For further information:
Media Contact:
Amy Yuhn
312-564-1378
ayuhn@theprivatebank.com
Investor Relations Contact:
Jeanette O'Loughlin
312-564-6076
joloughlin@theprivatebank.com
PrivateBancorp Reports Fourth Quarter and Full Year 2016 Earnings
Earnings per share up 12 percent from prior year quarter
and up 11 percent for the year
CHICAGO, January 18, 2017 - PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $59.5 million, or $0.73 per diluted share, for the fourth quarter 2016, compared to $52.1 million, or $0.65 per diluted share, for the fourth quarter 2015, and $48.9 million, or $0.60 per diluted share, for the third quarter 2016. For the year ended December 31, 2016, the Company had net income of $208.4 million, or $2.57 per diluted share, compared to $185.3 million, or $2.32 per diluted share, for the year ended December 31, 2015.
“We are pleased with our fourth quarter performance to cap a strong 2016,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. “Through the continued successful execution of our business development efforts, and with the benefit of a rising rate environment, we achieved annual double-digit growth in loans, deposits, revenue and net income as we continued to deliver value for our clients and stockholders in 2016. Our dedicated team members remain focused on executing our strategic priorities and building new client relationships while doing more for existing clients, enabling us to drive our bottom-line results.
“We have built a premier commercial bank that brings an unparalleled level of experience and understanding to our clients,” Richman continued. “Our clients turn to us for solutions that help them grow their businesses. I am pleased with our momentum going into 2017 and look forward to more favorable conditions for the banking industry with continued strengthening in our economy.
“Finally, we continue to work toward the successful completion of our proposed merger with CIBC. The long-term strategic benefits of the transaction remain compelling. We will announce the rescheduled stockholder meeting date when it is established by our Board of Directors.”
Fourth Quarter and Full Year 2016 Highlights
| |
| • | Total loans grew to $15.1 billion, up $1.8 billion from a year ago and $401.7 million from September 30, 2016, driven primarily by activity in commercial and commercial real estate ("CRE") loans. At December 31, 2016, commercial loans represented 64 percent and CRE and construction loans represented 30 percent of total loans, relatively consistent with the comparative periods. |
| |
| • | Total deposits were $16.1 billion, increasing $1.7 billion from a year ago and $576.4 million from September 30, 2016. The loan-to-deposit ratio was 93.7 percent at December 31, 2016, compared to 92.5 percent a year ago and 94.6 percent at September 30, 2016. |
| |
| • | Net interest margin was 3.23 percent, compared to 3.25 percent for the fourth quarter 2015 and 3.18 percent for the third quarter 2016. The sequential improvement in net interest margin reflected higher fees recognized on early loan repayments and higher short-term rates. For the full year 2016, net interest margin increased by four basis points from the prior year, reflecting increased loan yields and the benefit from continued growth in noninterest-bearing funds in a higher rate environment, offset in part by increased costs for interest-bearing funds. |
| |
| • | Growth in earning assets continued to benefit operating profit, which increased 15 percent from the fourth quarter 2015 and 8 percent from the third quarter 2016. For the full year 2016, average interest-earning assets grew $1.9 billion to $17.8 billion and operating profit increased by $47.1 million, or 15 percent, compared to 2015. |
| |
| • | The efficiency ratio was 48.9 percent for the fourth quarter 2016, compared to 48.7 percent for the fourth quarter 2015 and 49.9 percent for the third quarter 2016. For the full year 2016, the efficiency ratio was 50.7 percent, which was impacted by $6.7 million of transaction related expenses. |
| |
| • | Asset quality remained strong, with nonperforming loans representing 0.56 percent of total loans at year end. The provision for loan and covered loan losses was $6.0 million for the fourth quarter 2016, compared to $2.8 million for the fourth quarter 2015 and $15.7 million for the third quarter 2016. |
| |
| • | Return on average assets was 1.21 percent and return on average common equity was 12.4 percent for the fourth quarter 2016. For the full year 2016, return on average assets was 1.13 percent and return on average common equity was 11.4 percent. |
Operating Performance
Net interest income grew to $155.4 million in the fourth quarter 2016, increasing 14 percent from the fourth quarter 2015 and 7 percent from the third quarter 2016, primarily driven by growth in average loans of 13 percent compared to fourth quarter 2015 and 4 percent compared to the third quarter 2016.
Net interest margin was 3.23 percent in the fourth quarter 2016, declining two basis points from a year ago and increasing five basis points from the third quarter 2016. For the full year 2016, net interest margin increased by four basis points from the prior year. Loan yields increased eight basis points from the third quarter 2016, attributable to higher loan fees tied to early loan repayments and continued upwards movement in LIBOR. The level of loan fees tends to be uneven quarter-to-quarter, dependent on when loans pay off during their term as well as whether early termination fees exist. Approximately 70 percent of the loan portfolio at year end was tied to one-month LIBOR, which was 77 basis points at December 31, 2016, compared to 43 basis points a year ago and 53 basis points at September 30, 2016, with most of the fourth quarter 2016 increase occurring in December. The interest rate moves during December 2016 are expected to be more impactful to loan yields during the first quarter 2017, as a meaningful portion of our variable loan portfolio reprices toward the beginning of the month. Excluding the contribution from loan fees, hedging, and the movement in LIBOR, loan yields were stable in the current environment. Deposit costs increased by one basis point from the third quarter 2016 and 10 basis points year-over year, but the impact on margin was mitigated by growth in average noninterest-bearing funds in a higher rate environment. As of year-end 2016, we had $1.7 billion of deposits indexed to the Fed funds effective or target rate, and the full effect of the December 2016 increase in the Fed funds effective rate will be reflected in first quarter 2017 deposit costs. Further interest rate increases, or changing expectations about future short-term interest rate movements, may impact market pricing and competitive dynamics for deposits generally, which may impact overall funding costs in future periods.
Noninterest income was $39.4 million in the fourth quarter 2016, increasing $6.8 million from the fourth quarter 2015 and $1.8 million from the third quarter 2016. Other income included gains related to loan sales of $1.5 million for the fourth quarter 2016 and $1.3 million for the third quarter 2016.
Capital markets revenue of $8.8 million for the fourth quarter 2016 reflected a positive credit valuation adjustment (CVA) of $3.1 million, compared to $1.0 million for the fourth quarter 2015 and $910,000 for the third quarter 2016. Excluding the CVA impact for all periods, capital markets revenue was $5.7 million in the fourth quarter 2016, compared to $5.3 million for the fourth quarter 2015 and $4.5 million for the third quarter 2016. Results for the fourth quarter 2016 reflected higher interest rate derivative activity from the comparative periods. Meaningful interest rate movements in fourth quarter 2016 and changing expectations about the timing and extent of future interest rate movements create potential for increased opportunities in the interest rate derivatives business in 2017.
The continued onboarding of new commercial clients benefited treasury management fees, which increased 12 percent from the fourth quarter 2015 and 3 percent from the third quarter 2016. Syndication fees were $5.1 million for the fourth quarter 2016, compared to $4.8 million for the fourth quarter 2015 and $4.7 million for the third quarter 2016. Syndication fees vary from quarter to quarter depending on the level and mix of loans originated and distributed.
Asset management revenue was $5.3 million in the fourth quarter 2016, increasing 20 percent from the fourth quarter 2015 and declining 6 percent from the third quarter 2016. Assets under management and administration were $9.7 billion at December 31, 2016, compared to $7.3 billion a year ago and $10.0 billion at September 30, 2016. Managed assets remained relatively consistent on a linked quarter basis. Custody assets declined by $351.5 million from September 30, 2016, reflecting a continuation of expected outflows from a large corporate trust account added during the first quarter 2016.
Expenses
Noninterest expense for the fourth quarter 2016 increased $12.8 million from the fourth quarter 2015 and $3.9 million from the third quarter 2016. The efficiency ratio was 48.9 percent for the fourth quarter 2016, compared to 48.7 percent for the fourth quarter 2015 and 49.9 percent for the third quarter 2016.
Higher incentive compensation accruals tied to improved performance primarily drove an increase in salaries and benefits expense of 4 percent from the third quarter 2016. Compared to the fourth quarter 2015, salaries and benefits expense increased 11 percent, primarily reflecting annual salary adjustments made during the first quarter and additional hires over the last year, as well as higher incentives tied to company performance. First quarter 2017 salaries and benefits expense will include seasonally higher payroll taxes and employee benefits.
Other expenses includes the provision for unfunded commitments, which was $1.5 million for the fourth quarter 2016, compared to $1.9 million for the third quarter 2016 and a release of reserves for unfunded commitments of $3.5 million for the fourth quarter 2015.
Credit Quality
The allowance for loan losses was $185.8 million, or 1.23 percent of total loans, at December 31, 2016, compared to $180.3 million, or 1.23 percent of total loans, at September 30, 2016. The provision for loan losses was $6.1 million for the fourth quarter 2016, compared to $2.9 million for the fourth quarter 2015 and $15.9 million for the third quarter 2016. Provision for loan loss for the third quarter 2016 included $5.6 million related to a single lending relationship. The increase in the general reserve from September 30, 2016 reflected strong loan growth and some level of credit migration. Specific reserve levels were relatively consistent on a linked quarter basis. The provision for loan loss will fluctuate from period to period depending on the level of loan growth and unevenness in credit quality due to the size of individual credits. Annualized net charge-offs to average loans were 0.02 percent for the fourth quarter 2016, compared to 0.15 percent for the fourth quarter 2015 and 0.12 percent for the third quarter 2016.
Nonperforming assets were 0.47 percent of total assets at December 31, 2016, compared to 0.52 percent at September 30, 2016. At December 31, 2016, nonperforming loans were $83.7 million, or 0.56 percent of total loans, declining from $87.4 million, or 0.60 percent of total loans, at September 30, 2016. OREO declined $1.8 million from September 30, 2016 to $10.2 million at December 31, 2016.
Balance Sheet
Total assets were $20.1 billion at December 31, 2016, compared to $17.3 billion at December 31, 2015, and $19.1 billion at September 30, 2016. Total loans of $15.1 billion increased 13 percent from December 31, 2015, and 3 percent from September 30, 2016. Loan growth for the fourth quarter 2016 reflected loans to new clients of $652.3 million, partially offset by payoffs being higher than the five-quarter average and lower draws on revolving loans. At December 31, 2016, commercial loans represented 64 percent of total loans, and commercial real estate and construction loans represented 30 percent of total loans, relatively consistent with the prior comparative periods.
Total liabilities were $18.1 billion at December 31, 2016, compared to $15.6 billion at December 31, 2015, and $17.2 billion at September 30, 2016. Total deposits were $16.1 billion at December 31, 2016, increasing 12 percent from December 31, 2015, and 4 percent from September 30, 2016. Similar to prior years, deposit flows were stronger in the second half of 2016 compared to the first half. Deposit growth included an increase in noninterest-bearing demand deposits of $840.9 million from a year ago and $339.1 million from September 30, 2016. During 2016, deposit funding was supplemented with short-term borrowings, which increased by $1.2 billion from December 31, 2015 and $311.0 million from September 30, 2016.
Net accumulated other comprehensive income, net of tax declined $32.3 million from September 30, 2016, largely driven by a change in the value of the available-for-sale securities portfolio as a result of the increase in interest rates during the fourth quarter 2016.
Capital
As of December 31, 2016, the total risk-based capital ratio was 12.49 percent, the Tier 1 risk-based capital ratio was 10.73 percent, and the leverage ratio was 10.28 percent. The common equity Tier 1 ratio was 9.83 percent and the tangible common equity ratio was 9.14 percent at the end of the year end 2016.
Pending Transaction with CIBC
On June 29, 2016, PrivateBancorp announced that it had entered into a definitive agreement for a strategic merger transaction with CIBC, a leading Canadian bank. The completion of the transaction remains subject to the receipt of PrivateBancorp stockholder approval and CIBC’s receipt of required regulatory approvals. As previously announced, the special meeting of stockholders to vote on the transaction, originally scheduled for December 8, 2016, was postponed. The Board of Directors of PrivateBancorp will establish a new record date and meeting date for the special meeting of stockholders, which will be announced once determined.
No Quarterly Conference Call
PrivateBancorp does not intend to conduct an earnings conference call to discuss this quarterly earnings report.
About PrivateBancorp, Inc.
PrivateBancorp, Inc., through its subsidiary The PrivateBank, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities it serves. As of December 31, 2016, the Company had 35 offices in 13 states and $20.1 billion in assets. The Company’s website is www.theprivatebank.com.
