Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 17, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GLACIER BANCORP INC | |
Entity Central Index Key | 868,671 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 76,619,952 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash on hand and in banks | $ 124,501 | $ 135,268 | |
Federal funds sold | 190 | 0 | |
Interest bearing cash deposits | 109,313 | 17,273 | |
Cash and cash equivalents | 234,004 | 152,541 | |
Investment securities, available-for-sale | 2,314,521 | 2,425,477 | |
Investment securities, held-to-maturity | 667,388 | 675,674 | |
Total investment securities | 2,981,909 | 3,101,151 | |
Loans held for sale | 25,649 | 72,927 | |
Loans receivable | [1] | 5,876,974 | 5,684,463 |
Allowance for loan and lease losses | (129,226) | (129,572) | |
Loans receivable, net | 5,747,748 | 5,554,891 | |
Premises and equipment, net | 175,283 | 176,198 | |
Other real estate owned | 17,771 | 20,954 | |
Accrued interest receivable | 48,043 | 45,832 | |
Deferred tax asset | 64,575 | 67,121 | |
Core deposit intangible, net | 11,746 | 12,347 | |
Goodwill | 147,053 | 147,053 | |
Non-marketable equity securities | 23,944 | 25,550 | |
Other assets | 76,183 | 74,035 | |
Total assets | 9,553,908 | 9,450,600 | |
Liabilities | |||
Non-interest bearing deposits | 2,049,476 | 2,041,852 | |
Interest bearing deposits | 5,430,681 | 5,330,427 | |
Securities sold under agreements to repurchase | 497,187 | 473,650 | |
Federal Home Loan Bank advances | 211,627 | 251,749 | |
Other borrowed funds | 8,894 | 4,440 | |
Subordinated debentures | 126,027 | 125,991 | |
Accrued interest payable | 3,467 | 3,584 | |
Other liabilities | 91,309 | 102,038 | |
Total liabilities | 8,418,668 | 8,333,731 | |
Stockholders' Equity | |||
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding | 0 | 0 | |
Common stock, $0.01 par value per share, 117,187,500 shares authorized | 766 | 765 | |
Paid-in capital | 749,381 | 749,107 | |
Retained earnings - substantially restricted | 389,505 | 374,379 | |
Accumulated other comprehensive loss | (4,412) | (7,382) | |
Total stockholders' equity | 1,135,240 | 1,116,869 | |
Total liabilities and stockholders' equity | $ 9,553,908 | $ 9,450,600 | |
Number of common stock shares issued and outstanding | 76,619,952 | 76,525,402 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,017,000 and $13,372,000 at March 31, 2017 and December 31, 2016, respectively. |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 1,000,000 | 1,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 117,187,500 | 117,187,500 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest Income | ||
Investment securities | $ 21,939 | $ 23,883 |
Residential real estate loans | 7,918 | 8,285 |
Commercial loans | 49,970 | 44,503 |
Consumer and other loans | 7,801 | 7,710 |
Total interest income | 87,628 | 84,381 |
Interest Expense | ||
Deposits | 4,440 | 4,795 |
Securities sold under agreements to repurchase | 382 | 318 |
Federal Home Loan Bank advances | 1,510 | 1,652 |
Other borrowed funds | 15 | 18 |
Subordinated debentures | 1,019 | 892 |
Total interest expense | 7,366 | 7,675 |
Net Interest Income | 80,262 | 76,706 |
Provision for loan losses | 1,598 | 568 |
Net interest income after provision for loan losses | 78,664 | 76,138 |
Non-Interest Income | ||
Service charges and other fees | 15,633 | 14,681 |
Miscellaneous loan fees and charges | 980 | 1,021 |
Gain on sale of loans | 6,358 | 5,992 |
(Loss) gain on sale of investments | (100) | 108 |
Other income | 2,818 | 2,450 |
Total non-interest income | 25,689 | 24,252 |
Non-Interest Expense | ||
Compensation and employee benefits | 39,246 | 36,941 |
Occupancy and equipment | 6,646 | 6,676 |
Advertising and promotions | 1,973 | 2,125 |
Data processing | 3,124 | 3,373 |
Other real estate owned | 273 | 390 |
Regulatory assessments and insurance | 1,061 | 1,508 |
Core deposit intangibles amortization | 601 | 797 |
Other expenses | 10,420 | 10,546 |
Total non-interest expense | 63,344 | 62,356 |
Income Before Income Taxes | 41,009 | 38,034 |
Federal and state income tax expense | 9,754 | 9,352 |
Net Income | $ 31,255 | $ 28,682 |
Basic earnings per share | $ 0.41 | $ 0.38 |
Diluted earnings per share | 0.41 | 0.38 |
Dividends declared per share | $ 0.21 | $ 0.20 |
Average outstanding shares - basic | 76,572,116 | 76,126,251 |
Average outstanding shares - diluted | 76,633,283 | 76,173,417 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 31,255 | $ 28,682 |
Other Comprehensive Income, Net of Tax | ||
Unrealized gains on available-for-sale securities | 3,113 | 13,598 |
Reclassification adjustment for losses (gains) included in net income | 139 | (61) |
Net unrealized gains on available-for-sale securities | 3,252 | 13,537 |
Tax effect | (1,260) | (5,244) |
Net of tax amount | 1,992 | 8,293 |
Unrealized gains (losses) on derivatives used for cash flow hedges | 264 | (9,928) |
Reclassification adjustment for losses included in net income | 1,332 | 1,829 |
Net unrealized gains (losses) on derivatives used for cash flow hedges | 1,596 | (8,099) |
Tax effect | (618) | 3,138 |
Net of tax amount | 978 | (4,961) |
Total other comprehensive income, net of tax | 2,970 | 3,332 |
Total Comprehensive Income | $ 34,225 | $ 32,014 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings Substantially Restricted | Accumulated Other Comprehensive Income |
Balance, beginning, shares at Dec. 31, 2015 | 76,086,288 | ||||
Balance, beginning at Dec. 31, 2015 | $ 1,076,650 | $ 761 | $ 736,368 | $ 337,532 | $ 1,989 |
Net income | 28,682 | 28,682 | |||
Comprehensive income, accumulated other comprehensive income | 3,332 | 3,332 | |||
Comprehensive income, total | 32,014 | ||||
Cash dividends declared | (15,281) | (15,281) | |||
Stock issuances under stock incentive plans, shares | 82,100 | ||||
Stock issuances under stock incentive plans, value | 0 | $ 1 | (1) | ||
Stock-based compensation and related taxes | 297 | 297 | |||
Balance, ending, shares at Mar. 31, 2016 | 76,168,388 | ||||
Balance, ending at Mar. 31, 2016 | $ 1,093,680 | $ 762 | 736,664 | 350,933 | 5,321 |
Balance, beginning, shares at Dec. 31, 2016 | 76,525,402 | 76,525,402 | |||
Balance, beginning at Dec. 31, 2016 | $ 1,116,869 | $ 765 | 749,107 | 374,379 | (7,382) |
Net income | 31,255 | 31,255 | |||
Comprehensive income, accumulated other comprehensive income | 2,970 | 2,970 | |||
Comprehensive income, total | 34,225 | ||||
Cash dividends declared | (16,129) | (16,129) | |||
Stock issuances under stock incentive plans, shares | 94,550 | ||||
Stock issuances under stock incentive plans, value | 0 | $ 1 | (1) | ||
Stock-based compensation and related taxes | $ 275 | 275 | |||
Balance, ending, shares at Mar. 31, 2017 | 76,619,952 | 76,619,952 | |||
Balance, ending at Mar. 31, 2017 | $ 1,135,240 | $ 766 | $ 749,381 | $ 389,505 | $ (4,412) |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash dividends declared per share | $ 0.21 | $ 0.20 |
Retained Earnings Substantially Restricted | ||
Cash dividends declared per share | $ 0.21 | $ 0.20 |
Unaudited Condensed Consolidat8
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net income | $ 31,255 | $ 28,682 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,598 | 568 |
Net amortization of investment securities premiums and discounts | 5,830 | 6,594 |
Net accretion of purchase accounting adjustments | (1,394) | (1,774) |
Loans held for sale originated or acquired | (171,110) | (179,471) |
Proceeds from sales of loans held for sale | 231,318 | 202,605 |
Gain on sale of loans | (6,358) | (5,992) |
Loss (gain) on sale of investments | 100 | (108) |
Bank-owned life insurance income, net | (315) | (257) |
Stock-based compensation | 1,722 | 828 |
Net tax benefits from stock-based compensation | (1,117) | (253) |
Depreciation of premises and equipment | 3,720 | 3,730 |
(Gain) loss on sale of other real estate owned and write-downs, net | (928) | 52 |
Amortization of core deposit intangibles | 601 | 797 |
Amortization of investments in variable interest entities | 730 | 255 |
Net increase in accrued interest receivable | (2,211) | (2,839) |
Net decrease (increase) in other assets | 1,093 | (98) |
Net (decrease) increase in accrued interest payable | (117) | 91 |
Net (decrease) increase in other liabilities | (660) | 2,823 |
Net cash provided by operating activities | 93,757 | 56,233 |
Investing Activities | ||
Sales of available-for-sale securities | 0 | 20,539 |
Maturities, prepayments and calls of available-for-sale securities | 110,475 | 156,779 |
Purchases of available-for-sale securities | (1,701) | (163,654) |
Maturities, prepayments and calls of held-to-maturity securities | 7,790 | 11,155 |
Purchases of held-to-maturity securities | 0 | (1,223) |
Principal collected on loans | 420,744 | 347,869 |
Loans originated or acquired | (620,407) | (465,644) |
Net increase of premises and equipment and other real estate owned | (2,805) | (2,726) |
Proceeds from sale of other real estate owned | 4,156 | 4,457 |
Proceeds from sale of non-marketable equity securities | 18,206 | 27,896 |
Purchases of non-marketable equity securities | (16,600) | (24,599) |
Proceeds from bank-owned life insurance | 437 | 294 |
Investments in variable interest entities | (3,865) | 0 |
Net cash used in investing activities | (83,570) | (88,857) |
Financing Activities | ||
Net increase in deposits | 107,888 | 71,218 |
Net increase in securities sold under agreements to repurchase | 23,537 | 22,546 |
Net decrease in short-term Federal Home Loan Bank advances | (40,000) | (80,000) |
Repayments of long-term Federal Home Loan Bank advances | (114) | (128) |
Net increase in other borrowed funds | 4,454 | 31 |
Cash dividends paid | (23,042) | (22,883) |
Tax withholding payments for stock-based compensation | (1,447) | (552) |
Net cash provided by (used in) financing activities | 71,276 | (9,768) |
Net increase (decrease) in cash and cash equivalents | 81,463 | (42,392) |
Cash and cash equivalents at beginning of period | 152,541 | 193,253 |
Cash and cash equivalents at end of period | 234,004 | 150,861 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 7,483 | 7,584 |
Cash paid during the period for income taxes | 70 | 0 |
Supplemental Disclosure of Non-Cash Investing Activities | ||
Sale and refinancing of other real estate owned | 345 | 474 |
Transfer of loans to other real estate owned | 390 | 178 |
Dividends declared but not paid | $ 16,224 | $ 15,281 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies General Glacier Bancorp, Inc. (“Company”) is a Montana corporation headquartered in Kalispell, Montana. The Company provides a full range of banking services to individuals and businesses in Montana, Idaho, Wyoming, Colorado, Utah and Washington through its wholly-owned bank subsidiary, Glacier Bank (“Bank”). The Company offers a wide range of banking products and services, including transaction and savings deposits, real estate, commercial, agriculture and consumer loans and mortgage origination services. The Company serves individuals, small to medium-sized businesses, community organizations and public entities. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of March 31, 2017 , the results of operations and comprehensive income for the three month periods ended March 31, 2017 and 2016 , and changes in stockholders’ equity and cash flows for the three month periods ended March 31, 2017 and 2016 . The condensed consolidated statement of financial condition of the Company as of December 31, 2016 has been derived from the audited consolidated statements of the Company as of that date. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results anticipated for the year ending December 31, 2017 . The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the valuation of investment securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. Principles of Consolidation The consolidated financial statements of the Company include the parent holding company and the Bank. The Bank consists of thirteen bank divisions, a treasury division and an information technology division. The treasury division includes the Bank’s investment portfolio and wholesale borrowings and the information technology division includes the Bank’s internal data processing and information technology expenses. The Bank divisions operate under separate names, management teams and advisory directors. The Company considers the Bank to be its sole operating segment as the Bank 1) engages in similar bank business activity from which it earns revenues and incurs expenses; 2) the operating results of the Bank are regularly reviewed by the Chief Executive Officer (i.e., the chief operating decision maker) who makes decisions about resources to be allocated to the Bank; and 3) financial information is available for the Bank. All significant inter-company transactions have been eliminated in consolidation. The Bank has subsidiary interests in variable interest entities (“VIE”) for which the Bank has both the power to direct the VIE’s significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could potentially be significant to the VIE. These subsidiary interests are included in the Company’s consolidated financial statements. The parent holding company also owns non-bank subsidiaries that have issued trust preferred securities as Tier 1 capital instruments. The trust subsidiaries are not included in the Company’s consolidated financial statements. The Company's investments in the trust subsidiaries are included in non-marketable equity securities on the Company's statement of financial condition. In August 2016, the Company completed its acquisition of Treasure State Bank (“TSB”), a community bank based in Missoula, Montana. The transaction was accounted for using the acquisition method, and its results of operations have been included in the Company’s consolidated financial statements as of the acquisition date. Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR: • reduction of the stated interest rate for the remaining term of the debt; • extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and • reduction of the face amount of the debt as stated in the debt agreements. The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example: • analysis of global, i.e., aggregate debt service for total debt obligations; • assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and • loan structures and related covenants. For additional information relating to loans, see Note 3. Allowance for Loan and Lease Losses Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. Commercial Real Estate . Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and/or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. Commercial . Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity . Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 15 years. Other Consumer . The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; • Changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; • Changes in the nature and volume of the portfolio and in the terms of loans; • Changes in experience, ability, and depth of lending management and other relevant staff; • Changes in the volume and severity of past due and nonaccrual loans; • Changes in the quality of the Company’s loan review system; • Changes in the value of underlying collateral for collateral-dependent loans; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged off as a reduction of the ALLL and recoveries of amounts previously charged off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. Reclassifications Certain reclassifications have been made to the 2016 financial statements to conform to the 2017 presentation. Impact of Recent Authoritative Accounting Guidance The Accounting Standards Codification ™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. The following paragraphs provide descriptions of recently adopted or newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In March 2017, FASB amended FASB ASC Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs. The amendments in the Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date instead of the maturity date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted and if adopted in an interim period, any adjustments should be reflected as of the beginning of the year that includes the interim period. The entity should apply the amendments on a modified retrospective basis through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. The Company has premiums on debt securities that are currently being amortized to the maturity date, primarily in state and local governments category. The Company is currently evaluating the amount of the premium associated with debt securities that will be impacted by the amendments and whether it will early adopt. The accounting policies and procedures will be modified after the Company has fully evaluated the standard, although, significant changes are not expected. In January 2017, FASB amended FASB ASC Topic 350, Simplifying the Test for Goodwill. The amendments in the Update simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more-likely-than-not reduce the fair value of the reporting unit below its carrying value. During the third quarter of 2016, the Company performed its impairment assessment and determined the fair value of the aggregated reporting units exceed the carrying value, such that the Company’s goodwill was not considered impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment, it is unlikely that an impairment amount would need to be calculated and, therefore, the Company does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. For additional information regarding goodwill impairment testing, see Note 4. In June 2016, FASB amended FASB ASC Topic 326, Financial Instruments - Credit Losses. The amendments in this Update replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The ALLL is a material estimate of the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALLL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALLL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company will also develop new procedures for determining an allowance for credit losses relating to held-to-maturity investment securities. In addition, the current accounting policy and procedures for other-than-temporary impairment on available-for-sale investment securities will be replaced with an allowance approach. The Company is expecting to begin developing and implementing processes and procedures during the next two years to ensure it is fully compliant with the amendments at adoption date. For additional information on the allowance for loan losses, see Note 3. In March 2016, FASB amended FASB ASC Topic 718, Compensation - Stock Compensation. The amendments in this Update address certain aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification of awards on the statement of cash flows. The amendments were effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2016 and the Company adopted the amendments as of January 1, 2017. The amendments require entities to recognize all income tax effects related to share-based payment awards in the statement of operations when the awards vest or are settled. Previously, income tax benefits at the settlement of awards were reported as increases (or decreases) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax benefits recognized in earnings during the awards’ vesting periods. Such amounts are to be classified as an operating activity in the statement of cash flows instead of the prior accounting treatment, which required it to be classified as both an operating and a financing activity. The Company has elected to apply this classification change on a retrospective basis. Also in connection with the adoption of the Update, the Company has elected to change its accounting policy to recognize forfeitures as they occur. The requirement to report income tax effects in earnings has been applied to the settlement of awards on a prospective basis and the impact of applying the guidance reduced reported income tax expense for the three month period ended March 31, 2017 by $537,000 , or approximately $0.01 per diluted common share. The implementation of the remaining provisions of the Update did not have a significant impact on the Company’s consolidated financial statements. In February 2016, FASB amended FASB ASC Topic 842, Leases. The amendments in this Update address several aspects of lease accounting with the significant change being the recognition of lease assets and lease liabilities for leases previously classified as operating leases. