, an entity will be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for Valley for its annual or any interim goodwill impairment tests in fiscal years beginning January 1, 2020 and is not expected to have a significant impact on the presentation of Valley's consolidated financial statements. Early adoption is permitted for annual and interim goodwill impairment testing dates. ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" amends the accounting guidance on the impairment of financial instruments. ASU No. 2016-13 adds to U.S. GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on all expected losses over the lives of the assets rather than incurred losses. Under the new guidance, an entity is required to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 is effective for Valley for reporting periods beginning January 1, 2020. Management is currently evaluating the impact of the ASU on Valley’s consolidated financial statements. Valley’s implementation effort is managed through several cross-functional working groups. These groups continue to evaluate the requirements of the new standard, assess its impact on current operational processes, and develop loss models that accurately project lifetime expected loss estimates. Valley expects that the adoption of ASU No. 2016-13 will result in an increase in its allowance for credit losses due to several factors, including: (i) the allowance related to Valley loans will increase to include credit losses over the full remaining expected life of the portfolio, and will consider expected future changes in macroeconomic conditions, (ii) the nonaccretable difference (as defined in Note 8) on PCI loans will be recognized as an allowance, offset by an increase in the carrying value of the related loans, and (iii) an allowance will be established for estimated credit losses on investment securities classified as held to maturity. The extent of the increase is under evaluation, but will depend upon the nature and characteristics of Valley's loan and investment portfolios at the adoption date, and the economic conditions and forecasts at that date. ASU No. 2016-02, “Leases (Topic 842)” and subsequent related updates require the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for Valley for reporting periods beginning January 1, 2019, with early adoption permitted. Valley expects to initially apply Topic 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019 under the new optional transition method provided by ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements". The comparative prior periods reported in the financial statements in the period of adoption will continue to be presented in accordance with current GAAP in Topic 840. In addition, the amendments in ASU No. 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component. Those components can be accounted for as a single component if the non-lease components would otherwise be accounted for under the new revenue guidance (Topic 606) when certain criteria are met. Overall, management continues to evaluate the impact of Topic 842 on Valley’s consolidated financial statements and presently evaluating all of its known leases for compliance with the new lease accounting guidance. Management has completed an initial review of Valley's contractual arrangements for embedded leases, and is currently validating the results of this review and accumulating the lease data necessary to apply the new guidance. Valley expects a gross-up of its consolidated statements of financial condition as a result of recognizing lease liabilities and right of use assets; the extent of such gross-up is under evaluation. Valley does not expect material changes to the recognition of operating lease expense in its consolidated statements of income. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities ASC Topic 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date. Level 2 Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets), for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis The following tables present the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at June 30, 2018 and December 31, 2017 . The assets presented under “nonrecurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). June 30, Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 48,667 $ 48,667 $ — $ — U.S. government agency securities 38,006 — 38,006 — Obligations of states and political subdivisions 211,529 — 211,529 — Residential mortgage-backed securities 1,477,846 — 1,471,403 6,443 Trust preferred securities 2,279 — 2,279 — Corporate and other debt securities 55,140 7,629 47,511 — Total available for sale 1,833,467 56,296 1,770,728 6,443 Loans held for sale (1) 32,670 — 32,670 — Other assets (2) 30,132 — 30,132 — Total assets $ 1,896,269 $ 56,296 $ 1,833,530 $ 6,443 Liabilities Other liabilities (2) $ 37,902 $ — $ 37,902 $ — Total liabilities $ 37,902 $ — $ 37,902 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 36,957 $ — $ — $ 36,957 Loan servicing rights 2,212 — — 2,212 Foreclosed assets 1,239 — — 1,239 Total $ 40,408 $ — $ — $ 40,408 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 49,642 $ 49,642 $ — $ — U.S. government agency securities 42,505 — 42,505 — Obligations of states and political subdivisions 112,884 — 112,884 — Residential mortgage-backed securities 1,223,295 — 1,215,935 7,360 Trust preferred securities 3,214 — 3,214 — Corporate and other debt securities 51,164 7,783 43,381 — Equity securities 11,201 1,382 9,819 — Total available for sale 1,493,905 58,807 1,427,738 7,360 Loans held for sale (1) 15,119 — 15,119 — Other assets (2) 26,417 — 26,417 — Total assets $ 1,535,441 $ 58,807 $ 1,469,274 $ 7,360 Liabilities Other liabilities (2) $ 24,330 $ — $ 24,330 $ — Total liabilities $ 24,330 $ — $ 24,330 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 48,373 $ — $ — $ 48,373 Loan servicing rights 5,350 — — 5,350 Foreclosed assets 3,472 — — 3,472 Total $ 57,195 $ — $ — $ 57,195 (1) Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $32.1 million and $14.8 million at June 30, 2018 and December 31, 2017 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. The changes in Level 3 assets measured at fair value on a recurring basis for the three and six months ended June 30, 2018 and 2017 are summarized below: Available for Sale Securities Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Balance, beginning of the period $ 6,498 $ 11,367 $ 7,360 $ 11,888 Total net gains (losses) included in other comprehensive income 313 (31 ) (85 ) 13 Settlements, net (368 ) (606 ) (832 ) (1,171 ) Balance, end of the period $ 6,443 $ 10,730 $ 6,443 $ 10,730 No changes in unrealized gains or losses on Level 3 securities were included in earnings during the three and six months ended June 30, 2018 and 2017 . There were no transfers of assets into or out of Level 3, or between Level 1 and Level 2, during the three and six months ended June 30, 2018 and 2017 . There have been no material changes in the valuation methodologies used at June 30, 2018 from December 31, 2017 . Assets and Liabilities Measured at Fair Value on a Recurring Basis The following valuation techniques were used for financial instruments measured at fair value on a recurring basis. All the valuation techniques described below apply to the unpaid principal balance, excluding any accrued interest or dividends at the measurement date. Interest income and expense are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium. Available for sale securities. All U.S. Treasury securities, certain corporate and other debt securities, and certain preferred equity securities are reported at fair value utilizing Level 1 inputs. The majority of other investment securities are reported at fair value utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the data and assumptions used in pricing the securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data. For certain securities, the inputs used by either dealer market participants or an independent pricing service may be derived from unobservable market information (Level 3 inputs). In these instances, Valley evaluates the appropriateness and quality of the assumption and the resulting price. In addition, Valley reviews the volume and level of activity for all available for sale and trading securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume. For securities meeting these criteria, the quoted prices received from either market participants or an independent pricing service may be adjusted, as necessary, to estimate fair value and this results in fair values based on Level 3 inputs. In determining fair value, Valley utilizes unobservable inputs which reflect Valley’s own assumptions about the inputs that market participants would use in pricing each security. In developing its assertion of market participant assumptions, Valley utilizes the best information that is both reasonable and available without undue cost and effort. In calculating the fair value for the available for sale securities under Level 3, Valley prepared present value cash flow models for four private label mortgage-backed securities. The cash flows for the Level 3 securities incorporated the expected cash flow of each security adjusted for default rates, loss severities and prepayments of the individual loans collateralizing the security. The following table presents quantitative information about Level 3 inputs used to measure the fair value of these securities at June 30, 2018 : Security Type Valuation Technique Unobservable Input Range Weighted Average Private label mortgage-backed securities Discounted cash flow Prepayment rate 1.8 - 28.8% 13.0 % Default rate 3.1 - 47.4 8.9 Loss severity 45.4 - 62.0 57.1 Significant increases or decreases in any of the unobservable inputs in the table above in isolation would result in a significantly lower or higher fair value measurement of the securities. Generally, a change in the assumption used for the default rate is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The cash flow assumptions for the Level 3 securities incorporated independent third party market participant data based on vintage year for each security. The discount rate utilized in determining the present value of cash flows for the mortgage-backed securities was arrived at by combining the yield on orderly transactions for similar maturity government sponsored mortgage-backed securities with (i) the historical average risk premium of similar structured private label securities, (ii) a risk premium reflecting current market conditions, including liquidity risk, and (iii) if applicable, a forecasted loss premium derived from the expected cash flows of each security. The estimated cash flows for each private label mortgage-backed security were then discounted at the aforementioned effective rate to determine the fair value. The quoted prices received from either market participants or independent pricing services are weighted with the internal price estimate to determine the fair value of each instrument. Loans held for sale. The conforming residential mortgage loans originated for sale are reported at fair value using Level 2 inputs. The fair values were calculated utilizing quoted prices for similar assets in active markets. To determine these fair values, the mortgages held for sale are put into multiple tranches, or pools, based on the coupon rate and maturity of each mortgage. The market prices for each tranche are obtained from both Fannie Mae and Freddie Mac. The market prices represent a delivery price, which reflects the underlying price each institution would pay Valley for an immediate sale of an aggregate pool of mortgages. The market prices received from Fannie Mae and Freddie Mac are then averaged and interpolated or extrapolated, where required, to calculate the fair value of each tranche. Depending upon the time elapsed since the origination of each loan held for sale, non-performance risk and changes therein were addressed in the estimate of fair value based upon the delinquency data provided to both Fannie Mae and Freddie Mac for market pricing and changes in market credit spreads. Non-performance risk did not materially impact the fair value of mortgage loans held for sale at June 30, 2018 and December 31, 2017 based on the short duration these assets were held, and the high credit quality of these loans. Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The fair value of Valley’s derivatives are determined using third party prices that are based on discounted cash flow analysis using observed market inputs, such as the LIBOR and Overnight Index Swap rate curves. The fair value of mortgage banking derivatives, consisting of interest rate lock commitments to fund residential mortgage loans and forward commitments for the future delivery of such loans (including certain loans held for sale at June 30, 2018 and December 31, 2017 ), is determined based on the current market prices for similar instruments provided by Fannie Mae and Freddie Mac. The fair values of most of the derivatives incorporate credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, to account for potential nonperformance risk of Valley and its counterparties. The credit valuation adjustments were not significant to the overall valuation of Valley’s derivatives at June 30, 2018 and December 31, 2017 . Assets and Liabilities Measured at Fair Value on a Non-recurring Basis The following valuation techniques were used for certain non-financial assets measured at fair value on a nonrecurring basis, including impaired loans reported at the fair value of the underlying collateral, loan servicing rights and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below. Impaired loans . Certain impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and are commonly referred to as “collateral dependent impaired loans.” Collateral values are estimated using Level 3 inputs, consisting of individual appraisals that may be adjusted based on certain discounting criteria. At June 30, 2018 , certain appraisals were discounted based on specific market data by location and property type. During the quarter ended June 30, 2018 , collateral dependent impaired loans were individually re-measured and reported at fair value through direct loan charge-offs to the allowance for loan losses and/or a specific valuation allowance allocation based on the fair value of the underlying collateral. The collateral dependent loan charge-offs to the allowance for loan losses were immaterial for the three and six months ended June 30, 2018 as compared to $1.9 million and $2.1 million for the three and six months ended June 30, 2017 , respectively. At June 30, 2018 , collateral dependent impaired loans with a total recorded investment of $60.3 million were reduced by specific valuation allowance allocations totaling $23.3 million to a reported total net carrying amount of $37.0 million . Loan servicing rights. Fair values for each risk-stratified group of loan servicing rights are calculated using a fair value model from a third party vendor that requires inputs that are both significant to the fair value measurement and unobservable (Level 3). The fair value model is based on various assumptions, including but not limited to, prepayment speeds, internal rate of return (“discount rate”), servicing cost, ancillary income, float rate, tax rate, and inflation. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. At June 30, 2018 , the fair value model used prepayment speeds (stated as constant prepayment rates) from 0 percent up to 24 percent and a discount rate of 8 percent for the valuation of the loan servicing rights. A significant degree of judgment is involved in valuing the loan servicing rights using Level 3 inputs. The use of different assumptions could have a significant positive or negative effect on the fair value estimate. Impairment charges are recognized on loan servicing rights when the amortized cost of a risk-stratified group of loan servicing rights exceeds the estimated fair value. Valley recorded net recoveries of net impairment charges on its loan servicing rights totaling $90 thousand and $317 thousand for the three and six months ended June 30, 2018 , respectively, and $50 thousand and $51 thousand for the three and six months ended June 30, 2017 , respectively. Foreclosed assets . Certain foreclosed assets (consisting of other real estate owned and other repossessed assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the foreclosed assets. The fair value of a foreclosed asset, upon initial recognition, is typically estimated using Level 3 inputs, consisting of an appraisal that is adjusted based on certain discounting criteria, similar to the criteria used for impaired loans described above. There were no discount adjustments of the appraisals of foreclosed assets at June 30, 2018 . At June 30, 2018 , foreclosed assets included $1.2 million of assets that were measured at fair value upon initial recognition or subsequently re-measured during the quarter ended June 30, 2018 . The foreclosed assets charge-offs to the allowance for the loan losses totaled $649 thousand and $282 thousand for the three months ended June 30, 2018 and 2017 , respectively, and $1.2 million and $994 thousand for the six months ended June 30, 2018 and 2017 , respectively. The re-measurement of foreclosed assets at fair value subsequent to their initial recognition resulted in net losses within non-interest expense of $145 thousand and $290 thousand for the six months ended June 30, 2018 and 2017 , respectively. Other Fair Value Disclosures ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The fair value estimates presented in the following table were based on pertinent market data and relevant information on the financial instruments available as of the valuation date. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire portfolio of financial instruments. Because no market exists for a portion of the financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For instance, Valley has certain fee-generating business lines (e.g., its mortgage servicing operation, trust and investment management departments) that were not considered in these estimates since these activities are not financial instruments. In addition, the tax implications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at June 30, 2018 and December 31, 2017 were as follows: Fair Value Hierarchy June 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 307,428 $ 307,428 $ 243,310 $ 243,310 Interest bearing deposits with banks Level 1 164,838 164,838 172,800 172,800 Investment securities held to maturity: U.S. Treasury securities Level 1 138,598 141,605 138,676 145,257 U.S. government agency securities Level 2 9,447 9,280 9,859 9,981 Obligations of states and political subdivisions Level 2 615,651 616,786 465,878 477,479 Residential mortgage-backed securities Level 2 1,185,165 1,146,450 1,131,945 1,118,044 Trust preferred securities Level 2 49,833 43,334 49,824 40,088 Corporate and other debt securities Level 2 31,500 31,327 46,509 46,771 Total investment securities held to maturity 2,030,194 1,988,782 1,842,691 1,837,620 Net loans Level 3 23,095,954 22,752,737 18,210,724 17,562,153 Accrued interest receivable Level 1 88,155 88,155 73,990 73,990 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 291,705 291,705 178,668 178,668 Financial liabilities Deposits without stated maturities Level 1 16,987,360 16,987,360 14,589,941 14,589,941 Deposits with stated maturities Level 2 4,653,412 4,604,918 3,563,521 3,465,373 Short-term borrowings Level 1 2,877,912 2,580,009 748,628 679,316 Long-term borrowings Level 2 2,103,993 1,812,019 2,315,819 2,453,797 Junior subordinated debentures issued to capital trusts Level 2 55,196 48,918 41,774 37,289 Accrued interest payable (2) Level 1 18,608 18,608 14,161 14,161 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Held to Maturity The amortized cost, gross unrealized gains and losses and fair value of securities held to maturity at June 30, 2018 and December 31, 2017 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2018 U.S. Treasury securities $ 138,598 $ 3,007 $ — $ 141,605 U.S. government agency securities 9,447 21 (188 ) 9,280 Obligations of states and political subdivisions: Obligations of states and state agencies 355,219 4,940 (5,862 ) 354,297 Municipal bonds 260,432 3,634 (1,577 ) 262,489 Total obligations of states and political subdivisions 615,651 8,574 (7,439 ) 616,786 Residential mortgage-backed securities 1,185,165 2,493 (41,208 ) 1,146,450 Trust preferred securities 49,833 78 (6,577 ) 43,334 Corporate and other debt securities 31,500 119 (292 ) 31,327 Total investment securities held to maturity $ 2,030,194 $ 14,292 $ (55,704 ) $ 1,988,782 December 31, 2017 U.S. Treasury securities $ 138,676 $ 6,581 $ — $ 145,257 U.S. government agency securities 9,859 122 — 9,981 Obligations of states and political subdivisions: Obligations of states and state agencies 244,272 7,083 (1,653 ) 249,702 Municipal bonds 221,606 6,199 (28 ) 227,777 Total obligations of states and political subdivisions 465,878 13,282 (1,681 ) 477,479 Residential mortgage-backed securities 1,131,945 4,842 (18,743 ) 1,118,044 Trust preferred securities 49,824 60 (9,796 ) 40,088 Corporate and other debt securities 46,509 532 (270 ) 46,771 Total investment securities held to maturity $ 1,842,691 $ 25,419 $ (30,490 ) $ 1,837,620 The age of unrealized losses and fair value of related securities held to maturity at June 30, 2018 and December 31, 2017 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) June 30, 2018 U.S. government agency securities $ 6,527 $ (188 ) $ — $ — $ 6,527 $ (188 ) Obligations of states and political subdivisions: Obligations of states and state agencies 125,371 (2,503 ) 46,899 (3,359 ) 172,270 (5,862 ) Municipal bonds 87,785 (1,546 ) 533 (31 ) 88,318 (1,577 ) Total obligations of states and political subdivisions 213,156 (4,049 ) 47,432 (3,390 ) 260,588 (7,439 ) Residential mortgage-backed securities 425,381 (12,139 ) 555,355 (29,069 ) 980,736 (41,208 ) Trust preferred securities — — 29,903 (6,577 ) 29,903 (6,577 ) Corporate and other debt securities 10,478 (22 ) 4,731 (270 ) 15,209 (292 ) Total $ 655,542 $ (16,398 ) $ 637,421 $ (39,306 ) $ 1,292,963 $ (55,704 ) December 31, 2017 Obligations of states and political subdivisions: Obligations of states and state agencies $ 6,342 $ (50 ) $ 53,034 $ (1,603 ) $ 59,376 $ (1,653 ) Municipal bonds 4,644 (25 ) 561 (3 ) 5,205 (28 ) Total obligations of states and political subdivisions 10,986 (75 ) 53,595 (1,606 ) 64,581 (1,681 ) Residential mortgage-backed securities 344,216 (2,357 ) 570,969 (16,386 ) 915,185 (18,743 ) Trust preferred securities — — 38,674 (9,796 ) 38,674 (9,796 ) Corporate and other debt securities 9,980 (270 ) — — 9,980 (270 ) Total $ 365,182 $ (2,702 ) $ 663,238 $ (27,788 ) $ 1,028,420 $ (30,490 ) The unrealized losses on investment securities held to maturity are primarily due to changes in interest rates (including, in certain cases, changes in credit spreads) and, in some cases, lack of liquidity in the marketplace. Within the held to maturity portfolio, the total number of security positions in an unrealized loss position was 362 at June 30, 2018 and 152 at December 31, 2017 . The unrealized losses within the residential mortgage-backed securities category of the held to maturity portfolio at June 30, 2018 mostly related to investment grade securities issued by Ginnie Mae and Fannie Mae. The unrealized losses existing for more than twelve months for trust preferred securities at June 30, 2018 primarily related to four non-rated single-issuer trust preferred securities issued by bank holding companies. All single-issuer trust preferred securities classified as held to maturity are paying in accordance with their terms, have no deferrals of interest or defaults and, if applicable, the issuers meet the regulatory capital requirements to be considered “well-capitalized institutions” at June 30, 2018 . As of June 30, 2018 , the fair value of investments held to maturity that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $1.1 billion . The contractual maturities of investments in debt securities held to maturity at June 30, 2018 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. June 30, 2018 Amortized Cost Fair Value (in thousands) Due in one year $ 13,524 $ 13,580 Due after one year through five years 223,219 226,330 Due after five years through ten years 321,954 329,369 Due after ten years 286,332 273,053 Residential mortgage-backed securities 1,185,165 1,146,450 Total investment securities held to maturity $ 2,030,194 $ 1,988,782 Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. The weighted-average remaining expected life for