Forward-Looking Statements
Statements made in this press release that are not historical facts may constitute forward-looking statements within the meaning of federal securities laws. Our ability to predict results or the actual effects of future plans, strategies or events is inherently uncertain. Factors which could cause actual results to differ from those reflected in forward-looking statements include:
| |
| • | the possibility that the transaction with CIBC does not close when expected or at all because required regulatory, stockholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; or the possibility that, as a result of the announcement and pendency of the proposed transaction, we experience difficulties in employee retention and/or clients or vendors seek to change their existing business relationships with us, or competitors change their strategies to compete against us, any of which may have a negative impact on our business or operations; |
| |
| • | uncertainty regarding geopolitical developments and the U.S. and global economic outlook that may continue to impact market conditions or affect demand for certain banking products and services; |
| |
| • | unanticipated developments in pending or prospective loan transactions or greater-than-expected paydowns or payoffs of existing loans; |
| |
| • | competitive pressures in the financial services industry relating to both pricing and loan structures, which may impact our growth rate; |
| |
| • | unforeseen credit quality problems or changing economic conditions that could result in charge-offs greater than we have anticipated in our allowance for loan losses or changes in value of our investments; |
| |
| • | unanticipated changes in monetary policies of the Federal Reserve or significant adjustments in the pace of, or market expectations for, future interest rate changes; |
| |
| • | availability of sufficient and cost-effective sources of liquidity or funding as and when needed; |
| |
| • | unanticipated losses of one or more large depositor relationships, or other significant deposit outflows; |
| |
| • | loss of key personnel or an inability to recruit appropriate talent cost-effectively; |
| |
| • | greater-than-anticipated costs to support the growth of our business, including investments in technology, process improvements or other infrastructure enhancements, or greater-than-anticipated compliance or regulatory costs and burdens; or |
| |
| • | failures or disruptions to, or compromises of, our data processing or other information or operational systems, including the potential impact of disruptions or security breaches at our third-party service providers. |
These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Readers should also consider the risks, assumptions and uncertainties set forth in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our Form 10-Q for the quarter ended September 30, 2016, as well as those set forth in our subsequent periodic and current reports filed with the SEC. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.
Non-U.S. GAAP Financial Measures
This press release contains both financial measures based on accounting principles generally accepted in the United States (U.S. GAAP) and non-U.S. GAAP based financial measures. We believe that presenting these non-U.S. GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measure, as well as the reconciliation of the non-U.S. GAAP financial measure to the comparable U.S. GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with U.S. GAAP, nor are they necessarily comparable to non-U.S. GAAP performance measures that may be presented by other companies.
Editor's Note: Financial highlights attached. Full financial supplement available on the Company's website at investor.theprivatebank.com.
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| | | | | | | | | | | | | | | |
| Consolidated Income Statements | | | | | | | |
| (Amounts in thousands, except per share data) | | | | | | | |
| | Quarter Ended December 31, | | Year Ended December 31, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| | Unaudited | | Unaudited | | Unaudited | | Audited |
| Interest Income | | | | | | | |
| Loans, including fees | $ | 158,061 |
| | $ | 137,006 |
| | $ | 591,051 |
| | $ | 517,461 |
|
| Federal funds sold and interest-bearing deposits in banks | 422 |
| | 229 |
| | 1,477 |
| | 903 |
|
| Securities: | | | | | | | |
| Taxable | 16,891 |
| | 14,587 |
| | 62,542 |
| | 55,283 |
|
| Exempt from Federal income taxes | 2,375 |
| | 2,306 |
| | 9,326 |
| | 8,270 |
|
| Other interest income | 163 |
| | 115 |
| | 622 |
| | 295 |
|
| Total interest income | 177,912 |
| | 154,243 |
| | 665,018 |
| | 582,212 |
|
| Interest Expense | | | | | | | |
| Deposits | 16,300 |
| | 12,364 |
| | 58,574 |
| | 47,106 |
|
| Short-term borrowings | 1,118 |
| | 201 |
| | 3,413 |
| | 656 |
|
| Long-term debt | 5,113 |
| | 5,087 |
| | 20,605 |
| | 20,035 |
|
| Total interest expense | 22,531 |
| | 17,652 |
| | 82,592 |
| | 67,797 |
|
| Net interest income | 155,381 |
| | 136,591 |
| | 582,426 |
| | 514,415 |
|
| Provision for loan and covered loan losses | 6,048 |
| | 2,831 |
| | 33,710 |
| | 14,790 |
|
| Net interest income after provision for loan and covered loan losses | 149,333 |
| | 133,760 |
| | 548,716 |
| | 499,625 |
|
| Non-interest Income | | | | | | | |
| Asset management | 5,266 |
| | 4,392 |
| | 21,120 |
| | 17,958 |
|
| Mortgage banking | 3,259 |
| | 2,812 |
| | 15,895 |
| | 14,079 |
|
| Capital markets products | 8,824 |
| | 6,341 |
| | 25,323 |
| | 18,530 |
|
| Treasury management | 8,849 |
| | 7,883 |
| | 33,942 |
| | 30,641 |
|
| Loan, letter of credit and commitment fees | 5,312 |
| | 4,958 |
| | 21,343 |
| | 20,648 |
|
| Syndication fees | 5,137 |
| | 4,844 |
| | 20,956 |
| | 17,205 |
|
| Deposit service charges and fees and other income | 2,765 |
| | 1,389 |
| | 8,068 |
| | 10,129 |
|
| Net securities gains | — |
| | 29 |
| | 1,111 |
| | 822 |
|
| Total non-interest income | 39,412 |
| | 32,648 |
| | 147,758 |
| | 130,012 |
|
| Non-interest Expense | | | | | | | |
| Salaries and employee benefits | 58,223 |
| | 52,619 |
| | 227,777 |
| | 205,019 |
|
| Net occupancy and equipment expense | 7,836 |
| | 7,127 |
| | 29,162 |
| | 28,214 |
|
| Technology and related costs | 6,660 |
| | 5,221 |
| | 23,722 |
| | 18,761 |
|
| Marketing | 4,580 |
| | 4,196 |
| | 17,496 |
| | 16,122 |
|
| Professional services | 3,535 |
| | 2,746 |
| | 18,884 |
| | 11,320 |
|
| Outsourced servicing costs | 930 |
| | 1,994 |
| | 6,201 |
| | 7,494 |
|
| Net foreclosed property expenses | 1,633 |
| | 1,217 |
| | 3,524 |
| | 4,210 |
|
| Postage, telephone, and delivery | 823 |
| | 964 |
| | 3,426 |
| | 3,582 |
|
| Insurance | 4,066 |
| | 3,644 |
| | 15,796 |
| | 13,972 |
|
| Loan and collection expense | 2,611 |
| | 1,754 |
| | 8,132 |
| | 8,556 |
|
| Other expenses | 4,947 |
| | 1,538 |
| | 18,353 |
| | 15,987 |
|
| Total non-interest expense | 95,844 |
| | 83,020 |
| | 372,473 |
| | 333,237 |
|
| Income before income taxes | 92,901 |
| | 83,388 |
| | 324,001 |
| | 296,400 |
|
| Income tax provision | 33,353 |
| | 31,251 |
| | 115,644 |
| | 111,089 |
|
| Net income available to common stockholders | $ | 59,548 |
| | $ | 52,137 |
| | $ | 208,357 |
| | $ | 185,311 |
|
| Per Common Share Data | | | | | | | |
| Basic earnings per share | $ | 0.75 |
| | $ | 0.66 |
| | $ | 2.62 |
| | $ | 2.36 |
|
| Diluted earnings per share | $ | 0.73 |
| | $ | 0.65 |
| | $ | 2.57 |
| | $ | 2.32 |
|
| Cash dividends declared | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.04 |
| | $ | 0.04 |
|
| Weighted-average common shares outstanding | 79,189 |
| | 78,366 |
| | 78,900 |
| | 77,968 |
|
| Weighted-average diluted common shares outstanding | 81,083 |
| | 79,738 |
| | 80,484 |
| | 79,206 |
|
Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
|
| | | | | | | | | | | | | | | | | | | |
| Consolidated Income Statements | | | | | | | | | |
| (Amounts in thousands, except per share data) | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | 4Q16 | | 3Q16 | | 2Q16 | | 1Q16 | | 4Q15 |
| Interest Income | | | | | | | | | |
| Loans, including fees | $ | 158,061 |
| | $ | 148,759 |
| | $ | 144,164 |
| | $ | 140,067 |
| | $ | 137,006 |
|
| Federal funds sold and interest-bearing deposits in banks | 422 |
| | 380 |
| | 335 |
| | 340 |
| | 229 |
|
| Securities: | | | | | | | | | |
| Taxable | 16,891 |
| | 15,283 |
| | 15,158 |
| | 15,210 |
| | 14,587 |
|
| Exempt from Federal income taxes | 2,375 |
| | 2,322 |
| | 2,296 |
| | 2,333 |
| | 2,306 |
|
| Other interest income | 163 |
| | 139 |
| | 170 |
| | 150 |
| | 115 |
|
| Total interest income | 177,912 |
| | 166,883 |
| | 162,123 |
| | 158,100 |
| | 154,243 |
|
| Interest Expense | | | | | | | | | |
| Deposits | 16,300 |
| | 15,238 |
| | 13,895 |
| | 13,141 |
| | 12,364 |
|
| Short-term borrowings | 1,118 |
| | 1,070 |
| | 995 |
| | 230 |
| | 201 |
|
| Long-term debt | 5,113 |
| | 5,065 |
| | 5,216 |
| | 5,211 |
| | 5,087 |
|
| Total interest expense | 22,531 |
| | 21,373 |
| | 20,106 |
| | 18,582 |
| | 17,652 |
|
| Net interest income | 155,381 |
| | 145,510 |
| | 142,017 |
| | 139,518 |
| | 136,591 |
|
| Provision for loan and covered loan losses | 6,048 |
| | 15,691 |
| | 5,569 |
| | 6,402 |
| | 2,831 |
|
| Net interest income after provision for loan and covered loan losses | 149,333 |
| | 129,819 |
| | 136,448 |
| | 133,116 |
| | 133,760 |
|
| Non-interest Income | | | | | | | | | |
| Asset management | 5,266 |
| | 5,590 |
| | 5,539 |
| | 4,725 |
| | 4,392 |
|
| Mortgage banking | 3,259 |
| | 5,060 |