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company has several lease agreements for which the amendments will require the Company to recognize a lease liability to make lease payments and a right-of-use asset which will represent its right to use the underlying asset for the lease term. The Company is currently reviewing the amendments to ensure it is fully compliant by the adoption date and doesn’t expect to early adopt. As permitted by the amendments, the Company is anticipating electing an accounting policy to not recognize lease assets and lease liabilities for leases with a term of twelve months or less. The impact is not expected to have a material effect on the Company’s financial position or results of operations since the Company does not have a material amount of lease agreements. The Company is currently in the process of fully evaluating the amendments and will subsequently implement new processes which are not expected to significantly change since the Company already has processes for certain lease agreements that recognize the lease assets and lease liabilities. In addition, the Company will change its current accounting policies to comply with the amendments with such changes as mentioned above. In January 2016, FASB amended FASB ASC Topic 825, Financial Instruments. The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2017. Early adoption is only permitted under certain circumstances outlined in the amendments. A reporting entity should apply the amendments by means of a cumulative-effect adjustment to the Company’s statement of financial condition as of the beginning of the reporting year of adoption. The amendments will impact the Company in a few areas including requiring equity investments (with certain exclusions) to be measured at fair value with the changes recognized in net income, requirement to utilize an exit price when measuring the fair value of financial instruments, additional disclosures related to other comprehensive income, evaluation of a valuation allowance on a deferred tax asset related to available-for-sale investment securities in combination with the entity’s other deferred tax assets, and other disclosure changes. The Company is currently evaluating the impact of these amendments, but does not expect them to have a material material effect on the Company’s financial position or results of operations since it does not have a material amount of equity securities or a valuation allowance. However, the amendments will have an impact on certain items that are disclosed at fair value that are not currently utilizing the exit price notion when measuring fair value. As of March 31, 2017 , the Company cannot quantify the change in the fair value of such disclosures since the Company is currently evaluating the full impact of the Update and is in the planning stages of developing appropriate procedures and processes to comply with the disclosure requirements of such amendments. The current accounting policies and procedures will be modified after the Company has fully evaluated the standard to comply with the accounting changes mentioned above. In May 2014, FASB amended FASB ASC Topic 606, Revenue from Contracts with Customers. The amendments clarify the principals for recognizing revenue and develop a common revenue standard among industries. The new guidance establishes the following core principal: recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. Five steps are provided for a company or organization to follow to achieve such core principle. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The entity should apply the amendments using one of two retrospective methods described in the amendment. Accounting Standards Update No. 2015-14, Revenue from Contracts with |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s investment securities: March 31, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 37,598 26 (208 ) 37,416 U.S. government sponsored enterprises 19,551 31 (46 ) 19,536 State and local governments 750,443 21,463 (9,739 ) 762,167 Corporate bonds 443,012 1,274 (585 ) 443,701 Residential mortgage-backed securities 954,072 2,959 (7,940 ) 949,091 Commercial mortgage-backed securities 103,918 26 (1,334 ) 102,610 Total available-for-sale 2,308,594 25,779 (19,852 ) 2,314,521 Held-to-maturity State and local governments 667,388 21,125 (8,118 ) 680,395 Total held-to-maturity 667,388 21,125 (8,118 ) 680,395 Total investment securities $ 2,975,982 46,904 (27,970 ) 2,994,916 December 31, 2016 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 39,554 15 (162 ) 39,407 U.S. government sponsored enterprises 19,557 55 (42 ) 19,570 State and local governments 775,395 20,941 (9,963 ) 786,373 Corporate bonds 471,569 1,175 (793 ) 471,951 Residential mortgage-backed securities 1,014,518 2,744 (9,747 ) 1,007,515 Commercial mortgage-backed securities 102,209 30 (1,578 ) 100,661 Total available-for-sale 2,422,802 24,960 (22,285 ) 2,425,477 Held-to-maturity State and local governments 675,674 21,400 (7,985 ) 689,089 Total held-to-maturity 675,674 21,400 (7,985 ) 689,089 Total investment securities $ 3,098,476 46,360 (30,270 ) 3,114,566 The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at March 31, 2017 . Actual maturities may differ from expected or contractual maturities since issuers have the right to prepay obligations with or without prepayment penalties. March 31, 2017 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 146,875 147,136 — — Due after one year through five years 393,309 394,219 593 605 Due after five years through ten years 204,217 207,961 57,405 58,611 Due after ten years 506,203 513,504 609,390 621,179 1,250,604 1,262,820 667,388 680,395 Mortgage-backed securities 1 1,057,990 1,051,701 — — Total $ 2,308,594 2,314,521 667,388 680,395 __________ 1 Mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Proceeds from sales and calls of investment securities and the associated gains and losses that have been included in earnings are listed below: Three Months ended (Dollars in thousands) March 31, March 31, Available-for-sale Proceeds from sales and calls of investment securities $ 8,491 58,623 Gross realized gains 1 10 800 Gross realized losses 1 (149 ) (739 ) Held-to-maturity Proceeds from calls of investment securities 7,790 11,155 Gross realized gains 1 81 47 Gross realized losses 1 (42 ) — __________ 1 The gain or loss on the sale or call of each investment security is determined by the specific identification method. Investment securities with an unrealized loss position are summarized as follows: March 31, 2017 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale U.S. government and federal agency $ 4,527 (42 ) 22,972 (166 ) 27,499 (208 ) U.S. government sponsored enterprises 6,048 (46 ) — — 6,048 (46 ) State and local governments 208,261 (4,716 ) 78,082 (5,023 ) 286,343 (9,739 ) Corporate bonds 142,028 (575 ) 6,128 (10 ) 148,156 (585 ) Residential mortgage-backed securities 636,458 (7,670 ) 27,561 (270 ) 664,019 (7,940 ) Commercial mortgage-backed securities 100,570 (1,334 ) — — 100,570 (1,334 ) Total available-for-sale $ 1,097,892 (14,383 ) 134,743 (5,469 ) 1,232,635 (19,852 ) Held-to-maturity State and local governments $ 105,671 (1,644 ) 85,782 (6,474 ) 191,453 (8,118 ) Total held-to-maturity $ 105,671 (1,644 ) 85,782 (6,474 ) 191,453 (8,118 ) December 31, 2016 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale U.S. government and federal agency $ 6,718 (24 ) 26,239 (138 ) 32,957 (162 ) U.S. government sponsored enterprises 6,049 (42 ) — — 6,049 (42 ) State and local governments 222,700 (4,949 ) 81,783 (5,014 ) 304,483 (9,963 ) Corporate bonds 174,821 (774 ) 6,141 (19 ) 180,962 (793 ) Residential mortgage-backed securities 688,811 (9,079 ) 29,957 (668 ) 718,768 (9,747 ) Commercial mortgage-backed securities 89,298 (1,578 ) — — 89,298 (1,578 ) Total available-for-sale $ 1,188,397 (16,446 ) 144,120 (5,839 ) 1,332,517 (22,285 ) Held-to-maturity State and local governments $ 117,912 (1,712 ) 86,601 (6,273 ) 204,513 (7,985 ) Total held-to-maturity $ 117,912 (1,712 ) 86,601 (6,273 ) 204,513 (7,985 ) Based on an analysis of its investment securities with unrealized losses as of March 31, 2017 and December 31, 2016 , the Company determined that none of such securities had other-than-temporary impairment and the unrealized losses were primarily the result of interest rate changes and market spreads subsequent to acquisition. The fair value of the investment securities is expected to recover as payments are received and the securities approach maturity. At March 31, 2017 , management determined that it did not intend to sell investment securities with unrealized losses, and there was no expected requirement to sell any of its investment securities with unrealized losses before recovery of their amortized cost. |
Loans Receivable, Net
Loans Receivable, Net | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net The Company’s loan portfolio is comprised of three segments: residential real estate, commercial, and consumer and other loans. The loan segments are further disaggregated into the following classes: residential real estate, commercial real estate, other commercial, home equity and other consumer loans. The following table presents loans receivable for each portfolio class of loans: At or for the Three Months ended At or for the Year ended (Dollars in thousands) March 31, December 31, Residential real estate loans $ 685,458 674,347 Commercial loans Real estate 3,056,372 2,990,141 Other commercial 1,462,110 1,342,250 Total 4,518,482 4,332,391 Consumer and other loans Home equity 433,554 434,774 Other consumer 239,480 242,951 Total 673,034 677,725 Loans receivable 1 5,876,974 5,684,463 Allowance for loan and lease losses (129,226 ) (129,572 ) Loans receivable, net $ 5,747,748 5,554,891 Weighted-average interest rate on loans (tax-equivalent) 4.73 % 4.77 % __________ 1 Includes net deferred fees, costs, premiums and discounts of $12,017,000 and $13,372,000 at March 31, 2017 and December 31, 2016 , respectively. The following tables summarize the activity in the ALLL by portfolio segment: Three Months ended March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 129,572 12,436 65,773 37,823 7,572 5,968 Provision for loan losses 1,598 (926 ) (370 ) 1,621 129 1,144 Charge-offs (4,229 ) (22 ) (888 ) (471 ) (96 ) (2,752 ) Recoveries 2,285 47 238 184 74 1,742 Balance at end of period $ 129,226 11,535 64,753 39,157 7,679 6,102 Three Months ended March 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 129,697 14,427 67,877 32,525 8,998 5,870 Provision for loan losses 568 (1,149 ) (873 ) 3,720 (793 ) (337 ) Charge-offs (1,163 ) (100 ) (253 ) (324 ) (229 ) (257 ) Recoveries 969 18 295 133 173 350 Balance at end of period $ 130,071 13,196 67,046 36,054 8,149 5,626 The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment: March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Allowance for loan and lease losses Individually evaluated for impairment $ 6,787 245 545 5,047 551 399 Collectively evaluated for impairment 122,439 11,290 64,208 34,110 7,128 5,703 Total allowance for loan and lease losses $ 129,226 11,535 64,753 39,157 7,679 6,102 Loans receivable Individually evaluated for impairment $ 135,086 13,048 85,452 27,050 6,449 3,087 Collectively evaluated for impairment 5,741,888 672,410 2,970,920 1,435,060 427,105 236,393 Total loans receivable $ 5,876,974 685,458 3,056,372 1,462,110 433,554 239,480 December 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Allowance for loan and lease losses Individually evaluated for impairment $ 6,881 856 922 4,419 296 388 Collectively evaluated for impairment 122,691 11,580 64,851 33,404 7,276 5,580 Total allowance for loan and lease losses $ 129,572 12,436 65,773 37,823 7,572 5,968 Loans receivable Individually evaluated for impairment $ 130,263 11,612 85,634 23,950 5,934 3,133 Collectively evaluated for impairment 5,554,200 662,735 2,904,507 1,318,300 428,840 239,818 Total loans receivable $ 5,684,463 674,347 2,990,141 1,342,250 434,774 242,951 Substantially all of the Company’s loans receivable are with customers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ ability to honor their obligations is dependent upon the economic performance in the Company’s market areas. The following tables disclose information related to impaired loans by portfolio segment: At or for the Three Months ended March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Loans with a specific valuation allowance Recorded balance $ 19,877 2,891 5,279 10,053 546 1,108 Unpaid principal balance 20,139 2,955 5,285 10,190 559 1,150 Specific valuation allowance 6,787 245 545 5,047 551 399 Average balance 21,003 2,825 7,204 9,434 440 1,100 Loans without a specific valuation allowance Recorded balance $ 115,209 10,157 80,173 16,997 5,903 1,979 Unpaid principal balance 138,436 11,224 98,480 19,350 7,323 2,059 Average balance 111,672 9,505 78,339 16,067 5,751 2,010 Total Recorded balance $ 135,086 13,048 85,452 27,050 6,449 3,087 Unpaid principal balance 158,575 14,179 103,765 29,540 7,882 3,209 Specific valuation allowance 6,787 245 545 5,047 551 399 Average balance 132,675 12,330 85,543 25,501 6,191 3,110 At or for the Year ended December 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Loans with a specific valuation allowance Recorded balance $ 22,128 2,759 9,129 8,814 334 1,092 Unpaid principal balance 22,374 2,825 9,130 8,929 345 1,145 Specific valuation allowance 6,881 856 922 4,419 296 388 Average balance 26,745 4,942 10,441 9,840 257 1,265 Loans without a specific valuation allowance Recorded balance $ 108,135 8,853 76,505 15,136 5,600 2,041 Unpaid principal balance 131,059 9,925 94,180 17,724 7,120 2,110 Average balance 108,827 12,858 72,323 15,537 6,004 2,105 Total Recorded balance $ 130,263 11,612 85,634 23,950 5,934 3,133 Unpaid principal balance 153,433 12,750 103,310 26,653 7,465 3,255 Specific valuation allowance 6,881 856 922 4,419 296 388 Average balance 135,572 17,800 82,764 25,377 6,261 3,370 Interest income recognized on impaired loans for the three months ended March 31, 2017 and 2016 was not significant. The following tables present an aging analysis of the recorded investment in loans by portfolio segment: March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 27,122 5,255 11,294 7,657 1,555 1,361 Accruing loans 60-89 days past due 12,038 431 8,100 2,259 641 607 Accruing loans 90 days or more past due 3,028 — 203 2,441 336 48 Non-accrual loans 50,674 5,949 30,277 8,301 5,619 528 Total past due and non-accrual loans 92,862 11,635 49,874 20,658 8,151 2,544 Current loans receivable 5,784,112 673,823 3,006,498 1,441,452 425,403 236,936 Total loans receivable $ 5,876,974 685,458 3,056,372 1,462,110 433,554 239,480 December 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 20,599 6,338 5,079 5,388 2,439 1,355 Accruing loans 60-89 days past due 5,018 1,398 754 1,352 844 670 Accruing loans 90 days or more past due 1,099 266 145 283 191 214 Non-accrual loans 49,332 4,528 30,216 8,817 5,240 531 Total past due and non-accrual loans 76,048 12,530 36,194 15,840 8,714 2,770 Current loans receivable 5,608,415 661,817 2,953,947 1,326,410 426,060 240,181 Total loans receivable $ 5,684,463 674,347 2,990,141 1,342,250 434,774 242,951 The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented: Three Months ended March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 10 2 2 4 1 1 Pre-modification recorded balance $ 9,555 280 582 8,530 153 10 Post-modification recorded balance $ 9,552 280 582 8,530 153 7 TDRs that subsequently defaulted Number of loans 2 — — 1 — 1 Recorded balance $ 25 — — 18 — 7 Three Months ended March 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 3 — 1 1 1 — Pre-modification recorded balance $ 8,959 — 56 8,755 148 — Post-modification recorded balance $ 8,959 — 56 8,755 148 — TDRs that subsequently defaulted Number of loans — — — — — — Recorded balance $ — — — — — — The modifications for the TDRs that occurred during the three months ended March 31, 2017 and 2016 included one or a combination of the following: an extension of the maturity date, a reduction of the interest rate or a reduction in the principal amount. In addition to the TDRs that occurred during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $514,000 and $210,000 for the three months ended March 31, 2017 and 2016 , respectively, for which other real estate owned (“OREO”) was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate and residential real estate for the three months ended March 31, 2017 and 2016 , respectively. At March 31, 2017 and December 31, 2016 , the Company had $2,532,000 and $1,770,000 , respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At March 31, 2017 and December 31, 2016 , the Company had $2,354,000 and $2,699,000 , respectively, of OREO secured by residential real estate properties. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill There were no changes in the carrying value of goodwill during the three months ended March 31, 2017 and 2016 . The gross carrying value of goodwill and the accumulated impairment charge consists of the following: (Dollars in thousands) March 31, December 31, Gross carrying value $ 187,212 187,212 Accumulated impairment charge 1 (40,159 ) (40,159 ) Net carrying value $ 147,053 147,053 __________ 1 A goodwill impairment charge was recognized in 2011 and was due to high levels of volatility and dislocation in bank stock prices nationwide. The Company performed its annual goodwill impairment test during the third quarter of 2016 and determined the fair value of the aggregated reporting units exceeded the carrying value, such that the Company’s goodwill was not considered impaired. Changes in the economic environment, operations of the aggregated reporting units, or other factors could result in the decline in the fair value of the aggregated reporting units which could result in a goodwill impairment in the future. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities | Variable Interest Entities A VIE is a partnership, limited liability company, trust or other legal entity that meets one of the following criteria: 1) the entity’s equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties; 2) the holders of the equity investment at risk, as a group, lack the characteristics of a controlling financial interest; and 3) the voting rights of some holders of the equity investment at risk are disproportionate to their obligation to absorb losses or receive returns, and substantially all of the activities are conducted on behalf of the holder of equity investment at risk with disproportionately few voting rights. A VIE must be consolidated by the Company if it is deemed to be the primary beneficiary, which is the party involved with the VIE that has both: 1) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and 2) the obligation to absorb the losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s VIEs are regularly monitored to determine if any reconsideration events have occurred that could cause the primary beneficiary status to change. A previously unconsolidated VIE is consolidated when the Company becomes the primary beneficiary. A previously consolidated VIE is deconsolidated when the Company ceases to be the primary beneficiary or the entity is no longer a VIE. Consolidated Variable Interest Entities The Company has equity investments in Certified Development Entities (“CDE”) which have received allocations of New Markets Tax Credits (“NMTC”). The NMTC program provides federal tax incentives to investors to make investments in distressed communities and promotes economic improvements through the development of successful businesses in these communities. The NMTC is available to investors over a seven -year period and is subject to recapture if certain events occur during such period. The maximum exposure to loss in the CDEs is the amount of equity invested and credit extended by the Company. However, the Company has credit protection in the form of indemnification agreements, guarantees, and collateral arrangements. The Company has evaluated the variable interests held by the Company in each CDE (NMTC) investment and determined the Company does not individually meet the characteristics of a primary beneficiary; however, the related-party group does meet the criteria as a group and substantially all of the activities of the CDEs either involve or are conducted on behalf of the Company. As a result, the Company is the primary beneficiary of the CDEs and their assets, liabilities, and results of operations are included in the Company’s consolidated financial statements. The primary activities of the CDEs are recognized in commercial loans interest income and other borrowed funds interest expense on the Company’s statements of operations and the federal income tax credit allocations from the investments are recognized in the Company’s statements of operations as a component of income tax expense. Such related cash flows are recognized in loans originated, principal collected on loans and change in other borrowed funds. The following table summarizes the carrying amounts of the consolidated VIEs’ assets and liabilities included in the Company’s statements of financial condition and are adjusted for intercompany eliminations. All assets presented can be used only to settle obligations of the consolidated VIEs and all liabilities presented consist of liabilities for which creditors and other beneficial interest holders therein have no recourse to the general credit of the Company. (Dollars in thousands) March 31, December 31, Assets Loans receivable $ 43,143 36,950 Accrued interest receivable 125 120 Other assets 2,095 1,984 Total assets $ 45,363 39,054 Liabilities Other borrowed funds $ 8,577 4,105 Accrued interest payable 6 2 Other liabilities 22 27 Total liabilities $ 8,605 4,134 Unconsolidated Variable Interest Entities The Company has equity investments in Low-Income Housing Tax Credit (“LIHTC”) partnerships with carrying values of $8,616,000 and $7,282,000 as of March 31, 2017 and December 31, 2016 , respectively. The LIHTCs are indirect federal subsidies to finance low-income housing and are used in connection with both newly constructed and renovated residential rental buildings. Once a project is placed in service, it is generally eligible for the tax credit for ten consecutive years. To continue generating the tax credit and to avoid tax credit recapture, a LIHTC building must satisfy specific low-income housing compliance rules for a full fifteen -year period. The maximum exposure to loss in the VIEs is the amount of equity invested and credit extended by the Company. However, the Company has credit protection in the form of indemnification agreements, guarantees, and collateral arrangements. The Company has evaluated the variable interests held by the Company in each LIHTC investment and determined that the Company does not have controlling financial interests in such investments, and is not the primary beneficiary. The Company reports the investments in the unconsolidated LIHTCs as other assets on the Company’s statements of financial condition. Total unfunded contingent commitments related to the Company’s LIHTC investments totaled $18,095,000 at March 31, 2017 , and the Company expects to fulfill the majority of these commitments during 2017 . There were no impairment losses on the Company’s LIHTC investments during the three months ended March 31, 2017 . The Company has elected to use the proportional amortization method for the amortization of all eligible LIHTC investments and amortization expense is recognized as a component of income tax expense. The following table summarizes the amortization expense and the amount of tax credits and other tax benefits recognized for qualified affordable housing project investments during the periods presented. Three Months ended (Dollars in thousands) March 31, March 31, Amortization expense $ 503 255 Tax credits and other tax benefits recognized 776 392 The Company also owns the following trust subsidiaries, each of which issued trust preferred securities as Tier 1 capital instruments: Glacier Capital Trust II, Glacier Capital Trust III, Glacier Capital Trust IV, Citizens (ID) Statutory Trust I, Bank of the San Juans Bancorporation Trust I, First Company Statutory Trust 2001, and First Company Statutory Trust 2003. The trust subsidiaries have no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the securities held by third parties. The trust subsidiaries are not included in the Company’s consolidated financial statements because the sole asset of each trust subsidiary is a receivable from the Company, even though the Company owns all of the voting equity shares of the trust subsidiaries, has fully guaranteed the obligations of the trust subsidiaries and may have the right to redeem the third party securities under certain circumstances. The Company reports the trust preferred securities issued to the trust subsidiaries as subordinated debentures on the Company’s statements of financial condition. |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase The Company’s securities sold under agreements to repurchase (“repurchase agreements”) totaled $497,187,000 and $473,650,000 at March 31, 2017 and December 31, 2016 , respectively, and are secured by investment securities with carrying values of $478,899,000 and $472,239,000 , respectively. Securities are pledged to customers at the time of the transaction in an amount at least equal to the outstanding balance and are held in custody accounts by third parties. The fair value of collateral is continually monitored and additional collateral is provided as deemed appropriate. The following tables summarize the carrying value of the Company’s repurchase agreements by remaining contractual maturity and category of collateral: March 31, 2017 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total Residential mortgage-backed securities $ 484,126 — 484,126 Commercial mortgage-backed securities 13,061 — 13,061 Total $ 497,187 — 497,187 December 31, 2016 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total Residential mortgage-backed securities $ 471,706 643 472,349 Commercial mortgage-backed securities 1,301 — 1,301 Total $ 473,007 643 473,650 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities As of March 31, 2017 , the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows: (Dollars in thousands) Forecasted Notional Amount Variable Interest Rate 1 Fixed Interest Rate 1 Payment Term Interest rate swap $ 160,000 3 month LIBOR 3.378 % Oct. 21, 2014 - Oct. 21, 2021 Interest rate swap 100,000 3 month LIBOR 2.498 % Nov. 30, 2015 - Nov. 30, 2022 __________ 1 The Company pays the fixed interest rate and the counterparty pays the Company the variable interest rate. The hedging strategy converts the LIBOR-based variable interest rate on borrowings to a fixed interest rate, thereby protecting the Company from interest rate variability. The interest rate swaps with the $160,000,000 and $100,000,000 notional amounts began their payment terms in October 2014 and November 2015, respectively. The Company designated wholesale deposits as the cash flow hedge and these deposits were determined to be fully effective during the current and prior year. As such, no amount of ineffectiveness has been included in the Company’s statements of operations for the three months ended March 31, 2017 and 2016 . Therefore, the aggregate fair value of the interest rate swaps was recorded in other liabilities with changes recorded in other comprehensive income (“OCI”). The Company expects the hedges to remain highly effective during the remaining terms of the interest rate swaps. Interest expense recorded on the interest rate swaps totaled $1,976,000 and $1,998,000 for the three months ended March 31, 2017 and 2016 , respectively, and is reported as a component of interest expense on deposits. Unless the interest rate swaps are terminated during the next year, the Company expects $5,183,000 of the unrealized loss reported in other comprehensive income at March 31, 2017 to be reclassified to interest expense during the next twelve months. The following table presents the pre-tax gains or losses recorded in accumulated other comprehensive income and the Company’s statements of operations relating to the interest rate swap derivative financial instruments: Three Months ended (Dollars in thousands) March 31, March 31, Interest rate swaps Amount of gain (loss) recognized in OCI (effective portion) $ 264 (9,928 ) Amount of loss reclassified from OCI to interest expense (1,332 ) (1,829 ) Amount of loss recognized in other non-interest expense (ineffective portion) — — The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities. There were no interest rate swap derivative assets at the dates presented. March 31, 2017 December 31, 2016 (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Financial Position Net Amounts of Liabilities Presented in the Statements of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Financial Position Net Amounts of Liabilities Presented in the Statements of Financial Position Interest rate swaps $ 13,129 — 13,129 14,725 — 14,725 Pursuant to the interest rate swap agreements, the Company pledged collateral to the counterparty in the form of investment securities totaling $27,931,000 at March 31, 2017 . There was $0 collateral pledged from the counterparty to the Company as of March 31, 2017 . There is the possibility that the Company may need to pledge additional collateral in the future if there were declines in the fair value of the interest rate swap derivative financial instruments versus the collateral pledged. |
Other Expenses
Other Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Other Expenses [Abstract] | |
Other Expenses | Other Expenses Other expenses consists of the following: Three Months ended (Dollars in thousands) March 31, March 31, Debit card expenses $ 1,718 1,849 Consulting and outside services 1,420 1,014 Telephone 977 960 Loan expenses 891 783 Employee expenses 789 579 Postage 725 880 Printing and supplies 640 943 Accounting and audit fees 512 391 VIE amortization and other expenses 464 639 Checking and operating expenses 365 694 Business development 340 342 Legal fees 340 237 ATM expenses 312 255 Other 927 980 Total other expenses $ 10,420 10,546 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table illustrates the activity within accumulated other comprehensive income (loss) by component, net of tax: (Dollars in thousands) Gains on Available-For-Sale Securities Losses on Derivatives Used for Cash Flow Hedges Total Balance at December 31, 2015 $ 13,935 (11,946 ) 1,989 Other comprehensive income (loss) before reclassifications 8,331 (6,082 ) 2,249 Amounts reclassified from accumulated other comprehensive (loss) income (38 ) 1,121 1,083 Net current period other comprehensive income (loss) 8,293 (4,961 ) 3,332 Balance at March 31, 2016 $ 22,228 (16,907 ) 5,321 Balance at December 31, 2016 $ 1,639 (9,021 ) (7,382 ) Other comprehensive income before reclassifications 1,907 162 2,069 Amounts reclassified from accumulated other comprehensive income 85 816 901 Net current period other comprehensive income 1,992 978 2,970 Balance at March 31, 2017 $ 3,631 (8,043 ) (4,412 ) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period presented. Diluted earnings per share is computed by including the net increase in shares as if dilutive outstanding restricted stock awards were vested, using the treasury stock method. Basic and diluted earnings per share has been computed based on the following: Three Months ended (Dollars in thousands, except per share data) March 31, March 31, Net income available to common stockholders, basic and diluted $ 31,255 28,682 Average outstanding shares - basic 76,572,116 76,126,251 Add: dilutive restricted stock awards 61,167 47,166 Average outstanding shares - diluted 76,633,283 76,173,417 Basic earnings per share $ 0.41 0.38 Diluted earnings per share $ 0.41 0.38 There were 39,348 and 0 stock awards excluded from the diluted average outstanding share calculation for the three months ended March 31, 2017 and 2016 , respectively. Anti-dilution occurs when the unrecognized compensation cost per share of a restricted stock award exceeds the market price of the Company’s stock. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Transfers in and out of Level 1 (quoted prices in active markets), Level 2 (significant other observable inputs) and Level 3 (significant unobservable inputs) are recognized on the actual transfer date. There were no transfers between fair value hierarchy levels during the three month periods ended March 31, 2017 and 2016 . Recurring Measurements The following is a description of the inputs and valuation methodologies used for assets and liabilities measured at fair value on a recurring basis, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended March 31, 2017 . Investment securities, available-for-sale: fair value for available-for-sale securities is estimated by obtaining quoted market prices for identical assets, where available. If such prices are not available, fair value is based on independent asset pricing services and models, the inputs of which are market-based or independently sourced market parameters, including but not limited to, yield curves, interest rates, volatilities, market spreads, prepayments, defaults, recoveries, cumulative loss projections, and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. Where Level 1 or Level 2 inputs are not available, such securities are classified as Level 3 within the hierarchy. Fair value determinations of available-for-sale securities are the responsibility of the Company’s corporate accounting and treasury departments. The Company obtains fair value estimates from independent third party vendors on a monthly basis. The vendors’ pricing system methodologies, procedures and system controls are reviewed to ensure they are appropriately designed and operating effectively. The Company reviews the vendors’ inputs for fair value estimates and the recommended assignments of levels within the fair value hierarchy. The review includes the extent to which markets for investment securities are determined to have limited or no activity, or are judged to be active markets. The Company reviews the extent to which observable and unobservable inputs are used as well as the appropriateness of the underlying assumptions about risk that a market participant would use in active markets, with adjustments for limited or inactive markets. In considering the inputs to the fair value estimates, the Company places less reliance on quotes that are judged to not reflect orderly transactions, or are non-binding indications. In assessing credit risk, the Company reviews payment performance, collateral adequacy, third party research and analyses, credit rating histories and issuers’ financial statements. For those markets determined to be inactive or limited, the valuation techniques used are models for which management has verified that discount rates are appropriately adjusted to reflect illiquidity and credit risk. Interest rate swap derivative financial instruments: fair values for interest rate swap derivative financial instruments are based upon the estimated amounts to settle the contracts considering current interest rates and are calculated using discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The inputs used to determine fair value include the 3 month LIBOR forward curve to estimate variable rate cash inflows and the Fed Funds Effective Swap Rate to estimate the discount rate. The estimated variable rate cash inflows are compared to the fixed rate outflows and such difference is discounted to a present value to estimate the fair value of the interest rate swaps. The Company also obtains and compares the reasonableness of the pricing from an independent third party. The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities, available-for-sale U.S. government and federal agency $ 37,416 — 37,416 — U.S. government sponsored enterprises 19,536 — 19,536 — State and local governments 762,167 — 762,167 — Corporate bonds 443,701 — 443,701 — Residential mortgage-backed securities 949,091 — 949,091 — Commercial mortgage-backed securities 102,610 — 102,610 — Total assets measured at fair value on a recurring basis $ 2,314,521 — 2,314,521 — Interest rate swaps $ 13,129 — 13,129 — Total liabilities measured at fair value on a recurring basis $ 13,129 — 13,129 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities, available-for-sale U.S. government and federal agency $ 39,407 — 39,407 — U.S. government sponsored enterprises 19,570 — 19,570 — State and local governments 786,373 — 786,373 — Corporate bonds 471,951 — 471,951 — Residential mortgage-backed securities 1,007,515 — 1,007,515 — Commercial mortgage-backed securities 100,661 — 100,661 — Total assets measured at fair value on a recurring basis $ 2,425,477 — 2,425,477 — Interest rate swaps $ 14,725 — 14,725 — Total liabilities measured at fair value on a recurring basis $ 14,725 — 14,725 — Non-recurring Measurements The following is a description of the inputs and valuation methodologies used for assets recorded at fair value on a non-recurring basis, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended March 31, 2017 . Other real estate owned: OREO is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell. Estimated fair value of OREO is based on appraisals or evaluations (new or updated). OREO is classified within Level 3 of the fair value hierarchy. Collateral-dependent impaired loans, net of ALLL: loans included in the Company’s loan portfolio for which it is probable that the Company will not collect all principal and interest due according to contractual terms are considered impaired. Estimated fair value of collateral-dependent impaired loans is based on the fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company’s credit departments review appraisals for OREO and collateral-dependent loans, giving consideration to the highest and best use of the collateral. The appraisal or evaluation (new or updated) is considered the starting point for determining fair value. The valuation techniques used in preparing appraisals or evaluations (new or updated) include the cost approach, income approach, sales comparison approach, or a combination of the preceding valuation techniques. The key inputs used to determine the fair value of the collateral-dependent loans and OREO include selling costs, discounted cash flow rate or capitalization rate, and adjustment to comparables. Valuations and significant inputs obtained by independent sources are reviewed by the Company for accuracy and reasonableness. The Company also considers other factors and events in the environment that may affect the fair value. The appraisals or evaluations (new or updated) are reviewed at least quarterly and more frequently based on current market conditions, including deterioration in a borrower’s financial condition and when property values may be subject to significant volatility. After review and acceptance of the collateral appraisal or evaluation (new or updated), adjustments to the impaired loan or OREO may occur. The Company generally obtains appraisals or evaluations (new or updated) annually. The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned $ 147 — — 147 Collateral-dependent impaired loans, net of ALLL 7,601 — — 7,601 Total assets measured at fair value on a non-recurring basis $ 7,748 — — 7,748 Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned $ 7,839 — — 7,839 Collateral-dependent impaired loans, net of ALLL 5,664 — — 5,664 Total assets measured at fair value on a non-recurring basis $ 13,503 — — 13,503 Non-recurring Measurements Using Significant Unobservable Inputs (Level 3) The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Fair Value March 31, 2017 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 147 Sales comparison approach Selling costs 8.0% - 8.0% (8.0%) Collateral-dependent impaired loans, net of ALLL $ 5 Cost approach Selling costs 20.0% - 20.0% (20.0%) 2,994 Sales comparison approach Selling costs 8.0% - 10.0% (9.7%) 4,602 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 7,601 Fair Value December 31, 2016 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 7,767 Sales comparison approach Selling costs 6.0% - 10.0% (6.9%) Adjustment to comparables 0.0% - 10.0% (0.1%) 72 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 10.0% - 10.0% (10.0%) $ 7,839 Collateral-dependent impaired loans, net of ALLL $ 110 Cost approach Selling costs 6.0% - 20.0% (6.6%) 1,982 Sales comparison approach Selling costs 8.0% - 10.0% (9.6%) 3,572 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 5,664 __________ 1 The range for selling costs and adjustments to comparables indicate reductions to the fair value. Fair Value of Financial Instruments The following is a description of the methods used to estimate the fair value of all other assets and liabilities recognized at amounts other than fair value. Cash and cash equivalents: fair value is estimated at book value. Investment securities, held-to-maturity: fair value for held-to-maturity securities is estimated in the same manner as available-for-sale securities, which is described above. Loans held for sale: fair value is estimated at book value. Loans receivable, net of ALLL: fair value is estimated by discounting the future cash flows using the rates at which similar notes would be written for the same remaining maturities. The market rates used are based on current rates the Company would impose for similar loans and reflect a market participant assumption about risks associated with non-performance, illiquidity, and the structure and term of the loans along with local economic and market conditions. Estimated fair value of impaired loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All impaired loans are classified as Level 3 and all other loans are classified as Level 2 within the valuation hierarchy. Accrued interest receivable: fair value is estimated at book value. Non-marketable equity securities: fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities. Deposits: fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from an independent third party and reviewed by the Company. The rates were the average of current rates offered by the Company’s local competitors. The estimated fair value of demand, NOW, savings, and money market deposits is the book value since rates are regularly adjusted to market rates and transactions are executed at book value daily. Therefore, such deposits are classified in Level 1 of the valuation hierarchy. Certificate accounts and wholesale deposits are classified as Level 2 within the hierarchy. Federal Home Loan Bank advances: fair value of non-callable Federal Home Loan Bank (“FHLB”) advances is estimated by discounting the future cash flows using rates of similar advances with similar maturities. Such rates were obtained from current rates offered by FHLB. The estimated fair value of callable FHLB advances was obtained from FHLB and the model was reviewed by the Company. Securities sold under agreements to repurchase and other borrowed funds: fair value of term repurchase agreements and other term borrowings is estimated based on current repurchase rates and borrowing rates currently available to the Company for repurchases and borrowings with similar terms and maturities. The estimated fair value for overnight repurchase agreements and other borrowings is book value. Subordinated debentures: fair value of the subordinated debt is estimated by discounting the estimated future cash flows using current estimated market rates. The market rates used were averages of currently traded trust preferred securities with similar characteristics to the Company’s issuances and obtained from an independent third party. Accrued interest payable: fair value is estimated at book value. Off-balance sheet financial instruments: commitments to extend credit and letters of credit represent the principal categories of off-balance sheet financial instruments. Rates for these commitments are set at time of loan closing, such that no adjustment is necessary to reflect these commitments at market value. The Company has an insignificant amount of off-balance sheet financial instruments. The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 234,004 234,004 — — Investment securities, available-for-sale 2,314,521 — 2,314,521 — Investment securities, held-to-maturity 667,388 — 680,395 — Loans held for sale 25,649 25,649 — — Loans receivable, net of ALLL 5,747,748 — 5,558,406 128,299 Accrued interest receivable 48,043 48,043 — — Non-marketable equity securities 23,944 — 23,944 — Total financial assets $ 9,061,297 307,696 8,577,266 128,299 Financial liabilities Deposits $ 7,480,157 6,197,583 1,284,399 — FHLB advances 211,627 — 217,435 — Repurchase agreements and other borrowed funds 506,081 — 506,081 — Subordinated debentures 126,027 — 89,136 — Accrued interest payable 3,467 3,467 — — Interest rate swaps 13,129 — 13,129 — Total financial liabilities $ 8,340,488 6,201,050 2,110,180 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 2016 Quoted Prices Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 152,541 152,541 — — Investment securities, available-for-sale 2,425,477 — 2,425,477 — Investment securities, held-to-maturity 675,674 — 689,089 — Loans held for sale 72,927 72,927 — — Loans receivable, net of ALLL 5,554,891 — 5,380,286 123,382 Accrued interest receivable 45,832 45,832 — — Non-marketable equity securities 25,550 — 25,550 — Total financial assets $ 8,952,892 271,300 8,520,402 123,382 Financial liabilities Deposits $ 7,372,279 6,090,879 1,283,532 — FHLB advances 251,749 — 257,643 — Repurchase agreements and other borrowed funds 478,090 — 478,090 — Subordinated debentures 125,991 — 85,557 — Accrued interest payable 3,584 3,584 — — Interest rate swaps 14,725 — 14,725 — Total financial liabilities $ 8,246,418 6,094,463 2,119,547 — |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 30, 2017 , the Company acquired 100 percent of the outstanding common stock of TFB Bancorp, Inc. and its wholly-owned subsidiary, The Foothills Bank, a community bank based in Yuma, Arizona (collectively, “Foothills”). Foothills provides banking services to individuals and businesses in Arizona, with banking offices located in Yuma, Prescott and Casa Grande, Arizona. The acquisition expands the Company’s market into the state of Arizona and further diversifies the Company’s loan, customer and deposit base. Foothills merged into Glacier Bank and will operate as a separate Bank division under its existing name and management team. As of March 31, 2017 , Foothills had total assets of $359,941,000 , gross loans of $305,239,000 and total deposits of $292,320,000 . The calculation of fair value of the consideration transferred, the total identifiable net assets acquired and resulting goodwill has not yet been determined. |
Nature of Operations and Summ21
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Glacier Bancorp, Inc. (“Company”) is a Montana corporation headquartered in Kalispell, Montana. The Company provides a full range of banking services to individuals and businesses in Montana, Idaho, Wyoming, Colorado, Utah and Washington through its wholly-owned bank subsidiary, Glacier Bank (“Bank”). The Company offers a wide range of banking products and services, including transaction and savings deposits, real estate, commercial, agriculture and consumer loans and mortgage origination services. The Company serves individuals, small to medium-sized businesses, community organizations and public entities. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of March 31, 2017 , the results of operations and comprehensive income for the three month periods ended March 31, 2017 and 2016 , and changes in stockholders’ equity and cash flows for the three month periods ended March 31, 2017 and 2016 . The condensed consolidated statement of financial condition of the Company as of December 31, 2016 has been derived from the audited consolidated statements of the Company as of that date. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results anticipated for the year ending December 31, 2017 . The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the valuation of investment securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the parent holding company and the Bank. The Bank consists of thirteen bank divisions, a treasury division and an information technology division. The treasury division includes the Bank’s investment portfolio and wholesale borrowings and the information technology division includes the Bank’s internal data processing and information technology expenses. The Bank divisions operate under separate names, management teams and advisory directors. The Company considers the Bank to be its sole operating segment as the Bank 1) engages in similar bank business activity from which it earns revenues and incurs expenses; 2) the operating results of the Bank are regularly reviewed by the Chief Executive Officer (i.e., the chief operating decision maker) who makes decisions about resources to be allocated to the Bank; and 3) financial information is available for the Bank. All significant inter-company transactions have been eliminated in consolidation. The Bank has subsidiary interests in variable interest entities (“VIE”) for which the Bank has both the power to direct the VIE’s significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could potentially be significant to the VIE. These subsidiary interests are included in the Company’s consolidated financial statements. The parent holding company also owns non-bank subsidiaries that have issued trust preferred securities as Tier 1 capital instruments. The trust subsidiaries are not included in the Company’s consolidated financial statements. The Company's investments in the trust subsidiaries are included in non-marketable equity securities on the Company's statement of financial condition. In August 2016, the Company completed its acquisition of Treasure State Bank (“TSB”), a community bank based in Missoula, Montana. The transaction was accounted for using the acquisition method, and its results of operations have been included in the Company’s consolidated financial statements as of the acquisition date. |
Loans Receivable | Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR: • reduction of the stated interest rate for the remaining term of the debt; • extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and • reduction of the face amount of the debt as stated in the debt agreements. The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example: • analysis of global, i.e., aggregate debt service for total debt obligations; • assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and • loan structures and related covenants. For additional information relating to loans, see Note 3. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. Commercial Real Estate . Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and/or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. Commercial . Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity . Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 15 years. Other Consumer . The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; • Changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; • Changes in the nature and volume of the portfolio and in the terms of loans; • Changes in experience, ability, and depth of lending management and other relevant staff; • Changes in the volume and severity of past due and nonaccrual loans; • Changes in the quality of the Company’s loan review system; • Changes in the value of underlying collateral for collateral-dependent loans; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged off as a reduction of the ALLL and recoveries of amounts previously charged off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2016 financial statements to conform to the 2017 presentation. |