residential mortgage-backed securities held to maturity was 8.4 years at June 30, 2018 . Available for Sale The amortized cost, gross unrealized gains and losses and fair value of securities available for sale at June 30, 2018 and December 31, 2017 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2018 U.S. Treasury securities $ 50,986 $ — $ (2,319 ) $ 48,667 U.S. government agency securities 39,212 34 (1,240 ) 38,006 Obligations of states and political subdivisions: Obligations of states and state agencies 110,580 52 (2,636 ) 107,996 Municipal bonds 104,922 281 (1,670 ) 103,533 Total obligations of states and political subdivisions 215,502 333 (4,306 ) 211,529 Residential mortgage-backed securities 1,525,041 1,330 (48,525 ) 1,477,846 Trust preferred securities 2,583 — (304 ) 2,279 Corporate and other debt securities 55,629 219 (708 ) 55,140 Total investment securities available for sale $ 1,888,953 $ 1,916 $ (57,402 ) $ 1,833,467 December 31, 2017 U.S. Treasury securities $ 50,997 $ — $ (1,355 ) $ 49,642 U.S. government agency securities 42,384 158 (37 ) 42,505 Obligations of states and political subdivisions: Obligations of states and state agencies 38,435 158 (374 ) 38,219 Municipal bonds 74,752 477 (564 ) 74,665 Total obligations of states and political subdivisions 113,187 635 (938 ) 112,884 Residential mortgage-backed securities 1,239,534 2,423 (18,662 ) 1,223,295 Trust preferred securities 3,726 — (512 ) 3,214 Corporate and other debt securities 50,701 623 (160 ) 51,164 Equity securities 10,505 1,190 (494 ) 11,201 Total investment securities available for sale $ 1,511,034 $ 5,029 $ (22,158 ) $ 1,493,905 The age of unrealized losses and fair value of related securities available for sale at June 30, 2018 and December 31, 2017 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) June 30, 2018 U.S. Treasury securities $ 901 $ (13 ) $ 47,766 $ (2,306 ) $ 48,667 $ (2,319 ) U.S. government agency securities 30,485 (1,240 ) — — 30,485 (1,240 ) Obligations of states and political subdivisions: Obligations of states and state agencies 96,617 (2,301 ) 8,041 (335 ) 104,658 (2,636 ) Municipal bonds 69,301 (1,251 ) 12,010 (419 ) 81,311 (1,670 ) Total obligations of states and political subdivisions 165,918 (3,552 ) 20,051 (754 ) 185,969 (4,306 ) Residential mortgage-backed securities 875,444 (21,543 ) 553,585 (26,982 ) 1,429,029 (48,525 ) Trust preferred securities — — 2,279 (304 ) 2,279 (304 ) Corporate and other debt securities 22,622 (460 ) 14,756 (248 ) 37,378 (708 ) Total $ 1,095,370 $ (26,808 ) $ 638,437 $ (30,594 ) $ 1,733,807 $ (57,402 ) December 31, 2017 U.S. Treasury securities $ 916 $ (2 ) $ 48,726 $ (1,353 ) $ 49,642 $ (1,355 ) U.S. government agency securities 31,177 (37 ) — — 31,177 (37 ) Obligations of states and political subdivisions: Obligations of states and state agencies 13,337 (131 ) 7,792 (243 ) 21,129 (374 ) Municipal bonds 31,669 (256 ) 12,133 (308 ) 43,802 (564 ) Total obligations of states and political subdivisions 45,006 (387 ) 19,925 (551 ) 64,931 (938 ) Residential mortgage-backed securities 406,940 (2,461 ) 599,167 (16,201 ) 1,006,107 (18,662 ) Trust preferred securities — — 3,214 (512 ) 3,214 (512 ) Corporate and other debt securities 5,855 (45 ) 15,115 (115 ) 20,970 (160 ) Equity securities — — 5,150 (494 ) 5,150 (494 ) Total $ 489,894 $ (2,932 ) $ 691,297 $ (19,226 ) $ 1,181,191 $ (22,158 ) The unrealized losses on investment securities available for sale are primarily due to changes in interest rates (including, in certain cases, changes in credit spreads) and, in some cases, lack of liquidity in the marketplace. The total number of security positions in the securities available for sale portfolio in an unrealized loss position at June 30, 2018 was 567 as compared to 327 at December 31, 2017 . The unrealized losses for the residential mortgage-backed securities category of the available for sale portfolio at June 30, 2018 largely related to several investment grade residential mortgage-backed securities mainly issued by Ginnie Mae, Fannie Mae, and Freddie Mac. As of June 30, 2018 , the fair value of securities available for sale that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $1.0 billion . The contractual maturities of debt securities available for sale at June 30, 2018 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. June 30, 2018 Amortized Cost Fair Value (in thousands) Due in one year $ 18,801 $ 18,876 Due after one year through five years 127,790 124,100 Due after five years through ten years 80,582 79,923 Due after ten years 136,739 132,723 Residential mortgage-backed securities 1,525,041 1,477,845 Total investment securities available for sale $ 1,888,953 $ 1,833,467 Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. The weighted average remaining expected life for residential mortgage-backed securities available for sale was 8.4 years at June 30, 2018 . Other-Than-Temporary Impairment Analysis Valley records impairment charges on its investment securities when the decline in fair value is considered other-than-temporary. Numerous factors, including lack of liquidity for re-sales of certain investment securities; decline in the creditworthiness of the issuer; absence of reliable pricing information for investment securities; adverse changes in business climate; adverse actions by regulators; or unanticipated changes in the competitive environment could have a negative effect on Valley’s investment portfolio and may result in other-than-temporary impairment on certain investment securities in future periods. Valley's investment portfolios include private label mortgage-backed securities, trust preferred securities (including one pooled security at June 30, 2018 ) and corporate bonds (some issued by banks). These investments may pose a higher risk of future impairment charges by Valley as a result of the unpredictable nature of the U.S. economy and its potential negative effect on the future performance of the security issuers and, if applicable, the underlying mortgage loan collateral of the security. There were no other-than-temporary impairment losses on securities recognized in earnings for the three and six months ended June 30, 2018 and 2017 . Management does not believe that any individual unrealized loss as of June 30, 2018 included in the investment portfolio tables above represents other-than-temporary impairment as management mainly attributes the declines in fair value to changes in interest rates and market volatility, not credit quality or other factors. Based on a comparison of the present value of expected cash flows to the amortized cost, management believes there are no credit losses on these securities. Valley does not have the intent to sell, nor is it more likely than not that Valley will be required to sell, the securities contained in the table above before the recovery of their amortized cost basis or maturity. At June 30, 2018 , four previously impaired private label mortgage-backed securities had a combined amortized cost and fair value of $7.0 million and $6.4 million , respectively. Realized Gains and Losses Net losses on securities transactions totaled $36 thousand and $801 thousand for the three and six months ended June 30, 2018 , respectively. The net losses on securities transactions for the six months ended June 30, 2018 were mainly related to sales of equity securities classified as available for sale prior to the adoption of ASU No. 2016-01 on January 1, 2018 and a portion of the total municipal securities acquired from USAB. Net gains and losses on securities transactions were immaterial for the three and six months ended June 30, 2017 . |
Loans
Loans | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans | Loans The detail of the loan portfolio as of June 30, 2018 and December 31, 2017 was as follows: June 30, 2018 December 31, 2017 Non-PCI Loans PCI Loans* Total Non-PCI Loans PCI Loans* Total (in thousands) Loans: Commercial and industrial $ 3,021,524 $ 808,001 $ 3,829,525 $ 2,549,065 $ 192,360 $ 2,741,425 Commercial real estate: Commercial real estate 9,109,645 2,804,185 11,913,830 8,561,851 934,926 9,496,777 Construction 996,702 380,030 1,376,732 809,964 41,141 851,105 Total commercial real estate loans 10,106,347 3,184,215 13,290,562 9,371,815 976,067 10,347,882 Residential mortgage 3,051,429 477,253 3,528,682 2,717,744 141,291 2,859,035 Consumer: Home equity 358,043 162,806 520,849 373,631 72,649 446,280 Automobile 1,281,303 432 1,281,735 1,208,804 98 1,208,902 Other consumer 768,369 14,994 783,363 723,306 4,750 728,056 Total consumer loans 2,407,715 178,232 2,585,947 2,305,741 77,497 2,383,238 Total loans $ 18,587,015 $ 4,647,701 $ 23,234,716 $ 16,944,365 $ 1,387,215 $ 18,331,580 * PCI loans include covered loans (mostly consisting of residential mortgage loans) totaling $31.1 million and $38.7 million at June 30, 2018 and December 31, 2017 , respectively. Total loans (excluding PCI covered loans) include net unearned premiums and deferred loan costs of $18.7 million and $22.2 million at June 30, 2018 and December 31, 2017 , respectively. The outstanding balances (representing contractual balances owed to Valley) for PCI loans totaled $4.9 billion and $1.5 billion at June 30, 2018 and December 31, 2017 , respectively. Valley transferred $263.3 million of residential mortgage loans from the loan portfolio to loans held for sale during the six months ended June 30, 2018 as compared to $225.5 million of loans transferred during the six months ended June 30, 2017 . There were no other sales of loans from the held for investment portfolio during the six months ended June 30, 2018 and 2017 . Purchased Credit-Impaired Loans PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses), and aggregated and accounted for as pools of loans based on common risk characteristics. The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each pool. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loan pools. The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired in the USAB acquisition as of January 1, 2018 (See Note 2 for more details): (in thousands) Contractually required principal and interest $ 4,312,988 Contractual cash flows not expected to be collected (non-accretable difference) (94,098 ) Expected cash flows to be collected 4,218,890 Interest component of expected cash flows (accretable yield) (474,208 ) Fair value of acquired loans $ 3,744,682 The following table presents changes in the accretable yield for PCI loans during the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Balance, beginning of period $ 691,086 $ 269,831 $ 282,009 $ 294,514 Acquisition — — 474,208 — Accretion (60,536 ) (23,553 ) (125,667 ) (48,236 ) Balance, end of period $ 630,550 $ 246,278 $ 630,550 $ 246,278 Credit Risk Management For all of its loan types, Valley adheres to a credit policy designed to minimize credit risk while generating the maximum income given the level of risk. Management reviews and approves these policies and procedures on a regular basis with subsequent approval by the Board of Directors annually. Credit authority relating to a significant dollar percentage of the overall portfolio is centralized and controlled by the Credit Risk Management Division and by the Credit Committee. A reporting system supplements the management review process by providing management with frequent reports concerning loan production, loan quality, internal loan classification, concentrations of credit, loan delinquencies, non-performing, and potential problem loans. Loan portfolio diversification is an important factor utilized by Valley to manage its risk across business sectors and through cyclical economic circumstances. Credit Quality The following table presents past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis) by loan portfolio class at June 30, 2018 and December 31, 2017 : Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) June 30, 2018 Commercial and industrial $ 6,780 $ 1,533 $ 560 $ 53,596 $ 62,469 $ 2,959,055 $ 3,021,524 Commercial real estate: Commercial real estate 4,323 — 27 7,452 11,802 9,097,843 9,109,645 Construction 175 — — 1,100 1,275 995,427 996,702 Total commercial real estate loans 4,498 — 27 8,552 13,077 10,093,270 10,106,347 Residential mortgage 7,961 1,978 2,324 19,303 31,566 3,019,863 3,051,429 Consumer loans: Home equity 686 278 — 2,804 3,768 354,275 358,043 Automobile 5,482 545 164 80 6,271 1,275,032 1,281,303 Other consumer 405 37 34 119 595 767,774 768,369 Total consumer loans 6,573 860 198 3,003 10,634 2,397,081 2,407,715 Total $ 25,812 $ 4,371 $ 3,109 $ 84,454 $ 117,746 $ 18,469,269 $ 18,587,015 December 31, 2017 Commercial and industrial $ 3,650 $ 544 $ — $ 20,890 $ 25,084 $ 2,523,981 $ 2,549,065 Commercial real estate: Commercial real estate 11,223 — 27 11,328 22,578 8,539,273 8,561,851 Construction 12,949 18,845 — 732 32,526 777,438 809,964 Total commercial real estate loans 24,172 18,845 27 12,060 55,104 9,316,711 9,371,815 Residential mortgage 12,669 7,903 2,779 12,405 35,756 2,681,988 2,717,744 Consumer loans: Home equity 1,009 94 — 1,777 2,880 370,751 373,631 Automobile 5,707 987 271 73 7,038 1,201,766 1,208,804 Other consumer 1,693 118 13 20 1,844 721,462 723,306 Total consumer loans 8,409 1,199 284 1,870 11,762 2,293,979 2,305,741 Total $ 48,900 $ 28,491 $ 3,090 $ 47,225 $ 127,706 $ 16,816,659 $ 16,944,365 Impaired loans. Impaired loans, consisting of non-accrual commercial and industrial loans and commercial real estate loans over $250 thousand and all loans which were modified in troubled debt restructuring, are individually evaluated for impairment. PCI loans are not classified as impaired loans because they are accounted for on a pool basis. The following table presents the information about impaired loans by loan portfolio class at June 30, 2018 and December 31, 2017 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) June 30, 2018 Commercial and industrial $ 10,241 $ 76,929 $ 87,170 $ 92,073 $ 24,817 Commercial real estate: Commercial real estate 22,751 29,705 52,456 56,365 2,972 Construction 1,800 463 2,263 2,263 15 Total commercial real estate loans 24,551 30,168 54,719 58,628 2,987 Residential mortgage 6,226 6,623 12,849 13,838 632 Consumer loans: Home equity 838 615 1,453 2,115 72 Total consumer loans 838 615 1,453 2,115 72 Total $ 41,856 $ 114,335 $ 156,191 $ 166,654 $ 28,508 December 31, 2017 Commercial and industrial $ 9,946 $ 75,553 $ 85,499 $ 90,269 $ 11,044 Commercial real estate: Commercial real estate 28,709 29,771 58,480 62,286 2,718 Construction 1,904 467 2,371 2,394 17 Total commercial real estate loans 30,613 30,238 60,851 64,680 2,735 Residential mortgage 5,654 8,402 14,056 15,332 718 Consumer loans: Home equity 3,096 664 3,760 4,917 64 Total consumer loans 3,096 664 3,760 4,917 64 Total $ 49,309 $ 114,857 $ 164,166 $ 175,198 $ 14,561 The following tables present by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 87,674 $ 212 $ 46,283 $ 288 Commercial real estate: Commercial real estate 52,729 563 60,119 483 Construction 2,244 16 2,759 20 Total commercial real estate loans 54,973 579 62,878 503 Residential mortgage 12,914 185 17,555 184 Consumer loans: Home equity 1,794 33 4,799 34 Total consumer loans 1,794 33 4,799 34 Total $ 157,355 $ 1,009 $ 131,515 $ 1,009 Six Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 88,865 $ 926 $ 38,371 $ 596 Commercial real estate: Commercial real estate 54,104 1,179 57,722 808 Construction 2,230 39 2,728 39 Total commercial real estate loans 56,334 1,218 60,450 847 Residential mortgage 13,502 350 18,974 392 Consumer loans: Home equity 1,910 66 4,847 74 Total consumer loans 1,910 66 4,847 74 Total $ 160,611 $ 2,560 $ 122,642 $ 1,909 Interest income recognized on a cash basis (included in the table above) was immaterial for the three and six months ended June 30, 2018 and 2017 . Troubled debt restructured loans . From time to time, Valley may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers who may be experiencing financial difficulties. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a troubled debt restructured loan (TDR). Valley’s PCI loans are excluded from the TDR disclosures below because they are evaluated for impairment on a pool by pool basis. When an individual PCI loan within a pool is modified as a TDR, it is not removed from its pool. All TDRs are classified as impaired loans and are included in the impaired loan disclosures above. The majority of the concessions made for TDRs involve lowering the monthly payments on loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. The concessions rarely result in the forgiveness of principal or accrued interest. In addition, Valley frequently obtains additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms of the loan and Valley’s underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. Performing TDRs (not reported as non-accrual loans) totaled $83.7 million and $117.2 million as of June 30, 2018 and December 31, 2017 , respectively. Non-performing TDRs totaled $54.1 million and $27.0 million as of June 30, 2018 and December 31, 2017 , respectively. The following tables present loans by loan portfolio class modified as TDRs during the three and six months ended June 30, 2018 and 2017 . The pre-modification and post-modification outstanding recorded investments disclosed in the tables below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at June 30, 2018 and 2017 , respectively. Three Months Ended June 30, 2018 2017 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 11 $ 8,822 $ 8,575 47 $ 40,077 $ 38,367 Commercial real estate: Commercial real estate 5 3,975 3,971 5 23,604 23,604 Construction 1 532 491 — — — Total commercial real estate 6 4,507 4,462 5 23,604 23,604 Residential mortgage 2 393 389 2 549 545 Total 19 $ 13,722 $ 13,426 54 $ 64,230 $ 62,516 Six Months Ended June 30, 2018 2017 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 15 $ 10,554 $ 10,170 53 $ 46,315 $ 43,660 Commercial real estate: Commercial real estate 6 4,170 4,164 6 23,782 23,777 Construction 2 564 503 1 560 480 Total commercial real estate 8 4,734 4,667 7 24,342 24,257 Residential mortgage 5 980 963 5 1,170 1,167 Consumer 1 88 85 — — — Total 29 $ 16,356 $ 15,885 65 $ 71,827 $ 69,084 The total TDRs presented in the above table had allocated specific reserves for loan losses of approximately $5.3 million for both June 30, 2018 and 2017 . These specific reserves are included in the allowance for loan losses for loans individually evaluated for impairment disclosed in the "Impaired Loans" section above. There were no charge-offs related to TDR modifications during the three and six months ended June 30, 2018 and 2017 , respectively. The non-PCI loans modified as TDRs within the previous 12 months and for which there was a payment default ( 90 or more days past due) for the three and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended June 30, 2018 2017 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 4 $ 3,212 6 $ 5,358 Total 4 $ 3,212 6 $ 5,358 Six Months Ended June 30, 2018 2017 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 4 $ 3,212 7 $ 5,433 Commercial real estate — — 1 736 Residential mortgage — — 1 153 Total 4 $ 3,212 9 $ 6,322 Credit quality indicators . Valley utilizes an internal loan classification system as a means of reporting problem loans within commercial and industrial, commercial real estate, and construction loan portfolio classes. Under Valley’s internal risk rating system, loan relationships could be classified as “Pass,” “Special Mention,” “Substandard,” “Doubtful,” and “Loss.” Substandard loans include loans that exhibit well-defined weakness and are characterized by the distinct possibility that Valley will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable. Loans classified as Loss are those considered uncollectible with insignificant value and are charged-off immediately to the allowance for loan losses, and, therefore, not presented in the table below. Loans that do not currently pose a sufficient risk to warrant classification in one of the aforementioned categories, but pose weaknesses that deserve management’s close attention are deemed Special Mention. Loans rated as Pass do not currently pose any identified risk and can range from the highest to average quality, depending on the degree of potential risk. Risk ratings are updated any time the situation warrants. The following table presents the credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) at June 30, 2018 and December 31, 2017 based on the most recent analysis performed: Credit exposure - by internally assigned risk rating Pass Special Mention Substandard Doubtful Total Non-PCI Loans (in thousands) June 30, 2018 Commercial and industrial $ 2,853,692 $ 62,369 $ 56,095 $ 49,368 $ 3,021,524 Commercial real estate 9,019,309 35,200 55,136 — 9,109,645 Construction 994,407 523 1,772 — 996,702 Total $ 12,867,408 $ 98,092 $ 113,003 $ 49,368 $ 13,127,871 December 31, 2017 Commercial and industrial $ 2,375,689 $ 62,071 $ 96,555 $ 14,750 $ 2,549,065 Commercial real estate 8,447,865 48,009 65,977 — 8,561,851 Construction 808,091 360 1,513 — 809,964 Total $ 11,631,645 $ 110,440 $ 164,045 $ 14,750 $ 11,920,880 At June 30, 2018 and December 31, 2017 , the commercial and industrial loans with doubtful risk ratings in the above table mostly consisted of non-accrual taxi medallion loans. For residential mortgages, automobile, home equity and other consumer loan portfolio classes (excluding PCI loans), Valley also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2018 and December 31, 2017 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) June 30, 2018 Residential mortgage $ 3,032,126 $ 19,303 $ 3,051,429 Home equity 355,239 2,804 358,043 Automobile 1,281,223 80 1,281,303 Other consumer 768,250 119 768,369 Total $ 5,436,838 $ 22,306 $ 5,459,144 December 31, 2017 Residential mortgage $ 2,705,339 $ 12,405 $ 2,717,744 Home equity 371,854 1,777 373,631 Automobile 1,208,731 73 1,208,804 Other consumer 723,286 20 723,306 Total $ 5,009,210 $ 14,275 $ 5,023,485 Valley evaluates the credit quality of its PCI loan pools based on the expectation of the underlying cash flows of each pool, derived from the aging status and by payment activity of individual loans within the pool. The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of June 30, 2018 and December 31, 2017 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total PCI Loans (in thousands) June 30, 2018 Commercial and industrial $ 776,200 $ 31,801 $ 808,001 Commercial real estate 2,785,190 18,995 2,804,185 Construction 378,495 1,535 380,030 Residential mortgage 470,447 6,806 477,253 Consumer 174,411 3,821 178,232 Total $ 4,584,743 $ 62,958 $ 4,647,701 December 31, 2017 Commercial and industrial $ 172,105 $ 20,255 $ 192,360 Commercial real estate 924,574 10,352 934,926 Construction 39,802 1,339 41,141 Residential mortgage 135,745 5,546 141,291 Consumer 76,901 596 77,497 Total $ 1,349,127 $ 38,088 $ 1,387,215 Other real estate owned (OREO) totaled $11.8 million and $9.8 million at June 30, 2018 and December 31, 2017 , respectively. OREO included foreclosed residential real estate properties totaling $8.1 million and $7.3 million at June 30, 2018 and December 31, 2017 , respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $1.8 million and $3.8 million at June 30, 2018 and December 31, 2017 , respectively. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for loan losses is based on ongoing evaluations of the probable estimated losses inherent in the loan portfolio, including unexpected additional credit impairment of PCI loan pools subsequent to acquisition. There was no allowance allocation for PCI loan losses at June 30, 2018 and December 31, 2017 . The following table summarizes the allowance for credit losses at June 30, 2018 and December 31, 2017 : June 30, December 31, (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 138,762 $ 120,856 Allowance for unfunded letters of credit 4,392 3,596 Total allowance for credit losses $ 143,154 $ 124,452 The following table summarizes the provision for credit losses for the periods indicated: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Components of provision for credit losses: Provision for loan losses $ 6,592 $ 3,710 $ 17,294 $ 6,112 Provision for unfunded letters of credit 550 (78 ) 796 (10 ) Total provision for credit losses $ 7,142 $ 3,632 $ 18,090 $ 6,102 The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2018 and 2017 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 66,546 $ 56,679 $ 4,100 $ 5,537 $ 132,862 Loans charged-off (642 ) (38 ) (99 ) (1,422 ) (2,201 ) Charged-off loans recovered 819 15 180 495 1,509 Net recoveries (charge-offs) 177 (23 ) 81 (927 ) (692 ) Provision for loan losses 7,534 (2,844 ) 443 1,459 6,592 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Three Months Ended Allowance for loan losses: Beginning balance $ 51,288 $ 56,302 $ 3,592 $ 4,261 $ 115,443 Loans charged-off (2,910 ) (139 ) (229 ) (1,011 ) (4,289 ) Charged-off loans recovered 312 640 235 395 1,582 Net (charge-offs) recoveries (2,598 ) 501 6 (616 ) (2,707 ) Provision for loan losses 2,927 (1,348 ) 588 1,543 3,710 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans charged-off (773 ) (348 ) (167 ) (2,633 ) (3,921 ) Charged-off loans recovered 2,926 384 260 963 4,533 Net recoveries (charge-offs) 2,153 36 93 (1,670 ) 612 Provision for loan losses 14,872 (1,178 ) 926 2,674 17,294 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Six Months Ended Allowance for loan losses: Beginning balance $ 50,820 $ 55,851 $ 3,702 $ 4,046 $ 114,419 Loans charged-off (4,624 ) (553 ) (359 ) (2,132 ) (7,668 ) Charged-off loans recovered 1,160 782 683 958 3,583 Net (charge-offs) recoveries (3,464 ) 229 324 (1,174 ) (4,085 ) Provision for loan losses 4,261 (625 ) 160 2,316 6,112 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at June 30, 2018 and December 31, 2017 . Loans individually evaluated for impairment represent Valley's impaired loans. Loans acquired with discounts related to credit quality represent Valley's PCI loans. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) June 30, 2018 Allowance for loan losses: Individually evaluated for impairment $ 24,817 $ 2,987 $ 632 $ 72 $ 28,508 Collectively evaluated for impairment 49,440 50,825 3,992 5,997 110,254 Total $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Loans: Individually evaluated for impairment $ 87,170 $ 54,719 $ 12,849 $ 1,453 $ 156,191 Collectively evaluated for impairment 2,934,354 10,051,628 3,038,580 2,406,262 18,430,824 Loans acquired with discounts related to credit quality 808,001 3,184,215 477,253 178,232 4,647,701 Total $ 3,829,525 $ 13,290,562 $ 3,528,682 $ 2,585,947 $ 23,234,716 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ 11,044 $ 2,735 $ 718 $ 64 $ 14,561 Collectively evaluated for impairment 46,188 52,219 2,887 5,001 106,295 Total $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans: Individually evaluated for impairment $ 85,499 $ 60,851 $ 14,056 $ 3,760 $ 164,166 Collectively evaluated for impairment 2,463,566 9,310,964 2,703,688 2,301,981 16,780,199 Loans acquired with discounts related to credit quality 192,360 976,067 141,291 77,497 1,387,215 Total $ 2,741,425 $ 10,347,882 $ 2,859,035 $ 2,383,238 $ 18,331,580 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were: Business Segment / Reporting Unit* Wealth Management Consumer Lending Commercial Lending Investment Management Total (in thousands) Balance at December 31, 2017 $ 21,218 $ 200,103 $ 316,258 $ 153,058 $ 690,637 Goodwill from business combinations — 85,649 238,052 64,554 388,255 Balance at June 30, 2018 $ 21,218 $ 285,752 $ 554,310 $ 217,612 $ 1,078,892 * Wealth Management is comprised of trust, asset management and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes. During the six months ended June 30, 2018 , goodwill from business combinations set forth in the table above relates to the acquisition of USAB (see Note 2 for further details). Certain estimates for acquired assets and assumed liabilities are subject to change for up to one year after the acquisition date. There was no impairment of goodwill during three and six months ended June 30, 2018 and 2017 . The following table summarizes other intangible assets as of June 30, 2018 and December 31, 2017 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) June 30, 2018 Loan servicing rights $ 84,956 $ (59,975 ) $ (154 ) $ 24,827 Core deposits 80,470 (23,002 ) — 57,468 Other 3,945 (2,274 ) — 1,671 Total other intangible assets $ 169,371 $ (85,251 ) $ (154 ) $ 83,966 December 31, 2017 Loan servicing rights $ 79,138 $ (57,054 ) $ (471 ) $ 21,613 Core deposits 43,396 (24,297 ) — 19,099 Other 4,087 (2,292 ) — 1,795 Total other intangible assets $ 126,621 $ (83,643 ) $ (471 ) $ 42,507 Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets in proportion to, and over the period of, estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value. See the "Assets and Liabilities Measured at Fair Value on a Non-recurring Basis" section of Note 6 for additional information regarding the fair valuation and impairment of loan servicing rights. Core deposits are amortized using an accelerated method and have a weighted average amortization period of 10 years . The line item labeled “Other” included in the table above primarily consists of customer lists and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 20 years . On January 1, 2018, Valley recorded approximately $44.6 million and $1.4 million of core deposit intangibles and loan servicing rights, respectively, resulting from the USAB acquisition. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three and six months ended June 30, 2018 and 2017 . The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2018 through 2022 : Loan Servicing Rights Core Deposits Other (in thousands) 2018 $ 3,155 $ 6,134 $ 125 2019 5,148 10,961 235 2020 4,160 9,607 220 2021 3,243 8,252 206 2022 2,608 6,898 191 Valley recognized amortization expense on other intangible assets, including net impairment (or recovery of impairment) charges on loan servicing rights, totaling approximately $ 4.6 million and $ 2.6 million for the three months ended June 30, 2018 and 2017 , respectively, and $8.9 million and $5.1 million for the six months ended June 30, 2018 and 2017 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock–Based Compensation Valley currently has one active employee stock plan, the 2016 Long-Term Stock Incentive Plan (the “2016 Stock Plan”), adopted by Valley’s Board of Directors on January 29, 2016 and approved by its shareholders on April 28, 2016. The purpose of the 2016 Plan is to provide additional incentive to officers and key employees of Valley and its subsidiaries, whose substantial contributions are essential to the continued growth and success of Valley, and to attract and retain competent and dedicated officers and other key employees whose efforts will result in the continued and long-term growth of Valley’s business. Under the 2016 Stock Plan, Valley may award shares of common stock in the form of stock appreciation rights, both incentive and non-qualified stock options, restricted stock and restricted stock units (RSUs) to its employees and non-employee directors. As of June 30, 2018 , 5.5 million shares of common stock were available for issuance under the 2016 Stock Plan. The essential features of each award are described in the award agreement relating to that award. The grant, exercise, vesting, settlement or payment of an award may be based upon the fair value of Valley’s common stock on the last sale price reported for Valley’s common stock on such date or the last sale price reported preceding such date, except for performance-based awards with a market condition. The grant date fair values of performance-based awards that vest based on a market condition are determined by a third party specialist using a Monte Carlo valuation model. In connection with the USAB acquisition on January 1, 2018, Valley assumed pre-existing stock awards consisting of options for 1.8 million shares of Valley common stock (of which options for 936 thousand shares remained outstanding as of June 30, 2018 ) at a weighted average exercise price of $5.49 and 336 thousand time-based RSUs (of which 179 thousand remained outstanding as of June 30, 2018 ). The stock plan under which the stock awards were issued is no longer active. Restricted Stock. Restricted stock is awarded to key employees, providing for the immediate award of our common stock subject to certain vesting and restrictions under the 2016 Stock Plan. Compensation expense is measured based on the grant-date fair value of the shares. Valley awarded time-based restricted stock totaling 1.2 million shares and 482 thousand shares during the six months ended June 30, 2018 and 2017 , respectively, to both executive officers and key employees of Valley. The majority of the awards have vesting periods of three years. Generally, the restrictions on such awards lapse at an annual rate of one-third of the total award commencing with the first anniversary of the date of grant. The average grant date fair value of the restricted stock awards granted during the six months ended June 30, 2018 and 2017 was $11.86 per share and $11.71 per share, respectively. Restricted Stock Units (RSUs). Valley granted 446 thousand and 371 thousand shares of performance-based RSUs to certain executive officers for the six months ended June 30, 2018 and 2017 , respectively. The performance-based RSUs will vest and be issued as common stock based on the attainment of (i) growth in tangible book value per share plus dividends ( 75 percent of the RSU award) and (ii) total shareholder return as compared to our peer group ( 25 percent of the RSU award). The RSUs "cliff" vest after three years based on the cumulative performance of Valley during that time period. The RSUs earn dividend equivalents (equal to cash dividends paid on Valley's common stock) over the applicable performance period. Dividend equivalents are accumulated and paid to the grantee at the vesting date, or forfeited if the performance conditions are not met. The grant date fair value of the RSUs granted during the six months ended June 30, 2018 and 2017 was $12.35 per share and $11.05 per share, respectively. Valley recorded total stock-based compensation expense of $4.2 million and $2.7 million for the three months ended June 30, 2018 and 2017 , and $12.2 million and $6.9 million for the six months ended June 30, 2018 and 2017 , respectively. The fair values of stock awards are expensed over the shorter of the vesting or required service period. As of June 30, 2018 , the unrecognized amortization expense for all stock-based employee compensation totaled approximately $24.3 million and will be recognized over an average remaining vesting period of 2.3 years . |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, Valley adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)" and subsequent related updates that modify the guidance used to recognize revenue from contracts with customers for transfers of goods and services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. The adoption did not materially change Valley's recognition of revenues within the scope of ASC Topic 606. Performance obligations. Valley's revenue contracts generally have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable, or distinct from other obligations within the contracts. Valley does not have a material amount of long-term customer agreements that include multiple performance obligations requiring price allocation and differences in the timing of revenue recognition. Valley has no customer contracts with variable fee agreements based upon performance. The following table presents non-interest income for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Trust and investment services $ 3,262 $ 2,800 $ 6,492 $ 5,544 Insurance commissions 4,026 4,358 7,847 9,419 Service charges on deposit accounts 6,679 5,342 13,932 10,578 (Losses) gains on securities transactions, net (36 ) 22 (801 ) (1 ) Fees from loan servicing 2,045 1,831 4,268 3,646 Gains on sales of loans, net 7,642 4,791 14,395 8,919 Bank owned life insurance 2,652 1,701 4,415 4,164 Other 11,799 7,985 19,772 12,281 Total non-interest income $ 38,069 $ 28,830 $ 70,320 $ 54,550 The following revenues from the table above are within the scope of ASC Topic 606: Trust and investments services. Trust and investments services include fees from investment management, investment advisory, trust, custody and other products. Trust and investment management fee income is primarily from client assets under management (AUM) for which the fees are determined based upon a tiered scale relative to the market value of the AUM. The revenue from trust and investment services is typically earned over the service period specified in the contract. Service charges on deposit accounts. Service charges on deposit accounts include fees from checking accounts, savings accounts, overdrafts, insufficient funds, ATM transactions and other activities. The revenues for most deposit related fees are recognized immediately upon performance of the service due to the short-term nature of the contractual terms. Other income. Other income within the scope of ASC Topic 606 within this revenue category includes fee income related to derivative interest rate swaps executed with commercial loan customers, and fees from interchange, wire transfers, credit cards, safe deposit box, ACH, lockbox and various other products and services-related income. These fees are either recognized immediately at the related transaction date or over the period in which the related service is provided. Other income also consists of items which are outside the scope of ASC Topic 606, including letters of credit fees, net gains and losses on sales of assets and income or expense related to certain changes in FDIC loss-share receivables. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Valley enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Cash Flow Hedges of Interest Rate Risk . Valley’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, Valley uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty, respectively. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. Valley terminated an interest rate cap with a notional amount of $125 million in May 2018. The terminated swap, originally maturing in September 2023, was used to hedge the change in cash flows associated with prime rate indexed deposits, consisting of consumer and commercial money market accounts, which variable rates are indexed to the prime rate. Fair Value Hedges of Fixed Rate Assets and Liabilities . Valley is exposed to changes in the fair value of certain of its fixed rate assets or liabilities due to changes in benchmark interest rates based on one-month LIBOR. From time to time, Valley uses interest rate swaps to manage its exposure to changes in fair value. Interest rate swaps designated as fair value hedges involve the receipt of variable rate payments from a counterparty in exchange for Valley making fixed rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. Valley includes the gain or loss on the hedged items in the same income statement line item as the loss or gain on the related derivatives. Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. Derivatives not designated as hedges are not entered into for speculative purposes. Under a program, Valley executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Valley executes with a third party, such that Valley minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Valley sometimes enters into risk participation agreements with external lenders where the banks are sharing their risk of default on the interest rate swaps on participated loans. Valley either pays or receives a fee depending on the participation type. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value in credit derivatives are recognized directly in earnings. At June 30, 2018 , Valley had 13 credit swaps with an aggregate notional amount of $73.4 million related to risk participation agreements. At June 30, 2018 , Valley has one "steepener" swap with a total current notional amount of $14.3 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and the rates paid on these types of hybrid instruments are based on a formula derived from the spread between the long and short ends of the constant maturity swap (CMS) rate curve. Although these types of instruments do not meet the hedge accounting requirements, the change in fair value of both the bifurcated derivative and the stand alone swap tend to move in opposite directions with changes in the three-month LIBOR rate and therefore provide an effective economic hedge. Valley regularly enters into mortgage banking derivatives which are non-designated hedges. These derivatives include interest rate lock commitments provided to customers to fund certain residential mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. Valley enters into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on Valley’s commitments to fund the loans as well as on its portfolio of mortgage loans held for sale. Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: June 30, 2018 December 31, 2017 Fair Value Fair Value Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Notional Amount (in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate swaps and caps $ — $ 32 $ 482,000 $ 650 $ 81 $ 607,000 Fair value hedge interest rate swaps — 419 7,657 — 637 7,775 Total derivatives designated as hedging instruments $ — $ 451 $ 489,657 $ 650 $ 718 $ 614,775 Derivatives not designated as hedging instruments: Interest rate swaps and embedded derivatives $ 29,834 $ 37,135 $ 2,996,861 $ 25,696 $ 23,494 $ 1,687,005 Mortgage banking derivatives 298 316 126,994 71 118 113,233 Total derivatives not designated as hedging instruments $ 30,132 $ 37,451 $ 3,123,855 $ 25,767 $ 23,612 $ 1,800,238 The Chicago Mercantile Exchange (CME) and London Clearing House (LCH) have enacted rulebook changes that re-characterize variation margin as settlements of the outstanding derivative instead of cash collateral. The CME and LCH variation margins are classified as a single-unit of account with the fair value of certain cash flow and non-designated derivative instruments on a prospective basis effective January 1, 2017 for derivatives outstanding with the CME and January 1, 2018 for derivatives outstanding with the LCH. As a result, the fair value of the designated cash flow derivative assets, designated and non-designated interest rate swaps liabilities were offset by variation margins posted by (with) the applicable counterparties totaling $15.9 million , $796 thousand and $8.2 million , respectively, and reported in the table above on a net basis at June 30, 2018 . The fair value of the designated cash flow derivatives and non-designated interest rate swaps cleared with the CME were offset by variation margins totaling $9.5 million and $951 thousand , respectively, and reported in the table above on a net basis at December 31, 2017. (Losses) gains included in the consolidated statements of income and in other comprehensive (loss) income, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (866 ) $ (2,314 ) $ (2,317 ) $ (4,832 ) Amount of gain recognized in other comprehensive (loss) income 637 (1,482 ) 3,388 (1,265 ) The accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss were $4.3 million and $8.3 million at June 30, 2018 and December 31, 2017 , respectively. Amounts reported in accumulated other comprehensive loss related to cash flow interest rate derivatives are reclassified to interest expense as interest payments are made on the hedged variable interest rate liabilities. Valley estimates that $1.7 million will be reclassified as an increase to interest expense over the next 12 months. Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Derivative - interest rate swaps: Interest income $ 88 $ 52 $ 219 $ 149 Hedged item - loans: Interest income $ (88 ) $ (52 ) $ (219 ) $ (149 ) Fee income related to derivative interest rate swaps executed with commercial loan customers totaled $4.4 million and $4.1 million for the three months ended June 30, 2018 and 2017 , respectively, and $7.7 million and $4.8 million for the six months ended June 30, 2018 and 2017 , respectively, and was included in other non-interest income. The following table presents the hedged items related to interest rate derivatives designated as hedges of fair value and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at June 30, 2018 : June 30, 2018 Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Asset Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset (in thousands) Loans $ 8,076 $ 419 The net gains (losses) included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Non-designated hedge interest rate derivatives Other non-interest expense $ 230 $ 70 $ 448 $ (790 ) Credit Risk Related Contingent Features. By using derivatives, Valley is exposed to credit risk if counterparties to the derivative contracts do not perform as expected. Management attempts to minimize counterparty credit risk through credit approvals, limits, monitoring procedures and obtaining collateral where appropriate. Credit risk exposure associated with derivative contracts is managed at Valley in conjunction with Valley’s consolidated counterparty risk management process. Valley’s counterparties and the risk limits monitored by management are periodically reviewed and approved by the Board of Directors. Valley has agreements with its derivative counterparties providing that if Valley defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Valley could also be declared in default on its derivative counterparty agreements. Additionally, Valley has an agreement with several of its derivative counterparties that contains provisions that require Valley’s debt to maintain an investment grade credit rating from each of the major credit rating agencies from which it receives a credit rating. If Valley’s credit rating is reduced below investment grade, or such rating is withdrawn or suspended, then the counterparty could terminate the derivative positions and Valley would be required to settle its obligations under the agreements. As of June 30, 2018 , Valley was in compliance with all of the provisions of its derivative counterparty agreements. As of June 30, 2018 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $2.1 million . Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties. The aggregate fair value of collateral Valley posted with counterparties related to derivative contracts totaled $4.4 million at June 30, 2018 . |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Certain financial instruments, including derivatives (consisting of interest rate swaps and caps) and repurchase agreements (accounted for as secured long-term borrowings), may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. Valley is party to master netting arrangements with its financial institution counterparties; however, Valley does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the repurchase agreement should Valley be in default. The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of June 30, 2018 and December 31, 2017 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) June 30, 2018 Assets: Interest rate swaps $ 29,834 $ — $ 29,834 $ (336 ) $ — $ 29,498 Liabilities: Interest rate swaps $ 37,586 $ — $ 37,586 $ (336 ) $ (1,645 ) (1) $ 35,605 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 187,586 $ — $ 187,586 $ (336 ) $ (151,645 ) $ 35,605 December 31, 2017 Assets: Interest rate swaps and caps $ 26,346 $ — $ 26,346 $ (5,376 ) $ — $ 20,970 Liabilities: Interest rate swaps and caps $ 24,212 $ — $ 24,212 $ (5,376 ) $ (8,141 ) (1) $ 10,695 Repurchase agreements 200,000 — 200,000 — (200,000 ) (2) — Total $ 224,212 $ — $ 224,212 $ (5,376 ) $ (208,141 ) $ 10,695 (1) Represents the amount of collateral posted with derivative counterparties that offsets net liability positions. (2) Represents the fair value of non-cash pledged investment securities. |
Tax Credit Investments