| | 4,607 |
| | 2,969 |
| | 2,812 |
|
| Capital markets products | 8,824 |
| | 5,448 |
| | 5,852 |
| | 5,199 |
| | 6,341 |
|
| Treasury management | 8,849 |
| | 8,617 |
| | 8,290 |
| | 8,186 |
| | 7,883 |
|
| Loan, letter of credit and commitment fees | 5,312 |
| | 5,293 |
| | 5,538 |
| | 5,200 |
| | 4,958 |
|
| Syndication fees | 5,137 |
| | 4,721 |
| | 5,664 |
| | 5,434 |
| | 4,844 |
|
| Deposit service charges and fees and other income | 2,765 |
| | 2,885 |
| | 1,060 |
| | 1,358 |
| | 1,389 |
|
| Net securities gains | — |
| | — |
| | 580 |
| | 531 |
| | 29 |
|
| Total non-interest income | 39,412 |
| | 37,614 |
| | 37,130 |
| | 33,602 |
| | 32,648 |
|
| Non-interest Expense | | | | | | | | | |
| Salaries and employee benefits | 58,223 |
| | 55,889 |
| | 55,326 |
| | 58,339 |
| | 52,619 |
|
| Net occupancy and equipment expense | 7,836 |
| | 7,099 |
| | 7,012 |
| | 7,215 |
| | 7,127 |
|
| Technology and related costs | 6,660 |
| | 6,282 |
| | 5,487 |
| | 5,293 |
| | 5,221 |
|
| Marketing | 4,580 |
| | 4,587 |
| | 3,925 |
| | 4,404 |
| | 4,196 |
|
| Professional services | 3,535 |
| | 2,865 |
| | 9,490 |
| | 2,994 |
| | 2,746 |
|
| Outsourced servicing costs | 930 |
| | 1,379 |
| | 2,052 |
| | 1,840 |
| | 1,994 |
|
| Net foreclosed property expenses | 1,633 |
| | 965 |
| | 360 |
| | 566 |
| | 1,217 |
|
| Postage, telephone, and delivery | 823 |
| | 818 |
| | 945 |
| | 840 |
| | 964 |
|
| Insurance | 4,066 |
| | 3,931 |
| | 3,979 |
| | 3,820 |
| | 3,644 |
|
| Loan and collection expense | 2,611 |
| | 1,972 |
| | 2,017 |
| | 1,532 |
| | 1,754 |
|
| Other expenses | 4,947 |
| | 6,133 |
| | 3,623 |
| | 3,650 |
| | 1,538 |
|
| Total non-interest expense | 95,844 |
| | 91,920 |
| | 94,216 |
| | 90,493 |
| | 83,020 |
|
| Income before income taxes | 92,901 |
| | 75,513 |
| | 79,362 |
| | 76,225 |
| | 83,388 |
|
| Income tax provision | 33,353 |
| | 26,621 |
| | 28,997 |
| | 26,673 |
| | 31,251 |
|
| Net income available to common stockholders | $ | 59,548 |
| | $ | 48,892 |
| | $ | 50,365 |
| | $ | 49,552 |
| | $ | 52,137 |
|
| Per Common Share Data | | | | | | | | | |
| Basic earnings per share | $ | 0.75 |
| | $ | 0.61 |
| | $ | 0.63 |
| | $ | 0.63 |
| | $ | 0.66 |
|
| Diluted earnings per share | $ | 0.73 |
| | $ | 0.60 |
| | $ | 0.62 |
| | $ | 0.62 |
| | $ | 0.65 |
|
| Cash dividends declared | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.01 |
|
| Weighted-average common shares outstanding | 79,189 |
| | 79,007 |
| | 78,849 |
| | 78,550 |
| | 78,366 |
|
| Weighted-average diluted common shares outstanding | 81,083 |
| | 80,673 |
| | 80,317 |
| | 79,856 |
| | 79,738 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Consolidated Balance Sheets | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | |
| | 12/31/16 | | 9/30/16 | | 6/30/16 | | 3/31/16 | | 12/31/15 |
| | Unaudited | | Unaudited | | Unaudited | | Unaudited | | Audited |
| Assets | | | | | | | | | |
| Cash and due from banks | $ | 161,168 |
| | $ | 166,607 |
| | $ | 155,292 |
| | $ | 133,001 |
| | $ | 145,147 |
|
| Federal funds sold and interest-bearing deposits in banks | 587,563 |
| | 245,193 |
| | 230,036 |
| | 337,465 |
| | 238,511 |
|
| Loans held-for-sale | 103,284 |
| | 75,438 |
| | 61,360 |
| | 64,029 |
| | 108,798 |
|
| Securities available-for-sale, at fair value | 2,013,525 |
| | 1,961,099 |
| | 1,864,636 |
| | 1,831,848 |
| | 1,765,366 |
|
| Securities held-to-maturity, at amortized cost | 1,738,123 |
| | 1,633,235 |
| | 1,435,334 |
| | 1,456,760 |
| | 1,355,283 |
|
| Federal Home Loan Bank ("FHLB") stock | 54,163 |
| | 30,213 |
| | 21,113 |
| | 38,113 |
| | 26,613 |
|
| Loans – excluding covered assets, net of unearned fees | 15,056,241 |
| | 14,654,570 |
| | 14,035,808 |
| | 13,457,665 |
| | 13,266,475 |
|
| Allowance for loan losses | (185,765 | ) | | (180,268 | ) | | (168,615 | ) | | (165,356 | ) | | (160,736 | ) |
| Loans, net of allowance for loan losses and unearned fees | 14,870,476 |
| | 14,474,302 |
| | 13,867,193 |
| | 13,292,309 |
| | 13,105,739 |
|
| Covered assets | 22,063 |
| | 23,889 |
| | 25,151 |
| | 25,769 |
| | 26,954 |
|
| Allowance for covered loan losses | (4,766 | ) | | (4,879 | ) | | (5,525 | ) | | (5,526 | ) | | (5,712 | ) |
| Covered assets, net of allowance for covered loan losses | 17,297 |
| | 19,010 |
| | 19,626 |
| | 20,243 |
| | 21,242 |
|
| Other real estate owned, excluding covered assets | 10,203 |
| | 12,035 |
| | 14,532 |
| | 14,806 |
| | 7,273 |
|
| Premises, furniture, and equipment, net | 46,967 |
| | 44,760 |
| | 43,394 |
| | 41,717 |
| | 42,405 |
|
| Accrued interest receivable | 57,986 |
| | 48,512 |
| | 47,209 |
| | 47,349 |
| | 45,482 |
|
| Investment in bank owned life insurance | 58,115 |
| | 57,750 |
| | 57,380 |
| | 57,011 |
| | 56,653 |
|
| Goodwill | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
|
| Other intangible assets | 1,269 |
| | 1,809 |
| | 2,349 |
| | 2,890 |
| | 3,430 |
|
| Derivative assets | 27,965 |
| | 62,094 |
| | 80,995 |
| | 66,406 |
| | 40,615 |
|
Other assets | 211,628 |
| | 179,462 |
| | 174,701 |
| | 169,384 |
| | 196,250 |
|
Total assets | $ | 20,053,773 |
| | $ | 19,105,560 |
| | $ | 18,169,191 |
| | $ | 17,667,372 |
| | $ | 17,252,848 |
|
| Liabilities | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest-bearing | $ | 5,196,587 |
| | $ | 4,857,470 |
| | $ | 4,511,893 |
| | $ | 4,338,177 |
| | $ | 4,355,700 |
|
| Interest-bearing | 10,868,642 |
| | 10,631,384 |
| | 10,045,501 |
| | 10,126,692 |
| | 9,989,892 |
|
| Total deposits | 16,065,229 |
| | 15,488,854 |
| | 14,557,394 |
| | 14,464,869 |
| | 14,345,592 |
|
| Short-term borrowings | 1,544,746 |
| | 1,233,318 |
| | 1,287,934 |
| | 602,365 |
| | 372,467 |
|
| Long-term debt | 338,310 |
| | 338,286 |
| | 338,262 |
| | 688,238 |
| | 688,215 |
|
| Accrued interest payable | 9,063 |
| | 7,953 |
| | 7,967 |
| | 6,630 |
| | 7,080 |
|
| Derivative liabilities | 18,122 |
| | 19,236 |
| | 27,940 |
| | 22,498 |
| | 18,229 |
|
| Other liabilities | 158,628 |
| | 135,559 |
| | 118,544 |
| | 114,781 |
| | 122,314 |
|
Total liabilities | 18,134,098 |
| | 17,223,206 |
| | 16,338,041 |
| | 15,899,381 |
| | 15,553,897 |
|
| Equity | | | | | | | | | |
| Common stock | 79,313 |
| | 79,101 |
| | 78,918 |
| | 78,894 |
| | 78,439 |
|
| Treasury stock | — |
| | — |
| | — |
| | (4,389 | ) | | (103 | ) |
| Additional paid-in capital | 1,101,946 |
| | 1,091,275 |
| | 1,082,173 |
| | 1,078,470 |
| | 1,071,674 |
|
| Retained earnings | 736,798 |
| | 678,059 |
| | 629,976 |
| | 580,418 |
| | 531,682 |
|
| Accumulated other comprehensive income, net of tax | 1,618 |
| | 33,919 |
| | 40,083 |
| | 34,598 |
| | 17,259 |
|
| Total equity | 1,919,675 |
| | 1,882,354 |
| | 1,831,150 |
| | 1,767,991 |
| | 1,698,951 |
|
Total liabilities and equity | $ | 20,053,773 |
| | $ | 19,105,560 |
| | $ | 18,169,191 |
| | $ | 17,667,372 |
| | $ | 17,252,848 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| Selected Financial Data | | | | | | | | | | |
| (Amounts in thousands, except per share data) | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | |
| | 4Q16 | | 3Q16 | | 2Q16 | | 1Q16 | | 4Q15 | |
| Selected Statement of Income Data: | | | | | | | | | | |
| Net interest income | $ | 155,381 |
| | $ | 145,510 |
| | $ | 142,017 |
| | $ | 139,518 |
| | $ | 136,591 |
| |
Net revenue (1)(2) | $ | 196,027 |
| | $ | 184,331 |
| | $ | 180,341 |
| | $ | 174,337 |
| | $ | 170,445 |
| |
Operating profit (1)(2) | $ | 100,183 |
| | $ | 92,411 |
| | $ | 86,125 |
| | $ | 83,844 |
| | $ | 87,425 |
| |
| Provision for loan and covered loan losses | $ | 6,048 |
| | $ | 15,691 |
| | $ | 5,569 |
| | $ | 6,402 |
| | $ | 2,831 |
| |
| Income before income taxes | $ | 92,901 |
| | $ | 75,513 |
| | $ | 79,362 |
| | $ | 76,225 |
| | $ | 83,388 |
| |
| Net income available to common stockholders | $ | 59,548 |
| | $ | 48,892 |
| | $ | 50,365 |
| | $ | 49,552 |
| | $ | 52,137 |
| |
| Per Common Share Data: | | | | | | | | | | |
| Basic earnings per share | $ | 0.75 |
| | $ | 0.61 |
| | $ | 0.63 |
| | $ | 0.63 |
| | $ | 0.66 |
| |
| Diluted earnings per share | $ | 0.73 |
| | $ | 0.60 |
| | $ | 0.62 |
| | $ | 0.62 |
| | $ | 0.65 |
| |
| Dividends declared | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.01 |
| |
Book value (period end) (1) | $ | 24.04 |
| | $ | 23.64 |
| | $ | 23.04 |
| | $ | 22.29 |
| | $ | 21.48 |
| |
Tangible book value (period end) (1)(2) | $ | 22.85 |
| | $ | 22.43 |
| | $ | 21.83 |
| | $ | 21.07 |
| | $ | 20.25 |
| |
| Market value (period end) | $ | 54.19 |
| | $ | 45.92 |
| | $ | 44.03 |
| | $ | 38.60 |
| | $ | 41.02 |
| |
| Book value multiple (period end) | 2.25 |
| x | 1.94 |
| x | 1.91 |
| x | 1.73 |
| x | 1.91 |
| x |
| Share Data: | | | | | | | | | | |
| Weighted-average common shares outstanding | 79,189 |
| | 79,007 |
| | 78,849 |
| | 78,550 |
| | 78,366 |
| |
| Weighted-average diluted common shares outstanding | 81,083 |
| | 80,673 |
| | 80,317 |
| | 79,856 |
| | 79,738 |
| |
| Common shares issued (period end) | 79,849 |
| | 79,640 |
| | 79,464 |
| | 79,443 |
| | 79,099 |
| |
| Common shares outstanding (period end) | 79,849 |
| | 79,640 |
| | 79,464 |
| | 79,322 |
| | 79,097 |
| |
| Performance Ratio: | | | | | | | | | | |
| Return on average common equity | 12.40 | % | | 10.40 | % | | 11.20 | % | | 11.40 | % | | 12.29 | % | |
| Return on average assets | 1.21 | % | | 1.04 | % | | 1.14 | % | | 1.15 | % | | 1.21 | % | |
Return on average tangible common equity (1)(2) | 13.12 | % | | 11.04 | % | | 11.91 | % | | 12.16 | % | | 13.13 | % | |
Net interest margin (1)(2) | 3.23 | % | | 3.18 | % | | 3.28 | % | | 3.30 | % | | 3.25 | % | |