Impact of Recent Authoritative Accounting Guidance | Impact of Recent Authoritative Accounting Guidance The Accounting Standards Codification ™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. The following paragraphs provide descriptions of recently adopted or newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In March 2017, FASB amended FASB ASC Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs. The amendments in the Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date instead of the maturity date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted and if adopted in an interim period, any adjustments should be reflected as of the beginning of the year that includes the interim period. The entity should apply the amendments on a modified retrospective basis through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. The Company has premiums on debt securities that are currently being amortized to the maturity date, primarily in state and local governments category. The Company is currently evaluating the amount of the premium associated with debt securities that will be impacted by the amendments and whether it will early adopt. The accounting policies and procedures will be modified after the Company has fully evaluated the standard, although, significant changes are not expected. In January 2017, FASB amended FASB ASC Topic 350, Simplifying the Test for Goodwill. The amendments in the Update simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more-likely-than-not reduce the fair value of the reporting unit below its carrying value. During the third quarter of 2016, the Company performed its impairment assessment and determined the fair value of the aggregated reporting units exceed the carrying value, such that the Company’s goodwill was not considered impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment, it is unlikely that an impairment amount would need to be calculated and, therefore, the Company does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. For additional information regarding goodwill impairment testing, see Note 4. In June 2016, FASB amended FASB ASC Topic 326, Financial Instruments - Credit Losses. The amendments in this Update replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The ALLL is a material estimate of the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALLL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALLL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company will also develop new procedures for determining an allowance for credit losses relating to held-to-maturity investment securities. In addition, the current accounting policy and procedures for other-than-temporary impairment on available-for-sale investment securities will be replaced with an allowance approach. The Company is expecting to begin developing and implementing processes and procedures during the next two years to ensure it is fully compliant with the amendments at adoption date. For additional information on the allowance for loan losses, see Note 3. In March 2016, FASB amended FASB ASC Topic 718, Compensation - Stock Compensation. The amendments in this Update address certain aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification of awards on the statement of cash flows. The amendments were effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2016 and the Company adopted the amendments as of January 1, 2017. The amendments require entities to recognize all income tax effects related to share-based payment awards in the statement of operations when the awards vest or are settled. Previously, income tax benefits at the settlement of awards were reported as increases (or decreases) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax benefits recognized in earnings during the awards’ vesting periods. Such amounts are to be classified as an operating activity in the statement of cash flows instead of the prior accounting treatment, which required it to be classified as both an operating and a financing activity. The Company has elected to apply this classification change on a retrospective basis. Also in connection with the adoption of the Update, the Company has elected to change its accounting policy to recognize forfeitures as they occur. The requirement to report income tax effects in earnings has been applied to the settlement of awards on a prospective basis and the impact of applying the guidance reduced reported income tax expense for the three month period ended March 31, 2017 by $537,000 , or approximately $0.01 per diluted common share. The implementation of the remaining provisions of the Update did not have a significant impact on the Company’s consolidated financial statements. In February 2016, FASB amended FASB ASC Topic 842, Leases. The amendments in this Update address several aspects of lease accounting with the significant change being the recognition of lease assets and lease liabilities for leases previously classified as operating leases. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company has several lease agreements for which the amendments will require the Company to recognize a lease liability to make lease payments and a right-of-use asset which will represent its right to use the underlying asset for the lease term. The Company is currently reviewing the amendments to ensure it is fully compliant by the adoption date and doesn’t expect to early adopt. As permitted by the amendments, the Company is anticipating electing an accounting policy to not recognize lease assets and lease liabilities for leases with a term of twelve months or less. The impact is not expected to have a material effect on the Company’s financial position or results of operations since the Company does not have a material amount of lease agreements. The Company is currently in the process of fully evaluating the amendments and will subsequently implement new processes which are not expected to significantly change since the Company already has processes for certain lease agreements that recognize the lease assets and lease liabilities. In addition, the Company will change its current accounting policies to comply with the amendments with such changes as mentioned above. In January 2016, FASB amended FASB ASC Topic 825, Financial Instruments. The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2017. Early adoption is only permitted under certain circumstances outlined in the amendments. A reporting entity should apply the amendments by means of a cumulative-effect adjustment to the Company’s statement of financial condition as of the beginning of the reporting year of adoption. The amendments will impact the Company in a few areas including requiring equity investments (with certain exclusions) to be measured at fair value with the changes recognized in net income, requirement to utilize an exit price when measuring the fair value of financial instruments, additional disclosures related to other comprehensive income, evaluation of a valuation allowance on a deferred tax asset related to available-for-sale investment securities in combination with the entity’s other deferred tax assets, and other disclosure changes. The Company is currently evaluating the impact of these amendments, but does not expect them to have a material material effect on the Company’s financial position or results of operations since it does not have a material amount of equity securities or a valuation allowance. However, the amendments will have an impact on certain items that are disclosed at fair value that are not currently utilizing the exit price notion when measuring fair value. As of March 31, 2017 , the Company cannot quantify the change in the fair value of such disclosures since the Company is currently evaluating the full impact of the Update and is in the planning stages of developing appropriate procedures and processes to comply with the disclosure requirements of such amendments. The current accounting policies and procedures will be modified after the Company has fully evaluated the standard to comply with the accounting changes mentioned above. In May 2014, FASB amended FASB ASC Topic 606, Revenue from Contracts with Customers. The amendments clarify the principals for recognizing revenue and develop a common revenue standard among industries. The new guidance establishes the following core principal: recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. Five steps are provided for a company or organization to follow to achieve such core principle. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The entity should apply the amendments using one of two retrospective methods described in the amendment. Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606) delayed the effective date for public entities to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Several subsequent amendments have been issued that provide clarifying guidance and are effective with the adoption of the original Update. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is in its preliminary stages of evaluating the impact of these amendments, although it doesn’t expect the amendments to have a significant impact to the Company’s financial position or results of operation. The amendments could potentially impact the accounting procedures and processes over the recognition of certain revenue sources, including, but not limited to, non-interest income. The Company is expecting to begin developing processes and procedures during 2017 to ensure it is fully compliant with these amendments at the date of adoption. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost, gross unrealized gains and losses and fair value of investment securities | The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s investment securities: March 31, 2017 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 37,598 26 (208 ) 37,416 U.S. government sponsored enterprises 19,551 31 (46 ) 19,536 State and local governments 750,443 21,463 (9,739 ) 762,167 Corporate bonds 443,012 1,274 (585 ) 443,701 Residential mortgage-backed securities 954,072 2,959 (7,940 ) 949,091 Commercial mortgage-backed securities 103,918 26 (1,334 ) 102,610 Total available-for-sale 2,308,594 25,779 (19,852 ) 2,314,521 Held-to-maturity State and local governments 667,388 21,125 (8,118 ) 680,395 Total held-to-maturity 667,388 21,125 (8,118 ) 680,395 Total investment securities $ 2,975,982 46,904 (27,970 ) 2,994,916 December 31, 2016 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 39,554 15 (162 ) 39,407 U.S. government sponsored enterprises 19,557 55 (42 ) 19,570 State and local governments 775,395 20,941 (9,963 ) 786,373 Corporate bonds 471,569 1,175 (793 ) 471,951 Residential mortgage-backed securities 1,014,518 2,744 (9,747 ) 1,007,515 Commercial mortgage-backed securities 102,209 30 (1,578 ) 100,661 Total available-for-sale 2,422,802 24,960 (22,285 ) 2,425,477 Held-to-maturity State and local governments 675,674 21,400 (7,985 ) 689,089 Total held-to-maturity 675,674 21,400 (7,985 ) 689,089 Total investment securities $ 3,098,476 46,360 (30,270 ) 3,114,566 |
Amortized cost and fair value of securities by contractual maturity | The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at March 31, 2017 . Actual maturities may differ from expected or contractual maturities since issuers have the right to prepay obligations with or without prepayment penalties. March 31, 2017 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 146,875 147,136 — — Due after one year through five years 393,309 394,219 593 605 Due after five years through ten years 204,217 207,961 57,405 58,611 Due after ten years 506,203 513,504 609,390 621,179 1,250,604 1,262,820 667,388 680,395 Mortgage-backed securities 1 1,057,990 1,051,701 — — Total $ 2,308,594 2,314,521 667,388 680,395 __________ 1 Mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. |
Proceeds from sales and calls of investment securities and the associated gains and losses | Proceeds from sales and calls of investment securities and the associated gains and losses that have been included in earnings are listed below: Three Months ended (Dollars in thousands) March 31, March 31, Available-for-sale Proceeds from sales and calls of investment securities $ 8,491 58,623 Gross realized gains 1 10 800 Gross realized losses 1 (149 ) (739 ) Held-to-maturity Proceeds from calls of investment securities 7,790 11,155 Gross realized gains 1 81 47 Gross realized losses 1 (42 ) — __________ 1 The gain or loss on the sale or call of each investment security is determined by the specific identification method. |
Summary of investments with an unrealized loss position | Investment securities with an unrealized loss position are summarized as follows: March 31, 2017 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale U.S. government and federal agency $ 4,527 (42 ) 22,972 (166 ) 27,499 (208 ) U.S. government sponsored enterprises 6,048 (46 ) — — 6,048 (46 ) State and local governments 208,261 (4,716 ) 78,082 (5,023 ) 286,343 (9,739 ) Corporate bonds 142,028 (575 ) 6,128 (10 ) 148,156 (585 ) Residential mortgage-backed securities 636,458 (7,670 ) 27,561 (270 ) 664,019 (7,940 ) Commercial mortgage-backed securities 100,570 (1,334 ) — — 100,570 (1,334 ) Total available-for-sale $ 1,097,892 (14,383 ) 134,743 (5,469 ) 1,232,635 (19,852 ) Held-to-maturity State and local governments $ 105,671 (1,644 ) 85,782 (6,474 ) 191,453 (8,118 ) Total held-to-maturity $ 105,671 (1,644 ) 85,782 (6,474 ) 191,453 (8,118 ) December 31, 2016 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale U.S. government and federal agency $ 6,718 (24 ) 26,239 (138 ) 32,957 (162 ) U.S. government sponsored enterprises 6,049 (42 ) — — 6,049 (42 ) State and local governments 222,700 (4,949 ) 81,783 (5,014 ) 304,483 (9,963 ) Corporate bonds 174,821 (774 ) 6,141 (19 ) 180,962 (793 ) Residential mortgage-backed securities 688,811 (9,079 ) 29,957 (668 ) 718,768 (9,747 ) Commercial mortgage-backed securities 89,298 (1,578 ) — — 89,298 (1,578 ) Total available-for-sale $ 1,188,397 (16,446 ) 144,120 (5,839 ) 1,332,517 (22,285 ) Held-to-maturity State and local governments $ 117,912 (1,712 ) 86,601 (6,273 ) 204,513 (7,985 ) Total held-to-maturity $ 117,912 (1,712 ) 86,601 (6,273 ) 204,513 (7,985 ) |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Summary of loans receivable | The following table presents loans receivable for each portfolio class of loans: At or for the Three Months ended At or for the Year ended (Dollars in thousands) March 31, December 31, Residential real estate loans $ 685,458 674,347 Commercial loans Real estate 3,056,372 2,990,141 Other commercial 1,462,110 1,342,250 Total 4,518,482 4,332,391 Consumer and other loans Home equity 433,554 434,774 Other consumer 239,480 242,951 Total 673,034 677,725 Loans receivable 1 5,876,974 5,684,463 Allowance for loan and lease losses (129,226 ) (129,572 ) Loans receivable, net $ 5,747,748 5,554,891 Weighted-average interest rate on loans (tax-equivalent) 4.73 % 4.77 % __________ 1 Includes net deferred fees, costs, premiums and discounts of $12,017,000 and $13,372,000 at March 31, 2017 and December 31, 2016 , respectively. |
Summary of the activity in the ALLL | The following tables summarize the activity in the ALLL by portfolio segment: Three Months ended March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 129,572 12,436 65,773 37,823 7,572 5,968 Provision for loan losses 1,598 (926 ) (370 ) 1,621 129 1,144 Charge-offs (4,229 ) (22 ) (888 ) (471 ) (96 ) (2,752 ) Recoveries 2,285 47 238 184 74 1,742 Balance at end of period $ 129,226 11,535 64,753 39,157 7,679 6,102 Three Months ended March 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 129,697 14,427 67,877 32,525 8,998 5,870 Provision for loan losses 568 (1,149 ) (873 ) 3,720 (793 ) (337 ) Charge-offs (1,163 ) (100 ) (253 ) (324 ) (229 ) (257 ) Recoveries 969 18 295 133 173 350 Balance at end of period $ 130,071 13,196 67,046 36,054 8,149 5,626 |
Summary of ALLL and loans receivable | The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment: March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Allowance for loan and lease losses Individually evaluated for impairment $ 6,787 245 545 5,047 551 399 Collectively evaluated for impairment 122,439 11,290 64,208 34,110 7,128 5,703 Total allowance for loan and lease losses $ 129,226 11,535 64,753 39,157 7,679 6,102 Loans receivable Individually evaluated for impairment $ 135,086 13,048 85,452 27,050 6,449 3,087 Collectively evaluated for impairment 5,741,888 672,410 2,970,920 1,435,060 427,105 236,393 Total loans receivable $ 5,876,974 685,458 3,056,372 1,462,110 433,554 239,480 December 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Allowance for loan and lease losses Individually evaluated for impairment $ 6,881 856 922 4,419 296 388 Collectively evaluated for impairment 122,691 11,580 64,851 33,404 7,276 5,580 Total allowance for loan and lease losses $ 129,572 12,436 65,773 37,823 7,572 5,968 Loans receivable Individually evaluated for impairment $ 130,263 11,612 85,634 23,950 5,934 3,133 Collectively evaluated for impairment 5,554,200 662,735 2,904,507 1,318,300 428,840 239,818 Total loans receivable $ 5,684,463 674,347 2,990,141 1,342,250 434,774 242,951 |
Summary of impaired loans | The following tables disclose information related to impaired loans by portfolio segment: At or for the Three Months ended March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Loans with a specific valuation allowance Recorded balance $ 19,877 2,891 5,279 10,053 546 1,108 Unpaid principal balance 20,139 2,955 5,285 10,190 559 1,150 Specific valuation allowance 6,787 245 545 5,047 551 399 Average balance 21,003 2,825 7,204 9,434 440 1,100 Loans without a specific valuation allowance Recorded balance $ 115,209 10,157 80,173 16,997 5,903 1,979 Unpaid principal balance 138,436 11,224 98,480 19,350 7,323 2,059 Average balance 111,672 9,505 78,339 16,067 5,751 2,010 Total Recorded balance $ 135,086 13,048 85,452 27,050 6,449 3,087 Unpaid principal balance 158,575 14,179 103,765 29,540 7,882 3,209 Specific valuation allowance 6,787 245 545 5,047 551 399 Average balance 132,675 12,330 85,543 25,501 6,191 3,110 At or for the Year ended December 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Loans with a specific valuation allowance Recorded balance $ 22,128 2,759 9,129 8,814 334 1,092 Unpaid principal balance 22,374 2,825 9,130 8,929 345 1,145 Specific valuation allowance 6,881 856 922 4,419 296 388 Average balance 26,745 4,942 10,441 9,840 257 1,265 Loans without a specific valuation allowance Recorded balance $ 108,135 8,853 76,505 15,136 5,600 2,041 Unpaid principal balance 131,059 9,925 94,180 17,724 7,120 2,110 Average balance 108,827 12,858 72,323 15,537 6,004 2,105 Total Recorded balance $ 130,263 11,612 85,634 23,950 5,934 3,133 Unpaid principal balance 153,433 12,750 103,310 26,653 7,465 3,255 Specific valuation allowance 6,881 856 922 4,419 296 388 Average balance 135,572 17,800 82,764 25,377 6,261 3,370 |
Loan portfolio aging analysis | The following tables present an aging analysis of the recorded investment in loans by portfolio segment: March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 27,122 5,255 11,294 7,657 1,555 1,361 Accruing loans 60-89 days past due 12,038 431 8,100 2,259 641 607 Accruing loans 90 days or more past due 3,028 — 203 2,441 336 48 Non-accrual loans 50,674 5,949 30,277 8,301 5,619 528 Total past due and non-accrual loans 92,862 11,635 49,874 20,658 8,151 2,544 Current loans receivable 5,784,112 673,823 3,006,498 1,441,452 425,403 236,936 Total loans receivable $ 5,876,974 685,458 3,056,372 1,462,110 433,554 239,480 December 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 20,599 6,338 5,079 5,388 2,439 1,355 Accruing loans 60-89 days past due 5,018 1,398 754 1,352 844 670 Accruing loans 90 days or more past due 1,099 266 145 283 191 214 Non-accrual loans 49,332 4,528 30,216 8,817 5,240 531 Total past due and non-accrual loans 76,048 12,530 36,194 15,840 8,714 2,770 Current loans receivable 5,608,415 661,817 2,953,947 1,326,410 426,060 240,181 Total loans receivable $ 5,684,463 674,347 2,990,141 1,342,250 434,774 242,951 |