Tax Credit Investments | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Tax Credit Investments | Tax Credit Investments Valley’s tax credit investments are primarily related to investments promoting qualified affordable housing projects, and other investments related to community development and renewable energy sources. Some of these tax-advantaged investments support Valley’s regulatory compliance with the Community Reinvestment Act (CRA). Valley’s investments in these entities generate a return primarily through the realization of federal income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction of income tax expense. Valley’s tax credit investments are carried in other assets on the consolidated statements of financial condition. Valley’s unfunded capital and other commitments related to the tax credit investments are carried in accrued expenses and other liabilities on the consolidated statements of financial condition. Valley recognizes amortization of tax credit investments, including impairment losses, within non-interest expense of the consolidated statements of income using the equity method of accounting. An impairment loss is recognized when the fair value of the tax credit investment is less than its carrying value. The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at June 30, 2018 and December 31, 2017 . June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 40,226 $ 22,135 Other tax credit investments, net 31,129 42,015 Total tax credit investments, net $ 71,355 $ 64,150 Other Liabilities: Unfunded affordable housing tax credit commitments $ 4,978 $ 3,690 Unfunded other tax credit commitments 4,773 15,020 Total unfunded tax credit commitments $ 9,751 $ 18,710 The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,429 $ 1,271 $ 3,250 $ 2,555 Other tax credit investment credits and tax benefits 5,680 8,680 11,165 14,966 Total reduction in income tax expense $ 7,109 $ 9,951 $ 14,415 $ 17,521 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ (319 ) $ 358 $ 667 $ 754 Affordable housing tax credit investment impairment losses 515 130 1,102 254 Other tax credit investment losses 1,253 1,060 1,790 1,827 Other tax credit investment impairment losses 3,021 6,184 6,185 10,221 Total amortization of tax credit investments recorded in non-interest expense $ 4,470 $ 7,732 $ 9,744 $ 13,056 |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation In the normal course of business, Valley is a party to various outstanding legal proceedings and claims. In the opinion of management, the financial condition, results of operations and liquidity of Valley should not be materially affected by the outcome of such legal proceedings and claims. However, in the event of an adverse outcome or settlement in one or more of our legal proceedings, operating results for a particular period may be negatively impacted. Disclosure is required when a risk of material loss in a litigation or claim is more than remote. Disclosure is also required of the estimate of the reasonably possible loss or range of loss, unless an estimate cannot reasonably be made. Liabilities are established for legal claims when payments associated with the claims become probable and the possible losses related to the matter can be reasonably estimated. Maritza Gaston and George Gallart v. Valley National Bancorp and Valley National Bank. In April 2017, Valley was served with a Class and Collective Action Complaint, filed in the Eastern District of New York, alleging that Valley had violated both Federal and State wage and hour laws and seeking to recover overtime compensation on behalf of a class of Valley employees. While most Branch Service Managers are classified by Valley as “exempt” employees and do not receive overtime pay, plaintiffs' counsel claims that all Branch Service Managers perform non-exempt duties, and should therefore be classified as non-exempt hourly employees and be paid overtime for any time worked in excess of 40 hours per week. Valley filed an answer disputing Plaintiffs’ allegations. Plaintiffs filed a notice for conditional certification of the class, which was granted by the Federal Magistrate in December 2017. In January 2018, Valley filed an objection requesting that the Federal Judge assigned to this case overturn the Federal Magistrate’s Order for Certification. The Court has not acted on that request. Plaintiffs and Valley have agreed to enter into non-binding mediation. A mediation session was held in June 2018 and another session is anticipated to occur in late August or early September 2018. At June 30, 2018, Valley was unable to estimate an amount or range of reasonably possible loss. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The information under the caption “Business Segments” in Management’s Discussion and Analysis of Financial Condition and Results of Operations is incorporated herein by reference. |
New Authoritative Accounting 24
New Authoritative Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance New Accounting Guidance Adopted in 2018 Accounting Standards Update (ASU) No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" amends the hedge accounting recognition and presentation requirements to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU No. 2017-12 is effective for the annual and interim reporting periods beginning January 1, 2019 with early adoption permitted. Valley elected to early adopt ASU No. 2017-12 for annual and interim reporting periods beginning January 1, 2018. The adoption of ASU No. 2017-12 required a modified retrospective method to be used by Valley and resulted in an immaterial cumulative-effect adjustment to retained earnings as of January 1, 2018 to eliminate the separate measurement of ineffectiveness from accumulated comprehensive income (see Note 4). ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" requires service cost to be reported in the same financial statement line item(s) as other current employee compensation costs. All other components of expense must be presented separately from service cost, and outside any subtotal of income from operations. Only the service cost component of expense is eligible to be capitalized. ASU No. 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. ASU No. 2017-07 was effective for Valley for its annual and interim reporting periods beginning January 1, 2018. ASU No. 2017-07 did not have a significant impact on the presentation of Valley's consolidated financial statements. ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Asset Transfers of Assets Other than Inventory”. Under current GAAP, the tax effects of intercompany sales are deferred until the transferred asset is sold to a third party or otherwise recovered through amortization. This is an exception to the accounting for income taxes that generally requires recognition of current and deferred income taxes. ASU No. 2016-16 eliminates the exception for intercompany sales of assets. ASU No. 2016-16 was effective for Valley on January 1, 2018 and it was applied using the modified retrospective method. As a result, Valley recorded a $15.4 million cumulative effect adjustment that reduced retained earnings effective January 1, 2018 to record net deferred tax liabilities related to pre-existing transactions. ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" clarifies how certain cash receipts and cash payments should be classified and presented in the statement of cash flows. ASU No. 2016-15 includes guidance on eight specific cash flow issues with the objective of reducing the existing diversity of practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 was effective for Valley for annual and interim reporting periods beginning January 1, 2018 and it was applied using a retrospective transition method to each period presented. ASU No. 2016-15 did not have a significant impact on the presentation of Valley's consolidated statements of cash flows. ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” requires that: (i) equity investments with readily determinable fair values must be measured at fair value with changes in fair value recognized in net income, (ii) equity investments without readily determinable fair values must be measured at either fair value or at cost adjusted for changes in observable prices minus impairment with changes in value under either of these methods recognized in net income, (iii) entities that record financial liabilities at fair value due to a fair value option election must recognize changes in fair value caused by a change in instrument-specific credit risk in other comprehensive income, (iv) entities must assess whether a valuation allowance is required for deferred tax assets related to available-for-sale debt securities, and (v) entities are required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ASU No. 2016-01 also eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet (see Note 6). ASU No. 2016-01 was effective for Valley for reporting periods beginning January 1, 2018 and did not have a material effect on Valley’s consolidated financial statements. ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)" and subsequent related updates modify the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. The updates also require new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. Valley adopted the guidance on January 1, 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings. The guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP. Accordingly, the new revenue recognition standard was not expected to have a material impact on Valley’s consolidated financial statements. Valley has completed its review of non-interest income revenue streams within the scope of the guidance and an assessment of its revenue contracts and did not identify material changes related to the timing or amount of revenue recognition. Therefore, Valley did not record an adjustment to opening retained earnings at January 1, 2018 due to the adoption of this standard. Valley has also concluded that additional disaggregation of revenue categories (as reported herein and consistent with the Annual Report on Form 10-K for the year ended December 31, 2017 ) that are within the scope of the new guidance is not necessary. Qualitative disclosures regarding such revenues, as required by the new guidance, are presented in Note 12. New Accounting Guidance Not Yet Adopted ASU No. 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" shortens the amortization period for certain callable debt securities held at a premium. ASU No. 2017-08 requires the premium to be amortized to the earliest call date. The accounting for securities held at a discount does not change and the discount continues to be amortized as an adjustment to yield over the contractual life (to maturity) of the instrument. ASU No. 2017-08 is effective for Valley for the annual and interim reporting periods beginning January 1, 2019 with early adoption permitted, and is to be applied using the modified retrospective method. Additionally, in the period of adoption, entities should provide disclosures about a change in accounting principle. ASU No. 2017-08 is not expected to have a significant impact on Valley's consolidated financial statements. ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test guidance) to measure a goodwill impairment charge. Instead, an entity will be required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1 of the current guidance). In addition, ASU No. 2017-04 eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. However, an entity will be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for Valley for its annual or any interim goodwill impairment tests in fiscal years beginning January 1, 2020 and is not expected to have a significant impact on the presentation of Valley's consolidated financial statements. Early adoption is permitted for annual and interim goodwill impairment testing dates. ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" amends the accounting guidance on the impairment of financial instruments. ASU No. 2016-13 adds to U.S. GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on all expected losses over the lives of the assets rather than incurred losses. Under the new guidance, an entity is required to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 is effective for Valley for reporting periods beginning January 1, 2020. Management is currently evaluating the impact of the ASU on Valley’s consolidated financial statements. Valley’s implementation effort is managed through several cross-functional working groups. These groups continue to evaluate the requirements of the new standard, assess its impact on current operational processes, and develop loss models that accurately project lifetime expected loss estimates. Valley expects that the adoption of ASU No. 2016-13 will result in an increase in its allowance for credit losses due to several factors, including: (i) the allowance related to Valley loans will increase to include credit losses over the full remaining expected life of the portfolio, and will consider expected future changes in macroeconomic conditions, (ii) the nonaccretable difference (as defined in Note 8) on PCI loans will be recognized as an allowance, offset by an increase in the carrying value of the related loans, and (iii) an allowance will be established for estimated credit losses on investment securities classified as held to maturity. The extent of the increase is under evaluation, but will depend upon the nature and characteristics of Valley's loan and investment portfolios at the adoption date, and the economic conditions and forecasts at that date. ASU No. 2016-02, “Leases (Topic 842)” and subsequent related updates require the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for Valley for reporting periods beginning January 1, 2019, with early adoption permitted. Valley expects to initially apply Topic 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019 under the new optional transition method provided by ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements". The comparative prior periods reported in the financial statements in the period of adoption will continue to be presented in accordance with current GAAP in Topic 840. In addition, the amendments in ASU No. 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component. Those components can be accounted for as a single component if the non-lease components would otherwise be accounted for under the new revenue guidance (Topic 606) when certain criteria are met. Overall, management continues to evaluate the impact of Topic 842 on Valley’s consolidated financial statements and presently evaluating all of its known leases for compliance with the new lease accounting guidance. Management has completed an initial review of Valley's contractual arrangements for embedded leases, and is currently validating the results of this review and accumulating the lease data necessary to apply the new guidance. Valley expects a gross-up of its consolidated statements of financial condition as a result of recognizing lease liabilities and right of use assets; the extent of such gross-up is under evaluation. Valley does not expect material changes to the recognition of operating lease expense in its consolidated statements of income. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Assets Acquired and Liabilities Assumed in Acquisition | The following table sets forth assets acquired and liabilities assumed in the USAB acquisition, at their estimated fair values as of the closing date of the transaction: January 1, 2018 (in thousands) Assets acquired: Cash and cash equivalents $ 156,612 Investment securities held to maturity 214,217 Investment securities available for sale 308,385 Loans 3,744,682 Premises and equipment 62,066 Bank owned life insurance 49,052 Accrued interest receivable 12,123 Goodwill 388,255 Other intangible assets 45,906 Other assets: Deferred taxes 8,698 Other real estate owned 4,073 FHLB and FRB stock 38,809 Tax credit investments 20,138 Other 26,416 Total other assets 98,134 Total assets acquired $ 5,079,432 Liabilities assumed: Deposits: Non-interest bearing $ 887,083 Savings, NOW and money market 1,678,115 Time 999,645 Total deposits 3,564,843 Short-term borrowings 649,979 Long-term borrowings 87,283 Junior subordinated debentures issued to capital trusts 13,249 Accrued expenses and other liabilities 26,848 Total liabilities assumed $ 4,342,202 Common stock issued in acquisition 737,230 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the calculation of both basic and diluted earnings per common share for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands, except for share data) Net income available to common shareholders $ 69,630 $ 48,268 $ 108,423 $ 92,566 Basic weighted average number of common shares outstanding 331,318,381 263,958,292 331,024,531 263,878,103 Plus: Common stock equivalents 1,577,102 819,950 1,575,460 784,760 Diluted weighted average number of common shares outstanding 332,895,483 264,778,242 332,599,991 264,662,863 Earnings per common share: Basic $ 0.21 $ 0.18 $ 0.33 $ 0.35 Diluted 0.21 0.18 0.33 0.35 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the three and six months ended June 30, 2018 . Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at March 31, 2018 $ (32,865 ) $ (664 ) $ (5,403 ) $ (25,171 ) $ (64,103 ) Other comprehensive (loss) income before reclassifications (6,461 ) 212 455 — (5,794 ) Amounts reclassified from other comprehensive (loss) income 30 12 619 112 773 Other comprehensive (loss) income, net (6,431 ) 224 1,074 112 (5,021 ) Balance at June 30, 2018 $ (39,296 ) $ (440 ) $ (4,329 ) $ (25,059 ) $ (69,124 ) Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at December 31, 2017 $ (12,004 ) $ (380 ) $ (8,338 ) $ (25,283 ) $ (46,005 ) Reclassification due to the adoption of ASU No. 2016-01 (480 ) — — — (480 ) Reclassification due to the adoption of ASU No. 2017-12 — — (61 ) — (61 ) Balance at January 1, 2018 (12,484 ) (380 ) (8,399 ) (25,283 ) (46,546 ) Other comprehensive (loss) income before reclassification (27,390 ) (56 ) 2,415 — (25,031 ) Amounts reclassified from other comprehensive (loss) income 578 (4 ) 1,655 224 2,453 Other comprehensive (loss) income, net (26,812 ) (60 ) 4,070 224 (22,578 ) Balance at June 30, 2018 $ (39,296 ) $ (440 ) $ (4,329 ) $ (25,059 ) $ (69,124 ) |
Reclassification from Each Component of Accumulated Other Comprehensive Loss | The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three and six months ended June 30, 2018 and 2017 . Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2018 2017 2018 2017 Income Statement Line Item (in thousands) Unrealized (losses) gains on AFS securities before tax $ (36 ) $ 22 $ (801 ) $ (1 ) (Losses) gains on securities transactions, net Tax effect 6 (9 ) 223 1 Total net of tax (30 ) 13 (578 ) — Non-credit impairment losses on AFS securities before tax: Accretion of credit loss impairment due to an increase in expected cash flows (16 ) 67 6 215 Interest and dividends on investment securities (taxable) Tax effect 4 (28 ) (2 ) (89 ) Total net of tax (12 ) 39 4 126 Unrealized losses on derivatives (cash flow hedges) before tax (866 ) (2,314 ) (2,317 ) (4,832 ) Interest expense Tax effect 247 958 662 2,001 Total net of tax (619 ) (1,356 ) (1,655 ) (2,831 ) Defined benefit pension plan: Amortization of net loss (157 ) (101 ) (314 ) (202 ) * Tax effect 45 42 90 84 Total net of tax (112 ) (59 ) (224 ) (118 ) Total reclassifications, net of tax $ (773 ) $ (1,363 ) $ (2,453 ) $ (2,823 ) * Amortization of net loss is included in the computation of net periodic pension cost recognized within other non-interest expense. |
Fair Value Measurement of Ass28
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis | The following tables present the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at June 30, 2018 and December 31, 2017 . The assets presented under “nonrecurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). June 30, Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 48,667 $ 48,667 $ — $ — U.S. government agency securities 38,006 — 38,006 — Obligations of states and political subdivisions 211,529 — 211,529 — Residential mortgage-backed securities 1,477,846 — 1,471,403 6,443 Trust preferred securities 2,279 — 2,279 — Corporate and other debt securities 55,140 7,629 47,511 — Total available for sale 1,833,467 56,296 1,770,728 6,443 Loans held for sale (1) 32,670 — 32,670 — Other assets (2) 30,132 — 30,132 — Total assets $ 1,896,269 $ 56,296 $ 1,833,530 $ 6,443 Liabilities Other liabilities (2) $ 37,902 $ — $ 37,902 $ — Total liabilities $ 37,902 $ — $ 37,902 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 36,957 $ — $ — $ 36,957 Loan servicing rights 2,212 — — 2,212 Foreclosed assets 1,239 — — 1,239 Total $ 40,408 $ — $ — $ 40,408 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 49,642 $ 49,642 $ — $ — U.S. government agency securities 42,505 — 42,505 — Obligations of states and political subdivisions 112,884 — 112,884 — Residential mortgage-backed securities 1,223,295 — 1,215,935 7,360 Trust preferred securities 3,214 — 3,214 — Corporate and other debt securities 51,164 7,783 43,381 — Equity securities 11,201 1,382 9,819 — Total available for sale 1,493,905 58,807 1,427,738 7,360 Loans held for sale (1) 15,119 — 15,119 — Other assets (2) 26,417 — 26,417 — Total assets $ 1,535,441 $ 58,807 $ 1,469,274 $ 7,360 Liabilities Other liabilities (2) $ 24,330 $ — $ 24,330 $ — Total liabilities $ 24,330 $ — $ 24,330 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 48,373 $ — $ — $ 48,373 Loan servicing rights 5,350 — — 5,350 Foreclosed assets 3,472 — — 3,472 Total $ 57,195 $ — $ — $ 57,195 (1) Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $32.1 million and $14.8 million at June 30, 2018 and December 31, 2017 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. |
Changes in Level 3 Assets Measured at Fair Value on Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis for the three and six months ended June 30, 2018 and 2017 are summarized below: Available for Sale Securities Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Balance, beginning of the period $ 6,498 $ 11,367 $ 7,360 $ 11,888 Total net gains (losses) included in other comprehensive income 313 (31 ) (85 ) 13 Settlements, net (368 ) (606 ) (832 ) (1,171 ) Balance, end of the period $ 6,443 $ 10,730 $ 6,443 $ 10,730 |
Schedule of Quantitative Information about Level 3 Inputs Used to Measure Fair Value of Available for Sale Securities | The following table presents quantitative information about Level 3 inputs used to measure the fair value of these securities at June 30, 2018 : Security Type Valuation Technique Unobservable Input Range Weighted Average Private label mortgage-backed securities Discounted cash flow Prepayment rate 1.8 - 28.8% 13.0 % Default rate 3.1 - 47.4 8.9 Loss severity 45.4 - 62.0 57.1 |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at June 30, 2018 and December 31, 2017 were as follows: Fair Value Hierarchy June 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 307,428 $ 307,428 $ 243,310 $ 243,310 Interest bearing deposits with banks Level 1 164,838 164,838 172,800 172,800 Investment securities held to maturity: U.S. Treasury securities Level 1 138,598 141,605 138,676 145,257 U.S. government agency securities Level 2 9,447 9,280 9,859 9,981 Obligations of states and political subdivisions Level 2 615,651 616,786 465,878 477,479 Residential mortgage-backed securities Level 2 1,185,165 1,146,450 1,131,945 1,118,044 Trust preferred securities Level 2 49,833 43,334 49,824 40,088 Corporate and other debt securities Level 2 31,500 31,327 46,509 46,771 Total investment securities held to maturity 2,030,194 1,988,782 1,842,691 1,837,620 Net loans Level 3 23,095,954 22,752,737 18,210,724 17,562,153 Accrued interest receivable Level 1 88,155 88,155 73,990 73,990 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 291,705 291,705 178,668 178,668 Financial liabilities Deposits without stated maturities Level 1 16,987,360 16,987,360 14,589,941 14,589,941 Deposits with stated maturities Level 2 4,653,412 4,604,918 3,563,521 3,465,373 Short-term borrowings Level 1 2,877,912 2,580,009 748,628 679,316 Long-term borrowings Level 2 2,103,993 1,812,019 2,315,819 2,453,797 Junior subordinated debentures issued to capital trusts Level 2 55,196 48,918 41,774 37,289 Accrued interest payable (2) Level 1 18,608 18,608 14,161 14,161 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Held to Maturity | The amortized cost, gross unrealized gains and losses and fair value of securities held to maturity at June 30, 2018 and December 31, 2017 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2018 U.S. Treasury securities $ 138,598 $ 3,007 $ — $ 141,605 U.S. government agency securities 9,447 21 (188 ) 9,280 Obligations of states and political subdivisions: Obligations of states and state agencies 355,219 4,940 (5,862 ) 354,297 Municipal bonds 260,432 3,634 (1,577 ) 262,489 Total obligations of states and political subdivisions 615,651 8,574 (7,439 ) 616,786 Residential mortgage-backed securities 1,185,165 2,493 (41,208 ) 1,146,450 Trust preferred securities 49,833 78 (6,577 ) 43,334 Corporate and other debt securities 31,500 119 (292 ) 31,327 Total investment securities held to maturity $ 2,030,194 $ 14,292 $ (55,704 ) $ 1,988,782 December 31, 2017 U.S. Treasury securities $ 138,676 $ 6,581 $ — $ 145,257 U.S. government agency securities 9,859 122 — 9,981 Obligations of states and political subdivisions: Obligations of states and state agencies 244,272 7,083 (1,653 ) 249,702 Municipal bonds 221,606 6,199 (28 ) 227,777 Total obligations of states and political subdivisions 465,878 13,282 (1,681 ) 477,479 Residential mortgage-backed securities 1,131,945 4,842 (18,743 ) 1,118,044 Trust preferred securities 49,824 60 (9,796 ) 40,088 Corporate and other debt securities 46,509 532 (270 ) 46,771 Total investment securities held to maturity $ 1,842,691 $ 25,419 $ (30,490 ) $ 1,837,620 |