Fee revenue as a percent of total revenue (1) | 20.23 | % | | 20.54 | % | | 20.47 | % | | 19.16 | % | | 19.28 | % | |
| Non-interest income to average assets | 0.80 | % | | 0.80 | % | | 0.84 | % | | 0.78 | % | | 0.75 | % | |
| Non-interest expense to average assets | 1.95 | % | | 1.96 | % | | 2.12 | % | | 2.09 | % | | 1.92 | % | |
Net overhead ratio (1) | 1.15 | % | | 1.16 | % | | 1.29 | % | | 1.32 | % | | 1.16 | % | |
Efficiency ratio (1)(2) | 48.89 | % | | 49.87 | % | | 52.24 | % | | 51.91 | % | | 48.71 | % | |
| Balance Sheet Ratios: | | | | | | | | | | |
Loans to deposits (period end) (3) | 93.72 | % | | 94.61 | % | | 96.42 | % | | 93.04 | % | | 92.48 | % | |
| Average interest-earning assets to average interest-bearing liabilities | 155.71 | % | | 153.16 | % | | 151.10 | % | | 153.64 | % | | 152.94 | % | |
| Capital Ratios (period end): | | | | | | | | | | |
Total risk-based capital (1) | 12.49 | % | | 12.41 | % | | 12.42 | % | | 12.56 | % | | 12.37 | % | |
Tier 1 risk-based capital (1) | 10.73 | % | | 10.64 | % | | 10.66 | % | | 10.76 | % | | 10.56 | % | |
Tier 1 leverage ratio (1) | 10.28 | % | | 10.43 | % | | 10.56 | % | | 10.50 | % | | 10.35 | % | |
Common equity Tier 1 (1) | 9.83 | % | | 9.71 | % | | 9.70 | % | | 9.76 | % | | 9.54 | % | |
Tangible common equity to tangible assets (1)(2) | 9.14 | % | | 9.40 | % | | 9.60 | % | | 9.51 | % | | 9.34 | % | |
| Total equity to total assets | 9.57 | % | | 9.85 | % | | 10.08 | % | | 10.01 | % | | 9.85 | % | |
| |
(1) | Refer to Glossary of Terms for definition. |
| |
(2) | This is a non-U.S. GAAP financial measure. Refer to "Non-U.S. GAAP Financial Measures" for a reconciliation from non-U.S. GAAP to U.S. GAAP. |
| |
(3) | Excludes covered assets. Refer to Glossary of Terms for definition. |
|
| | | | | | | | | | | | | | | | | | | |
| Selected Financial Data (continued) | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | 4Q16 | | 3Q16 | | 2Q16 | | 1Q16 | | 4Q15 |
| Additional Selected Information: | | | | | | | | | |
Decrease (increase) credit valuation adjustment on capital markets derivatives (1) | $ | 3,112 |
| | $ | 910 |
| | $ | (1,033 | ) | | $ | (1,904 | ) | | $ | 1,043 |
|
| Salaries and employee benefits: | | | | | | | | | |
| Salaries and wages | $ | 30,974 |
| | $ | 30,923 |
| | $ | 30,335 |
| | $ | 28,963 |
| | $ | 28,113 |
|
| Share-based costs | 5,034 |
| | 4,728 |
| | 4,618 |
| | 6,357 |
| | 4,871 |
|
| Incentive compensation and commissions | 17,144 |
| | 15,604 |
| | 15,882 |
| | 13,307 |
| | 14,676 |
|
| Payroll taxes, insurance and retirement costs | 5,071 |
| | 4,634 |
| | 4,491 |
| | 9,712 |
| | 4,959 |
|
| Total salaries and employee benefits | $ | 58,223 |
| | $ | 55,889 |
| | $ | 55,326 |
| | $ | 58,339 |
| | $ | 52,619 |
|
| Loan and collection expense: | | | | | | | | | |
| Loan origination and servicing expense | $ | 1,281 |
| | $ | 1,716 |
| | $ | 1,666 |
| | $ | 1,297 |
| | $ | 1,445 |
|
| Loan remediation expense | 1,330 |
| | 256 |
| | 351 |
| | 235 |
| | 309 |
|
| Total loan and collection expense | $ | 2,611 |
| | $ | 1,972 |
| | $ | 2,017 |
| | $ | 1,532 |
| | $ | 1,754 |
|
| Transaction related expenses | $ | 329 |
| | $ | 106 |
| | $ | 6,270 |
| | $ | — |
| | $ | — |
|
| Assets under management and administration (AUMA): | | | | | | | | | |
| Personal managed | $ | 2,046,758 |
| | $ | 2,068,772 |
| | $ | 2,017,797 |
| | $ | 1,867,572 |
| | $ | 1,872,737 |
|
| Corporate and institutional managed | 2,643,041 |
| | 2,653,264 |
| | 2,526,043 |
| | 1,592,394 |
| | 1,787,187 |
|
| Total managed assets | 4,689,799 |
| | 4,722,036 |
| | 4,543,840 |
| | 3,459,966 |
| | 3,659,924 |
|
| Custody assets | 4,975,269 |
| | 5,326,757 |
| | 6,145,445 |
| | 6,161,827 |
| | 3,631,149 |
|
| Total AUMA | $ | 9,665,068 |
| | $ | 10,048,793 |
| | $ | 10,689,285 |
| | $ | 9,621,793 |
| | $ | 7,291,073 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Basic and Diluted Earnings per Common Share | | | | | | | | | |
| (Amounts in thousands, except per share data) | | | | | | | | | |
| | 4Q16 | | 3Q16 | | 2Q16 | | 1Q16 | | 4Q15 |
| Basic earnings per common share | | | | | | | | | |
| Net income | $ | 59,548 |
| | $ | 48,892 |
| | $ | 50,365 |
| | $ | 49,552 |
| | $ | 52,137 |
|
Net income allocated to participating stockholders (2) | (475 | ) | | (379 | ) | | (381 | ) | | (425 | ) | | (412 | ) |
| Net income allocated to common stockholders | $ | 59,073 |
| | $ | 48,513 |
| | $ | 49,984 |
| | $ | 49,127 |
| | $ | 51,725 |
|
| Weighted-average common shares outstanding | 79,189 |
| | 79,007 |
| | 78,849 |
| | 78,550 |
| | 78,366 |
|
| Basic earnings per common share | $ | 0.75 |
| | $ | 0.61 |
| | $ | 0.63 |
| | $ | 0.63 |
| | $ | 0.66 |
|
| Diluted earnings per common share | | | | | | | | | |
Diluted earnings applicable to common stockholders (3) | $ | 59,084 |
| | $ | 48,520 |
| | $ | 49,990 |
| | $ | 49,134 |
| | $ | 51,729 |
|
| Weighted-average diluted common shares outstanding: | | | | | | | | | |
| Weighted-average common shares outstanding | 79,189 |
| | 79,007 |
| | 78,849 |
| | 78,550 |
| | 78,366 |
|
| Dilutive effect of stock awards | 1,894 |
| | 1,666 |
| | 1,468 |
| | 1,306 |
| | 1,372 |
|
| Weighted-average diluted common shares outstanding | 81,083 |
| | 80,673 |
| | 80,317 |
| | 79,856 |
| | 79,738 |
|
| Diluted earnings per common share | $ | 0.73 |
| | $ | 0.60 |
| | $ | 0.62 |
| | $ | 0.62 |
| | $ | 0.65 |
|
| |
(1) | Refer to Glossary of Terms for definition. |
| |
(2) | Participating stockholders are those that hold certain share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. Such shares or units are considered participating securities (i.e., certain of the Company’s deferred, restricted stock and performance share units, and nonvested restricted stock awards). |
| |
(3) | Net income allocated to common stockholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common stock equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate earnings to common stockholders and participating securities for the purposes of calculating diluted earnings per share. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan Portfolio Composition (excluding covered assets (1)) | | | | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | | | | | | | | |
| | 12/31/16 | | % of Total | | 9/30/16 | | % of Total | | 6/30/16 | | % of Total | | 3/31/16 | | % of Total | | 12/31/15 | | % of Total |
| | Unaudited | | | | Unaudited | | | | Unaudited | | | | Unaudited | | | | Audited | | |
| Commercial and industrial | $ | 7,506,977 |
| | 50 | % | | $ | 7,446,754 |
| | 51 | % | | $ | 7,141,069 |
| | 51 | % | | $ | 6,812,596 |
| | 51 | % | | $ | 6,747,389 |
| | 51 | % |
| Commercial - owner-occupied CRE | 2,142,068 |
| | 14 | % | | 2,062,614 |
| | 14 | % | | 1,889,400 |
| | 13 | % | | 1,865,242 |
| | 14 | % | | 1,888,238 |
| | 14 | % |
| Total commercial | 9,649,045 |
| | 64 | % | | 9,509,368 |
| | 65 | % | | 9,030,469 |
| | 64 | % | | 8,677,838 |
| | 65 | % | | 8,635,627 |
| | 65 | % |
| Commercial real estate | 3,127,373 |
| | 21 | % | | 2,946,687 |
| | 20 | % | | 2,860,618 |
| | 20 | % | | 2,705,694 |
| | 20 | % | | 2,629,873 |
| | 20 | % |
| Commercial real estate - multi-family | 993,352 |
| | 6 | % | | 883,850 |
| | 6 | % | | 787,792 |
| | 6 | % | | 764,292 |
| | 5 | % | | 722,637 |
| | 5 | % |
| Total commercial real estate | 4,120,725 |
| | 27 | % | | 3,830,537 |
| | 26 | % | | 3,648,410 |
| | 26 | % | | 3,469,986 |
| | 25 | % | | 3,352,510 |
| | 25 | % |
| Construction | 417,955 |
| | 3 | % | | 496,773 |
| | 3 | % | | 552,183 |
| | 4 | % | | 537,304 |
| | 4 | % | | 522,263 |
| | 4 | % |
| Residential real estate | 581,757 |
| | 4 | % | | 525,836 |
| | 4 | % | | 497,709 |
| | 4 | % | | 477,263 |
| | 4 | % | | 461,412 |
| | 4 | % |
| Home equity | 119,049 |
| | 1 | % | | 124,367 |
| | 1 | % | | 127,967 |
| | 1 | % | | 126,096 |
| | 1 | % | | 129,317 |
| | 1 | % |
| Personal | 167,710 |
| | 1 | % | | 167,689 |
| | 1 | % | | 179,070 |
| | 1 | % | | 169,178 |
| | 1 | % | | 165,346 |
| | 1 | % |
| Total loans | $ | 15,056,241 |
| | 100 | % | | $ | 14,654,570 |
| | 100 | % | | $ | 14,035,808 |
| | 100 | % | | $ | 13,457,665 |
| | 100 | % | | $ | 13,266,475 |
| | 100 | % |
Total new loans to new clients (2) | $ | 652,251 |
| | | | $ | 456,360 |
| | | | $ | 421,860 |
| | | | $ | 396,599 |
| | | | $ | 498,496 |
| | |
| |
(1) | Refer to Glossary of Terms for definition. |
| |
(2) | Amounts are unaudited. |
|
| | | | | | | | | | | | | | | | | | | | |
| Commercial Loan Portfolio Composition by Industry Segment | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | |
| (Classified pursuant to the North American Industrial Classification System standard industry descriptions and represents our client's primary business activity) | | | | |
| | December 31, 2016 | | September 30, 2016 | | December 31, 2015 |
| | Amount | | % of Total | | Amount | | % of Total | | Amount | | % of Total |
| Manufacturing | $ | 1,843,901 |
| | 19 | % | | $ | 1,957,888 |
| | 21 | % | | $ | 1,810,085 |
| | 21 | % |
| Healthcare | 2,016,041 |
| | 21 | % | | 1,939,350 |
| | 20 | % | | 1,807,764 |
| | 21 | % |
| Finance and insurance | 1,669,453 |
| | 17 | % | | 1,603,178 |
| | 17 | % | | 1,333,363 |
| | 15 | % |
| Wholesale trade | 860,657 |
| | 9 | % | | 815,370 |
| | 9 | % | | 768,571 |
| | 9 | % |
| Professional, scientific and technical services | 617,264 |
| | 6 | % | | 599,732 |
| | 6 | % | | 574,278 |
| | 7 | % |
| Real estate, rental and leasing | 583,701 |
| | 6 | % | | 537,135 |
| | 6 | % | | 542,437 |
| | 6 | % |
| Administrative, support, waste management and remediation | 537,491 |