Summary of TDRs | The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented: Three Months ended March 31, 2017 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 10 2 2 4 1 1 Pre-modification recorded balance $ 9,555 280 582 8,530 153 10 Post-modification recorded balance $ 9,552 280 582 8,530 153 7 TDRs that subsequently defaulted Number of loans 2 — — 1 — 1 Recorded balance $ 25 — — 18 — 7 Three Months ended March 31, 2016 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 3 — 1 1 1 — Pre-modification recorded balance $ 8,959 — 56 8,755 148 — Post-modification recorded balance $ 8,959 — 56 8,755 148 — TDRs that subsequently defaulted Number of loans — — — — — — Recorded balance $ — — — — — — |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross carrying value of goodwill and the accumulated impairment charge | The gross carrying value of goodwill and the accumulated impairment charge consists of the following: (Dollars in thousands) March 31, December 31, Gross carrying value $ 187,212 187,212 Accumulated impairment charge 1 (40,159 ) (40,159 ) Net carrying value $ 147,053 147,053 __________ 1 A goodwill impairment charge was recognized in 2011 and was due to high levels of volatility and dislocation in bank stock prices nationwide. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Carrying amounts of consolidated VIEs' assets and liabilities | The following table summarizes the carrying amounts of the consolidated VIEs’ assets and liabilities included in the Company’s statements of financial condition and are adjusted for intercompany eliminations. All assets presented can be used only to settle obligations of the consolidated VIEs and all liabilities presented consist of liabilities for which creditors and other beneficial interest holders therein have no recourse to the general credit of the Company. (Dollars in thousands) March 31, December 31, Assets Loans receivable $ 43,143 36,950 Accrued interest receivable 125 120 Other assets 2,095 1,984 Total assets $ 45,363 39,054 Liabilities Other borrowed funds $ 8,577 4,105 Accrued interest payable 6 2 Other liabilities 22 27 Total liabilities $ 8,605 4,134 |
Amortization expense and tax credits and other tax benefits recognized for qualified affordable housing project investments | The following table summarizes the amortization expense and the amount of tax credits and other tax benefits recognized for qualified affordable housing project investments during the periods presented. Three Months ended (Dollars in thousands) March 31, March 31, Amortization expense $ 503 255 Tax credits and other tax benefits recognized 776 392 |
Securities Sold Under Agreeme26
Securities Sold Under Agreements to Repurchase Securities Sold Under Agreements to Repurchase (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Carrying Value of Repurchase Agreements | The following tables summarize the carrying value of the Company’s repurchase agreements by remaining contractual maturity and category of collateral: March 31, 2017 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total Residential mortgage-backed securities $ 484,126 — 484,126 Commercial mortgage-backed securities 13,061 — 13,061 Total $ 497,187 — 497,187 December 31, 2016 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total Residential mortgage-backed securities $ 471,706 643 472,349 Commercial mortgage-backed securities 1,301 — 1,301 Total $ 473,007 643 473,650 |
Derivatives and Hedging Activ27
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of interest rate swap derivative financial instruments | As of March 31, 2017 , the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows: (Dollars in thousands) Forecasted Notional Amount Variable Interest Rate 1 Fixed Interest Rate 1 Payment Term Interest rate swap $ 160,000 3 month LIBOR 3.378 % Oct. 21, 2014 - Oct. 21, 2021 Interest rate swap 100,000 3 month LIBOR 2.498 % Nov. 30, 2015 - Nov. 30, 2022 __________ 1 The Company pays the fixed interest rate and the counterparty pays the Company the variable interest rate. |
Summary of Pre-Tax Gains or Losses | The following table presents the pre-tax gains or losses recorded in accumulated other comprehensive income and the Company’s statements of operations relating to the interest rate swap derivative financial instruments: Three Months ended (Dollars in thousands) March 31, March 31, Interest rate swaps Amount of gain (loss) recognized in OCI (effective portion) $ 264 (9,928 ) Amount of loss reclassified from OCI to interest expense (1,332 ) (1,829 ) Amount of loss recognized in other non-interest expense (ineffective portion) — — |
Offsetting liabilities | The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities. There were no interest rate swap derivative assets at the dates presented. March 31, 2017 December 31, 2016 (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Financial Position Net Amounts of Liabilities Presented in the Statements of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Financial Position Net Amounts of Liabilities Presented in the Statements of Financial Position Interest rate swaps $ 13,129 — 13,129 14,725 — 14,725 |
Other Expenses (Tables)
Other Expenses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Expenses [Abstract] | |
Schedule of Other Expenses | Other expenses consists of the following: Three Months ended (Dollars in thousands) March 31, March 31, Debit card expenses $ 1,718 1,849 Consulting and outside services 1,420 1,014 Telephone 977 960 Loan expenses 891 783 Employee expenses 789 579 Postage 725 880 Printing and supplies 640 943 Accounting and audit fees 512 391 VIE amortization and other expenses 464 639 Checking and operating expenses 365 694 Business development 340 342 Legal fees 340 237 ATM expenses 312 255 Other 927 980 Total other expenses $ 10,420 10,546 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Activity within Accumulated Other Comprehensive Income, Net of Tax | The following table illustrates the activity within accumulated other comprehensive income (loss) by component, net of tax: (Dollars in thousands) Gains on Available-For-Sale Securities Losses on Derivatives Used for Cash Flow Hedges Total Balance at December 31, 2015 $ 13,935 (11,946 ) 1,989 Other comprehensive income (loss) before reclassifications 8,331 (6,082 ) 2,249 Amounts reclassified from accumulated other comprehensive (loss) income (38 ) 1,121 1,083 Net current period other comprehensive income (loss) 8,293 (4,961 ) 3,332 Balance at March 31, 2016 $ 22,228 (16,907 ) 5,321 Balance at December 31, 2016 $ 1,639 (9,021 ) (7,382 ) Other comprehensive income before reclassifications 1,907 162 2,069 Amounts reclassified from accumulated other comprehensive income 85 816 901 Net current period other comprehensive income 1,992 978 2,970 Balance at March 31, 2017 $ 3,631 (8,043 ) (4,412 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share has been computed based on the following: Three Months ended (Dollars in thousands, except per share data) March 31, March 31, Net income available to common stockholders, basic and diluted $ 31,255 28,682 Average outstanding shares - basic 76,572,116 76,126,251 Add: dilutive restricted stock awards 61,167 47,166 Average outstanding shares - diluted 76,633,283 76,173,417 Basic earnings per share $ 0.41 0.38 Diluted earnings per share $ 0.41 0.38 |
Fair Value of Assets and Liab31
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement of assets and liabilities measured at fair value on a recurring basis | The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities, available-for-sale U.S. government and federal agency $ 37,416 — 37,416 — U.S. government sponsored enterprises 19,536 — 19,536 — State and local governments 762,167 — 762,167 — Corporate bonds 443,701 — 443,701 — Residential mortgage-backed securities 949,091 — 949,091 — Commercial mortgage-backed securities 102,610 — 102,610 — Total assets measured at fair value on a recurring basis $ 2,314,521 — 2,314,521 — Interest rate swaps $ 13,129 — 13,129 — Total liabilities measured at fair value on a recurring basis $ 13,129 — 13,129 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities, available-for-sale U.S. government and federal agency $ 39,407 — 39,407 — U.S. government sponsored enterprises 19,570 — 19,570 — State and local governments 786,373 — 786,373 — Corporate bonds 471,951 — 471,951 — Residential mortgage-backed securities 1,007,515 — 1,007,515 — Commercial mortgage-backed securities 100,661 — 100,661 — Total assets measured at fair value on a recurring basis $ 2,425,477 — 2,425,477 — Interest rate swaps $ 14,725 — 14,725 — Total liabilities measured at fair value on a recurring basis $ 14,725 — 14,725 — |
Fair value measurement of assets measured at fair value on a non-recurring basis | The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned $ 147 — — 147 Collateral-dependent impaired loans, net of ALLL 7,601 — — 7,601 Total assets measured at fair value on a non-recurring basis $ 7,748 — — 7,748 Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned $ 7,839 — — 7,839 Collateral-dependent impaired loans, net of ALLL 5,664 — — 5,664 Total assets measured at fair value on a non-recurring basis $ 13,503 — — 13,503 |
Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used | The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Fair Value March 31, 2017 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 147 Sales comparison approach Selling costs 8.0% - 8.0% (8.0%) Collateral-dependent impaired loans, net of ALLL $ 5 Cost approach Selling costs 20.0% - 20.0% (20.0%) 2,994 Sales comparison approach Selling costs 8.0% - 10.0% (9.7%) 4,602 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 7,601 Fair Value December 31, 2016 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 7,767 Sales comparison approach Selling costs 6.0% - 10.0% (6.9%) Adjustment to comparables 0.0% - 10.0% (0.1%) 72 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 10.0% - 10.0% (10.0%) $ 7,839 Collateral-dependent impaired loans, net of ALLL $ 110 Cost approach Selling costs 6.0% - 20.0% (6.6%) 1,982 Sales comparison approach Selling costs 8.0% - 10.0% (9.6%) 3,572 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 5,664 __________ 1 The range for selling costs and adjustments to comparables indicate reductions to the fair value. |
Carrying amounts and estimated fair values of financial instruments | The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 234,004 234,004 — — Investment securities, available-for-sale 2,314,521 — 2,314,521 — Investment securities, held-to-maturity 667,388 — 680,395 — Loans held for sale 25,649 25,649 — — Loans receivable, net of ALLL 5,747,748 — 5,558,406 128,299 Accrued interest receivable 48,043 48,043 — — Non-marketable equity securities 23,944 — 23,944 — Total financial assets $ 9,061,297 307,696 8,577,266 128,299 Financial liabilities Deposits $ 7,480,157 6,197,583 1,284,399 — FHLB advances 211,627 — 217,435 — Repurchase agreements and other borrowed funds 506,081 — 506,081 — Subordinated debentures 126,027 — 89,136 — Accrued interest payable 3,467 3,467 — — Interest rate swaps 13,129 — 13,129 — Total financial liabilities $ 8,340,488 6,201,050 2,110,180 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 2016 Quoted Prices Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 152,541 152,541 — — Investment securities, available-for-sale 2,425,477 — 2,425,477 — Investment securities, held-to-maturity 675,674 — 689,089 — Loans held for sale 72,927 72,927 — — Loans receivable, net of ALLL 5,554,891 — 5,380,286 123,382 Accrued interest receivable 45,832 45,832 — — Non-marketable equity securities 25,550 — 25,550 — Total financial assets $ 8,952,892 271,300 8,520,402 123,382 Financial liabilities Deposits $ 7,372,279 6,090,879 1,283,532 — FHLB advances 251,749 — 257,643 — Repurchase agreements and other borrowed funds 478,090 — 478,090 — Subordinated debentures 125,991 — 85,557 — Accrued interest payable 3,584 3,584 — — Interest rate swaps 14,725 — 14,725 — Total financial liabilities $ 8,246,418 6,094,463 2,119,547 — |
Nature of Operations and Summ32
Nature of Operations and Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended |
Mar. 31, 2017USD ($)quarterstepoperating_segmentdivision$ / shares | |
Number of Bank Divisions | division | 13 |
Number of Operating Segments | operating_segment | 1 |
Minimum Period Past Due to Consider Loan as Delinquent | 30 days |
Minimum Period Past Due to Consider Loan as Non Accrual | 90 days |
Number of Quarters Used to Evaluate Historical Loss Experience | quarter | 12 |
Period to begin developing and implementing processes and procedures for FASB Update | 2 years |
Effect of change on net income from applying new accounting pronouncement | $ | $ 537,000 |
Effect of change on diluted earnings per share from applying new accounting pronouncement | $ / shares | $ 0.01 |
Maximum lease term to not recognize lease assets and liabilities | 12 months |
Number of Steps to Achieve Core Revenue Recognition Principal | step | 5 |
Consumer and Other | |
Minimum Number of Days Delinquent to Charge off Loans | 120 days |
Minimum Range | |
Number of years for home equity loan origination term | 10 years |
Maximum Range | |
Number of years for home equity loan origination term | 15 years |
Amortized Cost, Gross Unrealize
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale | ||
Amortized Cost | $ 2,308,594 | $ 2,422,802 |
Gross Unrealized Gains | 25,779 | 24,960 |
Gross Unrealized Losses | (19,852) | (22,285) |
Fair Value | 2,314,521 | 2,425,477 |
Held-to-maturity | ||
Amortized Cost | 667,388 | 675,674 |
Gross Unrealized Gains | 21,125 | 21,400 |
Gross Unrealized Losses | (8,118) | (7,985) |
Fair Value | 680,395 | 689,089 |
Total | ||
Amortized Cost | 2,975,982 | 3,098,476 |
Gross Unrealized Gains | 46,904 | 46,360 |
Gross Unrealized Losses | (27,970) | (30,270) |
Fair Value | 2,994,916 | 3,114,566 |
U.S. government and federal agency | ||
Available-for-sale | ||
Amortized Cost | 37,598 | 39,554 |
Gross Unrealized Gains | 26 | 15 |
Gross Unrealized Losses | (208) | (162) |
Fair Value | 37,416 | 39,407 |
U.S. government sponsored enterprises | ||
Available-for-sale | ||
Amortized Cost | 19,551 | 19,557 |
Gross Unrealized Gains | 31 | 55 |
Gross Unrealized Losses | (46) | (42) |
Fair Value | 19,536 | 19,570 |
State and local governments | ||
Available-for-sale | ||
Amortized Cost | 750,443 | 775,395 |
Gross Unrealized Gains | 21,463 | 20,941 |
Gross Unrealized Losses | (9,739) | (9,963) |
Fair Value | 762,167 | 786,373 |
Held-to-maturity | ||
Amortized Cost | 667,388 | 675,674 |
Gross Unrealized Gains | 21,125 | 21,400 |
Gross Unrealized Losses | (8,118) | (7,985) |
Fair Value | 680,395 | 689,089 |
Corporate bonds | ||
Available-for-sale | ||
Amortized Cost | 443,012 | 471,569 |
Gross Unrealized Gains | 1,274 | 1,175 |
Gross Unrealized Losses | (585) | (793) |
Fair Value | 443,701 | 471,951 |
Residential mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 954,072 | 1,014,518 |
Gross Unrealized Gains | 2,959 | 2,744 |
Gross Unrealized Losses | (7,940) | (9,747) |
Fair Value | 949,091 | 1,007,515 |
Commercial mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 103,918 | 102,209 |
Gross Unrealized Gains | 26 | 30 |
Gross Unrealized Losses | (1,334) | (1,578) |
Fair Value | $ 102,610 | $ 100,661 |
Investment Securities Maturity
Investment Securities Maturity Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Available-for-Sale, Amortized Cost | |||
Due within one year | $ 146,875 | ||
Due after one year through five years | 393,309 | ||
Due after five years through ten years | 204,217 | ||
Due after ten years | 506,203 | ||
Total before mortgage-backed securities | 1,250,604 | ||
Total | 2,308,594 | $ 2,422,802 | |
Available-for-Sale, Fair Value | |||
Due within one year | 147,136 | ||
Due after one year through five years | 394,219 | ||
Due after five years through ten years | 207,961 | ||
Due after ten years | 513,504 | ||
Total before mortgage-backed securities | 1,262,820 | ||
Total | 2,314,521 | 2,425,477 | |
Held-to-Maturity, Amortized Cost | |||
Due within one year | 0 | ||
Due after one year through five years | 593 | ||
Due after five years through ten years | 57,405 | ||
Due after ten years | 609,390 | ||
Total before mortgage-backed securities | 667,388 | ||
Amortized Cost | 667,388 | 675,674 | |
Held-to-Maturity, Fair Value | |||
Due within one year | 0 | ||
Due after one year through five years | 605 | ||
Due after five years through ten years | 58,611 | ||
Due after ten years | 621,179 | ||
Total before mortgage-backed securities | 680,395 | ||
Total | 680,395 | $ 689,089 | |
Mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Mortgage-backed securities | [1] | 1,057,990 | |
Available-for-Sale, Fair Value | |||
Mortgage-backed securities | [1] | 1,051,701 | |
Held-to-Maturity, Amortized Cost | |||
Mortgage-backed securities | [1] | 0 | |
Held-to-Maturity, Fair Value | |||
Mortgage-backed securities | [1] | $ 0 | |
[1] | Mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. |
Proceeds From Sales and Calls o
Proceeds From Sales and Calls of Investment Securities and Associates Gains or Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Available-for-sale | |||
Proceeds from sales and calls of investment securities | $ 8,491 | $ 58,623 | |
Gross realized gains | [1] | 10 | 800 |
Gross realized losses | [1] | (149) | (739) |
Held-to-maturity | |||
Proceeds from calls of investment securities | 7,790 | 11,155 | |
Gross realized gains | [1] | 81 | 47 |
Gross realized losses | [1] | $ (42) | $ 0 |
[1] | The gain or loss on the sale or call of each investment security is determined by the specific identification method. |
Investment with an Unrealized L
Investment with an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale, Fair Value | ||
Less than 12 Months | $ 1,097,892 | $ 1,188,397 |
12 Months or More | 134,743 | 144,120 |
Total | 1,232,635 | 1,332,517 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (14,383) | (16,446) |
12 Months or More | (5,469) | (5,839) |
Total | (19,852) | (22,285) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 105,671 | 117,912 |
12 Months or More | 85,782 | 86,601 |