Age of Unrealized Losses and Fair Value of Related Securities Held to Maturity | The age of unrealized losses and fair value of related securities held to maturity at June 30, 2018 and December 31, 2017 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) June 30, 2018 U.S. government agency securities $ 6,527 $ (188 ) $ — $ — $ 6,527 $ (188 ) Obligations of states and political subdivisions: Obligations of states and state agencies 125,371 (2,503 ) 46,899 (3,359 ) 172,270 (5,862 ) Municipal bonds 87,785 (1,546 ) 533 (31 ) 88,318 (1,577 ) Total obligations of states and political subdivisions 213,156 (4,049 ) 47,432 (3,390 ) 260,588 (7,439 ) Residential mortgage-backed securities 425,381 (12,139 ) 555,355 (29,069 ) 980,736 (41,208 ) Trust preferred securities — — 29,903 (6,577 ) 29,903 (6,577 ) Corporate and other debt securities 10,478 (22 ) 4,731 (270 ) 15,209 (292 ) Total $ 655,542 $ (16,398 ) $ 637,421 $ (39,306 ) $ 1,292,963 $ (55,704 ) December 31, 2017 Obligations of states and political subdivisions: Obligations of states and state agencies $ 6,342 $ (50 ) $ 53,034 $ (1,603 ) $ 59,376 $ (1,653 ) Municipal bonds 4,644 (25 ) 561 (3 ) 5,205 (28 ) Total obligations of states and political subdivisions 10,986 (75 ) 53,595 (1,606 ) 64,581 (1,681 ) Residential mortgage-backed securities 344,216 (2,357 ) 570,969 (16,386 ) 915,185 (18,743 ) Trust preferred securities — — 38,674 (9,796 ) 38,674 (9,796 ) Corporate and other debt securities 9,980 (270 ) — — 9,980 (270 ) Total $ 365,182 $ (2,702 ) $ 663,238 $ (27,788 ) $ 1,028,420 $ (30,490 ) |
Contractual Maturities of Debt Securities Held to Maturity | The contractual maturities of investments in debt securities held to maturity at June 30, 2018 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. June 30, 2018 Amortized Cost Fair Value (in thousands) Due in one year $ 13,524 $ 13,580 Due after one year through five years 223,219 226,330 Due after five years through ten years 321,954 329,369 Due after ten years 286,332 273,053 Residential mortgage-backed securities 1,185,165 1,146,450 Total investment securities held to maturity $ 2,030,194 $ 1,988,782 |
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Available for Sale | The amortized cost, gross unrealized gains and losses and fair value of securities available for sale at June 30, 2018 and December 31, 2017 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2018 U.S. Treasury securities $ 50,986 $ — $ (2,319 ) $ 48,667 U.S. government agency securities 39,212 34 (1,240 ) 38,006 Obligations of states and political subdivisions: Obligations of states and state agencies 110,580 52 (2,636 ) 107,996 Municipal bonds 104,922 281 (1,670 ) 103,533 Total obligations of states and political subdivisions 215,502 333 (4,306 ) 211,529 Residential mortgage-backed securities 1,525,041 1,330 (48,525 ) 1,477,846 Trust preferred securities 2,583 — (304 ) 2,279 Corporate and other debt securities 55,629 219 (708 ) 55,140 Total investment securities available for sale $ 1,888,953 $ 1,916 $ (57,402 ) $ 1,833,467 December 31, 2017 U.S. Treasury securities $ 50,997 $ — $ (1,355 ) $ 49,642 U.S. government agency securities 42,384 158 (37 ) 42,505 Obligations of states and political subdivisions: Obligations of states and state agencies 38,435 158 (374 ) 38,219 Municipal bonds 74,752 477 (564 ) 74,665 Total obligations of states and political subdivisions 113,187 635 (938 ) 112,884 Residential mortgage-backed securities 1,239,534 2,423 (18,662 ) 1,223,295 Trust preferred securities 3,726 — (512 ) 3,214 Corporate and other debt securities 50,701 623 (160 ) 51,164 Equity securities 10,505 1,190 (494 ) 11,201 Total investment securities available for sale $ 1,511,034 $ 5,029 $ (22,158 ) $ 1,493,905 |
Age of Unrealized Losses and Fair Value of Related Securities Available for Sale | The age of unrealized losses and fair value of related securities available for sale at June 30, 2018 and December 31, 2017 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) June 30, 2018 U.S. Treasury securities $ 901 $ (13 ) $ 47,766 $ (2,306 ) $ 48,667 $ (2,319 ) U.S. government agency securities 30,485 (1,240 ) — — 30,485 (1,240 ) Obligations of states and political subdivisions: Obligations of states and state agencies 96,617 (2,301 ) 8,041 (335 ) 104,658 (2,636 ) Municipal bonds 69,301 (1,251 ) 12,010 (419 ) 81,311 (1,670 ) Total obligations of states and political subdivisions 165,918 (3,552 ) 20,051 (754 ) 185,969 (4,306 ) Residential mortgage-backed securities 875,444 (21,543 ) 553,585 (26,982 ) 1,429,029 (48,525 ) Trust preferred securities — — 2,279 (304 ) 2,279 (304 ) Corporate and other debt securities 22,622 (460 ) 14,756 (248 ) 37,378 (708 ) Total $ 1,095,370 $ (26,808 ) $ 638,437 $ (30,594 ) $ 1,733,807 $ (57,402 ) December 31, 2017 U.S. Treasury securities $ 916 $ (2 ) $ 48,726 $ (1,353 ) $ 49,642 $ (1,355 ) U.S. government agency securities 31,177 (37 ) — — 31,177 (37 ) Obligations of states and political subdivisions: Obligations of states and state agencies 13,337 (131 ) 7,792 (243 ) 21,129 (374 ) Municipal bonds 31,669 (256 ) 12,133 (308 ) 43,802 (564 ) Total obligations of states and political subdivisions 45,006 (387 ) 19,925 (551 ) 64,931 (938 ) Residential mortgage-backed securities 406,940 (2,461 ) 599,167 (16,201 ) 1,006,107 (18,662 ) Trust preferred securities — — 3,214 (512 ) 3,214 (512 ) Corporate and other debt securities 5,855 (45 ) 15,115 (115 ) 20,970 (160 ) Equity securities — — 5,150 (494 ) 5,150 (494 ) Total $ 489,894 $ (2,932 ) $ 691,297 $ (19,226 ) $ 1,181,191 $ (22,158 ) |
Contractual Maturities of Debt Securities Available for Sale | The contractual maturities of debt securities available for sale at June 30, 2018 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. June 30, 2018 Amortized Cost Fair Value (in thousands) Due in one year $ 18,801 $ 18,876 Due after one year through five years 127,790 124,100 Due after five years through ten years 80,582 79,923 Due after ten years 136,739 132,723 Residential mortgage-backed securities 1,525,041 1,477,845 Total investment securities available for sale $ 1,888,953 $ 1,833,467 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | The detail of the loan portfolio as of June 30, 2018 and December 31, 2017 was as follows: June 30, 2018 December 31, 2017 Non-PCI Loans PCI Loans* Total Non-PCI Loans PCI Loans* Total (in thousands) Loans: Commercial and industrial $ 3,021,524 $ 808,001 $ 3,829,525 $ 2,549,065 $ 192,360 $ 2,741,425 Commercial real estate: Commercial real estate 9,109,645 2,804,185 11,913,830 8,561,851 934,926 9,496,777 Construction 996,702 380,030 1,376,732 809,964 41,141 851,105 Total commercial real estate loans 10,106,347 3,184,215 13,290,562 9,371,815 976,067 10,347,882 Residential mortgage 3,051,429 477,253 3,528,682 2,717,744 141,291 2,859,035 Consumer: Home equity 358,043 162,806 520,849 373,631 72,649 446,280 Automobile 1,281,303 432 1,281,735 1,208,804 98 1,208,902 Other consumer 768,369 14,994 783,363 723,306 4,750 728,056 Total consumer loans 2,407,715 178,232 2,585,947 2,305,741 77,497 2,383,238 Total loans $ 18,587,015 $ 4,647,701 $ 23,234,716 $ 16,944,365 $ 1,387,215 $ 18,331,580 * PCI loans include covered loans (mostly consisting of residential mortgage loans) totaling $31.1 million and $38.7 million at June 30, 2018 and December 31, 2017 , respectively. |
Estimates of the Contractually Required Payments, the Cash Flows Expected to be Collected, and the Estimated Fair Value of Covered Loans in the Acquisition | The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired in the USAB acquisition as of January 1, 2018 (See Note 2 for more details): (in thousands) Contractually required principal and interest $ 4,312,988 Contractual cash flows not expected to be collected (non-accretable difference) (94,098 ) Expected cash flows to be collected 4,218,890 Interest component of expected cash flows (accretable yield) (474,208 ) Fair value of acquired loans $ 3,744,682 |
Changes in Accretable Yield for PCI Loans | The following table presents changes in the accretable yield for PCI loans during the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Balance, beginning of period $ 691,086 $ 269,831 $ 282,009 $ 294,514 Acquisition — — 474,208 — Accretion (60,536 ) (23,553 ) (125,667 ) (48,236 ) Balance, end of period $ 630,550 $ 246,278 $ 630,550 $ 246,278 |
Past Due, Non-Accrual and Current Loans by Loan Portfolio Class | The following table presents past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis) by loan portfolio class at June 30, 2018 and December 31, 2017 : Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) June 30, 2018 Commercial and industrial $ 6,780 $ 1,533 $ 560 $ 53,596 $ 62,469 $ 2,959,055 $ 3,021,524 Commercial real estate: Commercial real estate 4,323 — 27 7,452 11,802 9,097,843 9,109,645 Construction 175 — — 1,100 1,275 995,427 996,702 Total commercial real estate loans 4,498 — 27 8,552 13,077 10,093,270 10,106,347 Residential mortgage 7,961 1,978 2,324 19,303 31,566 3,019,863 3,051,429 Consumer loans: Home equity 686 278 — 2,804 3,768 354,275 358,043 Automobile 5,482 545 164 80 6,271 1,275,032 1,281,303 Other consumer 405 37 34 119 595 767,774 768,369 Total consumer loans 6,573 860 198 3,003 10,634 2,397,081 2,407,715 Total $ 25,812 $ 4,371 $ 3,109 $ 84,454 $ 117,746 $ 18,469,269 $ 18,587,015 December 31, 2017 Commercial and industrial $ 3,650 $ 544 $ — $ 20,890 $ 25,084 $ 2,523,981 $ 2,549,065 Commercial real estate: Commercial real estate 11,223 — 27 11,328 22,578 8,539,273 8,561,851 Construction 12,949 18,845 — 732 32,526 777,438 809,964 Total commercial real estate loans 24,172 18,845 27 12,060 55,104 9,316,711 9,371,815 Residential mortgage 12,669 7,903 2,779 12,405 35,756 2,681,988 2,717,744 Consumer loans: Home equity 1,009 94 — 1,777 2,880 370,751 373,631 Automobile 5,707 987 271 73 7,038 1,201,766 1,208,804 Other consumer 1,693 118 13 20 1,844 721,462 723,306 Total consumer loans 8,409 1,199 284 1,870 11,762 2,293,979 2,305,741 Total $ 48,900 $ 28,491 $ 3,090 $ 47,225 $ 127,706 $ 16,816,659 $ 16,944,365 |
Impaired Loans by Loan Portfolio Class | The following table presents the information about impaired loans by loan portfolio class at June 30, 2018 and December 31, 2017 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) June 30, 2018 Commercial and industrial $ 10,241 $ 76,929 $ 87,170 $ 92,073 $ 24,817 Commercial real estate: Commercial real estate 22,751 29,705 52,456 56,365 2,972 Construction 1,800 463 2,263 2,263 15 Total commercial real estate loans 24,551 30,168 54,719 58,628 2,987 Residential mortgage 6,226 6,623 12,849 13,838 632 Consumer loans: Home equity 838 615 1,453 2,115 72 Total consumer loans 838 615 1,453 2,115 72 Total $ 41,856 $ 114,335 $ 156,191 $ 166,654 $ 28,508 December 31, 2017 Commercial and industrial $ 9,946 $ 75,553 $ 85,499 $ 90,269 $ 11,044 Commercial real estate: Commercial real estate 28,709 29,771 58,480 62,286 2,718 Construction 1,904 467 2,371 2,394 17 Total commercial real estate loans 30,613 30,238 60,851 64,680 2,735 Residential mortgage 5,654 8,402 14,056 15,332 718 Consumer loans: Home equity 3,096 664 3,760 4,917 64 Total consumer loans 3,096 664 3,760 4,917 64 Total $ 49,309 $ 114,857 $ 164,166 $ 175,198 $ 14,561 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following tables present by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 87,674 $ 212 $ 46,283 $ 288 Commercial real estate: Commercial real estate 52,729 563 60,119 483 Construction 2,244 16 2,759 20 Total commercial real estate loans 54,973 579 62,878 503 Residential mortgage 12,914 185 17,555 184 Consumer loans: Home equity 1,794 33 4,799 34 Total consumer loans 1,794 33 4,799 34 Total $ 157,355 $ 1,009 $ 131,515 $ 1,009 Six Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 88,865 $ 926 $ 38,371 $ 596 Commercial real estate: Commercial real estate 54,104 1,179 57,722 808 Construction 2,230 39 2,728 39 Total commercial real estate loans 56,334 1,218 60,450 847 Residential mortgage 13,502 350 18,974 392 Consumer loans: Home equity 1,910 66 4,847 74 Total consumer loans 1,910 66 4,847 74 Total $ 160,611 $ 2,560 $ 122,642 $ 1,909 |
Pre-Modification and Post-Modification Outstanding Recorded Investments and Non-PCI Loans that Subsequently Defaulted | The following tables present loans by loan portfolio class modified as TDRs during the three and six months ended June 30, 2018 and 2017 . The pre-modification and post-modification outstanding recorded investments disclosed in the tables below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at June 30, 2018 and 2017 , respectively. Three Months Ended June 30, 2018 2017 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 11 $ 8,822 $ 8,575 47 $ 40,077 $ 38,367 Commercial real estate: Commercial real estate 5 3,975 3,971 5 23,604 23,604 Construction 1 532 491 — — — Total commercial real estate 6 4,507 4,462 5 23,604 23,604 Residential mortgage 2 393 389 2 549 545 Total 19 $ 13,722 $ 13,426 54 $ 64,230 $ 62,516 Six Months Ended June 30, 2018 2017 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 15 $ 10,554 $ 10,170 53 $ 46,315 $ 43,660 Commercial real estate: Commercial real estate 6 4,170 4,164 6 23,782 23,777 Construction 2 564 503 1 560 480 Total commercial real estate 8 4,734 4,667 7 24,342 24,257 Residential mortgage 5 980 963 5 1,170 1,167 Consumer 1 88 85 — — — Total 29 $ 16,356 $ 15,885 65 $ 71,827 $ 69,084 The non-PCI loans modified as TDRs within the previous 12 months and for which there was a payment default ( 90 or more days past due) for the three and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended June 30, 2018 2017 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 4 $ 3,212 6 $ 5,358 Total 4 $ 3,212 6 $ 5,358 Six Months Ended June 30, 2018 2017 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 4 $ 3,212 7 $ 5,433 Commercial real estate — — 1 736 Residential mortgage — — 1 153 Total 4 $ 3,212 9 $ 6,322 |
Risk Category of Loans | The following table presents the credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) at June 30, 2018 and December 31, 2017 based on the most recent analysis performed: Credit exposure - by internally assigned risk rating Pass Special Mention Substandard Doubtful Total Non-PCI Loans (in thousands) June 30, 2018 Commercial and industrial $ 2,853,692 $ 62,369 $ 56,095 $ 49,368 $ 3,021,524 Commercial real estate 9,019,309 35,200 55,136 — 9,109,645 Construction 994,407 523 1,772 — 996,702 Total $ 12,867,408 $ 98,092 $ 113,003 $ 49,368 $ 13,127,871 December 31, 2017 Commercial and industrial $ 2,375,689 $ 62,071 $ 96,555 $ 14,750 $ 2,549,065 Commercial real estate 8,447,865 48,009 65,977 — 8,561,851 Construction 808,091 360 1,513 — 809,964 Total $ 11,631,645 $ 110,440 $ 164,045 $ 14,750 $ 11,920,880 |
Recorded Investment in Loan Classes Based on Payment Activity | The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of June 30, 2018 and December 31, 2017 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total PCI Loans (in thousands) June 30, 2018 Commercial and industrial $ 776,200 $ 31,801 $ 808,001 Commercial real estate 2,785,190 18,995 2,804,185 Construction 378,495 1,535 380,030 Residential mortgage 470,447 6,806 477,253 Consumer 174,411 3,821 178,232 Total $ 4,584,743 $ 62,958 $ 4,647,701 December 31, 2017 Commercial and industrial $ 172,105 $ 20,255 $ 192,360 Commercial real estate 924,574 10,352 934,926 Construction 39,802 1,339 41,141 Residential mortgage 135,745 5,546 141,291 Consumer 76,901 596 77,497 Total $ 1,349,127 $ 38,088 $ 1,387,215 The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2018 and December 31, 2017 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) June 30, 2018 Residential mortgage $ 3,032,126 $ 19,303 $ 3,051,429 Home equity 355,239 2,804 358,043 Automobile 1,281,223 80 1,281,303 Other consumer 768,250 119 768,369 Total $ 5,436,838 $ 22,306 $ 5,459,144 December 31, 2017 Residential mortgage $ 2,705,339 $ 12,405 $ 2,717,744 Home equity 371,854 1,777 373,631 Automobile 1,208,731 73 1,208,804 Other consumer 723,286 20 723,306 Total $ 5,009,210 $ 14,275 $ 5,023,485 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses | The following table summarizes the allowance for credit losses at June 30, 2018 and December 31, 2017 : June 30, December 31, (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 138,762 $ 120,856 Allowance for unfunded letters of credit 4,392 3,596 Total allowance for credit losses $ 143,154 $ 124,452 |
Summary of Provision for Credit Losses | The following table summarizes the provision for credit losses for the periods indicated: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Components of provision for credit losses: Provision for loan losses $ 6,592 $ 3,710 $ 17,294 $ 6,112 Provision for unfunded letters of credit 550 (78 ) 796 (10 ) Total provision for credit losses $ 7,142 $ 3,632 $ 18,090 $ 6,102 |
Summary of Activity in Allowance for Loan Losses | The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2018 and 2017 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 66,546 $ 56,679 $ 4,100 $ 5,537 $ 132,862 Loans charged-off (642 ) (38 ) (99 ) (1,422 ) (2,201 ) Charged-off loans recovered 819 15 180 495 1,509 Net recoveries (charge-offs) 177 (23 ) 81 (927 ) (692 ) Provision for loan losses 7,534 (2,844 ) 443 1,459 6,592 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Three Months Ended Allowance for loan losses: Beginning balance $ 51,288 $ 56,302 $ 3,592 $ 4,261 $ 115,443 Loans charged-off (2,910 ) (139 ) (229 ) (1,011 ) (4,289 ) Charged-off loans recovered 312 640 235 395 1,582 Net (charge-offs) recoveries (2,598 ) 501 6 (616 ) (2,707 ) Provision for loan losses 2,927 (1,348 ) 588 1,543 3,710 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans charged-off (773 ) (348 ) (167 ) (2,633 ) (3,921 ) Charged-off loans recovered 2,926 384 260 963 4,533 Net recoveries (charge-offs) 2,153 36 93 (1,670 ) 612 Provision for loan losses 14,872 (1,178 ) 926 2,674 17,294 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Six Months Ended Allowance for loan losses: Beginning balance $ 50,820 $ 55,851 $ 3,702 $ 4,046 $ 114,419 Loans charged-off (4,624 ) (553 ) (359 ) (2,132 ) (7,668 ) Charged-off loans recovered 1,160 782 683 958 3,583 Net (charge-offs) recoveries (3,464 ) 229 324 (1,174 ) (4,085 ) Provision for loan losses 4,261 (625 ) 160 2,316 6,112 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 |
Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Impairment Methodology | The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at June 30, 2018 and December 31, 2017 . Loans individually evaluated for impairment represent Valley's impaired loans. Loans acquired with discounts related to credit quality represent Valley's PCI loans. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) June 30, 2018 Allowance for loan losses: Individually evaluated for impairment $ 24,817 $ 2,987 $ 632 $ 72 $ 28,508 Collectively evaluated for impairment 49,440 50,825 3,992 5,997 110,254 Total $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Loans: Individually evaluated for impairment $ 87,170 $ 54,719 $ 12,849 $ 1,453 $ 156,191 Collectively evaluated for impairment 2,934,354 10,051,628 3,038,580 2,406,262 18,430,824 Loans acquired with discounts related to credit quality 808,001 3,184,215 477,253 178,232 4,647,701 Total $ 3,829,525 $ 13,290,562 $ 3,528,682 $ 2,585,947 $ 23,234,716 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ 11,044 $ 2,735 $ 718 $ 64 $ 14,561 Collectively evaluated for impairment 46,188 52,219 2,887 5,001 106,295 Total $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans: Individually evaluated for impairment $ 85,499 $ 60,851 $ 14,056 $ 3,760 $ 164,166 Collectively evaluated for impairment 2,463,566 9,310,964 2,703,688 2,301,981 16,780,199 Loans acquired with discounts related to credit quality 192,360 976,067 141,291 77,497 1,387,215 Total $ 2,741,425 $ 10,347,882 $ 2,859,035 $ 2,383,238 $ 18,331,580 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were: Business Segment / Reporting Unit* Wealth Management Consumer Lending Commercial Lending Investment Management Total (in thousands) Balance at December 31, 2017 $ 21,218 $ 200,103 $ 316,258 $ 153,058 $ 690,637 Goodwill from business combinations — 85,649 238,052 64,554 388,255 Balance at June 30, 2018 $ 21,218 $ 285,752 $ 554,310 $ 217,612 $ 1,078,892 * Wealth Management is comprised of trust, asset management and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes. |
Other Intangible Assets | The following table summarizes other intangible assets as of June 30, 2018 and December 31, 2017 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) June 30, 2018 Loan servicing rights $ 84,956 $ (59,975 ) $ (154 ) $ 24,827 Core deposits 80,470 (23,002 ) — 57,468 Other 3,945 (2,274 ) — 1,671 Total other intangible assets $ 169,371 $ (85,251 ) $ (154 ) $ 83,966 December 31, 2017 Loan servicing rights $ 79,138 $ (57,054 ) $ (471 ) $ 21,613 Core deposits 43,396 (24,297 ) — 19,099 Other 4,087 (2,292 ) — 1,795 Total other intangible assets $ 126,621 $ (83,643 ) $ (471 ) $ 42,507 |
Estimated Future Amortization Expense | The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2018 through 2022 : Loan Servicing Rights Core Deposits Other (in thousands) 2018 $ 3,155 $ 6,134 $ 125 2019 5,148 10,961 235 2020 4,160 9,607 220 2021 3,243 8,252 206 2022 2,608 6,898 191 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Non-Interest Income | The following table presents non-interest income for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Trust and investment services $ 3,262 $ 2,800 $ 6,492 $ 5,544 Insurance commissions 4,026 4,358 7,847 9,419 Service charges on deposit accounts 6,679 5,342 13,932 10,578 (Losses) gains on securities transactions, net (36 ) 22 (801 ) (1 ) Fees from loan servicing 2,045 1,831 4,268 3,646 Gains on sales of loans, net 7,642 4,791 14,395 8,919 Bank owned life insurance 2,652 1,701 4,415 4,164 Other 11,799 7,985 19,772 12,281 Total non-interest income $ 38,069 $ 28,830 $ 70,320 $ 54,550 |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Consolidated Statements of Financial Condition Related to Fair Value of Derivative Financial Instruments | Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: June 30, 2018 December 31, 2017 Fair Value Fair Value Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Notional Amount (in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate swaps and caps $ — $ 32 $ 482,000 $ 650 $ 81 $ 607,000 Fair value hedge interest rate swaps — 419 7,657 — 637 7,775 Total derivatives designated as hedging instruments $ — $ 451 $ 489,657 $ 650 $ 718 $ 614,775 Derivatives not designated as hedging instruments: Interest rate swaps and embedded derivatives $ 29,834 $ 37,135 $ 2,996,861 $ 25,696 $ 23,494 $ 1,687,005 Mortgage banking derivatives 298 316 126,994 71 118 113,233 Total derivatives not designated as hedging instruments $ 30,132 $ 37,451 $ 3,123,855 $ 25,767 $ 23,612 $ 1,800,238 |
(Losses) Gains Related to Interest Rate Derivatives Designated as Hedges of Cash Flows | (Losses) gains included in the consolidated statements of income and in other comprehensive (loss) income, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (866 ) $ (2,314 ) $ (2,317 ) $ (4,832 ) Amount of gain recognized in other comprehensive (loss) income 637 (1,482 ) 3,388 (1,265 ) |
Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Fair Value | Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Derivative - interest rate swaps: Interest income $ 88 $ 52 $ 219 $ 149 Hedged item - loans: Interest income $ (88 ) $ (52 ) $ (219 ) $ (149 ) |
Interest Rate Derivatives Designated as Hedges | The following table presents the hedged items related to interest rate derivatives designated as hedges of fair value and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at June 30, 2018 : June 30, 2018 Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Asset Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset (in thousands) Loans $ 8,076 $ 419 |