| | 6 | % | | 499,734 |
| | 5 | % | | 481,827 |
| | 5 | % |
| Architecture, engineering and construction | 298,191 |
| | 3 | % | | 280,378 |
| | 3 | % | | 252,351 |
| | 3 | % |
| Telecommunication and publishing | 250,941 |
| | 3 | % | | 243,865 |
| | 3 | % | | 203,994 |
| | 2 | % |
| Retail | 231,739 |
| | 2 | % | | 241,295 |
| | 3 | % | | 228,935 |
| | 3 | % |
All other (1) | 739,666 |
| | 8 | % | | 791,443 |
| | 7 | % | | 632,022 |
| | 8 | % |
Total commercial (2) | $ | 9,649,045 |
| | 100 | % | | $ | 9,509,368 |
| | 100 | % | | $ | 8,635,627 |
| | 100 | % |
| |
(1) | All other consists of numerous smaller balances across a variety of industries with no category greater than 2% of total loans. |
| |
(2) | Includes owner-occupied commercial real estate of $2.1 billion at both December 31, 2016 and September 30, 2016 and $1.9 billion at December 31, 2015. |
|
| | | | | | | | | | | | | | | | | | | | |
| Commercial Real Estate and Construction Loan Portfolio by Collateral Type | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | |
| | December 31, 2016 | | September 30, 2016 | | December 31, 2015 |
| | Amount | | % of Total | | Amount | | % of Total | | Amount | | % of Total |
| Commercial Real Estate | | | | | | | | | | | |
| Multi-family | $ | 993,352 |
| | 24 | % | | $ | 883,850 |
| | 23 | % | | $ | 722,637 |
| | 22 | % |
| Retail | 822,811 |
| | 20 | % | | 799,484 |
| | 21 | % | | 763,179 |
| | 23 | % |
| Office | 716,775 |
| | 17 | % | | 709,493 |
| | 19 | % | | 572,711 |
| | 17 | % |
| Healthcare | 371,961 |
| | 9 | % | | 346,675 |
| | 9 | % | | 335,918 |
| | 10 | % |
| Industrial/warehouse | 493,257 |
| | 12 | % | | 417,314 |
| | 11 | % | | 319,958 |
| | 9 | % |
| Land | 232,756 |
| | 6 | % | | 221,090 |
| | 6 | % | | 247,190 |
| | 7 | % |
| Residential 1-4 family | 56,730 |
| | 1 | % | | 53,524 |
| | 1 | % | | 86,214 |
| | 3 | % |
| Mixed use/other | 433,083 |
| | 11 | % | | 399,107 |
| | 10 | % | | 304,703 |
| | 9 | % |
| Total commercial real estate | $ | 4,120,725 |
| | 100 | % | | $ | 3,830,537 |
| | 100 | % | | $ | 3,352,510 |
| | 100 | % |
| Construction | | | | | | | | | | | |
| Multi-family | $ | 121,983 |
| | 29 | % | | $ | 190,744 |
| | 38 | % | | $ | 130,020 |
| | 25 | % |
| Healthcare | 22,027 |
| | 5 | % | | 32,063 |
| | 6 | % | | 62,460 |
| | 12 | % |
| Retail | 61,791 |
| | 15 | % | | 77,878 |
| | 16 | % | | 107,327 |
| | 21 | % |
| Office | 18,800 |
| | 4 | % | | 49,663 |
| | 10 | % | | 84,459 |
| | 16 | % |
| Condominiums | 36,846 |
| | 9 | % | | 30,629 |
| | 6 | % | | 37,451 |
| | 7 | % |
| Industrial/warehouse | 77,079 |
| | 18 | % | | 55,470 |
| | 11 | % | | 46,530 |
| | 9 | % |
| Residential 1-4 family | 26,013 |
| | 6 | % | | 21,048 |
| | 4 | % | | 21,849 |
| | 4 | % |
| Land | — |
| | — | % | | 1,648 |
| | * |
| | — |
| | — | % |
| Mixed use/other | 53,416 |
| | 14 | % | | 37,630 |
| | 9 | % | | 32,167 |
| | 6 | % |
| Total construction | $ | 417,955 |
| | 100 | % | | $ | 496,773 |
| | 100 | % | | $ | 522,263 |
| | 100 | % |
|
| | | | | | | | | | | | | | | | | | | |
Asset Quality (excluding covered assets (1)) | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | 4Q16 | | 3Q16 | | 2Q16 | | 1Q16 | | 4Q15 |
| Credit Quality Key Ratios | | | | | | | | | |
| Net charge-offs (annualized) to average loans | 0.02 | % | | 0.12 | % | | 0.07 | % | | 0.05 | % | | 0.15 | % |
| Nonperforming loans to total loans | 0.56 | % | | 0.60 | % | | 0.47 | % | | 0.44 | % | | 0.41 | % |
| Nonperforming loans to total assets | 0.42 | % | | 0.46 | % | | 0.36 | % | | 0.33 | % | | 0.31 | % |
| Nonperforming assets to total assets | 0.47 | % | | 0.52 | % | | 0.44 | % | | 0.42 | % | | 0.35 | % |
| Allowance for loan losses to: | | | | | | | | | |
| Total loans | 1.23 | % | | 1.23 | % | | 1.20 | % | | 1.23 | % | | 1.21 | % |
| Nonperforming loans | 222 | % | | 206 | % | | 258 | % | | 280 | % | | 299 | % |
| Nonperforming assets | | | | | | | | | |
| Loans past due 90 days and accruing | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
|
| Nonaccrual loans | 83,688 |
| | 87,372 |
| | 65,424 |
| | 59,070 |
| | 53,749 |
|
| OREO | 10,203 |
| | 12,035 |
| | 14,532 |
| | 14,806 |
| | 7,273 |
|
| Total nonperforming assets | $ | 93,891 |
| | $ | 99,407 |
| | $ | 79,956 |
| | $ | 73,876 |
| | $ | 61,022 |
|
| Restructured loans accruing interest | $ | 66,002 |
| | $ | 64,265 |
| | $ | 43,177 |
| | $ | 28,835 |
| | $ | 16,546 |
|
| Loans past due and still accruing | | | | | | | | | |
| 30-59 days | $ | 9,847 |
| | $ | 2,242 |
| | $ | 3,827 |
| | $ | 14,772 |
| | $ | 7,452 |
|
| 60-89 days | 741 |
| | 3,132 |
| | 10,695 |
| | 960 |
| | 1,615 |
|
| Total loans past due and still accruing | $ | 10,588 |
| | $ | 5,374 |
| | $ | 14,522 |
| | $ | 15,732 |
| | $ | 9,067 |
|
| Special mention loans | $ | 179,611 |
| | $ | 145,204 |
| | $ | 154,691 |
| | $ | 121,239 |
| | $ | 120,028 |
|
| Potential problem loans | $ | 123,345 |
| | $ | 133,533 |
| | $ | 98,817 |
| | $ | 136,322 |
| | $ | 132,398 |
|
| | | | | | | | | | |
| | | | | | | | | | |
| Nonperforming Loans Rollforward | | | | | | | | | |
| Beginning balance | $ | 87,372 |
| | $ | 65,424 |
| | $ | 59,070 |
| | $ | 53,749 |
| | $ | 43,982 |
|
| Additions: | | | | | | | | | |
| New nonaccrual loans | 5,388 |
| | 40,513 |
| | 17,076 |
| | 24,720 |
| | 19,969 |
|
| Reductions: | | | | | | | | | |
| Return to performing status | — |
| | (1,161 | ) | | — |
| | (907 | ) | | (614 | ) |
| Paydowns and payoffs, net of advances | (7,832 | ) | | (11,720 | ) | | (7,185 | ) | | (6,920 | ) | | (997 | ) |
| Net sales | (377 | ) | | (450 | ) | | (8 | ) | | — |
| | (393 | ) |
| Transfer to OREO | (76 | ) | | (130 | ) | | (674 | ) | | (9,294 | ) | | (1,141 | ) |
| Transfer to loans held for sale | — |
| | — |
| | — |
| | — |
| | (667 | ) |
| Charge-offs | (787 | ) | | (5,104 | ) | | (2,855 | ) | | (2,278 | ) | | (6,390 | ) |
| Total reductions | (9,072 | ) | | (18,565 | ) | | (10,722 | ) | | (19,399 | ) | | (10,202 | ) |
| Balance at end of period | $ | 83,688 |
| | $ | 87,372 |
| | $ | 65,424 |
| | $ | 59,070 |
| | $ | 53,749 |
|
| |
(1) | Refer to Glossary of Terms for definition. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Asset Quality (excluding covered assets (1)) | | | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Credit Quality Indicators | | | | | | | | | | | | | | | |
| | Special Mention Loans | | % of Portfolio Loan Type | | | Potential Problem Loans | | % of Portfolio Loan Type | | | Non-Performing Loans | | % of Portfolio Loan Type | | | Total Loans |
| December 31, 2016 | | | | | | | | | | | | | | | | |
| Commercial | $ | 173,626 |
| | 1.8 | % | | | $ | 114,090 |
| | 1.2 | % | | | $ | 69,453 |
| | 0.7 | % | | | $ | 9,649,045 |
|
| Commercial real estate | — |
| | — | % | | | 4,632 |
| | 0.1 | % | | | 6,316 |
| | 0.2 | % | | | 4,120,725 |
|
| Construction | — |
| | — | % | | | — |
| | — | % | | | — |
| | — | % | | | 417,955 |
|
| Residential real estate | 5,449 |
| | 0.9 | % | | | 3,829 |
| | 0.7 | % | | | 4,591 |
| | 0.8 | % | | | 581,757 |
|
| Home equity | 508 |
| | 0.4 | % | | | 733 |
| | 0.6 | % | | | 3,317 |
| | 2.8 | % | | | 119,049 |
|
| Personal | 28 |
| | * |
| | | 61 |
| | * |
| | | 11 |
| | * |
| | | 167,710 |
|
| Total | $ | 179,611 |
| | 1.2 | % | | | $ | 123,345 |
| | 0.8 | % | | | $ | 83,688 |
| | 0.6 | % | | | $ | 15,056,241 |
|
| September 30, 2016 | | | | | | | | | | | | | | | | |
| Commercial | $ | 135,395 |
| | 1.4 | % | | | $ | 128,083 |
| | 1.3 | % | | | $ | 72,277 |
| | 0.8 | % | | | $ | 9,509,368 |
|
| Commercial real estate | — |
| | — | % | | | 116 |
| | * |
| | | 6,007 |
| | 0.2 | % | | | 3,830,537 |
|
| Construction | — |
| | — | % | | | — |
| | — | % | | | — |
| | — | % | | | 496,773 |
|
| Residential real estate | 9,228 |
| | 1.8 | % | | | 4,391 |
| | 0.8 | % | | | 4,124 |
| | 0.8 | % | | | 525,836 |
|
| Home equity | 538 |
| | 0.4 | % | | | 901 |
| | 0.7 | % | | | 4,948 |
| | 4.0 | % | | | 124,367 |
|
| Personal | 43 |
| | * |
| | | 42 |
| | * |
| | | 16 |
| | * |
| | | 167,689 |
|
| Total | $ | 145,204 |
| | 1.0 | % | | | $ | 133,533 |
| | 0.9 | % | | | $ | 87,372 |
| | 0.6 | % | | | $ | 14,654,570 |
|
|
| | | | | | | | | | | | | | | | | | | |
Reserve for Unfunded Commitments (2) | | | | | | | | | |
| (Amounts in thousands) | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | 4Q16 | | 3Q16 | | 2Q16 | | 1Q16 | | 4Q15 |
| Balance at beginning of period | $ | 15,647 |
| | $ | 13,729 |
| | $ | 12,354 |
| | $ | 11,759 |
| | $ | 15,209 |
|
| Provision (release) for unfunded commitments | 1,493 |
| | 1,918 |
| | 1,375 |
| | 595 |
| | (3,450 | ) |
| Balance at end of period | $ | 17,140 |
| | $ | 15,647 |
| | $ | 13,729 |
| | $ | 12,354 |
| | $ | 11,759 |
|
| Unfunded commitments, excluding covered assets, at period end | $ | 6,804,421 |
| | $ | 6,453,528 |
| | $ | 6,442,994 |
| | $ | 6,361,917 |
| | $ | 6,468,324 |
|
| |
(1) | Refer to Glossary of Terms for definition. |
| |
(2) | Unfunded commitments include commitments to extend credit, standby letters of credit and commercial letters of credit. Unfunded commitments related to covered assets are excluded as they are covered under a loss sharing agreement with the FDIC. |
|
| | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses (excluding covered assets (1)) | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | |
| (Unaudited) | | | | | | | | | |
| | 4Q16 | | 3Q16 | | 2Q16 | | 1Q16 | | 4Q15 |
| Change in allowance for loan losses: | | | | | | | | | |
| Balance at beginning of period | $ | 180,268 |
| | $ | 168,615 |
| | $ | 165,356 |
| | $ | 160,736 |
| | $ | 162,868 |
|