Total | 191,453 | 204,513 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | (1,644) | (1,712) |
12 Months or More | (6,474) | (6,273) |
Total | (8,118) | (7,985) |
U.S. government and federal agency | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 4,527 | 6,718 |
12 Months or More | 22,972 | 26,239 |
Total | 27,499 | 32,957 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (42) | (24) |
12 Months or More | (166) | (138) |
Total | (208) | (162) |
U.S. government sponsored enterprises | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 6,048 | 6,049 |
12 Months or More | 0 | 0 |
Total | 6,048 | 6,049 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (46) | (42) |
12 Months or More | 0 | 0 |
Total | (46) | (42) |
State and local governments | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 208,261 | 222,700 |
12 Months or More | 78,082 | 81,783 |
Total | 286,343 | 304,483 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (4,716) | (4,949) |
12 Months or More | (5,023) | (5,014) |
Total | (9,739) | (9,963) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 105,671 | 117,912 |
12 Months or More | 85,782 | 86,601 |
Total | 191,453 | 204,513 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | (1,644) | (1,712) |
12 Months or More | (6,474) | (6,273) |
Total | (8,118) | (7,985) |
Corporate bonds | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 142,028 | 174,821 |
12 Months or More | 6,128 | 6,141 |
Total | 148,156 | 180,962 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (575) | (774) |
12 Months or More | (10) | (19) |
Total | (585) | (793) |
Residential mortgage-backed securities | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 636,458 | 688,811 |
12 Months or More | 27,561 | 29,957 |
Total | 664,019 | 718,768 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (7,670) | (9,079) |
12 Months or More | (270) | (668) |
Total | (7,940) | (9,747) |
Commercial mortgage-backed securities | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 100,570 | 89,298 |
12 Months or More | 0 | 0 |
Total | 100,570 | 89,298 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (1,334) | (1,578) |
12 Months or More | 0 | 0 |
Total | $ (1,334) | $ (1,578) |
Investment Securities (Details
Investment Securities (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other-than-temporary impairment on investment securities | $ 0 | $ 0 |
Loans Receivable, Net Summary o
Loans Receivable, Net Summary of Loans Receivable (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Summary of Loans Receivable | |||
Loans receivable | [1] | $ 5,876,974,000 | $ 5,684,463,000 |
Allowance for loan and lease losses | (129,226,000) | (129,572,000) | |
Loans receivable, net | $ 5,747,748,000 | $ 5,554,891,000 | |
Weighted-average interest rate on loans (tax-equivalent) | 4.73% | 4.77% | |
Net deferred fees, costs, premiums, and discounts included in loans receivable | $ 12,017,000 | $ 13,372,000 | |
Residential Real Estate | Residential Real Estate | |||
Summary of Loans Receivable | |||
Loans receivable | 685,458,000 | 674,347,000 | |
Allowance for loan and lease losses | (11,535,000) | (12,436,000) | |
Commercial | |||
Summary of Loans Receivable | |||
Loans receivable | 4,518,482,000 | 4,332,391,000 | |
Commercial | Commercial Real Estate | |||
Summary of Loans Receivable | |||
Loans receivable | 3,056,372,000 | 2,990,141,000 | |
Allowance for loan and lease losses | (64,753,000) | (65,773,000) | |
Commercial | Other Commercial | |||
Summary of Loans Receivable | |||
Loans receivable | 1,462,110,000 | 1,342,250,000 | |
Allowance for loan and lease losses | (39,157,000) | (37,823,000) | |
Consumer and Other | |||
Summary of Loans Receivable | |||
Loans receivable | 673,034,000 | 677,725,000 | |
Consumer and Other | Home Equity | |||
Summary of Loans Receivable | |||
Loans receivable | 433,554,000 | 434,774,000 | |
Allowance for loan and lease losses | (7,679,000) | (7,572,000) | |
Consumer and Other | Other Consumer | |||
Summary of Loans Receivable | |||
Loans receivable | 239,480,000 | 242,951,000 | |
Allowance for loan and lease losses | $ (6,102,000) | $ (5,968,000) | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,017,000 and $13,372,000 at March 31, 2017 and December 31, 2016, respectively. |
ALLL Activity (Details)
ALLL Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for loan and lease losses | ||
Balance at beginning of period | $ 129,572 | $ 129,697 |
Provision for loan losses | 1,598 | 568 |
Charge-offs | (4,229) | (1,163) |
Recoveries | 2,285 | 969 |
Balance at end of period | 129,226 | 130,071 |
Residential Real Estate | Residential Real Estate | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 12,436 | 14,427 |
Provision for loan losses | (926) | (1,149) |
Charge-offs | (22) | (100) |
Recoveries | 47 | 18 |
Balance at end of period | 11,535 | 13,196 |
Commercial | Commercial Real Estate | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 65,773 | 67,877 |
Provision for loan losses | (370) | (873) |
Charge-offs | (888) | (253) |
Recoveries | 238 | 295 |
Balance at end of period | 64,753 | 67,046 |
Commercial | Other Commercial | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 37,823 | 32,525 |
Provision for loan losses | 1,621 | 3,720 |
Charge-offs | (471) | (324) |
Recoveries | 184 | 133 |
Balance at end of period | 39,157 | 36,054 |
Consumer and Other | Home Equity | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 7,572 | 8,998 |
Provision for loan losses | 129 | (793) |
Charge-offs | (96) | (229) |
Recoveries | 74 | 173 |
Balance at end of period | 7,679 | 8,149 |
Consumer and Other | Other Consumer | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 5,968 | 5,870 |
Provision for loan losses | 1,144 | (337) |
Charge-offs | (2,752) | (257) |
Recoveries | 1,742 | 350 |
Balance at end of period | $ 6,102 | $ 5,626 |
ALLL and Loans Receivable Summa
ALLL and Loans Receivable Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | $ 6,787 | $ 6,881 | |
Collectively evaluated for impairment | 122,439 | 122,691 | |
Total allowance for loan and lease losses | 129,226 | 129,572 | |
Individually evaluated for impairment | 135,086 | 130,263 | |
Collectively evaluated for impairment | 5,741,888 | 5,554,200 | |
Total loans receivable | [1] | 5,876,974 | 5,684,463 |
Residential Real Estate | Residential Real Estate | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 245 | 856 | |
Collectively evaluated for impairment | 11,290 | 11,580 | |
Total allowance for loan and lease losses | 11,535 | 12,436 | |
Individually evaluated for impairment | 13,048 | 11,612 | |
Collectively evaluated for impairment | 672,410 | 662,735 | |
Total loans receivable | 685,458 | 674,347 | |
Commercial | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Total loans receivable | 4,518,482 | 4,332,391 | |
Commercial | Commercial Real Estate | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 545 | 922 | |
Collectively evaluated for impairment | 64,208 | 64,851 | |
Total allowance for loan and lease losses | 64,753 | 65,773 | |
Individually evaluated for impairment | 85,452 | 85,634 | |
Collectively evaluated for impairment | 2,970,920 | 2,904,507 | |
Total loans receivable | 3,056,372 | 2,990,141 | |
Commercial | Other Commercial | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 5,047 | 4,419 | |
Collectively evaluated for impairment | 34,110 | 33,404 | |
Total allowance for loan and lease losses | 39,157 | 37,823 | |
Individually evaluated for impairment | 27,050 | 23,950 | |
Collectively evaluated for impairment | 1,435,060 | 1,318,300 | |
Total loans receivable | 1,462,110 | 1,342,250 | |
Consumer and Other | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Total loans receivable | 673,034 | 677,725 | |
Consumer and Other | Home Equity | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 551 | 296 | |
Collectively evaluated for impairment | 7,128 | 7,276 | |
Total allowance for loan and lease losses | 7,679 | 7,572 | |
Individually evaluated for impairment | 6,449 | 5,934 | |
Collectively evaluated for impairment | 427,105 | 428,840 | |
Total loans receivable | 433,554 | 434,774 | |
Consumer and Other | Other Consumer | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 399 | 388 | |
Collectively evaluated for impairment | 5,703 | 5,580 | |
Total allowance for loan and lease losses | 6,102 | 5,968 | |
Individually evaluated for impairment | 3,087 | 3,133 | |
Collectively evaluated for impairment | 236,393 | 239,818 | |
Total loans receivable | $ 239,480 | $ 242,951 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,017,000 and $13,372,000 at March 31, 2017 and December 31, 2016, respectively. |
Impaired Loans (Details)
Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | $ 19,877 | $ 22,128 |
Loans with a specific valuation allowance, Unpaid principal balance | 20,139 | 22,374 |
Specific valuation allowance | 6,787 | 6,881 |
Loans with a specific valuation allowance, Average balance | 21,003 | 26,745 |
Loans without a specific valuation allowance, Recorded balance | 115,209 | 108,135 |
Loans without a specific valuation allowance, Unpaid principal balance | 138,436 | 131,059 |
Loans without a specific valuation allowance, Average balance | 111,672 | 108,827 |
Recorded balance | 135,086 | 130,263 |
Unpaid principal balance | 158,575 | 153,433 |
Average balance | 132,675 | 135,572 |
Residential Real Estate | Residential Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 2,891 | 2,759 |
Loans with a specific valuation allowance, Unpaid principal balance | 2,955 | 2,825 |
Specific valuation allowance | 245 | 856 |
Loans with a specific valuation allowance, Average balance | 2,825 | 4,942 |
Loans without a specific valuation allowance, Recorded balance | 10,157 | 8,853 |
Loans without a specific valuation allowance, Unpaid principal balance | 11,224 | 9,925 |
Loans without a specific valuation allowance, Average balance | 9,505 | 12,858 |
Recorded balance | 13,048 | 11,612 |
Unpaid principal balance | 14,179 | 12,750 |
Average balance | 12,330 | 17,800 |
Commercial | Commercial Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 5,279 | 9,129 |
Loans with a specific valuation allowance, Unpaid principal balance | 5,285 | 9,130 |
Specific valuation allowance | 545 | 922 |
Loans with a specific valuation allowance, Average balance | 7,204 | 10,441 |
Loans without a specific valuation allowance, Recorded balance | 80,173 | 76,505 |
Loans without a specific valuation allowance, Unpaid principal balance | 98,480 | 94,180 |
Loans without a specific valuation allowance, Average balance | 78,339 | 72,323 |
Recorded balance | 85,452 | 85,634 |
Unpaid principal balance | 103,765 | 103,310 |
Average balance | 85,543 | 82,764 |
Commercial | Other Commercial | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 10,053 | 8,814 |
Loans with a specific valuation allowance, Unpaid principal balance | 10,190 | 8,929 |
Specific valuation allowance | 5,047 | 4,419 |
Loans with a specific valuation allowance, Average balance | 9,434 | 9,840 |
Loans without a specific valuation allowance, Recorded balance | 16,997 | 15,136 |
Loans without a specific valuation allowance, Unpaid principal balance | 19,350 | 17,724 |
Loans without a specific valuation allowance, Average balance | 16,067 | 15,537 |
Recorded balance | 27,050 | 23,950 |
Unpaid principal balance | 29,540 | 26,653 |
Average balance | 25,501 | 25,377 |
Consumer and Other | Home Equity | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 546 | 334 |
Loans with a specific valuation allowance, Unpaid principal balance | 559 | 345 |
Specific valuation allowance | 551 | 296 |
Loans with a specific valuation allowance, Average balance | 440 | 257 |
Loans without a specific valuation allowance, Recorded balance | 5,903 | 5,600 |
Loans without a specific valuation allowance, Unpaid principal balance | 7,323 | 7,120 |
Loans without a specific valuation allowance, Average balance | 5,751 | 6,004 |
Recorded balance | 6,449 | 5,934 |
Unpaid principal balance | 7,882 | 7,465 |
Average balance | 6,191 | 6,261 |
Consumer and Other | Other Consumer | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 1,108 | 1,092 |
Loans with a specific valuation allowance, Unpaid principal balance | 1,150 | 1,145 |
Specific valuation allowance | 399 | 388 |
Loans with a specific valuation allowance, Average balance | 1,100 | 1,265 |
Loans without a specific valuation allowance, Recorded balance | 1,979 | 2,041 |
Loans without a specific valuation allowance, Unpaid principal balance | 2,059 | 2,110 |
Loans without a specific valuation allowance, Average balance | 2,010 | 2,105 |
Recorded balance | 3,087 | 3,133 |
Unpaid principal balance | 3,209 | 3,255 |
Average balance | $ 3,110 | $ 3,370 |
Loans Receivable Aging Analysis
Loans Receivable Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Loan portfolio aging analysis | |||
Non-accrual loans | $ 50,674 | $ 49,332 | |
Total past due and non-accrual loans | 92,862 | 76,048 | |
Current loans receivable | 5,784,112 | 5,608,415 | |
Total loans receivable | [1] | 5,876,974 | 5,684,463 |
Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 27,122 | 20,599 | |
Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 12,038 | 5,018 | |
Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 3,028 | 1,099 | |
Residential Real Estate | Residential Real Estate | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 5,949 | 4,528 | |
Total past due and non-accrual loans | 11,635 | 12,530 | |
Current loans receivable | 673,823 | 661,817 | |
Total loans receivable | 685,458 | 674,347 | |
Residential Real Estate | Residential Real Estate | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 5,255 | 6,338 | |
Residential Real Estate | Residential Real Estate | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 431 | 1,398 | |
Residential Real Estate | Residential Real Estate | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 0 | 266 | |
Commercial | |||
Loan portfolio aging analysis | |||
Total loans receivable | 4,518,482 | 4,332,391 | |
Commercial | Commercial Real Estate | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 30,277 | 30,216 | |
Total past due and non-accrual loans | 49,874 | 36,194 | |
Current loans receivable | 3,006,498 | 2,953,947 | |
Total loans receivable | 3,056,372 | 2,990,141 | |
Commercial | Commercial Real Estate | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 11,294 | 5,079 | |
Commercial | Commercial Real Estate | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 8,100 | 754 | |
Commercial | Commercial Real Estate | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 203 | 145 | |
Commercial | Other Commercial | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 8,301 | 8,817 | |
Total past due and non-accrual loans | 20,658 | 15,840 | |
Current loans receivable | 1,441,452 | 1,326,410 | |
Total loans receivable | 1,462,110 | 1,342,250 | |
Commercial | Other Commercial | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 7,657 | 5,388 | |
Commercial | Other Commercial | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 2,259 | 1,352 | |
Commercial | Other Commercial | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 2,441 | 283 | |
Consumer and Other | |||
Loan portfolio aging analysis | |||
Total loans receivable | 673,034 | 677,725 | |
Consumer and Other | Home Equity | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 5,619 | 5,240 | |
Total past due and non-accrual loans | 8,151 | 8,714 | |
Current loans receivable | 425,403 | 426,060 | |
Total loans receivable | 433,554 | 434,774 | |
Consumer and Other | Home Equity | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,555 | 2,439 | |
Consumer and Other | Home Equity | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 641 | 844 | |
Consumer and Other | Home Equity | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 336 | 191 | |
Consumer and Other | Other Consumer | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 528 | 531 | |
Total past due and non-accrual loans | 2,544 | 2,770 | |
Current loans receivable | 236,936 | 240,181 | |
Total loans receivable | 239,480 | 242,951 | |
Consumer and Other | Other Consumer | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,361 | 1,355 | |
Consumer and Other | Other Consumer | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 607 | 670 | |
Consumer and Other | Other Consumer | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | $ 48 | $ 214 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,017,000 and $13,372,000 at March 31, 2017 and December 31, 2016, respectively. |
Troubled Debt Restructurings (D
Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Loan | Mar. 31, 2016USD ($)Loan | |
Troubled Debt Restructurings | ||
Troubled debt restructurings, Number of Loans | Loan | 10 | 3 |
Troubled debt restructurings, Pre-modification recorded balance | $ 9,555 | $ 8,959 |
Troubled debt restructurings, Post-modification recorded balance | $ 9,552 | $ 8,959 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 2 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 25 | $ 0 |
Residential Real Estate | Residential Real Estate | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, Number of Loans | Loan | 2 | 0 |
Troubled debt restructurings, Pre-modification recorded balance | $ 280 | $ 0 |
Troubled debt restructurings, Post-modification recorded balance | $ 280 | $ 0 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 |
Commercial | Commercial Real Estate | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, Number of Loans | Loan | 2 | 1 |
Troubled debt restructurings, Pre-modification recorded balance | $ 582 | $ 56 |
Troubled debt restructurings, Post-modification recorded balance | $ 582 | $ 56 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 |
Commercial | Other Commercial | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, Number of Loans | Loan | 4 | 1 |
Troubled debt restructurings, Pre-modification recorded balance | $ 8,530 | $ 8,755 |
Troubled debt restructurings, Post-modification recorded balance | $ 8,530 | $ 8,755 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 1 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 18 | $ 0 |
Consumer and Other | Home Equity | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, Number of Loans | Loan | 1 | 1 |
Troubled debt restructurings, Pre-modification recorded balance | $ 153 | $ 148 |
Troubled debt restructurings, Post-modification recorded balance | $ 153 | $ 148 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 |
Consumer and Other | Other Consumer | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, Number of Loans | Loan | 1 | 0 |