Net Gains (Losses) Related to Derivative Instruments Not Designated as Hedging Instruments | The net gains (losses) included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Non-designated hedge interest rate derivatives Other non-interest expense $ 230 $ 70 $ 448 $ (790 ) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Gross Presentation Effects of Offsetting and Net Presentation of Valley's Financial Instruments | The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of June 30, 2018 and December 31, 2017 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) June 30, 2018 Assets: Interest rate swaps $ 29,834 $ — $ 29,834 $ (336 ) $ — $ 29,498 Liabilities: Interest rate swaps $ 37,586 $ — $ 37,586 $ (336 ) $ (1,645 ) (1) $ 35,605 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 187,586 $ — $ 187,586 $ (336 ) $ (151,645 ) $ 35,605 December 31, 2017 Assets: Interest rate swaps and caps $ 26,346 $ — $ 26,346 $ (5,376 ) $ — $ 20,970 Liabilities: Interest rate swaps and caps $ 24,212 $ — $ 24,212 $ (5,376 ) $ (8,141 ) (1) $ 10,695 Repurchase agreements 200,000 — 200,000 — (200,000 ) (2) — Total $ 224,212 $ — $ 224,212 $ (5,376 ) $ (208,141 ) $ 10,695 (1) Represents the amount of collateral posted with derivative counterparties that offsets net liability positions. (2) Represents the fair value of non-cash pledged investment securities. |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Affordable Housing Tax Credit Investments, Other Tax Credit Investments, and Related Unfunded Commitments | The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at June 30, 2018 and December 31, 2017 . June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 40,226 $ 22,135 Other tax credit investments, net 31,129 42,015 Total tax credit investments, net $ 71,355 $ 64,150 Other Liabilities: Unfunded affordable housing tax credit commitments $ 4,978 $ 3,690 Unfunded other tax credit commitments 4,773 15,020 Total unfunded tax credit commitments $ 9,751 $ 18,710 |
Affordable Housing Tax Credit Investments and Other Tax Credit Investments | The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,429 $ 1,271 $ 3,250 $ 2,555 Other tax credit investment credits and tax benefits 5,680 8,680 11,165 14,966 Total reduction in income tax expense $ 7,109 $ 9,951 $ 14,415 $ 17,521 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ (319 ) $ 358 $ 667 $ 754 Affordable housing tax credit investment impairment losses 515 130 1,102 254 Other tax credit investment losses 1,253 1,060 1,790 1,827 Other tax credit investment impairment losses 3,021 6,184 6,185 10,221 Total amortization of tax credit investments recorded in non-interest expense $ 4,470 $ 7,732 $ 9,744 $ 13,056 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | Jan. 01, 2018USD ($)officebranch | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Assets | $ 30,182,979 | $ 30,182,979 | $ 24,002,306 | |
Loans | 23,095,954 | 23,095,954 | 18,210,724 | |
Deposits | 21,640,772 | 21,640,772 | $ 18,153,462 | |
USAmeriBancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Share ratio of common stock issued to USAB shareholders | 6.1 | |||
Total consideration | $ 737,230 | |||
Merger expenses | $ 3,200 | $ 16,800 | ||
USAmeriBancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Assets | 5,100,000 | |||
Loans | 3,744,682 | |||
Deposits | $ 3,600,000 | |||
Number of offices | office | 29 | |||
ALABAMA | USAmeriBancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Number of branches | branch | 15 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets acquired | |||
Loans | $ 23,095,954 | $ 18,210,724 | |
Goodwill | 1,078,892 | 690,637 | |
Deposits | |||
Savings, NOW and money market | $ 10,769,940 | $ 9,365,013 | |
USAmeriBancorp, Inc. | |||
Assets acquired | |||
Cash and cash equivalents | $ 156,612 | ||
Premises and equipment | 62,066 | ||
Bank owned life insurance | 49,052 | ||
Accrued interest receivable | 12,123 | ||
Goodwill | 388,255 | ||
Other intangible assets | 45,906 | ||
Other assets | |||
Deferred taxes | 8,698 | ||
Other real estate owned | 4,073 | ||
FHLB and FRB stock | 38,809 | ||
Tax credit investments | 20,138 | ||
Other | 26,416 | ||
Total other assets | 98,134 | ||
Total assets acquired | 5,079,432 | ||
Deposits | |||
Non-interest bearing | 887,083 | ||
Savings, NOW and money market | 1,678,115 | ||
Time | 999,645 | ||
Total deposits | 3,564,843 | ||
Short-term borrowings | 649,979 | ||
Long-term borrowings | 87,283 | ||
Junior subordinated debentures issued to capital trusts | 13,249 | ||
Accrued expenses and other liabilities | 26,848 | ||
Total liabilities assumed | 4,342,202 | ||
Common stock issued in acquisition | 737,230 | ||
Investment securities held to maturity | USAmeriBancorp, Inc. | |||
Assets acquired | |||
Investment securities | 214,217 | ||
Investment securities available for sale | USAmeriBancorp, Inc. | |||
Assets acquired | |||
Investment securities | 308,385 | ||
USAmeriBancorp, Inc. | |||
Assets acquired | |||
Loans | $ 3,744,682 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share Reconciliation | ||||
Net income available to common shareholders | $ 69,630 | $ 48,268 | $ 108,423 | $ 92,566 |
Basic weighted average number of common shares outstanding (in shares) | 331,318,381 | 263,958,292 | 331,024,531 | 263,878,103 |
Plus: Common stock equivalents (in shares) | 1,577,102 | 819,950 | 1,575,460 | 784,760 |
Diluted weighted average number of common shares outstanding (in shares) | 332,895,483 | 264,778,242 | 332,599,991 | 264,662,863 |
Earnings per common share: | ||||
Basic (usd per share) | $ 0.21 | $ 0.18 | $ 0.33 | $ 0.35 |
Diluted (usd per share) | $ 0.21 | $ 0.18 | $ 0.33 | $ 0.35 |
Anti-dilutive common stock options and warrants (in shares) | 2,900,000 | 3,300,000 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Loss - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | $ 2,533,165 | ||||
Beginning balance after reclassifications | $ 3,277,312 | 2,533,165 | |||
Amounts reclassified from other comprehensive (loss) income | 773 | $ 1,363 | 2,453 | $ 2,823 | |
Ending balance | 3,277,312 | 3,277,312 | |||
Unrealized Gains and Losses on Available for Sale (AFS) Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | (32,865) | (12,004) | |||
Beginning balance after reclassifications | (32,865) | (12,004) | $ (12,484) | ||
Other comprehensive (loss) income before reclassifications | (6,461) | (27,390) | |||
Amounts reclassified from other comprehensive (loss) income | 30 | 578 | |||
Other comprehensive (loss) income, net | (6,431) | (26,812) | |||
Ending balance | (39,296) | (39,296) | |||
Non-credit Impairment Losses on AFS Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | (664) | (380) | |||
Beginning balance after reclassifications | (664) | (380) | (380) | ||
Other comprehensive (loss) income before reclassifications | 212 | (56) | |||
Amounts reclassified from other comprehensive (loss) income | 12 | (4) | |||
Other comprehensive (loss) income, net | 224 | (60) | |||
Ending balance | (440) | (440) | |||
Unrealized Gains and (Losses) on Derivatives | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | (5,403) | (8,338) | |||
Beginning balance after reclassifications | (5,403) | (8,338) | (8,399) | ||
Other comprehensive (loss) income before reclassifications | 455 | 2,415 | |||
Amounts reclassified from other comprehensive (loss) income | 619 | 1,655 | |||
Other comprehensive (loss) income, net | 1,074 | 4,070 | |||
Ending balance | (4,329) | (4,329) | |||
Defined Benefit Pension Plan | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | (25,171) | (25,283) | |||
Beginning balance after reclassifications | (25,171) | (25,283) | (25,283) | ||
Other comprehensive (loss) income before reclassifications | 0 | 0 | |||
Amounts reclassified from other comprehensive (loss) income | 112 | $ 59 | 224 | $ 118 | |
Other comprehensive (loss) income, net | 112 | 224 | |||
Ending balance | (25,059) | (25,059) | |||
Total Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Beginning balance | (64,103) | (46,005) | |||
Beginning balance after reclassifications | (64,103) | (46,005) | $ (46,546) | ||
Other comprehensive (loss) income before reclassifications | (5,794) | (25,031) | |||
Amounts reclassified from other comprehensive (loss) income | 773 | 2,453 | |||
Other comprehensive (loss) income, net | (5,021) | (22,578) | |||
Ending balance | $ (69,124) | (69,124) | |||
Accounting Standards Update 2016-01 | Unrealized Gains and Losses on Available for Sale (AFS) Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | (480) | ||||
Accounting Standards Update 2016-01 | Non-credit Impairment Losses on AFS Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | 0 | ||||
Accounting Standards Update 2016-01 | Unrealized Gains and (Losses) on Derivatives | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | 0 | ||||
Accounting Standards Update 2016-01 | Defined Benefit Pension Plan | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | 0 | ||||
Accounting Standards Update 2016-01 | Total Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | (480) | ||||
Accounting Standards Update 2017-02 | Unrealized Gains and Losses on Available for Sale (AFS) Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | 0 | ||||
Accounting Standards Update 2017-02 | Non-credit Impairment Losses on AFS Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | 0 | ||||
Accounting Standards Update 2017-02 | Unrealized Gains and (Losses) on Derivatives | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | (61) | ||||
Accounting Standards Update 2017-02 | Defined Benefit Pension Plan | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | 0 | ||||
Accounting Standards Update 2017-02 | Total Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification due to adoption of new accounting principle | $ (61) |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Loss - Reclassifications from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Tax effect | $ (18,961) | $ (20,714) | $ (32,145) | $ (38,785) |
Total net of tax | 72,802 | 50,065 | 114,767 | 96,160 |
Interest expense | (69,366) | (42,187) | (129,263) | (78,774) |
Total reclassifications, net of tax | (773) | (1,363) | (2,453) | (2,823) |
Unrealized (losses) gains on AFS securities before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Total reclassifications, net of tax | (30) | (578) | ||
Non-credit impairment losses on AFS securities before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Total reclassifications, net of tax | (12) | 4 | ||
Unrealized losses on derivatives (cash flow hedges) before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Total reclassifications, net of tax | (619) | (1,655) | ||
Defined benefit pension plan | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Amortization of net loss | (157) | (101) | (314) | (202) |
Tax effect | 45 | 42 | 90 | 84 |
Total reclassifications, net of tax | (112) | (59) | (224) | (118) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Interest expense | (866) | (2,314) | (2,317) | (4,832) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Unrealized (losses) gains on AFS securities before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
(Losses) gains on securities transactions, net | (36) | 22 | (801) | (1) |
Tax effect | 6 | (9) | 223 | 1 |
Total net of tax | (30) | 13 | (578) | 0 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Non-credit impairment losses on AFS securities before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Tax effect | 4 | (28) | (2) | (89) |
Total net of tax | (12) | 39 | 4 | 126 |
Interest and dividends on investment securities (taxable) | (16) | 67 | 6 | 215 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Unrealized losses on derivatives (cash flow hedges) before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Tax effect | 247 | 958 | 662 | 2,001 |
Total net of tax | (619) | (1,356) | (1,655) | (2,831) |
Interest expense | $ (866) | $ (2,314) | $ (2,317) | $ (4,832) |
New Authoritative Accounting 42
New Authoritative Accounting Guidance New Authoritative Accounting Guidance (Details) $ in Millions | Dec. 31, 2017USD ($) |
Accounting Standards Update 2016-16 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment that reduced retained earnings | $ 15.4 |
Fair Value Measurement of Ass43
Fair Value Measurement of Assets and Liabilities - Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investment securities | ||
Available for sale | $ 1,833,467 | $ 1,493,905 |
Available for sale | 1,833,467 | 1,493,905 |
Non-recurring fair value measurements | ||
Unpaid principal balances of loans held for sale | 32,100 | 14,800 |
U.S. Treasury securities | ||
Investment securities | ||
Available for sale | 48,667 | 49,642 |
U.S. government agency securities | ||
Investment securities | ||
Available for sale | 38,006 | 42,505 |
Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 211,529 | 112,884 |
Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 1,477,846 | 1,223,295 |
Trust preferred securities | ||
Investment securities | ||
Available for sale | 2,279 | 3,214 |
Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 55,140 | 51,164 |
Equity securities | ||
Investment securities | ||
Available for sale | 11,201 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 56,296 | |
Available for sale | 58,807 | |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 56,296 | 58,807 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities | ||
Available for sale | 48,667 | |
Available for sale | 49,642 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Trust preferred securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 7,629 | |
Available for sale | 7,783 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Equity securities | ||
Investment securities | ||
Available for sale | 1,382 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements | ||
Collateral dependent impaired loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 1,770,728 | |
Available for sale | 1,427,738 | |
Loans held for sale | 32,670 | 15,119 |
Other assets | 30,132 | 26,417 |
Total assets | 1,833,530 | 1,469,274 |
Liabilities | ||
Other liabilities | 37,902 | 24,330 |
Total liabilities | 37,902 | 24,330 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities | ||
Available for sale | 38,006 | |
Available for sale | 42,505 | |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 211,529 | |
Available for sale | 112,884 | |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 1,471,403 | |
Available for sale | 1,215,935 | |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Trust preferred securities | ||
Investment securities | ||
Available for sale | 2,279 | |
Available for sale | 3,214 | |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 47,511 | |
Available for sale | 43,381 | |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Equity securities | ||
Investment securities | ||
Available for sale | 9,819 | |
Significant Other Observable Inputs (Level 2) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements | ||
Collateral dependent impaired loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 6,443 | |
Available for sale | 7,360 | |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 6,443 | 7,360 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 6,443 | |
Available for sale | 7,360 | |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Trust preferred securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 0 | |
Available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Equity securities | ||
Investment securities | ||
Available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements | ||
Collateral dependent impaired loans | 36,957 | 48,373 |
Loan servicing rights | 2,212 | 5,350 |
Foreclosed assets | 1,239 | 3,472 |
Total | 40,408 | 57,195 |
Fair Value | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 1,833,467 | |
Available for sale | 1,493,905 | |
Loans held for sale | 32,670 | 15,119 |
Other assets | 30,132 | 26,417 |
Total assets | 1,896,269 | 1,535,441 |
Liabilities | ||
Other liabilities | 37,902 | 24,330 |
Total liabilities | 37,902 | 24,330 |
Fair Value | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities | ||
Available for sale | 48,667 | |
Available for sale | 49,642 | |
Fair Value | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities | ||
Available for sale | 38,006 | |
Available for sale | 42,505 | |
Fair Value | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 211,529 | |
Available for sale | 112,884 | |
Fair Value | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 1,477,846 | |
Available for sale | 1,223,295 | |
Fair Value | Recurring fair value measurements | Trust preferred securities | ||
Investment securities | ||
Available for sale | 2,279 | |
Available for sale | 3,214 | |
Fair Value | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 55,140 | |
Available for sale | 51,164 | |
Fair Value | Recurring fair value measurements | Equity securities | ||
Investment securities | ||
Available for sale | 11,201 | |
Fair Value | Non-recurring fair value measurements | ||
Non-recurring fair value measurements | ||
Collateral dependent impaired loans | 36,957 | 48,373 |
Loan servicing rights | 2,212 | 5,350 |
Foreclosed assets | 1,239 | 3,472 |
Total | $ 40,408 | $ 57,195 |
Fair Value Measurement of Ass44
Fair Value Measurement of Assets and Liabilities - Changes in Level 3 Assets (Details) - Available for Sale Securities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in Level 3 Assets | ||||
Balance, beginning of the period | $ 6,498 | $ 11,367 | $ 7,360 | $ 11,888 |
Total net gains (losses) included in other comprehensive income | 313 | (31) | (85) | 13 |
Settlements, net | (368) | (606) | (832) | (1,171) |
Balance, end of the period | $ 6,443 | $ 10,730 | $ 6,443 | $ 10,730 |
Fair Value Measurement of Ass45
Fair Value Measurement of Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Assets Measured On Recurring Basis | ||||
Impaired collateral dependent loans, charge-offs | $ 1,900,000 | $ 2,100,000 | ||
Collateral dependent impaired loans, recorded investment | $ 60,300,000 | $ 60,300,000 | ||
Specific valuation allowance allocations | 23,300,000 | 23,300,000 | ||
Reported net carrying amount of impaired loans | 37,000,000 | $ 37,000,000 | ||
Valuation of loan servicing rights, discount rate | 8.00% | |||
Net impairment charges (recoveries) on its loan servicing rights | (90,000) | (50,000) | $ (317,000) | (51,000) |
Foreclosed assets measured at fair value upon initial recognition | 1,200,000 | |||
Foreclosed asset charge-offs | 649,000 | 282,000 | 1,200,000 | 994,000 |
Loss due to re-measurement of repossessed assets | $ 145,000 | 290,000 | ||
Minimum | ||||
Fair Value Assets Measured On Recurring Basis | ||||
Valuation of loan servicing rights, prepayment rate | 0.00% | |||
Maximum | ||||
Fair Value Assets Measured On Recurring Basis | ||||
Valuation of loan servicing rights, prepayment rate | 24.00% | |||
Available for Sale Securities | ||||
Fair Value Assets Measured On Recurring Basis | ||||
Changes in unrealized losses on Level 3 securities | $ 0 | $ 0 | $ 0 |
Fair Value Measurement of Ass46
Fair Value Measurement of Assets and Liabilities - Quantitative Information about Level 3 Inputs (Details) - Significant Unobservable Inputs (Level 3) - Residential mortgage-backed securities - Discounted cash flow | Jun. 30, 2018 | Jun. 30, 2018 |
Minimum | ||
Fair Value Assets Measured On Recurring Basis | ||
Prepayment rate | 1.80% | |
Default rate | 3.10% | |
Loss severity | 45.40% | |
Maximum | ||
Fair Value Assets Measured On Recurring Basis | ||
Prepayment rate | 28.80% | |
Default rate | 47.40% | |
Loss severity | 62.00% | |
Weighted Average | ||
Fair Value Assets Measured On Recurring Basis | ||
Prepayment rate | 13.00% | |
Default rate | 8.90% | |
Loss severity | 57.10% |
Fair Value Measurement of Ass47
Fair Value Measurement of Assets and Liabilities - Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Interest bearing deposits with banks | $ 164,838 | $ 172,800 |
Investment securities held to maturity: | 1,988,782 | 1,837,620 |
Accrued interest receivable | 88,155 | 73,990 |
Deposits with stated maturities | 4,653,412 | 3,563,521 |
Carrying Amount | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 2,030,194 | 1,842,691 |
Carrying Amount | Level 1 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Cash and due from banks | 307,428 | 243,310 |
Interest bearing deposits with banks | 164,838 | 172,800 |
Accrued interest receivable | 88,155 | 73,990 |
Federal Reserve Bank and Federal Home Loan Bank stock | 291,705 | 178,668 |
Deposits without stated maturities | 16,987,360 | 14,589,941 |
Short-term borrowings | 2,877,912 | 748,628 |
Accrued interest payable | 18,608 | 14,161 |
Carrying Amount | Level 1 | U.S. Treasury securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 138,598 | 138,676 |
Carrying Amount | Level 2 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Deposits with stated maturities | 4,653,412 | 3,563,521 |
Long-term borrowings | 2,103,993 | 2,315,819 |
Junior subordinated debentures issued to capital trusts | 55,196 | 41,774 |
Carrying Amount | Level 2 | U.S. government agency securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 9,447 | 9,859 |
Carrying Amount | Level 2 | Obligations of states and political subdivisions | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 615,651 | 465,878 |
Carrying Amount | Level 2 | Residential mortgage-backed securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 1,185,165 | 1,131,945 |
Carrying Amount | Level 2 | Trust preferred securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 49,833 | 49,824 |
Carrying Amount | Level 2 | Corporate and other debt securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 31,500 | 46,509 |
Carrying Amount | Level 3 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Net loans | 23,095,954 | 18,210,724 |
Fair Value | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 1,988,782 | 1,837,620 |
Fair Value | Level 1 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Cash and due from banks | 307,428 | 243,310 |
Interest bearing deposits with banks | 164,838 | 172,800 |
Accrued interest receivable | 88,155 | 73,990 |
Federal Reserve Bank and Federal Home Loan Bank stock | 291,705 | 178,668 |
Deposits without stated maturities | 16,987,360 | 14,589,941 |
Short-term borrowings | 2,580,009 | 679,316 |
Accrued interest payable | 18,608 | 14,161 |
Fair Value | Level 1 | U.S. Treasury securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 141,605 | 145,257 |
Fair Value | Level 2 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Deposits with stated maturities | 4,604,918 | 3,465,373 |
Long-term borrowings | 1,812,019 | 2,453,797 |
Junior subordinated debentures issued to capital trusts | 48,918 | 37,289 |
Fair Value | Level 2 | U.S. government agency securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 9,280 | 9,981 |
Fair Value | Level 2 | Obligations of states and political subdivisions | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 616,786 | 477,479 |
Fair Value | Level 2 | Residential mortgage-backed securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 1,146,450 | 1,118,044 |
Fair Value | Level 2 | Trust preferred securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 43,334 | 40,088 |
Fair Value | Level 2 | Corporate and other debt securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 31,327 | 46,771 |
Fair Value | Level 3 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Net loans | $ 22,752,737 | $ 17,562,153 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities | ||
Amortized Cost | $ 2,030,194 | $ 1,842,691 |
Gross Unrealized Gains | 14,292 | 25,419 |
Gross Unrealized Losses | (55,704) | (30,490) |
Fair Value | 1,988,782 | 1,837,620 |
U.S. Treasury securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 138,598 | 138,676 |
Gross Unrealized Gains | 3,007 | 6,581 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 141,605 | 145,257 |
U.S. government agency securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 9,447 | 9,859 |
Gross Unrealized Gains | 21 | 122 |
Gross Unrealized Losses | (188) | 0 |
Fair Value | 9,280 | 9,981 |
Obligations of states and state agencies | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 355,219 | 244,272 |
Gross Unrealized Gains | 4,940 | 7,083 |
Gross Unrealized Losses | (5,862) | (1,653) |
Fair Value | 354,297 | 249,702 |
Municipal bonds | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 260,432 | 221,606 |
Gross Unrealized Gains | 3,634 | 6,199 |
Gross Unrealized Losses | (1,577) | (28) |
Fair Value | 262,489 | 227,777 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 615,651 | 465,878 |
Gross Unrealized Gains | 8,574 | 13,282 |
Gross Unrealized Losses | (7,439) | (1,681) |
Fair Value | 616,786 | 477,479 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 1,185,165 | 1,131,945 |
Gross Unrealized Gains | 2,493 | 4,842 |
Gross Unrealized Losses | (41,208) | (18,743) |
Fair Value | 1,146,450 | 1,118,044 |
Trust preferred securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 49,833 | 49,824 |
Gross Unrealized Gains | 78 | 60 |
Gross Unrealized Losses | (6,577) | (9,796) |
Fair Value | 43,334 | 40,088 |
Corporate and other debt securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 31,500 | 46,509 |
Gross Unrealized Gains | 119 | 532 |
Gross Unrealized Losses | (292) | (270) |
Fair Value | $ 31,327 | $ 46,771 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses and Fair Value of Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | $ 655,542 | $ 365,182 |
Less than Twelve Months, Unrealized Losses | (16,398) | (2,702) |