| Loans charged-off: | | | | | | | | | |
| Commercial | (641 | ) | | (4,870 | ) | | (2,838 | ) | | (78 | ) | | (5,654 | ) |
| Commercial real estate | — |
| | — |
| | (13 | ) | | (1,497 | ) | | (298 | ) |
| Residential real estate | (102 | ) | | (240 | ) | | (33 | ) | | (484 | ) | | (166 | ) |
| Home equity | — |
| | — |
| | (34 | ) | | (192 | ) | | (260 | ) |
| Personal | (48 | ) | | (10 | ) | | (17 | ) | | (150 | ) | | (15 | ) |
| Total charge-offs | (791 | ) | | (5,120 | ) | | (2,935 | ) | | (2,401 | ) | | (6,393 | ) |
| Recoveries on loans previously charged-off: | | | | | | | | | |
| Commercial | 102 |
| | 727 |
| | 66 |
| | 187 |
| | 786 |
|
| Commercial real estate | 38 |
| | 12 |
| | 449 |
| | 296 |
| | 205 |
|
| Construction | 20 |
| | 67 |
| | 13 |
| | 19 |
| | 11 |
|
| Residential real estate | 17 |
| | 43 |
| | 20 |
| | 19 |
| | 16 |
|
| Home equity | 27 |
| | 39 |
| | 65 |
| | 34 |
| | 314 |
|
| Personal | 11 |
| | 10 |
| | 11 |
| | 30 |
| | 12 |
|
| Total recoveries | 215 |
| | 898 |
| | 624 |
| | 585 |
| | 1,344 |
|
| Net charge-offs | (576 | ) | | (4,222 | ) | | (2,311 | ) | | (1,816 | ) | | (5,049 | ) |
| Provisions charged to operating expenses | 6,073 |
| | 15,875 |
| | 5,570 |
| | 6,436 |
| | 2,917 |
|
| Balance at end of period | $ | 185,765 |
| | $ | 180,268 |
| | $ | 168,615 |
| | $ | 165,356 |
| | $ | 160,736 |
|
| Allocation of allowance for loan losses: | | | | | | | | | |
| General allocated reserve: | | | | | | | | | |
| Commercial | $ | 130,117 |
| | $ | 125,242 |
| | $ | 115,574 |
| | $ | 116,017 |
| | $ | 113,161 |
|
| Commercial real estate | 30,403 |
| | 30,055 |
| | 30,323 |
| | 28,895 |
| | 26,454 |
|
| Construction | 6,087 |
| | 5,639 |
| | 6,169 |
| | 4,931 |
| | 5,441 |
|
| Residential real estate | 3,328 |
| | 3,311 |
| | 3,511 |
| | 3,800 |
| | 3,700 |
|
| Home equity | 1,924 |
| | 2,098 |
| | 2,404 |
| | 2,651 |
| | 2,638 |
|
| Personal | 1,968 |
| | 2,061 |
| | 2,241 |
| | 2,311 |
| | 2,080 |
|
| Total allocated | 173,827 |
| | 168,406 |
| | 160,222 |
| | 158,605 |
| | 153,474 |
|
| Specific reserve | 11,938 |
| | 11,862 |
| | 8,393 |
| | 6,751 |
| | 7,262 |
|
| Total | $ | 185,765 |
| | $ | 180,268 |
| | $ | 168,615 |
| | $ | 165,356 |
| | $ | 160,736 |
|
| Allocation of reserve by a percent of total allowance for loan losses: | | | | | | | | | |
| General allocated reserve: | | | | | | | | | |
| Commercial | 70 | % | | 69 | % | | 69 | % | | 70 | % | | 70 | % |
| Commercial real estate | 17 | % | | 17 | % | | 18 | % | | 18 | % | | 17 | % |
| Construction | 3 | % | | 3 | % | | 4 | % | | 3 | % | | 3 | % |
| Residential real estate | 2 | % | | 2 | % | | 2 | % | | 2 | % | | 2 | % |
| Home equity | 1 | % | | 1 | % | | 1 | % | | 2 | % | | 2 | % |
| Personal | 1 | % | | 1 | % | | 1 | % | | 1 | % | | 1 | % |
| Total allocated | 94 | % | | 93 | % | | 95 | % | | 96 | % | | 95 | % |
| Specific reserve | 6 | % | | 7 | % | | 5 | % | | 4 | % | | 5 | % |
| Total | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| Allowance for loan losses to: | | | | | | | | | |
| Total loans | 1.23 | % | | 1.23 | % | | 1.20 | % | | 1.23 | % | | 1.21 | % |
| Nonperforming loans | 222 | % | | 206 | % | | 258 | % | | 280 | % | | 299 | % |
| |
(1) | Refer to Glossary of Terms for definition. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | | | | | | | | | |
| | 12/31/16 | | % of Total | | 9/30/16 | | % of Total | | 6/30/16 | | % of Total | | 3/31/16 | | % of Total | | 12/31/15 | | % of Total |
| | Unaudited | | | | Unaudited | | | | Unaudited | | | | Unaudited | | | | Audited | | |
| Noninterest-bearing demand deposits | $ | 5,196,587 |
| | 32 | % | | $ | 4,857,470 |
| | 31 | % | | $ | 4,511,893 |
| | 31 | % | | $ | 4,338,177 |
| | 30 | % | | $ | 4,355,700 |
| | 30 | % |
| Interest-bearing demand deposits | 1,942,992 |
| | 12 | % | | 1,823,840 |
| | 12 | % | | 1,781,308 |
| | 12 | % | | 1,445,368 |
| | 10 | % | | 1,503,372 |
| | 11 | % |
| Savings deposits | 439,689 |
| | 3 | % | | 395,858 |
| | 3 | % | | 393,344 |
| | 3 | % | | 410,891 |
| | 3 | % | | 377,191 |
| | 3 | % |
| Money market accounts | 6,144,950 |
| | 38 | % | | 5,795,910 |
| | 37 | % | | 5,509,072 |
| | 38 | % | | 6,132,695 |
| | 42 | % | | 5,919,252 |
| | 41 | % |
| Time deposits | 2,341,011 |
| | 15 | % | | 2,615,776 |
| | 17 | % | | 2,361,777 |
| | 16 | % | | 2,137,738 |
| | 15 | % | | 2,190,077 |
| | 15 | % |
| Total deposits | $ | 16,065,229 |
| | 100 | % | | $ | 15,488,854 |
| | 100 | % | | $ | 14,557,394 |
| | 100 | % | | $ | 14,464,869 |
| | 100 | % | | $ | 14,345,592 |
| | 100 | % |
Total new deposits from new clients (1) | $ | 177,822 |
| | | | $ | 254,536 |
| | | | $ | 319,812 |
| | | | $ | 274,349 |
| | | | $ | 198,980 |
| | |
| |
(1) | Amounts are unaudited. |
|
| | | | | | | | | | | | | | | | | | | | |
| Brokered Deposit Composition | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | |
| | 12/31/16 | | 9/30/16 | | 6/30/16 | | 3/31/16 | | 12/31/15 | |
| Noninterest-bearing demand deposits | $ | 398,015 |
| | $ | 391,397 |
| | $ | 442,118 |
| | $ | 324,782 |
| | $ | 381,723 |
| |
| Interest-bearing demand deposits | 651,997 |
| | 627,442 |
| | 662,605 |
| | 250,123 |
| | 242,466 |
| |
| Savings deposits | 1,115 |
| | 1,111 |
| | 1,128 |
| | 1,110 |
| | 974 |
| |
| Money market accounts | 1,706,459 |
| | 1,712,595 |
| | 1,527,467 |
| | 1,824,525 |
| | 1,818,091 |
| |
| Time deposits: | | | | | | | | | | |
| Traditional | 505,817 |
| | 530,663 |
| | 511,924 |
| | 437,391 |
| | 437,235 |
| |
CDARS (1) | 150,656 |
| | 350,850 |
| | 271,118 |
| | 197,198 |
| | 208,086 |
| |
| Other | 27,319 |
| | 35,199 |
| | 38,120 |
| | 50,676 |
| | 74,954 |
| |
| Total time deposits | 683,792 |
| | 916,712 |
| | 821,162 |
| | 685,265 |
| | 720,275 |
| |
| Total brokered deposits | $ | 3,441,378 |
| | $ | 3,649,257 |
| | $ | 3,454,480 |
| | $ | 3,085,805 |
| | $ | 3,163,529 |
| |
| Brokered deposits as a % of total deposits | 21 | % | | 24 | % | | 24 | % | | 21 | % | | 22 | % | |
| |
(1) | The CDARS® deposit program is a deposit services arrangement that effectively achieves FDIC deposit insurance for jumbo deposit relationships. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | December 31, 2016 | | | September 30, 2016 | | | December 31, 2015 |
| | Average Balance | |
Interest (1)
| | Yield/ Rate | | | Average
Balance | |
Interest (1)
| | Yield/
Rate | | | Average Balance | |
Interest (1)
| | Yield/ Rate |
| Assets: | | | | | | | | | | | | | | | | | | | |
| Federal funds sold and interest-bearing deposits in banks | $ | 304,055 |
| | $ | 422 |
| | 0.54 | % | | | $ | 302,245 |
| | $ | 380 |
| | 0.49 | % | | | $ | 316,349 |
| | $ | 229 |
| | 0.28 | % |
| Securities: | | | | | | | | | | | | | | | | | | | |
| Taxable | 3,269,961 |
| | 16,891 |
| | 2.07 | % | | | 2,932,624 |
| | 15,283 |
| | 2.08 | % | | | 2,560,038 |
| | 14,587 |
| | 2.28 | % |
Tax-exempt (2) | 465,006 |
| | 3,609 |
| | 3.11 | % | | | 454,041 |
| | 3,529 |
| | 3.11 | % | | | 444,339 |
| | 3,512 |
| | 3.16 | % |
| Total securities | 3,734,967 |
| | 20,500 |
| | 2.20 | % | | | 3,386,665 |
| | 18,812 |
| | 2.22 | % | | | 3,004,377 |
| | 18,099 |
| | 2.41 | % |
| FHLB stock | 24,421 |
| | 163 |
| | 2.61 | % | | | 20,901 |
| | 139 |
| | 2.62 | % | | | 26,025 |
| | 115 |
| | 1.74 | % |
| Loans, excluding covered assets: | | | | | | | | | | | | | | | | | | | |
| Commercial | 9,669,704 |
| | 107,285 |
| | 4.34 | % | | | 9,205,527 |
| | 99,579 |
| | 4.23 | % | | | 8,696,086 |
| | 94,345 |
| | 4.25 | % |
| Commercial real estate | 3,900,350 |
| | 38,057 |
| | 3.82 | % | | | 3,671,508 |
| | 35,850 |
| | 3.82 | % | | | 3,291,094 |
| | 31,226 |
| | 3.71 | % |
| Construction | 522,589 |
| | 5,380 |
| | 4.03 | % | | | 632,790 |
| | 6,119 |
| | 3.78 | % | | | 507,444 |
| | 4,918 |
| | 3.79 | % |
| Residential | 574,242 |
| | 4,756 |
| | 3.31 | % | | | 540,848 |
| | 4,727 |
| | 3.50 | % | | | 471,378 |
| | 4,158 |
| | 3.53 | % |
| Personal and home equity | 280,651 |
| | 2,438 |
| | 3.46 | % | | | 299,705 |
| | 2,331 |
| | 3.09 | % | | | 291,524 |
| | 2,177 |
| | 2.96 | % |
Total loans, excluding covered assets (3) | 14,947,536 |
| | 157,916 |
| | 4.14 | % | | | 14,350,378 |
| | 148,606 |
| | 4.06 | % | | | 13,257,526 |
| | 136,824 |
| | 4.04 | % |
Covered assets (4) | 21,943 |
| | 145 |
| | 2.63 | % | | | 24,202 |
| | 153 |
| | 2.51 | % | | | 27,681 |
| | 182 |
| | 2.61 | % |
Total interest-earning assets (2) | 19,032,922 |
| | $ | 179,146 |
| | 3.70 | % | | | 18,084,391 |
| | $ | 168,090 |
| | 3.65 | % | | | 16,631,958 |
| | $ | 155,449 |
| | 3.67 | % |
| Cash and due from banks | 192,277 |
| | | | | | | 186,205 |
| | | | | | | 188,286 |
| | | | |
| Allowance for loan and covered loan losses | (188,191 | ) | | | | | | | (178,602 | ) | | | | | | | (171,277 | ) | | | | |
| Other assets | 518,134 |
| | | | | | | 540,458 |
| | | | | | | 512,251 |
| | | | |
| Total assets | $ | 19,555,142 |
| | | | | | | $ | 18,632,452 |
| | | | | | | $ | 17,161,218 |
| | | | |
Liabilities and Equity : | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | $ | 1,747,456 |
| | $ | 1,531 |
| | 0.35 | % | | | $ | 1,725,404 |
| | $ | 1,429 |
| | 0.33 | % | | | $ | 1,426,603 |
| | $ | 936 |
| | 0.26 | % |
| Savings deposits | 421,535 |
| | 520 |
| | 0.49 | % | | | 392,485 |
| | 480 |
| | 0.49 | % | | | 368,087 |
| | 430 |
| | 0.46 | % |
| Money market accounts | 6,223,860 |
| | 6,941 |
| | 0.44 | % | | | 5,946,692 |
| | 6,565 |
| | 0.44 | % | | | 5,946,834 |
| | 5,057 |
| | 0.34 | % |
| Time deposits | 2,506,461 |
| | 7,308 |
| | 1.15 | % | | | 2,385,720 |
| | 6,764 |
| | 1.12 | % | | | 2,262,252 |
| | 5,941 |
| | 1.04 | % |