Troubled debt restructurings, Pre-modification recorded balance | $ 10 | $ 0 |
Troubled debt restructurings, Post-modification recorded balance | $ 7 | $ 0 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 1 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 7 | $ 0 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details Textual) | 3 Months Ended | ||
Mar. 31, 2017USD ($)portfolio_segment | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | |
Loans and Leases Receivable Disclosure | |||
Number of segments in the Company's loan portfolio | portfolio_segment | 3 | ||
TDR With Pre Modification Loan Balance for Which Oreo Was Received | $ 514,000 | $ 210,000 | |
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | 2,532,000 | $ 1,770,000 | |
OREO Secured by Residential Real Estate | $ 2,354,000 | $ 2,699,000 |
Net Carrying Value of Goodwill
Net Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Gross carrying value of goodwill and the accumulated impairment charge | |||
Gross carrying value | $ 187,212 | $ 187,212 | |
Accumulated impairment charge | [1] | (40,159) | (40,159) |
Net carrying value | $ 147,053 | $ 147,053 | |
[1] | A goodwill impairment charge was recognized in 2011 and was due to high levels of volatility and dislocation in bank stock prices nationwide. |
Variable Interest Entities VIE
Variable Interest Entities VIE Carrying Amounts Included in Financial Statements (Details) - Consolidated VIEs - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Consolidated VIEs | ||
Assets | $ 45,363 | $ 39,054 |
Liabilities | 8,605 | 4,134 |
Loans Receivable | ||
Consolidated VIEs | ||
Assets | 43,143 | 36,950 |
Accrued Interest Receivable | ||
Consolidated VIEs | ||
Assets | 125 | 120 |
Other assets | ||
Consolidated VIEs | ||
Assets | 2,095 | 1,984 |
Other borrowed funds | ||
Consolidated VIEs | ||
Liabilities | 8,577 | 4,105 |
Accrued interest payable | ||
Consolidated VIEs | ||
Liabilities | 6 | 2 |
Other liabilities | ||
Consolidated VIEs | ||
Liabilities | $ 22 | $ 27 |
Variable Interest Entities Amor
Variable Interest Entities Amortization Expense and Tax Credits and Other Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Investments in Affordable Housing Projects | ||
Amortization expense | $ 503 | $ 255 |
Tax credits and other tax benefits recognized | $ 776 | $ 392 |
Variable Interest Entities (Det
Variable Interest Entities (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entities | ||
Unfunded contingent commitments | $ 18,095,000 | |
Year in which commitments will be fulfilled | 2,017 | |
Impairment losses | $ 0 | |
Other assets | ||
Variable Interest Entities | ||
Carrying value of equity investments in LIHTCs | $ 8,616,000 | $ 7,282,000 |
CDE | ||
Variable Interest Entities | ||
Tax credit period | 7 years | |
LIHTC | ||
Variable Interest Entities | ||
Tax credit period | 10 years | |
Tax credit compliance period | 15 years |
Carrying Value of Repurchase Ag
Carrying Value of Repurchase Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 497,187 | $ 473,650 |
Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 497,187 | 473,007 |
Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 0 | 643 |
Residential mortgage-backed securities | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 484,126 | 472,349 |
Residential mortgage-backed securities | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 484,126 | 471,706 |
Residential mortgage-backed securities | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 0 | 643 |
Commercial mortgage-backed securities | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 13,061 | 1,301 |
Commercial mortgage-backed securities | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 13,061 | 1,301 |
Commercial mortgage-backed securities | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 0 | $ 0 |
Securities Sold Under Agreeme50
Securities Sold Under Agreements to Repurchase Securities Sold Under Agreements to Repurchase (Details Textual) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 497,187,000 | $ 473,650,000 |
Securities Pledged for Repurchase Agreements | $ 478,899,000 | $ 472,239,000 |
Interest Rate Swap Summary (Det
Interest Rate Swap Summary (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Interest Rate Swap One | ||
Interest rate swap derivative financial instruments | ||
Forecasted Notional Amount | $ 160,000 | |
Variable Interest Rate | 3 month LIBOR | [1] |
Fixed Interest Rate | 3.378% | [1] |
Term, Effective Date | Oct. 21, 2014 | |
Term, Maturity Date | Oct. 21, 2021 | |
Interest Rate Swap Two | ||
Interest rate swap derivative financial instruments | ||
Forecasted Notional Amount | $ 100,000 | |
Variable Interest Rate | 3 month LIBOR | [1] |
Fixed Interest Rate | 2.498% | [1] |
Term, Effective Date | Nov. 30, 2015 | |
Term, Maturity Date | Nov. 30, 2022 | |
[1] | The Company pays the fixed interest rate and the counterparty pays the Company the variable interest rate. |
Derivatives and Hedging Activ52
Derivatives and Hedging Activities Interest Rate Swap Gains or Losses (Details) - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest Expense | ||
Pre-Tax Gains or Losses | ||
Amount of loss reclassified from OCI to interest expense | $ (1,332) | $ (1,829) |
Other Non-Interest Expense | ||
Pre-Tax Gains or Losses | ||
Amount of loss recognized in other non-interest expense (ineffective portion) | 0 | 0 |
Other Comprehensive Income | ||
Pre-Tax Gains or Losses | ||
Amount of gain (loss) recognized in OCI (effective portion) | $ 264 | $ (9,928) |
Derivatives and Hedging Activ53
Derivatives and Hedging Activities Offsetting Assets (Details) - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 0 | $ 0 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Financial Position | $ 0 | $ 0 |
Derivatives and Hedging Activ54
Derivatives and Hedging Activities Offsetting Liabilities (Details) - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | $ 13,129 | $ 14,725 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Financial Position | $ 13,129 | $ 14,725 |
Derivatives and Hedging Activ55
Derivatives and Hedging Activities (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest Rate Swap One | ||
Interest rate swap derivative financial instruments | ||
Forecasted Notional Amount | $ 160,000,000 | |
Interest Rate Swap Two | ||
Interest rate swap derivative financial instruments | ||
Forecasted Notional Amount | 100,000,000 | |
Interest Rate Swap | ||
Interest rate swap derivative financial instruments | ||
Interest expense recorded on interest rate swap | 1,976,000 | $ 1,998,000 |
Unrealized loss to be reclassified within twelve months | 5,183,000 | |
Investment securities pledged as collateral | 27,931,000 | |
Collateral pledged from the counterparties to the Company | $ 0 |
Other Expenses (Details)
Other Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Expenses | ||
Debit card expenses | $ 1,718 | $ 1,849 |
Consulting and outside services | 1,420 | 1,014 |
Telephone | 977 | 960 |
Loan expenses | 891 | 783 |
Employee expenses | 789 | 579 |
Postage | 725 | 880 |
Printing and supplies | 640 | 943 |
Accounting and audit fees | 512 | 391 |
VIE amortization and other expenses | 464 | 639 |
Checking and operating expenses | 365 | 694 |
Business development | 340 | 342 |
Legal fees | 340 | 237 |
ATM expenses | 312 | 255 |
Other | 927 | 980 |
Total other expenses | $ 10,420 | $ 10,546 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning | $ (7,382) | $ 1,989 |
Other comprehensive income (loss) before reclassification | 2,069 | 2,249 |
Amounts reclassified from accumulated other comprehensive income (loss) | 901 | 1,083 |
Net current period other comprehensive income (loss) | 2,970 | 3,332 |
Balance, end | (4,412) | 5,321 |
Available-For-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning | 1,639 | 13,935 |
Other comprehensive income (loss) before reclassification | 1,907 | 8,331 |
Amounts reclassified from accumulated other comprehensive income (loss) | 85 | (38) |
Net current period other comprehensive income (loss) | 1,992 | 8,293 |
Balance, end | 3,631 | 22,228 |
Derivatives Used for Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning | (9,021) | (11,946) |
Other comprehensive income (loss) before reclassification | 162 | (6,082) |
Amounts reclassified from accumulated other comprehensive income (loss) | 816 | 1,121 |
Net current period other comprehensive income (loss) | 978 | (4,961) |
Balance, end | $ (8,043) | $ (16,907) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic and Diluted Earnings Per Share | ||
Net income available to common stockholders, basic and diluted | $ 31,255 | $ 28,682 |
Average outstanding shares - basic | 76,572,116 | 76,126,251 |
Add: dilutive restricted stock awards | 61,167 | 47,166 |
Average outstanding shares - diluted | 76,633,283 | 76,173,417 |
Basic earnings per share | $ 0.41 | $ 0.38 |
Diluted earnings per share | $ 0.41 | $ 0.38 |
Earnings Per Share | ||
Restricted stock awards excluded from the diluted average outstanding share calculation | 39,348 | 0 |
Fair Value Measurements on a Re
Fair Value Measurements on a Recurring Basis (Details) - Recurring Measurements - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Total assets measured at fair value on a recurring basis | $ 2,314,521 | $ 2,425,477 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 13,129 | 14,725 |
Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 13,129 | 14,725 |
U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 37,416 | 39,407 |
U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 19,536 | 19,570 |
State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 762,167 | 786,373 |
Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 443,701 | 471,951 |
Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 949,091 | 1,007,515 |
Commercial mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 102,610 | 100,661 |
Level 1 | ||
Financial Assets | ||
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 1 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 0 | 0 |
Level 1 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 1 | U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 1 | State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 1 | Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 1 | Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 2 | ||
Financial Assets | ||
Total assets measured at fair value on a recurring basis | 2,314,521 | 2,425,477 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 13,129 | 14,725 |
Level 2 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 13,129 | 14,725 |
Level 2 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 37,416 | 39,407 |
Level 2 | U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 19,536 | 19,570 |
Level 2 | State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 762,167 | 786,373 |
Level 2 | Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 443,701 | 471,951 |
Level 2 | Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 949,091 | 1,007,515 |
Level 2 | Commercial mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 102,610 | 100,661 |
Level 3 | ||
Financial Assets | ||
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 3 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 0 | 0 |
Level 3 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 3 | U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 3 | State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 3 | Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 3 | Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | $ 0 | $ 0 |
Fair Value Measurements on a No
Fair Value Measurements on a Non-Recurring Basis (Details) - Non-Recurring Measurements - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | $ 147 | $ 7,839 |
Collateral-dependent impaired loans, net of ALLL | 7,601 | 5,664 |
Total assets measured at fair value on a non-recurring basis | 7,748 | 13,503 |
Level 1 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 2 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 3 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 147 | 7,839 |
Collateral-dependent impaired loans, net of ALLL | 7,601 | 5,664 |
Total assets measured at fair value on a non-recurring basis | $ 7,748 | $ 13,503 |
Quantitative Information about
Quantitative Information about Level 3 Fair Value Measurements (Details) - Non-Recurring Measurements - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 7,748 | $ 13,503 | |
Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 7,748 | 13,503 | |
Other real estate owned | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 7,839 | ||
Other real estate owned | Sales Comparison Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 147 | 7,767 | |
Other real estate owned | Combined Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 72 | ||
Other real estate owned | Minimum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | 6.00% |
Adjustment to Comparables | [1] | 0.00% | |
Other real estate owned | Minimum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | |
Adjustment to Comparables | [1] | 10.00% | |
Other real estate owned | Maximum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | 10.00% |
Adjustment to Comparables | [1] | 10.00% | |
Other real estate owned | Maximum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | |
Adjustment to Comparables | [1] | 10.00% | |
Other real estate owned | Weighted Average Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | 6.90% |
Adjustment to Comparables | [1] | 0.10% | |
Other real estate owned | Weighted Average Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | |
Adjustment to Comparables | [1] | 10.00% | |
Collateral-dependent Impaired Loans, Net of ALLL | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 7,601 | $ 5,664 | |
Collateral-dependent Impaired Loans, Net of ALLL | Sales Comparison Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 2,994 | 1,982 | |
Collateral-dependent Impaired Loans, Net of ALLL | Cost Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 5 | 110 | |
Collateral-dependent Impaired Loans, Net of ALLL | Combined Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 4,602 | $ 3,572 | |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | 8.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Cost Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 20.00% | 6.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 10.00% |
Adjustment to Comparables | [1] | 20.00% | 20.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 10.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Cost Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 20.00% | 20.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 10.00% |
Adjustment to Comparables | [1] | 20.00% | 20.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 9.70% | 9.60% |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Cost Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 20.00% | 6.60% |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 10.00% |
Adjustment to Comparables | [1] | 20.00% | 20.00% |
[1] | The range for selling costs and adjustments to comparables indicate reductions to the fair value. |
Carrying Amount and Fair Value
Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | $ 234,004 | $ 152,541 |
Investment securities, available-for-sale | 2,314,521 | 2,425,477 |
Investment securities, held-to-maturity | 667,388 | 675,674 |
Loans held for sale | 25,649 | 72,927 |
Loans receivable, net of ALLL | 5,747,748 | 5,554,891 |
Accrued interest receivable | 48,043 | 45,832 |
Non-marketable equity securities | 23,944 | 25,550 |
Total financial assets | 9,061,297 | 8,952,892 |
Financial liabilities | ||
Deposits | 7,480,157 | 7,372,279 |
FHLB advances | 211,627 | 251,749 |
Repurchase agreements and other borrowed funds | 506,081 | 478,090 |
Subordinated debentures | 126,027 | 125,991 |
Accrued interest payable | 3,467 | 3,584 |
Interest rate swaps | 13,129 | 14,725 |
Total financial liabilities | 8,340,488 | 8,246,418 |
Estimated Fair Value | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 234,004 | 152,541 |
Investment securities, available-for-sale | 0 | 0 |
Investment securities, held-to-maturity | 0 | 0 |
Loans held for sale | 25,649 | 72,927 |
Loans receivable, net of ALLL | 0 | 0 |
Accrued interest receivable | 48,043 | 45,832 |
Non-marketable equity securities | 0 | 0 |
Total financial assets | 307,696 | 271,300 |
Financial liabilities | ||
Deposits | 6,197,583 | 6,090,879 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 3,467 | 3,584 |
Interest rate swaps | 0 | 0 |
Total financial liabilities | 6,201,050 | 6,094,463 |
Estimated Fair Value | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities, available-for-sale | 2,314,521 | 2,425,477 |
Investment securities, held-to-maturity | 680,395 | 689,089 |
Loans held for sale | 0 | 0 |
Loans receivable, net of ALLL | 5,558,406 | 5,380,286 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 23,944 | 25,550 |
Total financial assets | 8,577,266 | 8,520,402 |
Financial liabilities | ||
Deposits | 1,284,399 | 1,283,532 |
FHLB advances | 217,435 | 257,643 |
Repurchase agreements and other borrowed funds | 506,081 | 478,090 |
Subordinated debentures | 89,136 | 85,557 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 13,129 | 14,725 |
Total financial liabilities | 2,110,180 | 2,119,547 |
Estimated Fair Value | Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
Investment securities, held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net of ALLL | 128,299 | 123,382 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 0 | 0 |
Total financial assets | 128,299 | 123,382 |
Financial liabilities | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Subsequent Event | |||
Date of subsequent event | Apr. 30, 2017 | ||
Subsequent Event, Description | On April 30, 2017, the Company acquired 100% of the outstanding common stock of TFB Bancorp, Inc. and its wholly-owned subsidiary, The Foothills Bank, a community bank based in Yuma, Arizona (collectively, “Foothills”). | ||
Total assets | $ 9,553,908,000 | $ 9,450,600,000 | |
Gross loans | [1] | $ 5,876,974,000 | $ 5,684,463,000 |
The Foothills Bank | |||
Subsequent Event | |||
Percentage of Outstanding Common Stock Acquired | 100.00% | ||
Total assets | $ 359,941,000 | ||
Gross loans | 305,239,000 | ||
Total deposits | $ 292,320,000 | ||
[1] | Includes net deferred fees, costs, premiums and discounts of $12,017,000 and $13,372,000 at March 31, 2017 and December 31, 2016, respectively. |