More than Twelve Months, Fair Value | 637,421 | 663,238 |
More than Twelve Months, Unrealized Losses | (39,306) | (27,788) |
Total, Fair Value | 1,292,963 | 1,028,420 |
Total, Unrealized Losses | (55,704) | (30,490) |
U.S. government agency securities | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 6,527 | |
Less than Twelve Months, Unrealized Losses | (188) | |
More than Twelve Months, Fair Value | 0 | |
More than Twelve Months, Unrealized Losses | 0 | |
Total, Fair Value | 6,527 | |
Total, Unrealized Losses | (188) | |
Obligations of states and state agencies | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 125,371 | 6,342 |
Less than Twelve Months, Unrealized Losses | (2,503) | (50) |
More than Twelve Months, Fair Value | 46,899 | 53,034 |
More than Twelve Months, Unrealized Losses | (3,359) | (1,603) |
Total, Fair Value | 172,270 | 59,376 |
Total, Unrealized Losses | (5,862) | (1,653) |
Municipal bonds | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 87,785 | 4,644 |
Less than Twelve Months, Unrealized Losses | (1,546) | (25) |
More than Twelve Months, Fair Value | 533 | 561 |
More than Twelve Months, Unrealized Losses | (31) | (3) |
Total, Fair Value | 88,318 | 5,205 |
Total, Unrealized Losses | (1,577) | (28) |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 213,156 | 10,986 |
Less than Twelve Months, Unrealized Losses | (4,049) | (75) |
More than Twelve Months, Fair Value | 47,432 | 53,595 |
More than Twelve Months, Unrealized Losses | (3,390) | (1,606) |
Total, Fair Value | 260,588 | 64,581 |
Total, Unrealized Losses | (7,439) | (1,681) |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 425,381 | 344,216 |
Less than Twelve Months, Unrealized Losses | (12,139) | (2,357) |
More than Twelve Months, Fair Value | 555,355 | 570,969 |
More than Twelve Months, Unrealized Losses | (29,069) | (16,386) |
Total, Fair Value | 980,736 | 915,185 |
Total, Unrealized Losses | (41,208) | (18,743) |
Trust preferred securities | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 0 | 0 |
Less than Twelve Months, Unrealized Losses | 0 | 0 |
More than Twelve Months, Fair Value | 29,903 | 38,674 |
More than Twelve Months, Unrealized Losses | (6,577) | (9,796) |
Total, Fair Value | 29,903 | 38,674 |
Total, Unrealized Losses | (6,577) | (9,796) |
Corporate and other debt securities | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 10,478 | 9,980 |
Less than Twelve Months, Unrealized Losses | (22) | (270) |
More than Twelve Months, Fair Value | 4,731 | 0 |
More than Twelve Months, Unrealized Losses | (270) | 0 |
Total, Fair Value | 15,209 | 9,980 |
Total, Unrealized Losses | $ (292) | $ (270) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)security | |
Investment Securities [Line Items] | |||||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position (in security) | security | 362 | 362 | 152 | ||
Fair value of investments held to maturity pledged as collateral | $ 1,100,000,000 | $ 1,100,000,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities held to maturity, years | 8 years 5 months | ||||
Number of security positions in the securities available for sale portfolio in an unrealized loss position (in security) | security | 567 | 567 | 327 | ||
Amortized cost | $ 1,888,953,000 | $ 1,888,953,000 | $ 1,511,034,000 | ||
Available for sale | 1,833,467,000 | 1,833,467,000 | $ 1,493,905,000 | ||
Fair value of securities available for sale pledged as collateral | 1,000,000,000 | $ 1,000,000,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities available for sale, years | 8 years 5 months | ||||
Other than temporary impairment losses recognized in earnings | 0 | $ 0 | $ 0 | $ 0 | |
(Losses) gains on securities transactions, net | (36,000) | $ 22,000 | (801,000) | $ (1,000) | |
Four Private Label Mortgage-Backed Securities | |||||
Investment Securities [Line Items] | |||||
Amortized cost | 7,000,000 | 7,000,000 | |||
Available for sale | $ 6,400,000 | $ 6,400,000 | |||
Single Issuer Trust Preferred Securities | Non-Rated | |||||
Investment Securities [Line Items] | |||||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position (in security) | security | 4 | 4 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year | $ 13,524 | |
Due after one year through five years | 223,219 | |
Due after five years through ten years | 321,954 | |
Due after ten years | 286,332 | |
Residential mortgage-backed securities | 1,185,165 | |
Amortized Cost | 2,030,194 | $ 1,842,691 |
Fair Value | ||
Due in one year | 13,580 | |
Due after one year through five years | 226,330 | |
Due after five years through ten years | 329,369 | |
Due after ten years | 273,053 | |
Residential mortgage-backed securities | 1,146,450 | |
Total investment securities held to maturity | $ 1,988,782 | $ 1,837,620 |
Investment Securities - Amort52
Investment Securities - Amortized Cost, Securities Available for Sale (Details) $ in Thousands | Jun. 30, 2018USD ($)Security | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities | ||
Amortized Cost | $ 1,888,953 | $ 1,511,034 |
Gross Unrealized Gains | 1,916 | 5,029 |
Gross Unrealized Losses | (57,402) | (22,158) |
Fair Value | 1,833,467 | 1,493,905 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 50,986 | 50,997 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,319) | (1,355) |
Fair Value | 48,667 | 49,642 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 39,212 | 42,384 |
Gross Unrealized Gains | 34 | 158 |
Gross Unrealized Losses | (1,240) | (37) |
Fair Value | 38,006 | 42,505 |
Obligations of states and state agencies | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 110,580 | 38,435 |
Gross Unrealized Gains | 52 | 158 |
Gross Unrealized Losses | (2,636) | (374) |
Fair Value | 107,996 | 38,219 |
Municipal bonds | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 104,922 | 74,752 |
Gross Unrealized Gains | 281 | 477 |
Gross Unrealized Losses | (1,670) | (564) |
Fair Value | 103,533 | 74,665 |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 215,502 | 113,187 |
Gross Unrealized Gains | 333 | 635 |
Gross Unrealized Losses | (4,306) | (938) |
Fair Value | 211,529 | 112,884 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 1,525,041 | 1,239,534 |
Gross Unrealized Gains | 1,330 | 2,423 |
Gross Unrealized Losses | (48,525) | (18,662) |
Fair Value | 1,477,846 | 1,223,295 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 2,583 | 3,726 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (304) | (512) |
Fair Value | 2,279 | 3,214 |
Corporate and other debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 55,629 | 50,701 |
Gross Unrealized Gains | 219 | 623 |
Gross Unrealized Losses | (708) | (160) |
Fair Value | $ 55,140 | 51,164 |
Equity securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 10,505 | |
Gross Unrealized Gains | 1,190 | |
Gross Unrealized Losses | (494) | |
Fair Value | $ 11,201 | |
Pooled Trust Preferred Securities | ||
Schedule of Available-for-sale Securities | ||
Available-For-Sale Securities, Number Of Securities | Security | 1 |
Investment Securities - Unrea53
Investment Securities - Unrealized Losses and Fair Value Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less than Twelve Months | $ 1,095,370 | $ 489,894 |
More than Twelve Months | 638,437 | 691,297 |
Total | 1,733,807 | 1,181,191 |
Unrealized Losses | ||
Less than Twelve Months | (26,808) | (2,932) |
More than Twelve Months | (30,594) | (19,226) |
Total | (57,402) | (22,158) |
U.S. Treasury securities | ||
Fair Value | ||
Less than Twelve Months | 901 | 916 |
More than Twelve Months | 47,766 | 48,726 |
Total | 48,667 | 49,642 |
Unrealized Losses | ||
Less than Twelve Months | (13) | (2) |
More than Twelve Months | (2,306) | (1,353) |
Total | (2,319) | (1,355) |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 30,485 | 31,177 |
More than Twelve Months | 0 | 0 |
Total | 30,485 | 31,177 |
Unrealized Losses | ||
Less than Twelve Months | (1,240) | (37) |
More than Twelve Months | 0 | 0 |
Total | (1,240) | (37) |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 96,617 | 13,337 |
More than Twelve Months | 8,041 | 7,792 |
Total | 104,658 | 21,129 |
Unrealized Losses | ||
Less than Twelve Months | (2,301) | (131) |
More than Twelve Months | (335) | (243) |
Total | (2,636) | (374) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 69,301 | 31,669 |
More than Twelve Months | 12,010 | 12,133 |
Total | 81,311 | 43,802 |
Unrealized Losses | ||
Less than Twelve Months | (1,251) | (256) |
More than Twelve Months | (419) | (308) |
Total | (1,670) | (564) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 165,918 | 45,006 |
More than Twelve Months | 20,051 | 19,925 |
Total | 185,969 | 64,931 |
Unrealized Losses | ||
Less than Twelve Months | (3,552) | (387) |
More than Twelve Months | (754) | (551) |
Total | (4,306) | (938) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 875,444 | 406,940 |
More than Twelve Months | 553,585 | 599,167 |
Total | 1,429,029 | 1,006,107 |
Unrealized Losses | ||
Less than Twelve Months | (21,543) | (2,461) |
More than Twelve Months | (26,982) | (16,201) |
Total | (48,525) | (18,662) |
Trust preferred securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | 2,279 | 3,214 |
Total | 2,279 | 3,214 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (304) | (512) |
Total | (304) | (512) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 22,622 | 5,855 |
More than Twelve Months | 14,756 | 15,115 |
Total | 37,378 | 20,970 |
Unrealized Losses | ||
Less than Twelve Months | (460) | (45) |
More than Twelve Months | (248) | (115) |
Total | $ (708) | (160) |
Equity securities | ||
Fair Value | ||
Less than Twelve Months | 0 | |
More than Twelve Months | 5,150 | |
Total | 5,150 | |
Unrealized Losses | ||
Less than Twelve Months | 0 | |
More than Twelve Months | (494) | |
Total | $ (494) |
Investment Securities - Contr54
Investment Securities - Contractual Maturities of Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year | $ 18,801 | |
Due after one year through five years | 127,790 | |
Due after five years through ten years | 80,582 | |
Due after ten years | 136,739 | |
Securities without a single maturity date | 1,525,041 | |
Amortized Cost | 1,888,953 | $ 1,511,034 |
Fair Value | ||
Due in one year | 18,876 | |
Due after one year through five years | 124,100 | |
Due after five years through ten years | 79,923 | |
Due after ten years | 132,723 | |
Securities without a single maturity date | 1,477,845 | |
Total investment securities available for sale, Fair Value | $ 1,833,467 | $ 1,493,905 |
Loans - Non-Covered and Covered
Loans - Non-Covered and Covered PCI Loans and Non-PCI Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 23,234,716 | $ 18,331,580 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,829,525 | 2,741,425 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 13,290,562 | 10,347,882 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 11,913,830 | 9,496,777 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,376,732 | 851,105 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,528,682 | 2,859,035 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,585,947 | 2,383,238 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 520,849 | 446,280 |
Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,281,735 | 1,208,902 |
Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 783,363 | 728,056 |
Non-PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 18,587,015 | 16,944,365 |
Non-PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,021,524 | 2,549,065 |
Non-PCI Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 10,106,347 | 9,371,815 |
Non-PCI Loans | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 9,109,645 | 8,561,851 |
Non-PCI Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 996,702 | 809,964 |
Non-PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,051,429 | 2,717,744 |
Non-PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,407,715 | 2,305,741 |
Non-PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 358,043 | 373,631 |
Non-PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,281,303 | 1,208,804 |
Non-PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 768,369 | 723,306 |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 4,647,701 | 1,387,215 |
Covered loans | 31,100 | 38,700 |
PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 808,001 | 192,360 |
PCI Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,184,215 | 976,067 |
PCI Loans | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,804,185 | 934,926 |
PCI Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 380,030 | 41,141 |
PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 477,253 | 141,291 |
PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 178,232 | 77,497 |
PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 162,806 | 72,649 |
PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 432 | 98 |
PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 14,994 | $ 4,750 |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable | |||||
Non-covered loans net of unearned premiums and deferred loan fees | $ 18,700,000 | $ 18,700,000 | $ 22,200,000 | ||
Outstanding balances for PCI loans | 4,900,000,000 | 4,900,000,000 | 1,500,000,000 | ||
Transfer of loans to loans held for sale | 263,324,000 | $ 225,541,000 | |||
Sales of loans | 0 | $ 0 | 0 | 0 | |
Impaired loans | 250,000 | $ 250,000 | |||
Number of consecutive months for performing restructured loans to be put on accrual status | 6 months | ||||
TDRs not reported as non-accrual loans | 83,700,000 | $ 83,700,000 | 117,200,000 | ||
Non-performing TDRs | 54,100,000 | 54,100,000 | 27,000,000 | ||
Specific reserves for loan losses | 5,300,000 | 5,300,000 | |||
Partial loan charge-offs related to loans modified as TDRs | $ 0 | 0 | $ 0 | 0 | |
Days past due to place on payment default | 90 days | 90 days | |||
Recorded Investment | $ 3,212,000 | $ 5,358,000 | $ 3,212,000 | 6,322,000 | |
Other real estate owned | 11,800,000 | 11,800,000 | 9,800,000 | ||
Residential real estate properties | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Other real estate owned | 8,100,000 | 8,100,000 | 7,300,000 | ||
In formal foreclosure proceedings | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Residential mortgage and consumer loans secured by residential real estate properties | 1,800,000 | 1,800,000 | 3,800,000 | ||
Residential mortgage | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Transfer of loans to loans held for sale | 263,300,000 | 225,500,000 | |||
Recorded Investment | 0 | $ 153,000 | |||
PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Total PCI Loans including covered loans | $ 31,100,000 | $ 31,100,000 | $ 38,700,000 |
Loans Loans - USAB Acquisition
Loans Loans - USAB Acquisition (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Combination, Separately Recognized Transactions [Line Items] | |||||||
Interest component of expected cash flows (accretable yield) | $ (630,550) | $ (691,086) | $ (282,009) | $ (246,278) | $ (269,831) | $ (294,514) | |
USAmeriBancorp, Inc. | |||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||
Contractually required principal and interest | $ 4,312,988 | ||||||
Contractual cash flows not expected to be collected (non-accretable difference) | (94,098) | ||||||
Expected cash flows to be collected | 4,218,890 | ||||||
Interest component of expected cash flows (accretable yield) | (474,208) | ||||||
Fair value of acquired loans | $ 3,744,682 |
Loans - Changes in Accretable Y
Loans - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance, beginning of period | $ 691,086 | $ 269,831 | $ 282,009 | $ 294,514 |
Acquisition | 0 | 0 | 474,208 | 0 |
Accretion | (60,536) | (23,553) | (125,667) | (48,236) |
Balance, end of period | $ 630,550 | $ 246,278 | $ 630,550 | $ 246,278 |
Loans - Past Due, Non-Accrual a
Loans - Past Due, Non-Accrual and Current Non-Covered Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | $ 84,454 | $ 47,225 |
Total Past Due Loans | 117,746 | 127,706 |
Current Non-PCI Loans | 18,469,269 | 16,816,659 |
Total Non-PCI Loans | 18,587,015 | 16,944,365 |
30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 25,812 | 48,900 |
60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,371 | 28,491 |
Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 3,109 | 3,090 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 53,596 | 20,890 |
Total Past Due Loans | 62,469 | 25,084 |
Current Non-PCI Loans | 2,959,055 | 2,523,981 |
Total Non-PCI Loans | 3,021,524 | 2,549,065 |
Commercial and industrial | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,780 | 3,650 |
Commercial and industrial | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,533 | 544 |
Commercial and industrial | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 560 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 8,552 | 12,060 |
Total Past Due Loans | 13,077 | 55,104 |
Current Non-PCI Loans | 10,093,270 | 9,316,711 |
Total Non-PCI Loans | 10,106,347 | 9,371,815 |
Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,498 | 24,172 |
Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 18,845 |
Commercial real estate | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 27 | 27 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 7,452 | 11,328 |
Total Past Due Loans | 11,802 | 22,578 |
Current Non-PCI Loans | 9,097,843 | 8,539,273 |
Total Non-PCI Loans | 9,109,645 | 8,561,851 |
Commercial real estate | Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,323 | 11,223 |
Commercial real estate | Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Commercial real estate | Commercial real estate | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 27 | 27 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 1,100 | 732 |
Total Past Due Loans | 1,275 | 32,526 |
Current Non-PCI Loans | 995,427 | 777,438 |
Total Non-PCI Loans | 996,702 | 809,964 |
Commercial real estate | Construction | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 175 | 12,949 |
Commercial real estate | Construction | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 18,845 |
Commercial real estate | Construction | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 19,303 | 12,405 |
Total Past Due Loans | 31,566 | 35,756 |
Current Non-PCI Loans | 3,019,863 | 2,681,988 |
Total Non-PCI Loans | 3,051,429 | 2,717,744 |
Residential mortgage | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 7,961 | 12,669 |
Residential mortgage | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,978 | 7,903 |
Residential mortgage | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 2,324 | 2,779 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 3,003 | 1,870 |
Total Past Due Loans | 10,634 | 11,762 |
Current Non-PCI Loans | 2,397,081 | 2,293,979 |
Total Non-PCI Loans | 2,407,715 | 2,305,741 |
Consumer loans | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,573 | 8,409 |
Consumer loans | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 860 | 1,199 |
Consumer loans | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 198 | 284 |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 2,804 | 1,777 |
Total Past Due Loans | 3,768 | 2,880 |
Current Non-PCI Loans | 354,275 | 370,751 |
Total Non-PCI Loans | 358,043 | 373,631 |
Consumer loans | Home equity | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 686 | 1,009 |
Consumer loans | Home equity | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 278 | 94 |
Consumer loans | Home equity | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Consumer loans | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 80 | 73 |
Total Past Due Loans | 6,271 | 7,038 |
Current Non-PCI Loans | 1,275,032 | 1,201,766 |
Total Non-PCI Loans | 1,281,303 | 1,208,804 |
Consumer loans | Automobile | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 5,482 | 5,707 |
Consumer loans | Automobile | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 545 | 987 |
Consumer loans | Automobile | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 164 | 271 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 119 | 20 |
Total Past Due Loans | 595 | 1,844 |
Current Non-PCI Loans | 767,774 | 721,462 |
Total Non-PCI Loans | 768,369 | 723,306 |
Consumer loans | Other consumer | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 405 | 1,693 |
Consumer loans | Other consumer | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 37 | 118 |
Consumer loans | Other consumer | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | $ 34 | $ 13 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | $ 41,856 | $ 49,309 |
Recorded Investment With Related Allowance | 114,335 | 114,857 |
Total Recorded Investment | 156,191 | 164,166 |
Unpaid Contractual Principal Balance | 166,654 | 175,198 |
Related Allowance | 28,508 | 14,561 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 10,241 | 9,946 |
Recorded Investment With Related Allowance | 76,929 | 75,553 |
Total Recorded Investment | 87,170 | 85,499 |
Unpaid Contractual Principal Balance | 92,073 | 90,269 |
Related Allowance | 24,817 | 11,044 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 24,551 | 30,613 |
Recorded Investment With Related Allowance | 30,168 | 30,238 |
Total Recorded Investment | 54,719 | 60,851 |
Unpaid Contractual Principal Balance | 58,628 | 64,680 |
Related Allowance | 2,987 | 2,735 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 22,751 | 28,709 |
Recorded Investment With Related Allowance | 29,705 | 29,771 |
Total Recorded Investment | 52,456 | 58,480 |
Unpaid Contractual Principal Balance | 56,365 | 62,286 |
Related Allowance | 2,972 | 2,718 |
Commercial real estate | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 1,800 | 1,904 |
Recorded Investment With Related Allowance | 463 | 467 |
Total Recorded Investment | 2,263 | 2,371 |
Unpaid Contractual Principal Balance | 2,263 | 2,394 |
Related Allowance | 15 | 17 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 6,226 | 5,654 |
Recorded Investment With Related Allowance | 6,623 | 8,402 |
Total Recorded Investment | 12,849 | 14,056 |
Unpaid Contractual Principal Balance | 13,838 | 15,332 |
Related Allowance | 632 | 718 |
Consumer loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 838 | 3,096 |
Recorded Investment With Related Allowance | 615 | 664 |
Total Recorded Investment | 1,453 | 3,760 |
Unpaid Contractual Principal Balance | 2,115 | 4,917 |
Related Allowance | 72 | 64 |
Consumer loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 838 | 3,096 |
Recorded Investment With Related Allowance | 615 | 664 |
Total Recorded Investment | 1,453 | 3,760 |
Unpaid Contractual Principal Balance | 2,115 | 4,917 |
Related Allowance | $ 72 | $ 64 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment and Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | $ 157,355 | $ 131,515 | $ 160,611 | $ 122,642 |
Interest Income Recognized | 1,009 | 1,009 | 2,560 | 1,909 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 87,674 | 46,283 | 88,865 | 38,371 |
Interest Income Recognized | 212 | 288 | 926 | 596 |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 54,973 | 62,878 | 56,334 | 60,450 |
Interest Income Recognized | 579 | 503 | 1,218 | 847 |
Commercial real estate | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 52,729 | 60,119 | 54,104 | 57,722 |
Interest Income Recognized | 563 | 483 | 1,179 | 808 |
Commercial real estate | Construction | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 2,244 | 2,759 | 2,230 | 2,728 |
Interest Income Recognized | 16 | 20 | 39 | 39 |
Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 12,914 | 17,555 | 13,502 | 18,974 |
Interest Income Recognized | 185 | 184 | 350 | 392 |
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 1,794 | 4,799 | 1,910 | 4,847 |
Interest Income Recognized | 33 | 34 | 66 | 74 |
Consumer loans | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 1,794 | 4,799 | 1,910 | 4,847 |
Interest Income Recognized | $ 33 | $ 34 | $ 66 | $ 74 |
Loans - Pre-Modification and Po
Loans - Pre-Modification and Post-Modification (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | |
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 19 | 54 | 29 | 65 |
Pre-Modification Outstanding Recorded Investment | $ 13,722 | $ 64,230 | $ 16,356 | $ 71,827 |
Post-Modification Outstanding Recorded Investment | $ 13,426 | $ 62,516 | $ 15,885 | $ 69,084 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 4 | 6 | 4 | 9 |
Recorded Investment | $ 3,212 | $ 5,358 | $ 3,212 | $ 6,322 |
Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 11 | 47 | 15 | 53 |
Pre-Modification Outstanding Recorded Investment | $ 8,822 | $ 40,077 | $ 10,554 | $ 46,315 |
Post-Modification Outstanding Recorded Investment | $ 8,575 | $ 38,367 | $ 10,170 | $ 43,660 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 4 | 6 | 4 | 7 |