| Total interest-bearing deposits | 10,899,312 |
| | 16,300 |
| | 0.59 | % | | | 10,450,301 |
| | 15,238 |
| | 0.58 | % | | | 10,003,776 |
| | 12,364 |
| | 0.49 | % |
| Short-term borrowings | 985,587 |
| | 1,118 |
| | 0.44 | % | | | 1,018,856 |
| | 1,070 |
| | 0.41 | % | | | 176,165 |
| | 201 |
| | 0.45 | % |
| Long-term debt | 338,298 |
| | 5,113 |
| | 6.02 | % | | | 338,274 |
| | 5,065 |
| | 5.96 | % | | | 694,788 |
| | 5,087 |
| | 2.91 | % |
| Total interest-bearing liabilities | 12,223,197 |
| | 22,531 |
| | 0.73 | % | | | 11,807,431 |
| | 21,373 |
| | 0.72 | % | | | 10,874,729 |
| | 17,652 |
| | 0.64 | % |
| Noninterest-bearing demand deposits | 5,197,157 |
| | | | | | | 4,717,556 |
| | | | | | | 4,420,246 |
| | | | |
| Other liabilities | 223,811 |
| | | | | | | 237,356 |
| | | | | | | 182,759 |
| | | | |
| Equity | 1,910,977 |
| | | | | | | 1,870,109 |
| | | | | | | 1,683,484 |
| | | | |
| Total liabilities and equity | $ | 19,555,142 |
| | | | | | | $ | 18,632,452 |
| | | | | | | $ | 17,161,218 |
| | | | |
Net interest spread (2)(5) | | | | | 2.97 | % | | | | | | | 2.93 | % | | | | | | | 3.03 | % |
| Contribution of noninterest-bearing sources of funds | | | | | 0.26 | % | | | | | | | 0.25 | % | | | | | | | 0.22 | % |
Net interest income/margin (2)(5) | | | 156,615 |
| | 3.23 | % | | | | | 146,717 |
| | 3.18 | % | | | | | 137,797 |
| | 3.25 | % |
| Less: tax equivalent adjustment | | | 1,234 |
| | | | | | | 1,207 |
| | | | | | | 1,206 |
| | |
| Net interest income, as reported | | | $ | 155,381 |
| | | | | | | $ | 145,510 |
| | | | | | | $ | 136,591 |
| | |
| |
(1) | Interest income included $8.0 million, $6.2 million, and $9.2 million in loan fees for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively. |
| |
(2) | Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-U.S. GAAP measure. |
| |
(3) | Includes loans held-for-sale and nonaccrual loans. Average loans on a nonaccrual basis for the recognition of interest income totaled $87.2 million, $79.8 million, and $48.9 million for the three months ended December 31, 2016, September 30, 2016, and December 31, 2015, respectively. Interest foregone on impaired loans was estimated to be approximately $947,000, $841,000 and $488,000 for the three months ended December 31, 2016, September 30, 2016, and December 31, 2015, respectively, calculated based on the average loan portfolio yield for the respective period. |
| |
(4) | Covered interest-earning assets consist of loans acquired through a FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset. |
| |
(5) | Refer to Glossary of Terms for definition. |
|
| | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2016 | | 2015 |
| | Average Balance | | Interest (1) | | Yield/ Rate | | Average Balance | | Interest (1) | | Yield/ Rate |
| Assets: | | | | | | | | | | | |
| Federal funds sold and interest-bearing deposits in banks | $ | 287,908 |
| | $ | 1,477 |
| | 0.51 | % | | $ | 349,803 |
| | $ | 903 |
| | 0.26 | % |
| Securities: | | | | | | | | | | | |
| Taxable | 2,919,718 |
| | 62,542 |
| | 2.14 | % | | 2,440,429 |
| | 55,283 |
| | 2.27 | % |
Tax-exempt (2) | 453,432 |
| | 14,178 |
| | 3.13 | % | | 400,258 |
| | 12,592 |
| | 3.15 | % |
| Total securities | 3,373,150 |
| | 76,720 |
| | 2.27 | % | | 2,840,687 |
| | 67,875 |
| | 2.39 | % |
| FHLB stock | 24,269 |
| | 622 |
| | 2.56 | % | | 26,743 |
| | 295 |
| | 1.10 | % |
| Loans, excluding covered assets: | | | | | | | | | | | |
| Commercial | 9,089,131 |
| | 399,475 |
| | 4.40 | % | | 8,447,121 |
| | 359,794 |
| | 4.26 | % |
| Commercial real estate | 3,613,835 |
| | 140,144 |
| | 3.88 | % | | 3,052,095 |
| | 114,868 |
| | 3.76 | % |
| Construction | 582,799 |
| | 23,156 |
| | 3.97 | % | | 433,123 |
| | 17,245 |
| | 3.98 | % |
| Residential | 530,769 |
| | 18,379 |
| | 3.46 | % | | 430,332 |
| | 15,145 |
| | 3.52 | % |
| Personal and home equity | 295,061 |
| | 9,331 |
| | 3.16 | % | | 313,758 |
| | 9,353 |
| | 2.98 | % |
Total loans, excluding covered assets (3) | 14,111,595 |
| | 590,485 |
| | 4.18 | % | | 12,676,429 |
| | 516,405 |
| | 4.07 | % |
Covered assets (4) | 24,212 |
| | 566 |
| | 2.34 | % | | 30,169 |
| | 1,056 |
| | 3.50 | % |
Total interest-earning assets (2) | 17,821,134 |
| | $ | 669,870 |
| | 3.76 | % | | 15,923,831 |
| | $ | 586,534 |
| | 3.69 | % |
| Cash and due from banks | 184,166 |
| | | | | | 176,586 |
| | | | |
| Allowance for loan and covered loan losses | (177,316 | ) | | | | | | (165,994 | ) | | | | |
| Other assets | 532,947 |
| | | | | | 495,437 |
| | | | |
| Total assets | $ | 18,360,931 |
| | | | | | $ | 16,429,860 |
| | | | |
| Liabilities and Equity: | | | | | | | | | | | |
| Interest-bearing demand deposits | $ | 1,620,817 |
| | $ | 5,221 |
| | 0.32 | % | | $ | 1,447,298 |
| | $ | 3,845 |
| | 0.27 | % |
| Savings deposits | 401,485 |
| | 1,941 |
| | 0.48 | % | | 341,709 |
| | 1,434 |
| | 0.42 | % |
| Money market accounts | 6,017,268 |
| | 25,601 |
| | 0.43 | % | | 5,799,593 |
| | 18,735 |
| | 0.32 | % |
| Time deposits | 2,326,362 |
| | 25,811 |
| | 1.11 | % | | 2,389,460 |
| | 23,092 |
| | 0.97 | % |
| Total interest-bearing deposits | 10,365,932 |
| | 58,574 |
| | 0.57 | % | | 9,978,060 |
| | 47,106 |
| | 0.47 | % |
| Short-term borrowings | 759,701 |
| | 3,413 |
| | 0.45 | % | | 230,402 |
| | 656 |
| | 0.28 | % |
| Long-term debt | 488,399 |
| | 20,605 |
| | 4.22 | % | | 548,075 |
| | 20,035 |
| | 3.66 | % |
| Total interest-bearing liabilities | 11,614,032 |
| | 82,592 |
| | 0.71 | % | | 10,756,537 |
| | 67,797 |
| | 0.63 | % |
| Noninterest-bearing demand deposits | 4,694,213 |
| | | | | | 3,915,032 |
| | | | |
| Other liabilities | 217,924 |
| | | | | | 156,840 |
| | | | |
| Equity | 1,834,762 |
| | | | | | 1,601,451 |
| | | | |
| Total liabilities and equity | $ | 18,360,931 |
| | | | | | $ | 16,429,860 |
| | | | |
Net interest spread (2)(5) | | | | | 3.05 | % | | | | | | 3.06 | % |
| Contribution of noninterest-bearing sources of funds | | | | | 0.25 | % | | | | | | 0.20 | % |
Net interest income/margin (2)(5) | | | 587,278 |
| | 3.30 | % | | | | 518,737 |
| | 3.26 | % |
| Less: tax-equivalent adjustment | | | 4,852 |
| | | | | | 4,322 |
| | |
| Net interest income, as reported | | | $ | 582,426 |
| | | | | | $ | 514,415 |
| | |
| |
(1) | Interest income included $31.1 million and $31.0 million in loan fees for the year ended December 31, 2016 and 2015, respectively. |
| |
(2) | Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-U.S. GAAP measure. |
| |
(3) | Includes loans held-for-sale and nonaccrual loans. Average loans on a nonaccrual basis for the recognition of interest income totaled $71.3 million and $57.9 million for the year ended December 31, 2016 and 2015, respectively. Interest foregone on impaired loans was estimated to be approximately $3.0 million and $2.3 million for the year ended December 31, 2016 and 2015, respectively, calculated based on the average loan portfolio yield for the respective period. |
| |
(4) | Covered interest-earning assets consist of loans acquired through a FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset. |
| |
(5) | Refer to Glossary of Terms for definition. |
NON-U.S. GAAP FINANCIAL MEASURES
This press release contains both U.S. GAAP and non-U.S. GAAP based financial measures. These non-U.S. GAAP financial measures include net interest income, net interest margin, net revenue, operating profit, and efficiency ratio all on a fully taxable-equivalent basis, return on average tangible common equity, tangible common equity to tangible assets, and tangible book value. We believe that presenting these non-U.S. GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry.
We use net interest income on a taxable-equivalent basis in calculating various performance measures by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments assuming a 35% tax rate. Management believes this measure to be the preferred industry measurement of net interest income as it enhances comparability to net interest income arising from taxable and tax-exempt sources, and accordingly believes that providing this measure may be useful for peer comparison purposes.
In addition to capital ratios defined by banking regulators, we also consider various measures when evaluating capital utilization and adequacy, including return on average tangible common equity, tangible common equity to tangible assets, and tangible book value. These calculations are intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. All of these measures exclude the ending balances of goodwill and other intangibles while certain of these ratios exclude preferred capital components. Because U.S. GAAP does not include capital ratio measures, we believe there are no comparable U.S. GAAP financial measures to these ratios. We believe these non-U.S. GAAP financial measures are relevant because they provide information that is helpful in assessing the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of our capitalization to other similar companies. However, because there are no standardized definitions for these ratios, our calculations may not be comparable with other companies.
Non-U.S. GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-U.S. GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyses of results as reported under U.S. GAAP. As a result, we encourage readers to consider our Consolidated Financial Statements in their entirety and not to rely on any single financial measure.
Non-U.S. GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
The following table reconciles non-U.S. GAAP financial measures to U.S. GAAP.
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | 2016 | | 2015 |
| | December 31 | | September 30 | | June 30 | | March 31 | | December 31 |
| Taxable-equivalent net interest income | | | | | | | | | |
| U.S. GAAP net interest income | $ | 155,381 |
| | $ | 145,510 |
| | $ | 142,017 |
| | $ | 139,518 |
| | $ | 136,591 |
|
| Taxable-equivalent adjustment | 1,234 |
| | 1,207 |
| | 1,194 |
| | 1,217 |
| | 1,206 |
|
Taxable-equivalent net interest income (a) | $ | 156,615 |
| | $ | 146,717 |
| | $ | 143,211 |
| | $ | 140,735 |
| | $ | 137,797 |
|
Average Earning Assets (b) | $ | 19,032,922 |
| | $ | 18,084,391 |
| | $ | 17,285,351 |
| | $ | 16,865,659 |
| | $ | 16,631,958 |
|
Net Interest Margin ((a) annualized) / (b) | 3.23 | % | | 3.18 | % | | 3.28 | % | | 3.30 | % | | 3.25 | % |
| Net Revenue | | | | | | | | | |
| Taxable-equivalent net interest income | $ | 156,615 |
| | $ | 146,717 |
| | $ | 143,211 |
| | $ | 140,735 |
| | $ | 137,797 |
|
| U.S. GAAP non-interest income | 39,412 |
| | 37,614 |
| | 37,130 |
| | 33,602 |
| | 32,648 |
|
Net revenue (c) | $ | 196,027 |
| | $ | 184,331 |
| | $ | 180,341 |
| | $ | 174,337 |
| | $ | 170,445 |
|
| Operating Profit | | | | | | | | | |
| U.S. GAAP income before income taxes | $ | 92,901 |
| | $ | 75,513 |
| | $ | 79,362 |
| | $ | 76,225 |
| | $ | 83,388 |
|
| Provision for loan and covered loan losses | 6,048 |
| | 15,691 |
| | 5,569 |
| | 6,402 |
| | 2,831 |
|
| Taxable-equivalent adjustment | 1,234 |
| | 1,207 |
| | 1,194 |
| | 1,217 |
| | 1,206 |
|
| Operating profit | $ | 100,183 |
| | $ | 92,411 |
| | $ | 86,125 |
| | $ | 83,844 |
| | $ | 87,425 |
|
| Efficiency Ratio | | | | | | | | | |
U.S. GAAP non-interest expense (d) | $ | 95,844 |
| | $ | 91,920 |
| | $ | 94,216 |
| | $ | 90,493 |
| | $ | 83,020 |
|
| Net revenue | $ | 196,027 |
| | $ | 184,331 |
| | $ | 180,341 |
| | $ | 174,337 |
| | $ | 170,445 |
|
Efficiency ratio (d) / (c) | 48.89 | % | | 49.87 | % | | 52.24 | % | | 51.91 | % | | 48.71 | % |
| Adjusted Net Income | | | | | | | | | |
| U.S. GAAP net income available to common stockholders | $ | 59,548 |
| | $ | 48,892 |
| | $ | 50,365 |
| | $ | 49,552 |
| | $ | 52,137 |
|
| Amortization of intangibles, net of tax | 333 |
| | 332 |
| | 332 |
| | 331 |
| | 357 |
|
Adjusted net income (e) | $ | 59,881 |
| | $ | 49,224 |
| | $ | 50,697 |
| | $ | 49,883 |
| | $ | 52,494 |
|
| Average Tangible Common Equity | | | | | | | | | |
| U.S. GAAP average total equity | $ | 1,910,977 |
| | $ | 1,870,109 |
| | $ | 1,809,203 |
| | $ | 1,747,531 |
| | $ | 1,683,484 |
|
| Less: average goodwill | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
|
| Less: average other intangibles | 1,531 |
| | 2,073 |
| | 2,613 |
| | 3,153 |
| | 3,711 |
|
Average tangible common equity (f) | $ | 1,815,405 |
| | $ | 1,773,995 |
| | $ | 1,712,549 |
| | $ | 1,650,337 |
| | $ | 1,585,732 |
|
Return on average tangible common equity ((e) annualized) / (f) | 13.12 | % | | 11.04 | % | | 11.91 | % | | 12.16 | % | | 13.13 | % |
Non-U.S. GAAP Financial Measures (continued)
(Dollars in thousands)
(Unaudited)
|
| | | | | | | |
| | Year Ended December 31, |
| | 2016 | | 2015 |
| Taxable-equivalent net interest income | | | |
| U.S. GAAP net interest income | $ | 582,426 |
| | $ | 514,415 |
|
| Taxable-equivalent adjustment | 4,852 |
| | 4,322 |
|
Taxable-equivalent net interest income (a) | $ | 587,278 |
| | $ | 518,737 |
|
Average Earning Assets (b) | $ | 17,821,134 |
| | $ | 15,923,831 |
|
Net Interest Margin (a) / (b) | 3.30 | % | | 3.26 | % |
| Net Revenue | | | |
| Taxable-equivalent net interest income | $ | 587,278 |
| | $ | 518,737 |
|
| U.S. GAAP non-interest income | 147,758 |
| | 130,012 |
|
Net revenue (c) | $ | 735,036 |
| | $ | 648,749 |
|
| Operating Profit | | | |
| U.S. GAAP income before income taxes | $ | 324,001 |
| | $ | 296,400 |
|
| Provision for loan and covered loan losses | 33,710 |
| | 14,790 |
|
| Taxable-equivalent adjustment | 4,852 |
| | 4,322 |
|
| Operating profit | $ | 362,563 |
| | $ | 315,512 |
|
| Efficiency Ratio | | | |
U.S. GAAP non-interest expense (d) | $ | 372,473 |
| | $ | 333,237 |
|
| Net revenue | $ | 735,036 |
| | $ | 648,749 |
|
Efficiency ratio (d) / (c) | 50.67 | % | | 51.37 | % |
| Adjusted Net Income | | | |
| U.S. GAAP net income available to common stockholders | $ | 208,357 |
| | $ | 185,311 |
|
| Amortization of intangibles, net of tax | 1,328 |
| | 1,505 |
|
Adjusted net income (e) | $ | 209,685 |
| | $ | 186,816 |
|
| Average Tangible Common Equity | | | |
| U.S. GAAP average total equity | $ | 1,834,762 |
| | $ | 1,601,451 |
|
| Less: average goodwill | 94,041 |
| | 94,041 |
|
| Less: average other intangibles | 2,340 |
| | 4,606 |
|
Average tangible common equity (f) | $ | 1,738,381 |
| | $ | 1,502,804 |
|
Return on average tangible common equity (e) / (f) | 12.06 | % | | 12.43 | % |
Non-U.S. GAAP Financial Measures (continued)
(Dollars in thousands)
(Unaudited) |
| | | | | | | | | | | | | | | | | | | |
| | As of |
| | 2016 | | 2015 |
| | December 31 | | September 30 | | June 30 | | March 31 | | December 31 |
| Tangible Common Equity | | | | | | | | | |
| U.S. GAAP total equity | $ | 1,919,675 |
| | $ | 1,882,354 |
| | $ | 1,831,150 |
| | $ | 1,767,991 |
| | $ | 1,698,951 |
|
| Less: goodwill | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
|
| Less: other intangibles | 1,269 |
| | 1,809 |
| | 2,349 |
| | 2,890 |
| | 3,430 |
|
Tangible common equity (g) | $ | 1,824,365 |
| | $ | 1,786,504 |
| | $ | 1,734,760 |
| | $ | 1,671,060 |
| | $ | 1,601,480 |
|
| Tangible Assets | | | | | | | | | |
U.S. GAAP total assets | $ | 20,053,773 |
| | $ | 19,105,560 |
| | $ | 18,169,191 |
| | $ | 17,667,372 |
| | $ | 17,252,848 |
|
| Less: goodwill | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
| | 94,041 |
|
| Less: other intangibles | 1,269 |
| | 1,809 |
| | 2,349 |
| | 2,890 |
| | 3,430 |
|
Tangible assets (h) | $ | 19,958,463 |
| | $ | 19,009,710 |
| | $ | 18,072,801 |
| | $ | 17,570,441 |
| | $ | 17,155,377 |
|
Period-end Common Shares Outstanding (i) | 79,849 |
| | 79,640 |
| | 79,464 |
| | 79,322 |
| | 79,097 |
|
| Ratios: | | | | | | | | | |
Tangible common equity to tangible assets (g) / (h) | 9.14 | % | | 9.40 | % | | 9.60 | % | | 9.51 | % | | 9.34 | % |
Tangible book value (g) / (i) | $ | 22.85 |
| | $ | 22.43 |
| | $ | 21.83 |
| | $ | 21.07 |
| | $ | 20.25 |
|
Glossary of Terms
Assets under management and administration (“AUMA”) - Assets held in trust where we serve as trustee or in accounts where we make investment decisions on behalf of clients. AUMA also includes non-managed assets we hold in custody for clients or for which we receive fees for advisory or brokerage services. We do not include these assets on our Consolidated Balance Sheets.
Book value - Total common equity divided by outstanding shares of common stock at end of period.
Common equity - Total equity less preferred stock.
Common equity Tier 1 - Tier 1 risk-based capital less preferred equity, less trust preferred securities, and less noncontrolling interests.
Common equity Tier 1 to risk-weighted assets ratio - Common equity Tier 1 divided by period-end risk-weighted assets.
Covered assets - Assets acquired through an FDIC-assisted transaction that are subject to a loss share agreement and are presented separately on the Consolidated Balance Sheets.
Credit quality indicators - We have adopted an internal risk rating policy in which each loan is rated for credit quality with a numerical rating of 1 through 8. Loans rated 5 and better (1-5 ratings, inclusive) are credits that exhibit acceptable financial performance, cash flow, and leverage. We attempt to mitigate risk by loan structure, collateral, monitoring, and other credit risk management controls. Credits rated 6 are performing in accordance with contractual terms but are considered "special mention" as these credits demonstrate potential weakness that if left unresolved, may result in deterioration in the Company’s credit position and/or the repayment prospects for the credit. Borrowers rated special mention may exhibit adverse operating trends, high leverage, tight liquidity or other credit concerns. Loans rated 7 may be classified as either accruing ("potential problem") or nonaccrual ("nonperforming"). Potential problem loans, like special mention, are loans that are performing in accordance with contractual terms, but for which management has some level of concern (greater than that of special mention loans) about the ability of the borrowers to meet existing repayment terms in future periods. These loans continue to accrue interest but the ultimate collection of these loans in full is questionable due to the same conditions that characterize a 6-rated credit. These credits may also have somewhat increased risk profiles as a result of the current net worth and/or paying capacity of the obligor or guarantors or the value of the collateral pledged. These loans generally have a well-defined weakness that may jeopardize collection of the debt and are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not resolved. Although these loans are generally identified as potential problem loans and require additional attention by management, they may never become nonperforming. Nonperforming loans include nonaccrual loans risk rated 7 or 8 and have all the weaknesses inherent in a 7-rated potential problem loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently-existing facts, conditions and values, highly questionable and improbable. Special mention, potential problem and nonperforming loans are reviewed at a minimum on a quarterly basis, while all other rated credits over a certain dollar threshold, depending on loan type, are reviewed annually or more frequently as the circumstances warrant.
Credit valuation adjustment ("CVA") - An adjustment may need to be incorporated into the valuation of derivative instruments for nonperformance risk to include the counterparty’s credit risk and the Company’s own credit risk. This adjustment is referred to as the CVA. The CVA represents the credit component of fair value with regard to both client-based trades and the related matched trades with interbank dealer counterparties.
Efficiency ratio - Total non-interest expense divided by the sum of taxable-equivalent net interest income and non-interest income. This is a non-U.S. GAAP financial measure.
Fee revenue as percent of total revenue ratio - Total non-interest income less net securities gains (losses) divided by the sum of net interest income and non-interest income less net securities gains (losses).
U.S. GAAP - Accounting principles generally accepted in the United States of America.
Net interest margin - Expressed as a percentage, net interest margin is a ratio computed as annualized taxable-equivalent net interest income divided by average interest-earning assets. The annualization of net interest income for the quarterly yield takes into consideration the interest payment convention at the product level. This is a non-U.S. GAAP financial measure.
Net interest spread - The difference between the average yield earned on interest-earning assets on a taxable-equivalent basis and the average rate paid for interest-bearing liabilities.
Glossary of Terms (continued)
Net overhead ratio - Total non-interest expense less non-interest income divided by average total assets.
Net revenue - The sum of taxable-equivalent net interest income and non-interest income. This is a non-U.S. GAAP financial measure.
Non-U.S. GAAP - Certain financial measures within this document that are not formally defined by U.S. GAAP or codified in the federal banking regulations. A reconciliation of these non-U.S. GAAP financial measures may be found on the previous pages.
Operating profit - The sum of U.S. GAAP income before income taxes, provision for loan and covered loan losses and taxable-equivalent adjustment. This is a non-U.S. GAAP financial measure.
Return on average tangible common equity - Annualized net income available to common stockholders, adjusted for tax-affected amortization of intangibles, divided by average tangible common equity. Average tangible common equity equals average total equity less average goodwill, average intangible assets, and average preferred stock. This is a non-U.S. GAAP financial measure.
Risk-weighted assets - Computed by the assignment of specific risk-weights to assets and off-balance sheet instruments.
Tangible book value - Total common equity less goodwill and other intangibles divided by outstanding shares of common stock at end of period. This is a non-U.S. GAAP financial measure.
Tangible common equity to tangible assets ratio - Tangible common equity divided by tangible assets, where tangible common equity equals total equity less preferred stock, goodwill and other intangible assets and tangible assets equals total assets less goodwill and other intangible assets. This is a non-U.S. GAAP financial measure.
Taxable-equivalent net interest income - The interest income earned on certain assets is completely or partially exempt from Federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under U.S. GAAP on the Consolidated Income Statement.
Tier 1 equity to risk-weighted assets ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.
Tier 1 leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.
Tier 1 risk-based capital - Total equity, plus trust preferred securities; less goodwill and certain other intangible assets, less ineligible servicing assets, less disallowed deferred tax assets and less net unrealized holding gains (losses) on available-for-sale equity securities, available-for-sale debt securities, and cash flow hedge derivatives.
Tier 1 risk-based capital ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.
Total risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt, other noncontrolling interests not qualified as Tier 1, eligible gains on available-for-sale equity securities and the allowance for loan and lease losses, subject to certain limitations.
Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.