Recorded Investment | $ 3,212 | $ 5,358 | $ 3,212 | $ 5,433 |
Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 6 | 5 | 8 | 7 |
Pre-Modification Outstanding Recorded Investment | $ 4,507 | $ 23,604 | $ 4,734 | $ 24,342 |
Post-Modification Outstanding Recorded Investment | $ 4,462 | $ 23,604 | $ 4,667 | $ 24,257 |
Commercial real estate | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 5 | 5 | 6 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 3,975 | $ 23,604 | $ 4,170 | $ 23,782 |
Post-Modification Outstanding Recorded Investment | $ 3,971 | $ 23,604 | $ 4,164 | $ 23,777 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 0 | 1 | ||
Recorded Investment | $ 0 | $ 736 | ||
Commercial real estate | Construction | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 1 | 0 | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 532 | $ 0 | $ 564 | $ 560 |
Post-Modification Outstanding Recorded Investment | $ 491 | $ 0 | $ 503 | $ 480 |
Residential mortgage | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 2 | 2 | 5 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 393 | $ 549 | $ 980 | $ 1,170 |
Post-Modification Outstanding Recorded Investment | $ 389 | $ 545 | $ 963 | $ 1,167 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 0 | 1 | ||
Recorded Investment | $ 0 | $ 153 | ||
Consumer | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 1 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 88 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 85 | $ 0 |
Loans - Risk Category of Loans
Loans - Risk Category of Loans (Details) - Non-PCI Loans - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | $ 13,127,871 | $ 11,920,880 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 3,021,524 | 2,549,065 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 9,109,645 | 8,561,851 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 996,702 | 809,964 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 12,867,408 | 11,631,645 |
Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 2,853,692 | 2,375,689 |
Pass | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 9,019,309 | 8,447,865 |
Pass | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 994,407 | 808,091 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 98,092 | 110,440 |
Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 62,369 | 62,071 |
Special Mention | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 35,200 | 48,009 |
Special Mention | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 523 | 360 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 113,003 | 164,045 |
Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 56,095 | 96,555 |
Substandard | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 55,136 | 65,977 |
Substandard | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 1,772 | 1,513 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 49,368 | 14,750 |
Doubtful | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 49,368 | 14,750 |
Doubtful | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 0 | 0 |
Doubtful | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | $ 0 | $ 0 |
Loans - Recorded Investment Bas
Loans - Recorded Investment Based on Payment Activity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 5,459,144 | $ 5,023,485 |
Non-PCI Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,051,429 | 2,717,744 |
Non-PCI Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 358,043 | 373,631 |
Non-PCI Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,281,303 | 1,208,804 |
Non-PCI Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 768,369 | 723,306 |
Non-PCI Loans | Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 5,436,838 | 5,009,210 |
Non-PCI Loans | Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,032,126 | 2,705,339 |
Non-PCI Loans | Performing Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 355,239 | 371,854 |
Non-PCI Loans | Performing Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,281,223 | 1,208,731 |
Non-PCI Loans | Performing Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 768,250 | 723,286 |
Non-PCI Loans | Non-Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 22,306 | 14,275 |
Non-PCI Loans | Non-Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 19,303 | 12,405 |
Non-PCI Loans | Non-Performing Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,804 | 1,777 |
Non-PCI Loans | Non-Performing Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 80 | 73 |
Non-PCI Loans | Non-Performing Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 119 | 20 |
PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,647,701 | 1,387,215 |
PCI Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 477,253 | 141,291 |
PCI Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 178,232 | 77,497 |
PCI Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 808,001 | 192,360 |
PCI Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,804,185 | 934,926 |
PCI Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 380,030 | 41,141 |
PCI Loans | Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,584,743 | 1,349,127 |
PCI Loans | Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 470,447 | 135,745 |
PCI Loans | Performing Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 174,411 | 76,901 |
PCI Loans | Performing Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 776,200 | 172,105 |
PCI Loans | Performing Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,785,190 | 924,574 |
PCI Loans | Performing Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 378,495 | 39,802 |
PCI Loans | Non-Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 62,958 | 38,088 |
PCI Loans | Non-Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,806 | 5,546 |
PCI Loans | Non-Performing Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,821 | 596 |
PCI Loans | Non-Performing Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 31,801 | 20,255 |
PCI Loans | Non-Performing Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 18,995 | 10,352 |
PCI Loans | Non-Performing Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 1,535 | $ 1,339 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||||||
Allowance for loan losses | $ 138,762 | $ 132,862 | $ 120,856 | $ 116,446 | $ 115,443 | $ 114,419 |
Allowance for unfunded letters of credit | 4,392 | 3,596 | ||||
Total allowance for credit losses | $ 143,154 | $ 124,452 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Receivables [Abstract] | ||||
Provision for loan losses | $ 6,592 | $ 3,710 | $ 17,294 | $ 6,112 |
Provision for unfunded letters of credit | 550 | (78) | 796 | (10) |
Total provision for credit losses | $ 7,142 | $ 3,632 | $ 18,090 | $ 6,102 |
Allowance for Credit Losses -67
Allowance for Credit Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 132,862 | $ 115,443 | $ 120,856 | $ 114,419 |
Loans charged-off | (2,201) | (4,289) | (3,921) | (7,668) |
Charged-off loans recovered | 1,509 | 1,582 | 4,533 | 3,583 |
Net recoveries (charge-offs) | (692) | (2,707) | 612 | (4,085) |
Provision for loan losses | 6,592 | 3,710 | 17,294 | 6,112 |
Ending balance | 138,762 | 116,446 | 138,762 | 116,446 |
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 66,546 | 51,288 | 57,232 | 50,820 |
Loans charged-off | (642) | (2,910) | (773) | (4,624) |
Charged-off loans recovered | 819 | 312 | 2,926 | 1,160 |
Net recoveries (charge-offs) | 177 | (2,598) | 2,153 | (3,464) |
Provision for loan losses | 7,534 | 2,927 | 14,872 | 4,261 |
Ending balance | 74,257 | 51,617 | 74,257 | 51,617 |
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 56,679 | 56,302 | 54,954 | 55,851 |
Loans charged-off | (38) | (139) | (348) | (553) |
Charged-off loans recovered | 15 | 640 | 384 | 782 |
Net recoveries (charge-offs) | (23) | 501 | 36 | 229 |
Provision for loan losses | (2,844) | (1,348) | (1,178) | (625) |
Ending balance | 53,812 | 55,455 | 53,812 | 55,455 |
Residential Mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 4,100 | 3,592 | 3,605 | 3,702 |
Loans charged-off | (99) | (229) | (167) | (359) |
Charged-off loans recovered | 180 | 235 | 260 | 683 |
Net recoveries (charge-offs) | 81 | 6 | 93 | 324 |
Provision for loan losses | 443 | 588 | 926 | 160 |
Ending balance | 4,624 | 4,186 | 4,624 | 4,186 |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 5,537 | 4,261 | 5,065 | 4,046 |
Loans charged-off | (1,422) | (1,011) | (2,633) | (2,132) |
Charged-off loans recovered | 495 | 395 | 963 | 958 |
Net recoveries (charge-offs) | (927) | (616) | (1,670) | (1,174) |
Provision for loan losses | 1,459 | 1,543 | 2,674 | 2,316 |
Ending balance | $ 6,069 | $ 5,188 | $ 6,069 | $ 5,188 |
Allowance for Credit Losses -68
Allowance for Credit Losses - Allocation of Allowance for Loan Losses and Related Loans by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | $ 23,234,716 | $ 18,331,580 |
Allowance for loan losses | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 28,508 | 14,561 |
Collectively evaluated for impairment | 110,254 | 106,295 |
Total Loans | 138,762 | 120,856 |
Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 156,191 | 164,166 |
Collectively evaluated for impairment | 18,430,824 | 16,780,199 |
Loans | Loans acquired with discounts related to credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 4,647,701 | 1,387,215 |
Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 3,829,525 | 2,741,425 |
Commercial and Industrial | Allowance for loan losses | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 24,817 | 11,044 |
Collectively evaluated for impairment | 49,440 | 46,188 |
Total Loans | 74,257 | 57,232 |
Commercial and Industrial | Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 87,170 | 85,499 |
Collectively evaluated for impairment | 2,934,354 | 2,463,566 |
Commercial and Industrial | Loans | Loans acquired with discounts related to credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 808,001 | 192,360 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 13,290,562 | 10,347,882 |
Commercial Real Estate | Allowance for loan losses | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 2,987 | 2,735 |
Collectively evaluated for impairment | 50,825 | 52,219 |
Total Loans | 53,812 | 54,954 |
Commercial Real Estate | Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 54,719 | 60,851 |
Collectively evaluated for impairment | 10,051,628 | 9,310,964 |
Commercial Real Estate | Loans | Loans acquired with discounts related to credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 3,184,215 | 976,067 |
Residential Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 3,528,682 | 2,859,035 |
Residential Mortgage | Allowance for loan losses | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 632 | 718 |
Collectively evaluated for impairment | 3,992 | 2,887 |
Total Loans | 4,624 | 3,605 |
Residential Mortgage | Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 12,849 | 14,056 |
Collectively evaluated for impairment | 3,038,580 | 2,703,688 |
Residential Mortgage | Loans | Loans acquired with discounts related to credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 477,253 | 141,291 |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 2,585,947 | 2,383,238 |
Consumer | Allowance for loan losses | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 72 | 64 |
Collectively evaluated for impairment | 5,997 | 5,001 |
Total Loans | 6,069 | 5,065 |
Consumer | Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 1,453 | 3,760 |
Collectively evaluated for impairment | 2,406,262 | 2,301,981 |
Consumer | Loans | Loans acquired with discounts related to credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | $ 178,232 | $ 77,497 |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 690,637 |
Goodwill from business combinations | 388,255 |
Goodwill, ending balance | 1,078,892 |
Wealth Management | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 21,218 |
Goodwill from business combinations | 0 |
Goodwill, ending balance | 21,218 |
Consumer Lending | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 200,103 |
Goodwill from business combinations | 85,649 |
Goodwill, ending balance | 285,752 |
Commercial Lending | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 316,258 |
Goodwill from business combinations | 238,052 |
Goodwill, ending balance | 554,310 |
Investment Management | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 153,058 |
Goodwill from business combinations | 64,554 |
Goodwill, ending balance | $ 217,612 |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Assets | $ 169,371 | $ 126,621 | |
Accumulated Amortization | (85,251) | (83,643) | |
Valuation Allowance | (154) | (471) | |
Net Intangible Assets | 83,966 | 42,507 | |
Loan servicing rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Assets | 84,956 | $ 1,400 | 79,138 |
Accumulated Amortization | (59,975) | (57,054) | |
Valuation Allowance | (154) | (471) | |
Net Intangible Assets | 24,827 | 21,613 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Assets | 80,470 | $ 44,600 | 43,396 |
Accumulated Amortization | (23,002) | (24,297) | |
Valuation Allowance | 0 | 0 | |
Net Intangible Assets | 57,468 | 19,099 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Assets | 3,945 | 4,087 | |
Accumulated Amortization | (2,274) | (2,292) | |
Valuation Allowance | 0 | 0 | |
Net Intangible Assets | $ 1,671 | $ 1,795 |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 | ||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross intangible assets | 169,371,000 | 169,371,000 | $ 126,621,000 | |||
Amortization of other intangible assets | 4,617,000 | 2,562,000 | $ 8,910,000 | 5,098,000 | ||
Core Deposits | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted average amortization period, years | 10 years | |||||
Gross intangible assets | 80,470,000 | $ 80,470,000 | $ 44,600,000 | 43,396,000 | ||
Loan servicing rights | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross intangible assets | 84,956,000 | $ 84,956,000 | $ 1,400,000 | 79,138,000 | ||
Other | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted average amortization period, years | 20 years | |||||
Gross intangible assets | 3,945,000 | $ 3,945,000 | $ 4,087,000 | |||
Core Deposits and Other | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of core deposits and other intangibles | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible72
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Loan Servicing Rights | |
Finite-Lived Intangible Assets [Line Items] | |
2,018 | $ 3,155 |
2,019 | 5,148 |
2,020 | 4,160 |
2,021 | 3,243 |
2,022 | 2,608 |
Core Deposits | |
Finite-Lived Intangible Assets [Line Items] | |
2,018 | 6,134 |
2,019 | 10,961 |
2,020 | 9,607 |
2,021 | 8,252 |
2,022 | 6,898 |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
2,018 | 125 |
2,019 | 235 |
2,020 | 220 |
2,021 | 206 |
2,022 | $ 191 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant (in shares) | 5,500,000 | 5,500,000 | |||
Stock-based compensation expense (in USD) | $ 4.2 | $ 2.7 | $ 12.2 | $ 6.9 | |
Stock-based compensation amortization expense unrecognized (in USD) | $ 24.3 | $ 24.3 | |||
Average remaining vesting period (in years) | 2 years 4 months | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options acquired (in shares) | 1,800,000 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number acquired outstanding stock awards (in shares) | 336,000 | ||||
Time-based RSUs acquired that remained outstanding (in shares) | 179,000 | 179,000 | |||
Number of shares granted during the period (in shares) | 446,000 | 371,000 | |||
Award vesting period (in years) | 3 years | ||||
Average grant date fair value (usd per share) | $ 12.35 | $ 11.05 | |||
Restricted Stock Units | Growth in Tangible Book Value per Share Plus Dividends | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights as a percentage | 75.00% | ||||
Restricted Stock Units | Total Shareholder Return as Compared to Our Peer Group | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights as a percentage | 25.00% | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted during the period (in shares) | 1,200,000 | 482,000 | |||
Award vesting period (in years) | 3 years | ||||
Average grant date fair value (usd per share) | $ 11.86 | $ 11.71 | |||
Award vesting rights as a percentage | 33.33% | ||||
2016 Long-Term Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of acquired outstanding stock awards that remain outstanding (in shares) | 936,000 | 936,000 | |||
Weighted average exercise price (in USD per share) | $ 5.49 | $ 5.49 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | ||||
Trust and investment services | $ 3,262 | $ 2,800 | $ 6,492 | $ 5,544 |
Insurance commissions | 4,026 | 4,358 | 7,847 | 9,419 |
Service charges on deposit accounts | 6,679 | 5,342 | 13,932 | 10,578 |
(Losses) gains on securities transactions, net | (36) | 22 | (801) | (1) |
Fees from loan servicing | 2,045 | 1,831 | 4,268 | 3,646 |
Gains on sales of loans, net | 7,642 | 4,791 | 14,395 | 8,919 |
Bank owned life insurance | 2,652 | 1,701 | 4,415 | 4,164 |
Other | 11,799 | 7,985 | 19,772 | 12,281 |
Total non-interest income | $ 38,069 | $ 28,830 | $ 70,320 | $ 54,550 |
Derivative Instruments and He75
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)swap | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)swap | Jun. 30, 2017USD ($) | May 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | ||||||
Number of credit swaps | swap | 13 | 13 | ||||
Derivative instrument not designated as hedging instruments, liability | $ 14,300 | $ 14,300 | ||||
Aggregate fair value of net liability position | 2,100 | 2,100 | ||||
CME | ||||||
Derivative [Line Items] | ||||||
Collateral posted with counterparties, net of CME variation margin | 4,400 | 4,400 | ||||
Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Accumulated net after-tax losses related to effective cash flow hedges | 4,300 | 4,300 | $ 8,300 | |||
Estimated amount of interest rate derivatives to be reclassified to interest expense | 1,700 | |||||
Cash flow hedge | Interest rate swaps | CME | ||||||
Derivative [Line Items] | ||||||
CME variation margins | 15,900 | 15,900 | ||||
Derivatives designated as hedging instruments | ||||||
Derivative [Line Items] | ||||||
Aggregate notional amount of derivative asset | $ 125,000 | |||||
Derivatives designated as hedging instruments | Cash flow hedge | Interest rate swaps | CME | ||||||
Derivative [Line Items] | ||||||
CME variation margins | 796 | 796 | 9,500 | |||
Derivatives not designated as hedging instruments | ||||||
Derivative [Line Items] | ||||||
Aggregate notional amount of derivative asset | 73,400 | 73,400 | ||||
Derivatives not designated as hedging instruments | Interest rate swaps | CME | ||||||
Derivative [Line Items] | ||||||
CME variation margins | 8,200 | 8,200 | $ 951 | |||
Noninterest Income | Fair value hedge | Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Fee income related to derivative interest rate swaps executed with commercial loan customers | $ 4,400 | $ 4,100 | $ 7,700 | $ 4,800 |
Derivative Instruments and He76
Derivative Instruments and Hedging Activities - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | $ 0 | $ 0 |
Other Liabilities | 37,586 | 24,212 |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Other Assets | 0 | 650 |
Other Liabilities | 451 | 718 |
Notional Amount | 489,657 | 614,775 |
Derivatives designated as hedging instruments | Cash flow hedge | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 0 | 650 |
Other Liabilities | 32 | 81 |
Notional Amount | 482,000 | 607,000 |
Derivatives designated as hedging instruments | Fair value hedge | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Other Liabilities | 419 | 637 |
Notional Amount | 7,657 | 7,775 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Other Assets | 30,132 | 25,767 |
Other Liabilities | 37,451 | 23,612 |
Notional Amount | 3,123,855 | 1,800,238 |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 29,834 | 25,696 |
Other Liabilities | 37,135 | 23,494 |
Notional Amount | 2,996,861 | 1,687,005 |
Derivatives not designated as hedging instruments | Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Other Assets | 298 | 71 |
Other Liabilities | 316 | 118 |
Notional Amount | $ 126,994 | $ 113,233 |
Derivative Instruments and He77
Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items] | ||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | $ (69,366) | $ (42,187) | $ (129,263) | $ (78,774) |
Amount of gain recognized in other comprehensive (loss) income | 637 | (1,482) | 3,388 | (1,265) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items] | ||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | $ (866) | $ (2,314) | $ (2,317) | $ (4,832) |
Derivative Instruments and He78
Derivative Instruments and Hedging Activities - Gains (Losses) on Interest Rate Derivatives Designated as Fair Value Hedges (Details) - Fair value hedge - Interest income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest rate swaps | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gain (loss) related to derivative interest rate swaps | $ 88 | $ 52 | $ 219 | $ 149 |
Loans and borrowings | Derivatives designated as hedging instruments: | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gain (loss) related to hedged loans | $ (88) | $ (52) | $ (219) | $ (149) |
Derivative Instruments and He79
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Hedges (Details) - Fair value hedge - Derivatives designated as hedging instruments - Interest rate swaps $ in Thousands | Jun. 30, 2018USD ($) |
Derivative [Line Items] | |
Loans, carrying amount | $ 8,076 |
Loans, cumulative fair value adjustment | $ 419 |
Derivative Instruments and He80
Derivative Instruments and Hedging Activities - (Losses) Gains Related to Derivatives Not Designated as Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Non-designated hedge interest rate derivatives | ||||
Other non-interest expense | $ 230 | $ 70 | $ 448 | $ (790) |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting Liabilities | ||
Gross Amounts Recognized | $ 187,586 | $ 224,212 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 187,586 | 224,212 |
Gross Amounts Not Offset, Financial Instruments | (336) | (5,376) |
Gross Amounts Not Offset, Cash Collateral | (151,645) | (208,141) |
Net Amount | 35,605 | 10,695 |
Repurchase agreements | ||
Offsetting Repurchase Agreement Liabilities | ||
Gross Amounts Recognized | 150,000 | 200,000 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 150,000 | 200,000 |
Gross Amounts Not Offset, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset, Cash Collateral | (150,000) | (200,000) |
Net Amount | 0 | 0 |
Interest rate swaps | ||
Offsetting Assets | ||
Gross Amounts Recognized | 29,834 | 26,346 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 29,834 | 26,346 |
Gross Amounts Not Offset, Financial Instruments | (336) | (5,376) |
Gross Amounts Not Offset, Cash Collateral | 0 | 0 |
Net Amount | 29,498 | 20,970 |
Offsetting Liabilities | ||
Gross Amounts Recognized | 37,586 | 24,212 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 37,586 | 24,212 |
Gross Amounts Not Offset, Financial Instruments | (336) | (5,376) |
Gross Amounts Not Offset, Cash Collateral | (1,645) | (8,141) |
Net Amount | $ 35,605 | $ 10,695 |
Tax Credit Investments - Balanc
Tax Credit Investments - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Assets | ||
Other Assets | ||
Affordable housing tax credit investments, net | $ 40,226 | $ 22,135 |
Other tax credit investments, net | 31,129 | 42,015 |
Total tax credit investments, net | 71,355 | 64,150 |
Other Liabilities | ||
Other Liabilities | ||
Unfunded affordable housing tax credit commitments | 4,978 | 3,690 |
Unfunded other tax credit commitments | 4,773 | 15,020 |
Total unfunded tax credit commitments | $ 9,751 | $ 18,710 |
Tax Credit Investments - Income
Tax Credit Investments - Income Statement Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Components of Income Tax Expense | ||||
Affordable housing tax credits and other tax benefits | $ 1,429 | $ 1,271 | $ 3,250 | $ 2,555 |
Other tax credit investment credits and tax benefits | 5,680 | 8,680 | 11,165 | 14,966 |
Total reduction in income tax expense | 7,109 | 9,951 | 14,415 | 17,521 |
Non-Interest Expenses | ||||
Amortization of Tax Credit Investments | ||||
Affordable housing tax credit investment losses | (319) | 358 | 667 | 754 |
Affordable housing tax credit investment impairment losses | 515 | 130 | 1,102 | 254 |
Other tax credit investment losses | 1,253 | 1,060 | 1,790 | 1,827 |
Other tax credit investment impairment losses | 3,021 | 6,184 | 6,185 | 10,221 |
Total amortization of tax credit investments recorded in non-interest expense | $ 4,470 | $ 7,732 | $ 9,744 | $ 13,056 |